Q1_W6_MODULE_6

Learning Competency: Select the best product or

service that will meet the market need.
(CS_EP11/12ENTREP-0a-3
 Q1_W6_MODULE_6

Learning Competency: Select the best product or service

that will meet the market need.

Objectives:
1. Determine the tips in choosing the business name
2. Became aware of the stages of product life cycle, and
3. Recognize the factor to consider in selecting the best
product or service that will meet the market need.
 LOOKING BACK TO YOUR LESSON
As we go further, let us try to recall our lesson about the potential market
and market need.
 Viability –refers to gaining a profit that is sufficient to provide
a return to the business owner while also meeting its
commitments to business creditors.
Some serious strategic questions about the product’s viability:
 Is the product idea practical?
 What obstacles or challenges lie ahead?
 Will it need support services of some kind to ensure customer
satisfaction?
 LOOKING BACK TO YOUR LESSON

Profitability – determines whether a business

stays in business. It also refers to the ability of a
company to use its resources to generate
revenues in excess of its expenses. It is a
company’s capability of generating profits from
its operations.
4 Keys to Analyze the Profitability
of your Product
1. Determine the true cost of production
2. Test the market
3. Find the ‘Sweet Spot’
4. Understand margins
Customer requirements - are those
characteristics that determine whether or not
the customer is happy.
Two Types of Customer Requirements:

1. Service Requirements - intangible aspects of

purchasing a product that a customer expects to
be fulfilled.
2. Output Requirements - tangible
characteristics, features or specifications that a
consumer expects to be fulfilled in the product.
 BRIEF INTRODUCTION

To succeed as an entrepreneur, you must

develop the ability to select and offer the right
products or services to your customers in a
competitive market. More than any other
factor, your ability to make this choice will
determine your success or failure (Tracy, B.,
2005).
 Tips in choosing the business
name/brand name:
Before rolling out a product to the market,
entrepreneurs have to think about a name
that’ll make their product the most
appealing. Naming a brand is an essential
part of marketing because what you call your
products determines the attitude customers
and prospects will have towards it
(https://www.thelogocreative.co.uk/process-for-choosing-a-good-
brand-name/).
 Questions to ask yourself before choosing a
business name
(https://www.onlinesalesguidetip.com/how-to-choose-a-picture-perfect-businessname/
#ixzz6RD9dq0S0)

>Is my company’s name catchy and memorable?

>How long is my business name? Is it more than three words?
>Is my business name easy to spell and pronounce?
>Do other people like the business name?
>Will I have to change the name as my business evolves?
>Does the name go with my business’s main message?
> Did I double-check to make sure the name isn’t taken?
The Stages of Product Life Cycle

The product life cycle is an attempt to

recognize distinct stages in the sales history
of the product” (Philip Kotler cited by
Sarmistha, B.)
To introduce the product successfully, the following
strategies may be adopted (Sarmistha, B.):
√ Advertisement and publicity of the product
—’Money back’ guarantee may be offered to
stimulate the customers to try the product.
√ Attractive gifts to customers (Freebies).
√ ‘Price off’ as an introductory offer, i.e.,
introducing the product at a discount to attract
the customers.
√ Attractive discount to dealers.
The following strategies are followed by the
business firms during the growth stage (Sarmistha, B.):

 Advertisement and publicity of the

product.
 Incentive schemes may be offered to
stimulate more customers to try the
product.
 New versions of the product are
introduced to cater to the requirements of
different types of customers.
The following strategies are followed by the
business firms during the growth stage
(Sarmistha, B.):

 Channels of distribution are strengthened so

that the product is easily available wherever
required.
 Brand image of the product is created through
promotional activities.
 The price of product is competitive.
 There is greater emphasis on customer service
In order to lengthen the period of maturity stage,
the following strategies may be adopted (Sarmistha, B.):

 Product may be differentiated from the competitive

products and brand image may be strengthened further.
 The warranty period may be extended. For instance, some
manufactures of TVs have introduced the concept of life time
warranty.
 Reusable packaging may be introduced.
 New markets may be developed.
 New uses of the product may be developed.
To avoid sharp decline in sales, the following
strategies may be used (Sarmistha, B.):
 New features may be added to the product
and its packaging may be made more
attractive.
 Economy packs or models may be introduced
to revive the market.
 Promotion of the product may be done on a
selective basis to reduce the distribution
costs.
The factors to consider in selecting the
best product or service that will meet the
market need
Finding a product, a service, or a niche that
delivers results largely depends on understanding
exactly what your customer needs. If you’re a
business aiming for differentiation in the market,
it is worth noting that the best opportunities can
be found from your customer’s unmet needs
(https://blog.hellostepchange.com/blog/ identify-unmet-customer-needs).
The factors to consider in selecting the
best product or service that will meet the
market need

Customer attitudes are shaped by their

experience, opinions, and dealings with the
business whether direct or indirect. Businesses
should keep in mind that customers rarely
purchase without a list of requirements.
No single company can satisfy every
need of every customer, but by
knowing the specific needs of the
customers you are targeting, your
enterprise can deliver value and
encourage customers to become loyal
and even spread the word to others.
(Luenendonk, M., 2019).
Things Marketers Need To Know About
Customers (Luenendonk, M., 2019):
1. Who are your customers?
Individual customer files should include age,
gender, marital status, occupation and what type
of customer they are (loyal, discount, impulse,
needs-based or wandering, etc.). If your customers
are businesses or industrial clients, they tend to
buy in larger quantities and have different
requirements than individuals.
2. What do customers buy?
If you know what products and services have a great reputation, you can
adjust your inventory and produce goods with the qualities customers are
eager to pay for.

3. What do customers do?

It helps to know the occupation of your consumers and what the
industries are trying to achieve so you can tailor your products and
services to meet their needs.
4. Why do customers buy?
Knowing why a certain product is in demand gives you the advantage
to match customer needs and supply the benefits they seek.
5. When do customers buy?
Providing a customer with an item when they want it
increases your chances of success and reduces your chances
of producing goods that are no longer desired. Studying
buying patterns will also help with successful launches of
new products and knowing when to offer added value for
products that are not very popular.
6. How do customers buy?
There are various outlets for people to shop such as online, face-
to-face, catalogues and wholesale. Knowing how each customer
enjoys shopping helps your business tailor the advertising to meet
his/her needs.
7. How much do customers spend?
Patterns of customer spending give an accurate
picture of consumer behavior and shows
economic, household, social and market trends.

8. Whom do customers buy from?

People buy to solve problems, so knowing who is
currently solving their problems helps you tailor
your solution strategies..
9. What do customers think about you?
If you are giving them exceptional customer
experience, they will continue to buy. There are
various ways to measure your customers’
satisfaction.
10. What do customers think about your
competition?
Seeing your competitors through your customers’
eyes gives you a better chance to stay ahead of
the rivaling companies.
Main Customer Needs and Marketing
Techniques (Luenendonk, M., 2019):

 Latent Needs/Observation Technique

These are hidden customer needs, such as
problems they face, but have not yet
realized. Entrepreneurs should keenly
observe the consumer in their natural
setting to see or hear frustrations and
longings.
Main Customer Needs and Marketing
Techniques (Luenendonk, M., 2019):

 Direct Needs/ Research or Conversation Expressed

needs are clearly articulated by the customer. Market
research gathers data to help businesses make decisions
about products and services.
 Assumed Needs/Feedback Method
Probably the riskiest is the assumption businesses make
about what their customers require. The best way to test
these assumptions is through gathering customer
feedback through interviews, surveys and contact forms.