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ENTREPRENEURSHIP
Module 3 S.Y. 2020-2021

Name: _______________________________________ Teacher:

Grade/Section: ________________________________ Assigned Date: Jan.24-Feb.04, 2022
Barangay: ____________________________________ Time Frame: 1 WEEK
Recognize and Understand the Market

You are done in recognizing potential markets as the second module in entrepreneurship. You already
understand the best product or service that will meet the market need. Now, you will continue to learn more
about markets - recognize and understand the market. Everyone can create a business vicinity map reflective
of potential market in one’s locality/town.

This module is divided into two topics:

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 terms of:
a. Target market
b. Customer requirement
c. Market size

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 opens 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 Sarisari 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
• Make it 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. Based on each definition, we learn that USP and VP are
frameworks of each business industry. The two propositions are valuable for the entrepreneurs.

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Module 3 S.Y. 2020-2021

After you understand the value proposition and the unique selling proposition, now it’s time to
understand the target market, customer’s 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.
▪ Variables to consider:
a. Climate
b. Dominant ethnic group
c. Culture
d. Density (either rural or urban)

2. Demographic Segmentation – divided based consumers.

▪ Variables 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.

▪ Variables 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 customer’s behavior pattern as they interact with a
company.
▪ Variables 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:
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:

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Module 3 S.Y. 2020-2021

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.

REFERENCES

BOOKS

Department of Education – Regional Office 10 Entrepreneurship – Grade 12 Alternative Delivery Mode Quarter 1 -
Module 3 First Edition, 2020

Ronaldo S. Batisan, DIWA Senior High School Series: Entrepreneurship Module. Diwa Learning Systems Inc.

Angeles A. De Guzman. Entrepreneurship (For Senior High School, Applied subject, ABM Strand. Lorimar
Publishing, Inc 2018, 25 – 26.

Edralin, Divina M. Entrepreneurship. Quezon City: Vibal Group, Inc. 2016, 80 – 83.

Leedy, P. and Ormrod, J. Practical Research: Planning and Design 7th Edition. (Merrill Prentice Hall and SAGE
Publications, 2001),

Nick L. Aduana, Entrepreneurship in Philippine Setting (for Senior High School), 2017

Dr. Eduardo A. Morato Jr., Entrepreneurship, 2016

Angeles A. De Guzman, Entrepreneurship for Senior High School Applied Subject ABM Strand,Lorimar
Publishing,p.1-5

Ronaldo S. Batisan, Entrepreneurship: Diwa Senior High School Series, Diwa Learning Systems Inc., p. 16-20

Eduardo A. Morato Jr., Entrepreneurship, 1st ed., Manila, Philippines: REX Books Store, p.13

ELECTRONIC RESOURCES

https://articles.bplans.com

https://www.scirp.org/(S(351jmbntvnsjt1aadkposzje))/reference/ReferencesPapers.aspx?ReferenceID=2026950

https://www.google.com.ph/search?
q=what+is+a+supplier+in+business&oq=what+is+a+supplier&aqs=chrome.0.69i59j69i57j0l4.6134j0j7&sourceid=c
hrome&ie=UTF-8

https://www.google.com.ph/search?
q=value+chain&oq=value&aqs=chrome.1.69i57j69i59j0l4.3827j0j9&sourceid=chrome&ie=UTF-8

https://www.google.com.ph/search?ei=IDdFXIaUMtrrwQPKrrqgCA&q=supply+chain&o q=supp&gs_l=psy-
ab.1.0.0i67l8j0l2.337222. 338710..340558...1. 0..0.512.1404.0j1j3j5-
1......0.... 1.. gws-wiz.......0i71j0i131.pwF4FAungm0

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 ENTREPRENEURSHIP
Module 3 S.Y. 2020-2021

Name: _______________________________________ Grade/Section: ____________________

Barangay: ____________________________________ Teacher: Mark Anthony M. Tabangay__
Parent/Guardian’s Signature: _____________________ Time Frame: 1 week_______________

ACTIVITY 1 Based on the previous discussion:

1. Discuss the unique selling proposition and value proposition.

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2. What are commonly used methods for segmenting the market?

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ACTIVITY 2 As an entrepreneur, you are planning to have a business. Use these following questions as your
guide.

1. What product do you want to sell?

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2. Apply the concept of value proposition and unique selling proposition.

Make a tagline for your chosen product.
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3. Who is your target market?

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4. What are the specific characteristics that the costumers need from your product?
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5. Calculate its market size
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ACTIVITY 3 Directions: 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.

Product Name Method of Customer Target

USP VP Segmentation Requirements customers
Ex. Jollibee Langhap Sarap Filipino taste Service & Output
burger Psychological All people

1.

2.

3.

4.

5.

Assessment

Multiple Choice. Read the sentences carefully, select the letter of your choice and place it on the space provided
before each number.

____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 c. market research
b. Market strategy d. market size

____6. The term behavioral segmentation refers to:

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Module 3 S.Y. 2020-2021

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 c. service responsibility
b. 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
b. Estimate the customers who probably dislike buying your product
c. Estimate the market share
d. Estimate business funding.

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