NOTRE DAME OF NEW ILOILO, INC.

A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]

SUBJECT: ENTREPRENEURSHIP GRADE LEVEL: TWELVE

QUARTER: THREE (2) WEEK: THREE
I - OBJECTIVES: At the end of the lesson, students are expected to:
1. Describe the unique selling proposition and value proposition that
differentiate one’s product/service from existing products/services;
2. Determine who the customers are in term of
a. Target market
b. Customer requirement
c. Market size

II - PRE-ASSESSMENT
Direction: Before we begin with this module, answer the question below, Let’s
see if you already have some idea about Recognizing Potential Markets.
Write True if the statement is correct and write False if not correct.
__________1. Value refers to what the product does for customers that
they’re prepared to pay.
__________2. Marketing concept that was first proposed as a theory to
understand the pattern in successful advertising called Unique
Selling Proposition.
__________3. In creating value proposition, entrepreneurs will consider the
four (4) basic elements.
__________4. Unique selling proposition is specific, often citing numbers or
percentages.
__________5. The effective selling using advertising and marketing is part of
value proposition.
__________6. Identify and rank the uniqueness of the product or services
character is one tip for the entrepreneur on how to create an
effective unique selling proposition.
_________7. The Entrepreneurs will not consider the health benefits of the
consumers.
__________8. Consumers have common wants and needs.
__________9. The market targeting is a stage in market identification process
that aims to determine the set of buyers with common needs
and characteristics.
_________10. Identifying the unique selling proposition will not require
marketing research.
_________11. Targeting a specific market does not mean that you are
excluding people who do not fit your criteria.
_________ 12. Demographic segmentation is the total market divided
according to geographic location.
_________ 13. Knowledge and awareness is one variable to consider in
behavioral segmentation.

1|P age
 NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
_________ 14. Service requirement is intangible thing or product not able to
be touch but feel the fulfillment.
_________ 15. Market size is like a world globe measurement.

III - CONTENT/ DISCUSSION/ INFORMATION

Module 3: Recognize and Understand the Market

Lesson 1 - Recognize and Understand the Market

Value Proposition (VP) is a business or marketing statement that

summarizes why a consumer should buy a company's product or use its
service. This statement is often used to convince a customer to purchase a
particular product or service to add a form of value to their lives. In creating
Value Proposition, entrepreneurs will consider the basic elements:
• Target Customer
• Needs/opportunity
• Name of the product
• Name of the enterprise/company

There are many competitors in the market to establish superiority to them.

Entrepreneurs should think some alternative and how it works better. An
important aspect in Value Proposition must be truthful that will establish
credibility to the consumers.
Example: Potential value proposition is most common in small
businesses of your locality.

Aling Charing Sari-sari Store open only from 6:00 am to 6:00 pm, but Aling
Charing noticed that there are customers who go nearby town to look for a
convenience store at around 10:00 pm to 6:00 am. She believes that this is a
great opportunity for her store to operate 24/7. In this example, proposed
value proposition: “Charing Sari-sari Store, opens 24/7”.

The business describes sari-sari store – a basic retail store. The assurance
from this value proposition is because of the phrase “opens 24/7”, Aling
Charing Sari-sari Store opens 24/7, which make it different from other
competitors.

Unique selling proposition (USP) refers to how you sell your product or
services to your customer. You will address the wants and desires of your
customers.

As entrepreneur, you think of marketing concept that persuade your target

customers. The following questions you may ask in doing this, What the
customers want? What brand does well? What your competitor does well?
2|P age
 NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
Some tips for the entrepreneur on how to create an effective unique selling
proposition to the target customers:
• Identify and rank the uniqueness of the product or services character
• Very Specific
• Keep it short and simple (KISS)
As entrepreneur, present the best feature of your product or services that are
different from other competitors. Identifying the unique selling proposition
requires marketing research that you will learn from the other modules. In
promoting your products or services, make sure that it is very specific and put
details that emphasize the differentiator against the competitors. Keep it short
and simple and think of a tagline that is easy to remember. Right now, the
proposed unique selling proposition: “Charing Sari-sari Store, opens 24/7”.

Readers get confused between value proposition and unique selling

proposition. The two propositions are used to differentiate the products from
competitors. For example, Jollibee is known to have a Filipino taste burger.
This brand has a unique selling point because of its tagline “Langhap Sarap”

Unique Value Proposition and Value Proposition are two most famous tools
used to explain why prospect customers buy each products and services.
Base on each definition, we learn that USP and VP are frameworks of each
business industry. The two propositions are valuable for the entrepreneurs.

After you understand the value proposition and the unique selling proposition,
now it’s time to understand the target market, customers requirement and
market size.

A. Target Market
Market Targeting is a sage in market identification process that aims to
determine the buyers with common needs and characteristics. Prospect
customers are market segment that entrepreneurial venture intends to serve.

In targeting a specific market, it will exclude people even if it will not fit your
criteria. Rather, target marketing allows you to focus your marketing money
and brand message on a specific market that is more likely to buy from you
than other markets. Product is more affordable, efficient, and effective way to
reach potential clients and generate business.

Commonly used methods for segmenting the market are follows.

1. Geographic segmentation – the total market is divided according to
geographical location.

3|P age
 NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
• Variable to consider
a. Climate
b. Dominant ethnic group
c. Culture
d. Density (either rural or urban)
2. Demographic Segmentation – divided based consumers.
• Variable to consider
a. Gender
b. Age
c. Income
d. Occupation
e. Education
f. Religion
g. Ethnic group
h. Family size
3. Psychological Segmentation- divided in terms for customers think and
believe.
• Variable to consider
a. Needs and wants
b. Attitudes
c. Social class
d. Personality traits
e. Knowledge and awareness
f. Brand concept
g. Lifestyle
4. Behavioral Segmentation- divided according to customers behavior pattern
as they interact with a company.
• Variable to consider
a. Perceptions
b. Knowledge
c. Reaction
d. Benefits
e. Loyalty
f. Responses

B. Customer Requirements
Customer requirements are the specific characteristics that the customers
need from a product or a service.
There can be two types of customer requirements:
1. Service Requirement
2. Output Requirement

Service Requirement:

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 NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
Intangible thing or product that is not able to be touched but customer can feel
the fulfillment. There are elements in service requirement like on-time
delivery, service with a smile, easy-payment etc. It includes all aspects of how
a customer expect to be treated while purchasing a product and how easy the
buying process goes.

Output Requirements: Tangible thing or things that can be seen.

Characteristic specifications that a consumer expects to be fulfilled in the
product. Costumer that will avail services as a product, then various service
requirements can take the form of output requirements. For example, if the
consumer hires a multi cab, then on-time arrival becomes an output
requirement. Customer buys gadgets (phone speaker), the specification like
the loudness and clarity are the output requirements.

C. Market Size
Entrepreneur’s most critical task is to calculate the market size, and the
potential value that market has for their startup business. Market research will
determine entrepreneur possible customers in one locality.

What is Market Size?

Market size is like a size of arena where the entrepreneurs will play their
business. It is the approximate number of sellers and buyers in a particular
market. Companies are interested in knowing the market size before
launching a new product or service in the area. In determining the market
size, entrepreneur will conduct a strategic marketing research from reliable
sources using the following method. First step is to estimate the potential
market – approximate number of customers that will buy the product or avail
your services. Second step is to estimate the customers who probably dislike
to buy your product or avail the services. Third step is for the entrepreneur to
estimate the market share, that means plotting and calculating of the
competitor’s market share to determine the portion of the new venture. Market
size become the most important if you ever need to raise funding for your
business.

Module 4 – Market Research

Firms and other business companies need to understand their service

offerings and their customers to ensure that their services will be adopted as
solutions to consumer needs. In order for the firms to recognize the needs of
the market or the customers, they need to conduct market research.

The Market Research or Marketing Research Process can be defined as

the process of gathering, analyzing and interpreting the information about the

5|P age
 NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
products or the services to be offered for sale to the potential consumers in
the market,

There are different ways to collect the data. The most important methods you
can consider are surveys, focus group discussion and interviews.

Students are expected to:

1. Discuss market research
2. Know the meaning of data gathering
3. Identify the different data gathering techniques

DATA COLLECTION is the most valuable tool of any type of research study.
Inaccurate data collection may cause mistakes and ultimately lead to invalid
results.

TIPS in GATHERING DATA

• Organize collected data as soon as it is available
• Know what message you want to get across and then collect data that is
relevant to the message
• Collect more data
• Create more data
• Regularly run experiments or collect data
• Challenge your assumptions
• Set reasonable expectations
• Take note of interesting or significant data

In this lesson, we will consider the three different data collection techniques –
SURVEY (Questionnaire), INTERVIEW and FOCUS GROUP DISCUSSION –
and evaluate their suitability under different circumstances.

SURVEYS are the most common way to gather primary research with the use
of questionnaires or interview schedule. These can be done via direct mail,
over the phone, internet (e.g. Google) or email, face-to-face or on Web (e.g.
Skype or Viber).

When designing or constructing your own research questionnaire, remember

the following guidelines. (Edralin, 2016)
• Keep it simple as possible.
• Make sure it is clearly appealing and easy to read.
• Cluster or block related questions.
• Move from complex questions to more specific questions.
• Make sure questions are concise and easily understood.
• Avoid questions that are difficult to answer.

6|P age
 NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
• Make sure any response scales used are consistent with categories that are
mutually exclusive.

INTERVIEW is one of the most reliable and credible ways of getting relevant
information from target customers. It is typically done in personal between the
researcher/entrepreneur and a respondent where the researcher asks
pertinent questions that will give significant pieces of information about the
problem that he will solve. The interview is also helpful even when the
business has already started because the customers’ feedback provides the
entrepreneur a glimpse of what the customers think about the business.

Interviews normally last from 15 to 40 minutes, but they can last longer,
depending on the participants’ interest in the topic.

In a structured interview, the researcher asks a standard set of questions and

nothing more.(Leedy and Ormrod, 2001)

• Personal interviews are the traditional method of conducting an

interview. It allows the researcher to establish relationship with potential
participants and therefore gain their cooperation. It generates highest
response rates in survey research. They also allow the researcher to
clarify indefinite answers and when necessary, seek follow-up
information.

FOCUS GROUP DISCUSSION (FGD) - is an excellent method for generating

and screening ideas and concepts. It can be a moderated group interviews
and brainstorming sessions that provide information on user’s needs and
behaviors.
• Telephone interviews are less expensive and less time consuming,
but the disadvantages are that the response rate is not as high as the
face-to- face interview, but considerably higher than the mailed
questionnaire.

The following are considerations in the use of focus group discussions in

market research:
• The length of the session is between 90 and 120 minutes.
• Usually, conduct focus groups discussion with 8 to 10 participants per
group.
• Assign an expert moderator / facilitator who can manage group
dynamics.
• Use a semi-structure or open-format discussion
• Strive for consistency in the group’s composition (for example, it may
not be advisable to have business customers and retail customers in the
same focus group, their needs are very different).
7|P age
 NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]

Aside from the main basic groups of research methods (quantitative,

qualitative and mixed), there are different tools that can be used to collect
data. Interviews can be done either in personal or over the phone.
Surveys/questionnaires can be paper or web based. Focus Group
Discussions can be moderated group interviews and brainstorming sessions
that provide information on user’s needs and behaviors.

GUIDED PRACTICE / ACTIVITY:

Conduct a survey among 15 high school students in our school about “Milk
Tea”. Use the survey form below:

Activity 2.
Entrepreneurs will take a look at each customer’s demand in the market.
Understanding your market will help reach your goal to compete with bigger
competitors. Building positive relationships with customers required more
understanding in customers purchasing motivations and habits.

______________________ and ____________________ basically joint hand

in hand to promote its product and services. __________________is a sage
in market identification process that aims to determine the buyer common
need and behavior.
There are four (4) methods for segmentation, ________________,
_______________, _______________and ___________________. There
are two types of customer requirement the __________ and __________, the
tangible and intangible things. Understanding your market will help reach your
goal to compete with bigger competitors.

8|P age
 NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]

IV – ASSESSMENT

A – Direction: Multiple Choice: Select the best answer.

____1. What is the relationship between unique selling proposition and value
proposition.
a. a framework of each business industry
b. meet your competitors needs wants.
c. persuades another to exchange money for a product service’s
d. connected with only one particular thing.
____2. The following variable to consider in behavioral segmentation, except.
a. perception b. brand concept c. reaction d. benefits
____3. What is the function of Value Proposition?
a. use to power up sales
b. convince customer to purchase a particular product or services.
c. customers buying habits
d. provide value to your customers
____4. Give example in promotion using Value Proposition and Unique
Selling proposition.
a. with the slogan “Langhap Sarap” c. multinational business
b. ordinary sari-sari store d. fruit shake stand
____5. ________________ will determine entrepreneur possible customers in
one locality.
a. Market design c. market research b. Market strategy d. market size
____6. The term behavioral segmentation refers to:
a. divided based on consumers
b. divided in terms for customers think and believe.
c. divided according to geographical location.
d. divided according to customers behavior pattern as they interact with
a company.
____7. What is market size?
a. tangible things that can be seen.
b. Size of arena where the entrepreneur will play their business
c. The most important part to the success of the company
d. another variation of segmentation marketing.
____8. Considered favorable indicators for doing business in that particular
location.
a. structure of the segment c. size and growth of the segment
b. capability of the business d. segmentation marketing
____9. Select type of customer requirement
a. service requirement c. service responsibility
b. service oriented d. service fulfillment

9|P age
 NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
____10. This refers to how you sell your products or services to your
customer.
a. Value proposition c. Selling proposition
b. Unique selling proposition d. Marketing concept
B. Identify the following:
1. It is an information gathered directly from the respondents who answered
set of questions.______________________________
2. It is the traditional method of data collection which is normally done on a
personal manner with the respondents.__________________________
3. It obtains information on general attitudes, understand the circumstances
under which customers might require your product or services, understand
their desired outcomes. _______________________
4. It is the most common way to gather primary research with the use of
questionnaire or interview schedule.__________________________
5. It is the most valuable tool of any type of research
study.______________________
6. A data gathering technique where it can be done via direct mail, over the
phone, internet or e-mail.______________________
7. They also allow the researcher to clarify indefinite answers and when
necessary, seek follow-up information. _______________________
8. A data gathering technique where it can be moderated group interviews
and brainstorming sessions that provides information on user’s needs and
behavior._________________________
9. It is typically done in personal between the researcher/entrepreneur and a
respondent where the researcher asks pertinent questions that will give
significant pieces of information about the problem that he will solve.
_____________________
10. It can be a moderated group interviews and brainstorming sessions that
provide information on user’s needs and behaviors.___________________
11. It normally lasts from 15 to 40 minutes, but they can last longer,
depending on the participants’ interest in the topic._____________________
12. It is a type of interview are less expensive and less time consuming
______________________

Give at least one guideline or consideration in the use of the following

data gathering techniques in market research:
13. Surveys - ___________________________________________________
14. Focus Group Discussion _______________________________________
15. Interviews __________________________________________________

V - FEEDBACK
______________________________________________________________
______________________________________________________________

10 | P a g e