CHRIST THE KING COLLEGE

GINGOOG CITY
BASIC EDUCATION DEPARTMENT
S.Y. 2020-2021
MODULE IN ENTREPRENEURSHIP (HUMSS AND STEM 12)
WEEK NO:4
Name:Ella moore B. Sotto
Grade/Section: G-12 St. Thomas Aquinas SCORE BOARD: DAY 1:
DATE SUBMITTED: _____________________ DAY 2:
I. TOPICS
 CUSTOMER PROFILING
 POSITIONING
 PRODUCT
II. OBJECTIVES
At the end of this module, the students are expected to:
1. know what is customer profiling;
2. know the importance of customer profiling;
3. differentiate the purpose of positioning; and
4. perform how product is important.

WEEK NO:4 DAY NO:1

PRE-ASSESSMENT ACTIVITY

Why we need to give importance to the customer profile? What are the uses of
having a customer profile? How it will affect the business?
It is need to give importance of viewing the costumers profile owing the
security and background information in every valued costumer, be able to
understand what customers want and the most effective way of making the
product or service available also Understanding your customer's buying
behavior is also very important. The particular reason for the circumstances
is avoiding a lot of fake costumers and scammer and it’s not avoidable to
witness this kind of situation and this actively demonstrates of worse
scenario in business. This will give us a lot of information that surely
makes comfortable of purchasing someone’s order or simply doing the right
thing as a producer and I know this will positively make the business into
LET’S EXPLORE! CUSTOMER PROFILING!

In effect, when the entrepreneur starts doing the market research,

he or she is also beginning to understand his or her customers,
and therefore, profiling them. Customer knowledge starts with
good customer profiling.

METHODS OF CUSTOMER PROFILING

Demographics
In demographics classification, we categorize customers into the following:
1. age
2. income classes
3. social classes/Reference groups
4. ethnic backgrounds
5. religious beliefs
6. occupation
7. domiciles

Income level determine the purchasing power of customer. Usually, the customers
are classified according to the following income classes:
1. class A, the high income class
2. class B, the upper middle income class
3. class C, the middle income class
4. class D, the lower middle income class
5. class E, the low income class

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Ethnic backgrounds and religious beliefs affect the cultural beliefs of people
such as the food they eat, how they save and how they spend, and their levels of
conservatism or progressiveness.
Social classes and reference groups often dictate what is acceptable or
unacceptable behavior. These classes or groups often include family, friends,
neighbors, fellow workers, and social affiliations.

Occupations such as those of factory foremen, doctors, taxi drivers, nurses and
teachers also determine what kind of goods and services these people would buy.

Domiciles or habitats, or areas of residence and environmental surroundings,

oftentimes, define and limit the choices available to customer.

PSYCHOGRAPHICS
Psychographics defines the customer’s motivation, perception, preferences, and
lifestyle.

Motivation goes to the roots of customers’ needs and wants. This can be
classified into physiological and psychological. Physiological needs and wants
refers
refer to the customers’ personal likes and dislikes and include the satisfaction
of thirst, hunger, and shelter.

Perception is the way a person chooses to receive or interpret information from

the external world. While motivation provides the drive for action, perception
defines exactly what that person will do.

Usually, information comes through our five senses. A person will process this
information using the faculties of the brain. Hence, different persons may
actually see different things in very different ways.

Because of our genetics, our nature, our environment, our experience, our
exposure, and our expectations, we begin to prefer certain people, certain
things, certain colors, and certain textures over others. We begin to have a
unique set of likes and also a unique set of dislikes. We begin to appreciate
things because of our emotional and mental memories. Preferences shape customer
decisions.

Technographics
Technographics classifies people according to their level of expertise in using
product or a service. For example:
• Sports beginners might just want basic equipment.
• Sports regulars may be looking for more sophisticated equipment.
• Finally, sports professionals would want the best of the best for competitive
purposes.

In technographics, products and services can range from general purpose items to
highly specialized, customized, and "technologized" goods.

Application of Customer Profiling

The entrepreneur can use or apply customer profiling in two ways.
1. The first way is to develop a product or service to test out in the
marketplace.
a. The customers most attracted to the product or service can then be
profiled.
b. After profiling, the next step is to find out how huge this market is for
exploitation purposes.
2. The second way is to profile the different types of customers in a give
industry or area as to their needs and wants.
a. From these types, the entrepreneur could then choose the customer group
with the best potentials.
b. Products or services can be developed by the entrepreneur to match this
chosen customer group.
Market Segmentation
Customers with similar needs and wants and similar willingness and ability to pay
can be grouped into one customer segment.

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Within this customer segment, we can have finer cuts. We can have different
customer sub-segments. Within these sub-segments we can even have finer and finer
cuts. Therefore, we can produce products and services that are highly specialized
for any type of consumer segment.

Market Aggregation
Some entrepreneurs prefer to appeal to broader market if possible. They want
market aggregation rather than market segmentation. They prefer to deal in
commodities like rice, bread, and water that appeal to market aggregates rather
than market segments

Market Mapping
Similar to sales data mining, market mapping refers to grouping customers and
products according to certain market variables. An entrepreneur can use one or a
combination of demographics, psychographics, and technographics to Create a
market map. Table 3.4 is an example of a market map based on students' school
life stage or age and household income bracket.
TABLE 3.4 MAP 1- STUDENTS’ MARKET MAP (BEFORE K TO 12)
SCHOOL STAGE AGE
HOUSEHOLD INCOME BRACKET
LOW LOWER MIDDLE UPPER HIGH
MIDDLE MIDDLE
POST-TERTIARY 22-UP
TERTIARY 17-21
SECONDARY 13-16
ELEMENTARY 6-12
PRE-ASCHOOL 2-5

Focusing on the tertiary school stage, the students can further be mapped
according to their household income and occupational preferences. Zeroing in on
occupational preferences

Zeroing in on occupat5ional preferences at a certain income level, a

technographic and psychographic grid combination can be drawn.

Taking Accountancy as the preferred occupation, students can be classified

according to their mathematical aptitude (technographic) and according to their
motivation for taking the Accountancy course (psychographic).

Please refer to Table 3.5.

STUDENT’S MOTIVATION IN TAKING MATHEMATICAL APTITUDE
THE COURSE POOR FAIR GOOD EXCELLENT
PARENT’S OCCUPATION
LIKES NUMBERS
JOB AVAILABILITY
FRIENDS’ INFLUENCE
PERCEIVED EASE OF DIFFICULTY
OTHER REASONS
Products and services can be mapped according to their relative positioning in
the market based on certain consumers’ parameters.

Schools offering medical degrees, for example, can be mapped according to the
perceived degree of difficulty of entry and their tuition fees as shown in figure
3.4

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FIGURE 3.4 MAP 3- SCHOOL POSITIONING IN MEDICAL DEGREE

HIGH TUITION

SCHOOL Z SCHOOL Y

LOW DIFFICULTY HIGH DIFFICULTY

SCHOOL V SCHOOL U

SCHOOL W SCHOOL X

LOW TUITION

The purpose of market mapping is to provide the market analyst a better

understanding of the market as a whole and to paint a clearer picture of where
the different competitors are relative to the different market segments. Market
mapping would also allow entrepreneurs to discover market segments that are
relatively unserved or underserved. They could then develop products and services
that fulfill the gaps in the marketplace.

POSITIONING

Positioning, in the context of a marketing battle plan, has

three overlapping objectives.

First, positioning has an enterprise perspective. The enterprise scans the market
environment and decides to position itself with products that specifically
address the needs of a chosen targ et market. Second, positioning has a
competitive perspective. The enterprise has to differentiate and distinguish
itself from its competitors. Third, positioning takes the customers' perspective.
Positioning is the way the customers perceive the enterprise and its products or
services in their minds. The stronger the overlap is in these three perspectives,
the more defined the positioning of an enterprise is in the marketplace.

Enterprises can establish their positioning either by starting with their own
product creations or with their customers' outcome expectations. The competitors
will always be pan of the positioning equation, whether the enterprise starts
with the product or the customer perspective. After all, marketing warfare takes
place in a competitive arena.

The competitive landscape of the enterprise, relative to its market, can be

clearly mapped out by laying out both the latitudinal and longitudinal market
dimensions.

Latitude lays out what is important to the different customer differing points of
view. Certain customers may claim that what is important to them are the quality
features of durability and functionality. Other customers maybe looking for
style, design, and aesthetic appeal. There would be customers who do not have
purchasing power to afford any of the above quality definitions. They would buy
lowere- priced products with lesser quality.

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Longitude in the marketing map represents the product features and attributes of
competitors in the marketplace. Most competitors would be offering product
features which the major customer segments want to buy.

LET’S DO THIS!
LET’S CHALLENGE OUR SELF!
THE MARKET MAP
The entire section should conduct a survey of junior and senior high school
students in your school. Each student shall interview at least 2 students each.
Divide the respondents equally into Grades 7,8,9,10,11 and 12. (via
facebook/messenger). The survey can choose among several topics.

Before proceeding, ask for the respondent’s name and age. Indicate his or her
grade.
1. What is your favorite genre of a music?
 Rock
 Soul
 Country
 Hard Rock
 Ballads
 Love Songs
 Latin
 Rhythm and Blues
 Others, Specify:_____________________
2. Who is your favorite singer?
3. What is your favorite hobby?
4. What is your favorite subject?
5. Others
Then, classify the answers obtained by the class and come up with a Market Map.
Grad Number Male Female Classifying Answers into Major Categories.
e of Responde Responde Put small numbers into other category
leve responde nts nts
l nts
othe
rs
7 LOVE SONGS MOIRA ACTING ENGLIS
DELA H
TORRE
8 BALLADS/ BILLKIN ANWERI ENGLIS
ROCKS NG H
MODULE
S
WHILE
SINGIN
G
9
10
11
12 LOVE SONGS MICHEAL COOKIN FILIPI
PANGILIN G NO
AN
Analyze the market map. What does it say about the customer profile of your
school? How can you convert this information into something useful for
entrepreneurs?

Analyze:

According to the result that I have done with the help of messenger
delivering my survey for randomly selected students from G7-12 of Christ
the king college, specifically Grades 8, 9 and 12. In the table above it
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already stated their wants and need according to the question given and to
convert this information of how useful with regards to entrepreneurship,
this will surely provide knowledge and impact in every producers by having
the ideas and what to make qualities depending on their styles, uniqueness
and differences. A business owner should think, that you need to comprehend
what type of person is most likely to need or want the product or service
you provide.

LOVE SONGS

G-
12/7

G-8

LOW HIGH
ROCKS BALLADS

SOUL

WEEK 4 DAY NO:2

LET’S EXPLORE PRODUCT!

Product A product is the tangible good or the intangible service that the
enterprise offers to its customers in order to satisfy their needs and to produce
their expected results. Products are often identified with their brand names to
distinguish them from other products in the market. Some products have built up
so much loyalty to the point that their brand names have become their best
selling proposition.

There are four general types of products that are marketed by enterprises:
1. Breakthrough products
2. Differentiated products
3. Copycat products
4. Niche products

Breakthrough products offer completely new performance benefits. They may double
the performance at half the cost. TheY may be much more convenient and easy to
use. They may cater to a unique set of customer needs that have not yet been
tapped They may create a new demand. Marketing breakthrough products need a
higher level of customer education and orientation.

Common examples of breakthrough products are borne out of the biotechnology field
particularly in terms of coming up with new vaccines to protect people from
certain viruses.
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Differentiated products try to claim a new space in the mind of the customer
different from the spaces occupied by existing products. The performance benefits
may be close to existing products but there would be additional benefits on
special aspects of the product.

There are many different eyeglasses available in the market today but Transitions
lenses was able to differentiate itself from the rest because the lenses they use
adapt to changing light. With this feature, the wearer gets additional protection
against ultraviolet rays, glare, and eye fatigue. Transitions® lenses become very
clear while indoors and become darker outside, depending on the sunlight and
other sources of light and glare. It is actually a pair of eyeglasses and
sunglasses rolled into one.

Copycat products will not make much impression on the consumer's mind. The
marketer should make up for this lack of mental space by offering more physical
space in the shelves, lower prices, easier access, promotional freebies, and the
like. Aggressive advertising may add to market demand but at a greater cost than
the leading brands.

A classic Philippine example of copycat product is the Beer na Beer brand of Asia
Brewery pitted against San Miguel Pale Pilsen. Both have amber colored bottles
with similarly styled white colored font printed outside the bottle. No wonder
after Beer na Beer came out of the market, San Miguel filed a law suit against
Asia Brewery for trademark infringement. In this case, San Miguel prevailed.

Niche products do not intend to compete directly with the giants. They are
products with lower reach, lower visibility, lower prices, and lower top of mind.
They are content to play minor roles in specific and smaller market segments.

Have you ever heard of the Dirty Rotten Flowers delivery service in the United
States? In contrast to romantics wanting to send the best and most beautiful
flowers to their loved ones, this company caters to the wronged ones or those who
want to seek revenge.

Packaging `

There used to be a time when products came wrapped in ordinary

packaging that prominently displayed the brand name, the main
attributes of the product, the company's logo, and its place of
business. Packaging came in small, medium, and large sizes
without much variation in the material, shape, and purpose of
the packaging. That is a time long gone.

Now, packaging can even be more important than the product itself, if done
imaginatively. One example is the entrepreneur who took ordinary rocks from
riverbeds and packaged them as "pet rocks."

Today, packaging serves several important purposes, which elevate it to one of

the seven Ps of marketing.

First, packaging identifies the product, describes its features and benefits, and
complies with government rules on specifying its contents, weight, chemical
composition, and potency. Packaging provides easy brand identification for the
consumers.

Second, packaging differentiates the product from its competitors and even from
its other brand offerings. For example, liquor brands differentiate their premium
scotch and brandy offerings by packaging them in ceramic bottles.

Third, packaging lengthens the lifespan, physically protects, and extends the
usefulness of the product. Vacuum-packed or aseptically packaged products prolong
the shelf lives of many food and beverage items. High-tech packaging protects

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fragile and sensitive products like crystal sculptures, laptops, precision tools,
and the like.

Fourth, packaging has become an environmental issue by itself. Many packages are
discarded after the contents have been taken out. This generates waste and poses
environmental hazards. Recyclability and biodegradability are now a major concern
of packagers and consumers alike.

Fifth, the aforementioned purposes of packaging have increased the cost of

packaging and, therefore, the price of the product. To counteract this, the
packaging most possess its own value proposition for the customers as well as for
the enterprise. For the customers, they may put some premium on environment-
friendly packaging. Customers may even be able to convert the packaging into
money if the packaging were exchangeable for cash. Some packaging are so
beautiful, they can create their own value as collectibles.

Packaging does not refer only to the wrapper or container of the product. It can
mean the bundle of products or services that are put together to attract and
delight customers. It can also mean the terms and conditions attached to the sale
or after-sale servicing of the product.

Place

"Location. Location. Location." This is the often-recited mantra of

salespeople who want to have the best access to their customers.
Although finding a good location prove, to be challenging, even more
challenging is maximizing the potentials of that location.

Initial Location Screening

In finding good location, one needs to consider the following:
1. The number of customers residing or working in the area, and the number of
customers who frequently pass through the area.
2. The density or number of customers per unit area.
3. The access mutes to alternative locations and their traffic count in those
routes.
4. The buying habits of customers or where they buy, at what time and how
frequent.
5. Locational features such as parking spaces, foot access, creature comforts,
and the like.

In a similar way, the entrepreneur must be able to determine the price that comes
with the location because it will spell out the success or failure of the
business. The entrepreneur has to consider the following:
1. The cost of buying or renting, renaming, and operating the location.
2. Customer volume, drop-In rates (what percentage of customer traffic would stop
by the store) and sales conversion ratios (what percentage of drop-As would
actually purchase something from the store).
3. Revenues based on the volume and mix of goods and services expected to be sold
at certain prices.
4. Profits.
In addition to the above factors, the final choice of location must be based on
the following:
1. Image and location conditions. This refers to the physical look of a location,
sanitary conditions, crime and safety book, etc. The reputation of a location is
also important.
2. Exact fit to target customers. Is the location traffic generally composed of
your target customers?
3. Clustering of competitor establishments. This oftentimes results in drawing a
bigger market to the location.
4. Future area development. A certain location might not have the most customers
or the best economics in the short term, but it might become a central business
hub within the next five years.
5. Fiscal and regulatory requirements. An entrepreneur would want to set up shop
in a town or city with low tax rates, good governance, excellent,
infrastructures, and great public services.
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Relevant Location Drivers
It would benefit the entrepreneur to do an In-depth location analysis. The
entrepreneur can make use of the following relevant location drivers for location
These are the 'musts' In choosing the location your business.
1. Physical Proximity to Target Market
For most entrepreneurs, locations are chosen based on how close It is to the
target market. Ideally, the best locations should be easily accessible from home
or the workplace. However, physical proximity is not always important. For
instance, most parents will send their kids to the nearest elementary or high
school. However, when it comes to college, most students wouldn't mind going to a
faraway university if it means getting the best education possible in the course
of their choice.
2. Customer Traffic Flow
Customer traffic flow refers to the people that regularly come into contact with
your business establishment. Your shop might not be near to customers' homes or
workplaces, but it might be situated somewhere along their daily routes.
3. Industry Clustering
A lot of competitors clustered in one location usually draw in a bigger market to
the area. Three stores side-by-side offer more choices to customers than one
stand-alone store. The downside is that clustering also results in fiercer
competition. As such, some entrepreneurs prefer to establish a monopoly far away
from competitors.
4. Convergence of Multiple Industries
Locations where multiple industries converge, such as central business districts,
shopping malls, and public markets are able to attract more customers because of
one-stop shopping convenience. But again, competition is usually strong in such
areas.
5. Population Concentrations
Urbanization creates population concentrations. Where people live, goods and
services follow. The greater the number of people, the greater the number of
needs and wants to be satisfied. Simply put, the more populous the location is,
the greater Is the opportunity for business and profit.
6. Activity Hubs Activity hubs such as large schools, high-rise buildings, public
parks, transport terminals, and entertainment centers provide good location
potentials for food establishments and client-specific services.
7. Growth Potential
Business are always looking for new areas to expand and grow. This is especially
true when crowded population centers become saturated with many providers of
goods and services. Hence, the new development site will be the natural greener
pasture for early locators. The early locators will catch the early customers.
8. Business Climate
Enterprises prefer location that are conducive in doing business. This includes
areas with:
 High economic growth
 Stable political situation
 Effective social services
 Good infrastructure
 Cheap utilities
 Efficient transportation and logistics
 Availability of skilled labor force
 Low crime rates
 Good fiscal incentives
 Trusted public officials
9. Cost of Doing Business and Producing Goods and Services
For industrial establishment, the more relevant criteria are those locations with
lower cost of doing business and lower cost of producing goods and services.
COMPARATIVE LOCATION ANALYSIS
Perhaps the most common way by which an entrepreneur ‘surveys’ a potential
location is through comparing it with other locations with more or less the same
features and tenant mix or clusters of competitors.

GEOGRAPHIC AND ATMOSPHERE DETERMINANTS

Another way of looking at a location or place to sell the product or service can
be based on two major place determinants: geography and atmosphere.

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For the geography determinant, there are six decisions tensions:
1. concentration versus destinantion
2. access versus abundance
3. clustered versus dispersed
4. developed versus underdeveloped
5. physical versus virtual
6. upscale versus downscale

For the atmosphere determinant, there are five decisions tensions:

1. formal versus informal
2. exclusive versus Public
3. conservative versus adventurous
4. Aesthetics versus functionality
5. Minimalist versus Maximalist

LET’S DO THIS!
Answer the following questions:
1. Which competitors in a particular industry are doing better than the others
. All businesses face competition. Even if you're the only restaurant in town
you must compete with cinemas, bars and other businesses where your customers
will spend their money instead of with you. Competition is not just another
business that might take money away from you. It can be another product or
service that's being developed and which you ought to be selling or looking to
license before somebody else takes it up.
A lot of competitors clustered in one location usually draw in a bigger market to
the area. Three stores side-by-side offer more choices to customers than one
stand-alone store. The downside is that clustering also results in fiercer
competition. As such, some entrepreneurs prefer to establish a monopoly far away
from competitors

2. Which physical spots are more attractive than the others in any business
category and why?
For me, all Physical Spots are more intimidating to consumer/buyer because
they are more likely to buy a product when seeing it personally, Making
your business attractive is about more than selling a product or providing
a service that people want.

3. What locations contain more of the business’ preferred customer profile?

In business “time is money” and according to module the most common way by which
an entrepreneur ‘surveys’ a potential location is through comparing it with other
locations with more or less the same features and tenant mix or clusters of
competitors.

SUMMARY
 Why do we need to know our customers? Why do we need to know their income?
If we neglect to know the customers profile, what do you think will happen
to the business?

The more a business understands about its customer’s

tastes and preferences, the more successful its sales
strategies will be. Taking time to learn about customers
– what they value, income what they know and what their
communication preferences are – can help the
effectiveness of sales strategies.

VALUES INTEGRATION
 What does the customers’ profile say about the human person as God’s
creation?

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 “God gave us the gift of life; it is up to us to give ourselves the
gift of living well.” Voltaire
____________________________________________________________________________
___________________________________________________________________________.
REFERENCE: Dr. Eduardo A. Morato Jr. Borja (2017) Entrepreneurship Rex Book Store
Inc. (RBSI) with main office at 856 Nicanor Reyes Sr. St.,Sampaloc, Manila, Pg
41-52

Monitored By
_____________________________ ___________________
PARENT'S SIGNATURE OVER PRINTED NAME DATE

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