ACTIVITY

Gap-Fill. Choose the right answer from the words in the box. Write your answer on the line provided before each
number.

k. internal p. macro
l. technological q. socio-cultural
m. economic r. economic
n. demographic s. distribution channel
o. intermediaries t. competitors

K 1. Environment where individuals have the power to control

I 2. Consists of new machinery, equipment
M 3. Refers to inflation, employment rate, prices
N 4. Factor consisting of a person's gender, educational attainment, nationality, status
P 5. Type of environment considered as uncontrollable
Q 6. Decision influenced by beliefs, superstitions, and way of living
R 7. Factor that includes change in spending pattern, change in income distribution, a change in income level
S 8. Helps the company to promote and distribute products to actual and potential customers
T 9. Business enterprise that offers the same products or alternative products that a company also offers
O 10. Represents the firms that assist the company to promote, sell, or distribute products to the market

EXERCISES

DISCUSSION QUESTIONS:
1. Discuss market segmentation is essential.
 Market segmentation refers to the process of dividing the market into distinct groups each group
has common characteristics. Segmentation is the initial step in targeting the market. Many
companies recognize the importance of understanding the diversity of the customer market.
2. Differentiate the two categories of market.
 A differentiate marketing strategy appeals to atleast two target group, while a concentrated market
strategy is targeted at one.
3. Enumerate and differentiate the types of market segmentation.
 Demographic Segmentation- the market is divided based on variables such as age,gender
income,education,religion,and family cycle.
 Geographic Segmentation- means the market is divided or segmented based on territory or
geographical units such as regions and cities (rural or urban).
 Psychographic Segmentation- groups the market according to lifestyle,personality,or social class.
  Behavioral Segmantation- divides the market into groups based on knowledge, attitudes, or the
markets response to a product.

4.Cite the importance of each market coverage.

 Undifferentiated market coverage- This strategy is used whenever a business enterprise offers an entire
market with one type of product. It ignores the segment differences of each market. It focuses on the
similarities of the needs of the market rather than the differences.
 Differentiated market coverage- This market coverage strategy targets several market segments, offering
varied product designs. Differentiate market coverage matches the product offered of the firms to the needs
of the maket.
 Concentrated market coverage- Companies with limited resources focuses more on utilizing concentrated
market coverage strategy. For this reason, they set a high product differentiation for customers to patronize
their product offerings.