TECHNOPRENEURSHIP

VALUE
PROPOSITION
VALUE PROPOSITION
 VALUE PROPOSITION
Lots of people
talk about value
propositions Commonly it It also includes However a value
There are many describes the that ways in proposition is
differing collection of which those much more than
description of products and products and simple
what constitutes services a services are articulation of
a value business offers different from value and
proposition. To meet the need competing offers. organization
of its customers. provides
 BUSINESS
HYPOTHESIS
BUSINESS HYPOTHESIS
It is the key foundation that underpins a business model and an
essential tool for testing your business hypothesis in the world.

Hypothesis - proposed explanation made on the basis of limited

evidence as a
starting point for further investigation.
KEY ELEMENTS OF A
GOOD VALUE
PROPOSITION
 FOUR KEY ELEMENTS

CUSTOMER PROBLEM SOLUTION DIFFERENTIATOR

S
 FOUR KEY ELEMENTS
What are your
What is your differentiators
Who is the What problem are
solution and how how your solution
customer who is you solving for
is it solving the better that what’s
the value for. this customer.
problem. already out
there.
WHY IS IT IMPORTANT?
WHY IS IT IMPORTANT?
You need to able to test whether the solution you're providing actually
fits a need.

If it’s not quite a fit , you’ll want to make changes to your product
early to better
align it with the needs of the customer.
EXAMPLE
CUSTOMER
 CUSTOMER
The customers are rural villagers who have no reliable access to clean
water.
PROBLEM
 PROBLEM
The problem is that available solution are too big and expensive
relative to the demand of a smaller village.
SOLUTION
 SOLUTION
The solution developed was an inexpensive electro chlorinator that
produces a chlorine solution which is distributed by motorcycle to each
village, where the water in the village tank is treated. Sales are through a
partner village shopkeeper on commission. Customers can easily get to
the shop and buy water
DIFFERENTIATORS
 DIFFERENTIATORS
Relative to competition, customers get water at a reasonable price
at a location
convenient to their home with water quality assured by the
company.
As described in Paul’s recent book
“the Business Solution to Poverty.”
Paul and his team used their well-
defined but still hypothetical value
proposition
to test their assumptions with
customers.
That test they found that a few of
their differentiators needed
modification.
A well-crafted value proposition is the first step to making sure
you are solving the right problem for your customers.

It allows to test whether your customers care about the value you
think you’re
providing.

Testing your value proposition can save time and money and help
you get your
product to market faster
 MARKET
IDENTIFICATION
AND ANALYSIS
 WHAT IS A TARGET
MARKET AND WHY IS IT
IMPORTANT TO KNOW?
Central to marketing is the target market, and the
foremost competency that a beginning entrepreneur must
develop as a marketer is the ability to understand that
target market.
Skills that one must acquire to
understand his target market:
Skills that one must acquire to
understand his target market:
1. How to group the market (segment)
2. How to identify which segment to focus on (target)
3. How to be familiar with your target
4. Who else are making similar products or offering similar
services (competition)
5. How to estimate the size of the target market that will
buy the product or use the service
1. Segmenting the market – process of dividing prospective
buyers into group that have common needs and will respond
similarly to a marketing action. It is a process of grouping a
market (customers) into smaller subgroups.

A market can be grouped according to:

1. Geographic
2. Demographic
3. Psychographic
4. Behavioral
 4 TYPES OF MARKET SEGMATION

Geographic Demographic Psychographic Behavioral

• Age
• Gender
• Family Size • Purchase Occassion
• Region
• Family Life • Benifits Sought
• County Size
Cycle • Social Class • User Status
• City Size
• Income • Lifestyle • Usage Rate
• Population
• Occupation • Personality • Loyalty Status
Density
• Education • Readiness State
• Climate
• Religion • Attitude Toward Product
• Race
The kind of grouping to use will depend on the nature of the
product you are going to make
and the set up of your business (service, trading, or
manufacturing)
Examples:
1. Type of Product: Soap (mfg or trading)
Possible Segments: people who want to have whiter skin, or
people who want scented soaps
2. Call Center (service)
Possible Segments: businesses who want to outsource some
of their operations such as
accounting, billing, or sales.
2. Targeting – to target is to select from among the big group
of possible buyers or users.

The discipline in marketing is to target one segment at a

time. However, the goal of a business may be to serve all
segments if it wants to.

Targeting will allow you to concentrate on one segment or

group at a time.
3. Understanding your target
The usual practice in studying your target market is through
market research.

Market research is the process of collecting and analyzing

information as to how the goods or
services move from producer to the consumer.

Market research is commonly regarded as an expensive

activity.
3. Understanding your target
Gathering insights is an inexpensive marketing research
tool which includes the following:

a. Surveys – process of collecting a sample of data or opinions

from a group that can be considered to represent a whole.
b. Focus Group Discussion (FGD) – it is an organized
discussion of a specific group of people who will talk about
issues and concerns about a topic that they share in common.
3. Understanding your target
Gathering insights is an inexpensive marketing research
tool which includes the following:

a. Surveys – process of collecting a sample of data or opinions

from a group that can be considered to represent a whole.
b. Focus Group Discussion (FGD) – it is an organized
discussion of a specific group of people who will talk about
issues and concerns about a topic that they share in common.
3. Understanding your target

c. Observation – this refers to the act of paying attention or

taking a patient look at a sample of
the target market.
c.1 Contextual Observation – it involves paying close
attention while the sample of the target
market is using or experiencing a product or service.
c.2 Shadowing – this is like spying on the target market.
3. Understanding your target

c.3 Expert walkthrough – this technique involves getting an

expert’s opinion about a product or
service. This technique is normally used for products and
services that are complex in nature.

c.4 Day-in-the-life surveys – this is like shadowing but instead

of following the target, the
entrepreneur will ask the participants in the survey to take note
of their own surroundings and
behavior when using the product or service.
3. Understanding your target

c.5 Draw the experience – ask a sample of the target market to

describe their experience with a
particular product or service. The experience should illustrate
how they found the product
before use, during use, or after use.

c.6 Fly on the wall – this is the same as shadowing except that
the observer should stay in one
place only. Example: studying how people behave in
supermarkets or when shopping.
3. Understanding your target

d. Emphatic tools – is the ability to appreciate what another

person feels or to understand what
the latter goes through.

d.1 Mock journey – the entrepreneur simulates or acts out

the customer’s or the user’s experience with a product or
service. The entrepreneur will go through the entire process
of using the product or service from the time he buys it until
he is through using it.
3. Understanding your target

d.2 Body storming – this is the least used technique. It is a

variation of the brain storming
technique. The only difference is that in this technique, the
body is used to show ideas and
experience possibilities. This can also be used by setting up a
scenario.
3. Understanding your target

e. Prototyping – is the skill of quickly putting ideas and

concepts into tangible products or actionable services.
Prototypes are samples or look-alikes or sounds-alike of the
product or service.
Example: taste tests, sampling of food products.
4. Analyzing the competition – when trying to understand
your target market, do not
neglect to look at your competitors.

Competitor’s Analysis:
• What your competitor’s marketing is (4PS)
• Why the target market is buying or will buy from the
competitor
SWOT analysis is often used in strategic
planning to help identify a potential competitive
advantage.
5. Estimating Potential Market Demand
• Estimation is an educated guess. The best way to be certain
is to look for factual information.
• Estimating potential market demand is a marketing skill that
has an impact on projectin sales, sales growth, and capital,
machine, and manpower requirements.
• The estimated potential market demand is a numerical
representation of how well the entrepreneur understands the
target market.
 TECHNOLOGY
ADAPTION LIFE CYCLE
1. Innovators– These are the first adopters of the innovation.
Usually they will be younger in age and will be willing to take
risks.
2. Early Adopters – These individuals will adopt the
innovation after the innovators. They will usually have a high
social status so others will try to imitate them (and that will
assist in diffusing the innovation among society).
3. Early Majority – Individuals from this groupadopt the
innovation after a longer range of time than the Innovators and
the Early adopters (and this is the Chasm).
4. Late Majority – People from this group tend to adopt the
innovation after the average member in the society. Usually,
they will show very little opinion leadership and will pretty
3. Early Majority – Individuals from this groupadopt the
innovation after a longer range of time than the Innovators and
the Early adopters (and this is the Chasm).
4. Late Majority – People from this group tend to adopt the
innovation after the average member in the society. Usually,
they will show very little opinion leadership and will pretty
much go with the flow.
5. Laggards – This group’s individuals will adopt innovations
last. obviously they will show no opinion leadership regarding
these matters and will be very risk averse.
Therefore, a wide range of companies will invest heavily in the
Early adopters group in
order to position themselves better towards the next phase.
Others will try to attract the
Early majority with various strategies so they would adopt their
innovations and assist them
in crossing the chasm successfully.
THANK
YOU