FIRST QUARTER

MODULE 3 Recognize and Understand the Market

WEEK 3
I. INSTRUCTION
This module was designed to cater your academic needs in these trying times. We hope that you cooperate and
let your parents/guardians support and guide you in answering the activities found in this module. Use this module with
care and take down notes in answering the activities in separate sheets or on your lecture notes. Read the instruction
carefully before doing each task

II. INTRODUCTION
In this module, you are expected to:
A. Describe the unique selling proposition and value proposition that differentiate one’s product/service from existing
products/services; and
B. Determine who the customers are in term of
a. Target market
b. Customer requirement
c. Market size
III. CONCEPT/S TO BE LEANED
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 • Name of the product
• Needs/opportunity • 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?
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)
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.
• 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

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 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: 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.
 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.

IV. GENERALIZATION
 Value Proposition (VP) is a business or marketing statement that summarizes why a consumer should buy a
company's product or use its service.
 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.
 Market Targeting is a sage in market identification process that aims to determine the buyers with common
needs and characteristics.
 Customer requirements are the specific characteristics that the customers need from a product or a service.
 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.

REFERENCE:
Yacas, J, et al. (2020). Entrepreneurship – Grade 12. Department of Education – Bureau of Learning Resources (DepEd-
BLR) Office Address: Masterson Avenue, Upper Balulang, Zone 1, Cagayan de Oro City, Cagayan de Oro, Lalawigan ng
Misamis Oriental.

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 ACTIVITY SHEET
Date: _____________

Name: ______________________________________Grade/Section: _________Score: 40

General Instruction: Avoid any ERASURES/ALTERATIONS otherwise it will mark as invalid answer.
Activity1. Identify whether Unique Selling Proposition or Value Proposition on one’s product/service. [1 point each]
Example: Langhap Sarap Example: Unique Selling Proposition

1) Safeguard

2) Love ko to

3) Bukas kahit anong oras

4) Supermarket

5) Surf

Activity 2. Determine what method of market segmentation (Geographic, Demographic, Psychological and Behavioral
Segmentation) will be used to the following items. [1 point each]

1. We have Climate Change. __________________________________________

2. Over 60 years of age. __________________________________________

3. Branded (US Levi’s). __________________________________________

4. This product is good for my health. __________________________________________

5. Most People in the community are Muslim. __________________________________________

Activity 3. Give at least 5 products being advertised or promoted on television. Evaluate each one according to its USP,
VP, method of segmentation used, customer requirements, and who are target customers. [1 point each]

Method of Customer Target

Product Name USP VP
Segmentation Requirements customers

Service &
Ex. Jollibee Langhap Sarap Filipino taste Psychological
Output All people
burger

1.

2.

3.

4.

5.

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 WORKSHEET No. 3
Date: _____________

Name: ______________________________________Grade/Section: _________Score: 25

General Instruction: Avoid any ERASURES/ALTERATIONS otherwise it will mark as invalid answer.
I. MULTIPLE CHOICE. Select only the letter that will best satisfy the statement. Then, write your answer on the blanks
provided. [1 pt. each]
______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” b. ordinary sari-sari store
c. multinational business d. fruit shake stand
______5. __________ will determine entrepreneur possible customers in one locality.
a. Market design b. market research c. 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 b. capability of the business
c. size and growth of the segment d. segmentation marketing
______9. Select type of customer requirement
a. service requirement b. service responsibility c. service oriented d. service fulfillment
______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
______11. Tips for the entrepreneur on how to create an effective unique selling proposition to the target customers,
except.
a. Identify and rank the uniqueness of the product or services characteristic. b. Very specific
c. Keep it short and simple d. Completeness of proportion
______12. Geographic segmentation refers to:
a. Divided according to geographical location b. Divided based consumers.
c. Divided in terms for customers think and believe d. All of the above
______13. Service requirement _____________ thing or product not able to touch but customer can feel the
fulfillment.
a. Tangible c. Service b. Intangible d. Output
______14. Tangible things that can be seen refers to what?
a. Service requirement c. customer requirements
b. Output requirement d. Entrepreneurs output
______15. What is the first step in conducting a strategic marketing.
a. Estimate the potential market c. Estimate the market share
b. Estimate the customers who probably dislike buying your product d. Estimate business funding.

II. Fill in the missing terms of the following statements. [1 point each]
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. 1______________________ and
2____________________ basically joint hand in hand to promote its product and services. 3__________________is a
sage in market identification process that aims to determine the buyer common need and behavior.
There are four (4) methods for segmentation,4________________, 5_______________, 6_______________and
7___________________. There are two types of customer requirement the 8__________ and 9__________, the
tangible and 10_____________ things.

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Compiled by: Namerah M. H. Ali , Dida-agun, Asmalia M.