Technopreneurship Moduletopic 4

Republic of the Philippines
NUEVA VIZCAYA STATE UNIVERSITY

Bambang, Nueva Vizcaya
INSTRUCTIONAL MODULE
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College: COLLEGE OF ENGINEERING

Campus :BAMBANG CAMPUS
DEGREE PROGRAM BSECE COURSE NO. Eng’g 3

SPECIALIZATION ELECTRONICS COURSE TITLE TECHNOPRENEURSHIP 101
YEAR LEVEL THIRD YEAR TIME FRAME 6 WK NO. 7-8 IM 4
HRS NO.
I. UNIT TITLE/CHAPTER TITLE:

Competitive Advantage
II. LESSON TITLE: Competitors and Market
1. Competitors
1.1 Description of Competitors
1.2 Classes of Competitors
2 Product
2.1 Product Differentiation
2.2 Product Positioning
3 Market
3.1 Market Structure
3.2 Market Segments
3.3 Market Size
3.4 Beachhead Market
3.5 Creating your Market
III. LESSON OVERVIEW:

This module aims to provide students an overview of a market
IV. DESIRED LEARNING OUTCOMES:
1. Discuss the concepts of Competitors, Products and Market.

2. Can identify what kind of competitors.
3. Differentiate the category of products..
4. Know the principles of the market segmentation
5. Can create or design his own market.
V. LESSON CONTENT:
1. Competitor
A competitor is a firm that has potential to take your customers. The products, positioning,
distribution, promotion, reputation, brand identity, business model, costs and pricing of competitors is a
key concern of strategic planning and operations for many firms. The following are the basic types of
competitor.
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Types of Competitors
1. Direct competitors A firm that sells the same products and services as you in the same markets.
Competitors who are directly vying for your customers. If you’re a residential painter, your direct
competitors are other residential painters in your service area. If you have an online course about
confidence, they’re the other ones who have courses about confidence. When most new business
owners think about their competition, direct competitors are what come to mind.
2. Potential competitors A direct, indirect or replacement competitor that currently has no distribution
in your markets. For example, an organic cosmetics company that is popular in Europe but that has
no sales capabilities in the United States represents a potential competitor for American cosmetic
firms. Competitors who do the same thing that you and target the same kinds of customers but
aren’t selling in your market area and aren’t likely to do so. They could be your competition if they
decided to enter, but either don’t have the infrastructure or have chosen to ignore your area. An
example of a potential competitor would be a residential painting company in another city.
3. Indirect competitors A firm that sells different categories of products and services but are in the
same industry and same markets. For example, a cafe and restaurant in the same city are indirect
competitors. are businesses that are in the same category, but they sell different products and
services than you. This would be the difference between a strictly industrial painter and a residential
painter. You’re still doing similar things, but the target market between the two of you are different.
4. Future competitors A firm that has business capabilities that would allow them to quickly take
market share if they entered your markets. For example, a large technology company may be
perceived as a competitor of smaller technology firms even if they haven't entered their market yet.
Are like potential competitors, but they’re much more ready and likely to enter your market. This
might be the larger national company that hasn’t entered your local market yet. Think of them as
between potential and direct competition.
5. Replacement competitors A firm that sells products and services that are in a different industry
that could be used as a substitute for your products. For example, a restaurant and a supermarket
in the same city. Are those who provide an alternative to the services that you offer that solves the
same pain points. If there is more than one way to solve the problems you solve with your business,
you may have a replacement competitor. For our residential painter, this would be any DIY store
that sells painting supplies.
All these types of competitors can pull market share away from your company now or in the future. But
how do you start finding out which ones are actually your competitors? Now that businesses focus on
digital marketing to advertise their businesses, your first step is to visit a search engine.
2. Product
2.1 Product Differentiation
Product differentiation is a marketing strategy that strives to distinguish a company's products or

services from the competition. Successful product differentiation involves identifying and
communicating the unique qualities of a company's offerings while highlighting the distinct differences
between those offerings and others on the market. Product differentiation goes hand-in-hand with
developing a strong value proposition to make a product or service attractive to a target market or
audience.
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Product differentiation is what makes your product or service stand out to your target audience. It’s how
you distinguish what you sell from what your competitors do, and it increases brand loyalty, sales, and
growth
KEY TAKEAWAYS
 Product differentiation focuses on the consumers' attention on one or more key benefits of a
brand that make it better than other choices.
 Differentiation may be reflected in the name, packaging, and promotion of a product.
 A product differentiation strategy should demonstrate that a product can do everything the
competing choices can but has additional benefits no one else offers
How Product Differentiation Works

Product differentiation is intended to prod the consumer into choosing one brand over another in a
crowded field of competitors. It identifies the qualities that set one product apart from other similar
products and uses those differences to drive consumer choice. Differentiation marketing can also
involve focusing on a niche market. For example, a small company might find it challenging to compete
with a much larger competitor in the same industry. As a result, the smaller company might highlight
exceptional service or a money-back guarantee.
Promoting Product Differentiation

The references to these qualities are reflected in the product's packaging and promotion, and often
even in its name. The brand name Fancy Feast is intended to convey that this is a high-quality cat food
that your pet will love, and the advertising reinforces that claim. The FreshPet brand highlights its use of
natural ingredients. Hill's Science Diet conveys the message that this cat food was developed by real
experts.
A product differentiation strategy may require adding new functional features or might be as simple as
redesigning packaging. Sometimes differentiation marketing doesn't require any changes to the product
but involves creating a new advertising campaign or other promotions.
Measuring Product Differentiation

As stated earlier, the differences between the products can be physical in nature or measurable, such
as the lowest-price gym in a region. However, the differences between the products could be more
abstract such as a car company that advertises that their cars are the coolest on the market. Retailers
and designers often spend a significant amount of advertising dollars showing their clothes on young,
hip models to convey the underlying message that if you don't wear their label or brand, you're not with
it. In actuality, no company can measure and quantify the level of coolness or style their product offers.
As a result, product differentiation is often subjective since it's aimed at altering customers' evaluation
of the benefits of one item compared to another. "Gets out the toughest stains" implies that a certain
detergent brand is more effective than others. The actual difference in the product and that of the
competition might be minuscule or nonexistent.
Types of product differentiation
Here are a few ways customers use product differentiation to make buying decisions.
Vertical differentiation
Vertical differentiation is when customers choose a product by ranking their options from best to the
worst using an objective measurement, like price or quality.
While the measurements are objective, the value each customer places on them might vary. For
example, 1 meal at a restaurant may be lower in calories than another meal. To a customer who is
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watching their weight, the lower-calorie meal represents a "better" option. Another customer might
place a higher value on price and choose the higher-calorie meal if it costs less.
Horizontal differentiation
Horizontal differentiation is when customers choose between products subjectively, because they have
no objective measurement to distinguish between best or worst.
For example, there is no qualitative measurement to rank ice cream flavors. Whether you choose
chocolate, vanilla, or strawberry is entirely a matter of personal taste.
If most of the products on the market cost about the same and have many of the same features or
qualities, the purchase decision comes down to subjective preference.
Mixed differentiation
Customers making more complex purchases tend to use a mix of vertical and horizontal differentiation
when making purchase decisions.
Let’s say you’re shopping for a car. You might consider 2 similarly priced four-door sedans from 2
separate manufacturers. You’ll likely use mixed differentiation to make a decision. Objective
measurements to vertically differentiate between them include gas mileage and safety ranking.
Horizontal differentiation, between subjective preferences like design aesthetic and impression of the
car brand, also plays a role in the decision.
As with both horizontal and vertical differentiation individually, each customer will value the combination
of these factors differently.
Advantages of product differentiation
Communicating the distinct features and benefits of your product is the secret to successful marketing.
Here’s how it can help strengthen your business.
Building brand loyalty

Strong product differentiation makes your business memorable. Customers will associate elements of
your brand—like your logo, voice and tone, and social media presence—with your product or service
and all of its benefits.
The more differentiated your product is and the better it meets your target audience’s wants and needs,
the more likely they are to become repeat customers.
Achieving higher price points

You can increase your profits, sometimes by a significant margin, through product differentiation.
You can typically sell a differentiated product for a higher price because people will pay for durability,
appearance, and customer service. They will also pay more for packaging they like or an experience
that excites. (But for some businesses, of course, your strategy may be to differentiate by setting lower
prices than what’s on the market.)
Narrowing down your target audience

Product differentiation helps you refine your target audience as well.
The more research you do and the more you differentiate, the better you’ll understand who’s actually
buying your product or service. Then you can repeat the process to streamline your target audience
even more. Focusing on a niche group of consumers often leads to better sales and return on
investment (ROI) for marketing spend than trying to market to the general public.
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Investing in your future
Building a distinct product or service and finding its place in the market takes a lot of work. But over
time, your investments can pay off in a major way.
By differentiating your products, you can find your customers, create the products they want, show
them what makes you unique, and ultimately grow your business.
Types of Product Differentiation strategy

Ideally, a product differentiation strategy should demonstrate that the product can do everything the
competing choices can but has an additional benefit that no one else offers. Below are a few of the
most common strategies employed to differentiate a product or service.
Price
Price can work both ways, meaning companies can charge the lowest price to attract buyers that are
cost-conscious–Costco, for example. However, companies can also charge higher prices to emphasize
that it's a luxury product and worth it–such as a luxury car.
Performance and Reliability

Products that are considered reliable and offer long-term value are often touted as better than the
competition. Also, increased performance is often used as a differentiating factor for products such as
batteries.
Location and Service

For smaller, local companies that are trying to stand out from national brands, it's common to
emphasize that they're a local business. Also, the added level of service that results from being in "your
neighborhood" is a way for companies to showcase their high-quality service or product but also justify
a higher price versus national brands.
Benefits of Product Differentiation

A differentiated product can increase brand loyalty and even survive a higher price point. If a product is
perceived to be better than its competitors, consumers will consider it worth the higher price.
Differentiation marketing can help companies stand out when a product isn't perceived to be much
different from a competitor's, such as bottled water. The strategy might be to focus on a lower price
point or that it's a locally-owned business. When functional aspects of the two products are identical,
non-functional features can be highlighted. The strategy can be merely an appealing change in design
or styling.
A successful product differentiation campaign raises consumer interest and gives them a reason to
believe they need their product versus another.
Examples of Product Differentiation

Companies introducing a new product often cite its lower costs to buy or use. If Company X produces a
coffee maker virtually identical to that of Company Y, Company X may offer a version at a lower cost. If
it comes with a reusable filter, the savings on paper filters are highlighted in packaging and advertising
it.
For example, product differentiation is vividly on display among the many coffee maker brands on
today's market. KitchenAid coffee makers have a hefty, substantial feel, and a premium price to match.
Keurig differentiates itself with the ease of use of coffee pods. Amazon Basics, as always, sets an
unbeatably low price point.
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2.2 Product Positioning
Positioning is where your product or service fits in the marketplace. It is a strategic exercise that defines
what makes your product unique and why it is better than alternative solutions. Distilling the truth of
your product in this way informs your messaging so you can effectively explain the value of your
offering to potential customers.
Why is product positioning important?
Your strategic positioning is the basis of your marketing story. The goal is to distill who your audience
is, what they need, and how your product can help — all so you can craft messaging that is on target.
Establishing upfront how you want your product to be known in the market sets the foundation for how
you will communicate the value of your product to customers.
Your ability to articulate the key benefits of your product and the problem it solves is critical to business
success. It keeps your marketing strategy grounded in the true value of what your product provides.
This ensures your promotional activities resonate with customers and help them understand why your
product is the best option to meet their needs.
What influences how a product is perceived?
Product positioning is made up of core building blocks that explain your product’s unique value. By
bringing together your customer, market, and product knowledge, you can align the broader team
around the best way to position your product for success.
Here are the key elements that define your product positioning:
Mission The overall direction for where your product is headed.

How you are going to make your vision a reality.
Market category The market that you are in and your key customer
segments.
Tagline Catchphrase or slogan you use to describe your
company or product.
Customer challenges Major pain points for your customers.
Company and product differentiators Unique, value-creating characteristics of your company
or product.
Band essence The core attributes you want to be known for.
What is the best way to develop a positioning strategy?
Developing a positioning strategy is a collaborative exercise. It often involves product

management and product marketing working closely together to define the core essence of your
product. You will need to bring together your knowledge of the following areas:
 Understand the customer

Your positioning should succinctly capture who your customers are and what they need.
Describe the attributes of your target customers, including demographic, behavioral,
psychographic, and geographic details. You will also want to provide insights into the main
problems the customer is trying to solve. Use your persona profiles to inform your positioning
and help the broader team build empathy with your customers.
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 Analyze the market

You need to know what alternatives customers have to your product so you can highlight what
sets your offering apart. Research your direct and indirect competitors to understand how they
serve your customers’ needs. This will allow you to differentiate your product from the
competition and help you explain to potential customers why your solution is the best option to
solve their problems.
 Assess the product
Your positioning must be built on the unique value your company and product provides.
Conducting a SWOT analysis is a useful way to objectively analyze what your product is doing
well and where it can do better. This ensures that your marketing message aligns with the
product experience, thus helping customers make informed decisions.
What is a product positioning statement?
Once your positioning strategy is defined, create a brief positioning statement that describes your target
audience, what sets your product apart, and why customers should care about it. Here is an example of
a positioning statement template:
For [group of users] that [need/want], [company/product] is a [category/solution] that uniquely

solves this by [benefit].
It would be helpful to use an example company to talk through this. Let’s use Fredwin Cycling. The
target market is predominantly cycling enthusiasts who are interested in improving their fitness. Your
market and customer research reveals that users are concerned about their health but are struggling to
stick with an exercise program. Users want to stay motivated by connecting with like-minded friends.
The product addresses this need by providing a social cycling community that promotes friendly
competition and tracks workout performance.
Here is a sample positioning statement for Fredwin Cycling:
For cyclists that want to connect with other athletes, Fredwin Cycling is the leading social fitness
application that uniquely brings the cycling community together by promoting healthy competition.
What influences how a product is perceived?
Your positioning shapes how you want your product to be known in the market. But there are many
different factors that can affect how your product is perceived. The major influence is what customers
experience when they actually use your product and interact with your company. It is the summation of
the Complete Product Experience (CPE) that determines what customers think and feel about your
product.
There are seven core areas that contribute to the CPE:
 Marketing
How potential customers learn about your product and decide if it might be a fit.
 Sales
How prospects get the information they need to make a purchasing decision.
 Technology
The core set of features that customers pay for.
 Supporting systems
The internal systems that make it possible to deliver the product.
 Third-party integrations
The ecosystem of products the customer uses.
 Support
How customers receive product training and assistance.
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 Policies
The rules that govern how your company does business.
Remember, every touch point with your company either reinforces or undermines your positioning. So,
while you should consciously plan how to position your product you should think broadly about every
aspect of the adoption process — because your customers will decide what they really think about your
product.
3. Market
3.1 Market Structure
The Market Structure refers to the characteristics of the market either organizational or competitive,

that describes the nature of competition and the pricing policy followed in the market.
Thus, the market structure can be defined as, the number of firms producing the identical goods and
services in the market and whose structure is determined on the basis of the competition prevailing in
that market.
The term “ market” refers to a place where sellers and buyers meet and facilitate the selling and buying
of goods and services. But in economics, it is much wider than just a place, It is a gamut of all the
buyers and sellers, who are spread out to perform the marketing activities.
Types of Market Structures
A variety of market structures will characterize an economy. Such market structures essentially refer to the
degree of competition in a market.
There are other determinants of market structures such as the nature of the goods and products, the
number of sellers, number of consumers, the nature of the product or service, economies of scale etc. We
will discuss the four basic types of market structures in any economy.
One thing to remember is that not all these types of market structures actually exist. Some of them are just
theoretical concepts. But they help us understand the principles behind the classification of market
structures.
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(Source: BusinessJargons)
1. Perfect Competiton
In a perfect competition market structure, there are a large number of buyers and sellers. All the sellers
of the market are small sellers in competition with each other. There is no one big seller with any
significant influence on the market. So all the firms in such a market are price takers.
There are certain assumptions when discussing the perfect competition. This is the reason a perfect
competition market is pretty much a theoretical concept. These assumptions are as follows,
 The products on the market are homogeneous, i.e. they are completely identical
 All firms only have the motive of profit maximization
 There is free entry and exit from the market, i.e. there are no barriers
 And there is no concept of consumer preference
2. Monopolistic Competition
This is a more realistic scenario that actually occurs in the real world. In monopolistic competition, there
are still a large number of buyers as well as sellers. But they all do not sell homogeneous products.
The products are similar but all sellers sell slightly differentiated products.
Now the consumers have the preference of choosing one product over another. The sellers can also
charge a marginally higher price since they may enjoy some market power. So the sellers become the
price setters to a certain extent.
For example, the market for cereals is a monopolistic competition. The products are all similar but
slightly differentiated in terms of taste and flavours. Another such example is toothpaste.
3. Oligopoly
In an oligopoly, there are only a few firms in the market. While there is no clarity about the number of
firms, 3-5 dominant firms are considered the norm. So in the case of an oligopoly, the buyers are far
greater than the sellers.
The firms in this case either compete with another to collaborate together, They use their market
influence to set the prices and in turn maximize their profits. So the consumers become the price
takers. In an oligopoly, there are various barriers to entry in the market, and new firms find it difficult to
establish themselves.
4. Monopoly
In a monopoly type of market structure, there is only one seller, so a single firm will control the entire
market. It can set any price it wishes since it has all the market power. Consumers do not have any
alternative and must pay the price set by the seller.
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Monopolies are extremely undesirable. Here the consumer loose all their power and market forces
become irrelevant. However, a pure monopoly is very rare in reality.
The major determinants of the market structure are:
1. The number of sellers operating in the market.

2. The number of buyers in the market.
3. The nature of goods and services offered by the firms.
4. The concentration ratio of the company, which shows the largest market shares held by the
companies.
5. The entry and exit barriers in a particular market.
6. The economies of scale, i.e. how cost efficient a firm is in producing the goods and services at a
low cost. Also the sunk cost, the cost that has already been spent on the business operations.
7. The degree of vertical integration, i.e. the combining of different stages of production and
distribution, managed by a single firm.
8. The level of product and service differentiation, i.e. how the company’s offerings differ from the
other company’s offerings.
9. The customer turnover, i.e. the number of customers willing to change their choice with respect
to the goods and services at the time of adverse market conditions.
Thus, the structure of the market affects how firm price and supply their goods and services, how they
handle the exit and entry barriers, and how efficiently a firm carry out its business operations.
3.2 Market Segments
A market segment is a group of people who share one or more common characteristics, lumped
together for marketing purposes. Each market segment is unique, and marketers use various criteria to
create a target market for their product or service. Marketing professionals approach each segment
differently, after fully understanding the needs, lifestyles, demographics, and personality of the target
consumer.
Understanding Market Segments

A market segment is a category of customers who have similar likes and dislikes in an otherwise
homogeneous market. These customers can be individuals, families, businesses, organizations, or a
blend of multiple types. Market segments are known to respond somewhat predictably to a marketing
strategy, plan, or promotion. This is why marketers use segmentation when deciding a target market.
As its name suggests, market segmentation is the process of separating a market into sub-groups, in
which its members share common characteristics.
To meet the most basic criteria of a market segment, three characteristics must be present. First, there
must be homogeneity among the common needs of the segment. Second, there needs to be a
distinction that makes the segment unique from other groups. Lastly, the presence of a common
reaction, or a similar and somewhat predictable response to marketing, is required. For example,
common characteristics of a market segment include interests, lifestyle, age, gender, etc. Common
examples of market segmentation include geographic, demographic, psychographic, and behavioral.
Types of Market Segmentation
With segmentation and targeting, you want to understand how your market will respond in a given
situation, like purchasing your products. In many cases, a predictive model may be incorporated into
the study so that individuals can be grouped within identified segments based on specific answers to
survey questions.
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Geographic Segmentation
While typically a subset of demographics, geographic segmentation is typically the easiest. Geographic

segmentation creates different target customer groups based on geographical boundaries. Because
potential customers have needs, preferences, and interests that differ according to their geographies,
understanding the climates and geographic regions of customer groups can help determine where to
sell and advertise, as well as where to expand your business.
Demographic Segmentation
Demographic segmentation sorts a market by demographic elements such as age, education, income,

family size, race, gender, occupation, nationality, and more. Demographic segmentation is one of the
simplest and most commonly used forms of segmentation because the products and services we buy,
how we use those products, and how much we are willing to spend on them is most often based on
demographic factors.
Firmographic Segmentation
Firmographic segmentation is similar to demographic segmentation. The difference is that

demographics look at individuals while firmographics look at organizations. Firmographic segmentation
would take into consideration things like company size, number of employees and would illustrate how
addressing a small business would differ from addressing an enterprise corporation.
Behavioral Segmentation
Behavioral segmentation divides markets by behaviors and decision-making patterns such as

purchase, consumption, lifestyle, and usage. For instance, younger buyers may tend to purchase body
wash, while older consumer groups may lean towards soap bars. Segmenting markets based off
purchase behaviors enables marketers to develop a more targeted approach.
Psychographic Segmentation
Psychographic segmentation takes into account the psychological aspects of consumer behavior by

dividing markets according to lifestyle, personality traits, values, opinions, and interests of consumers.
Large markets like the fitness market use psychographic segmentation when they sort their customers
into categories of people who care about healthy living and exercise.
How to Get Started with Segmentation
Market segmentation doesn’t need to be complicated to be effective. There are five primary steps of
segmentation.
1. Conduct Preliminary Research – Get to know your customers better by asking some initial,
open-ended questions.
2. Determine How To Segment Your Market – Decide which criteria (i.e.
demographics/firmographics, psychographics, or behavior) you want to segment your market
by.
3. Design Your Study – Ask a mix of demographic/firmographic, psychographic, and behavioral
questions. Be sure to make your questions quantifiable.
4. Create Your Customer Segments – Analyze your responses either manually or with statistical
software to create your segments.
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5. Test and Iterate – Evaluate your segments by ensuring they are usable and helpful. If they
aren’t, try segmenting based on other criteria.
Ensuring Effective Segments
After you determine your segments, you want to ensure they’ll be useful. A good segmentation analysis
should pass the following tests:
 Measurable: Measurable means that your segmentation variables are directly related to

purchasing a product. You should be able to calculate or estimate how much you segment will
spend on your product. For example, one of your segments may be a coupon maven, who is
more likely to shop during a promotion or sale.
 Accessible: Understanding your customers and being able to reach them are two different
things. Your segment’s characteristics and behaviour should help you identify the best way to
meet them. For example, you may find that a key segment is resistant to technology and rely on
newspaper or radio ads to hear about store promotions, while another segment is best reached
on your mobile app. One of your segments might be a male retiree who is less likely to use a
mobile app or read email, but responds well to printed ads.
 Substantial: The market segment must have the ability to purchase. For example, if you are a
high-end retailer, your store visitors may want to purchase your goods but realistically can’t
afford them. Make sure, an identified segment is not just interested in you, but can be expected
to purchase form you. In this instance, your market might include environmental enthusiasts
who are willing to pay a premium for eco-friendly products, leisurely retirees who have can
afford your goods, and successful entrepreneurs who want to show off their wealth.
 Actionable: The market segment must produce the differential response when exposed to the
market offering. This means that each of your segments must be different and unique from each
other. Let’s say that your segmentation reveals people who love their pets and people who care
about the environment have the same purchasing habits. Rather than have two separate
segments, you should consider grouping both together in a single segment.
Market segmentation is not an exact science. As you go through the process, you may realize that
segmenting based on behaviors doesn’t give you actionable segments, but behavior does. You’ll want
to iterate on your findings to ensure you’ve found the best fit the needs of your marketing, sales and
product organizations.
3.3 Market Size
The market size for a business line is the total potential number of customers or sales, usually in a
given year. For an existing type of business, you can look at existing sales numbers to understand
the market size. If you're rolling out a new brand of shampoo or car, it's unlikely that you'll cause
people to buy significantly more bottles of shampoo or new cars, so the market size is essentially the
existing sales numbers in the industry. Market potential is often used as another term for the same
concept. Often rough sales numbers in an industry can be found online or through industry
publications.
Potential New Markets
If you're rolling out a new style of product or one that's radically different from its competitors, you'll
have to think more about the potential new market and estimate the new market size based on
anticipated demand. For example, if you could manage to sell a new car for just $5,000, you'd likely
dramatically boost new car sales, so your potential market size could be greater than the
existing industry size.
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You'll also have to decide whether you're looking at the global market, the domestic market or the
regional market for your product or service. This often is based on where you plan on offering your
goods or services for sale. If you're starting a local breakfast restaurant with no plans to expand
operations outside of your hometown, you'll likely look at a different market than someone panning to
start a nationwide chain.
As your business expands or shifts gears, you may find yourself evaluating the market size
differently.
Market Size and Market Value
Market value, meaning the total amount of sales revenue from a market, is often considered as
different from market size, which might just measure the raw number of sales or customers in the
market.
Both numbers can be critical, since you need to know not only how many potential customers you
have to reach but how much money you can actually make in your business.
Market Share Calculations
The market share of a business or product is the percentage of sales or of revenue in the market that
go to that business or product. Market share tends to vary based on the exact definition of the market
in question.
For example, if you're estimating the market share of a pickup truck, you'll need to decide whether
you're talking about the share of pickup truck sales, the sale of consumer trucks and cars or even a
wider market that could include motorcycles or larger trucks. You may also choose to think about
your company's share or potential share of either raw sales counts, customers or revenues
depending on the situation. A company selling higher end products will likely have a higher
percentage of sales by revenue than it does by raw numbers of units sold or customers.
When companies are seeking investors or bank loans, they often present projections of potential
market size and market share moving into the future, along with arguments for why they're likely
reasonably accurate. This can let potential backers know how much the company can realistically be
expected to grow.
3.4 Beachhead Market
A beachhead market can be defined as a small market with specific characteristics that make it an ideal
target to sell a new product or service. The choice of the market is based on the compatibility between
the resources available, the product, and the market itself. The market should help the business serve
specific goals that will help it advance from its infancy to other markets. Here are some of the
conditions that define a beachhead market:
Customers purchase similar products
A business should go into a market where the potential customers are already purchasing a similar
product to that which the business intends to offer.

Customers have similar sales cycles
The customers within the potential market should have similar sales cycles, and they should expect to
get the product value in similar ways. Sales cycles are predictable phases when a company expects to
sell its products or services to customers in a specific market segment.

Word of mouth communication between customers
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A market where customers frequently spread information or ideas by word of mouth is potentially a
good market for implementing the beachhead strategy. The customers can belong to specific
communities or regions where they share information with other potential customers. These markets,
where existing customers serve as references for potential customers, serve as ideal hubs where new
businesses can create dominance.

Segmentations for the Beachhead Market
A business should have a focused segmentation for the beachhead market to enable it to refine its
propositions. The market segmentation can be based on:

Geography
Geography refers to the home market where the business wants to launch its products or services.
Since venturing into a home market will require relationship building and face-to-face confidence, local
promoters will enjoy distinct advantages. The local promoters will be well-versed with the culture of the
local market, the cost of travel and access to the market will be minimized, and the local customers will
be comfortable dealing with local suppliers.

Industry vertical
Customers value products that are specifically designed for them. A business should target and
position its products and services so that customers can differentiate the company’s products from
those offered by its competitors.

Customer profiles
The characteristics of early adopters of the product or service offered by a company can be defined to
identify which segment of the market to target. The ideal customer profiles should comprise early
adopters and customers seeking specific solutions since they are more receptive to new relationships
or product offerings.

Process
A company may decide to offer a new product in the target market that provides a variety of
applications for different business processes and technology environments. For better targeting in a
beachhead environment, the company should minimize the variety of uses so that it can focus on
specific categories of customers first, before advancing to the rest of the market.
3.5 Creating your Market
1. Conduct a situation analysis.
Before you can get started with your marketing plan, you have to know your current situation.
What are your strengths, weaknesses, opportunities, and threats? Conduct a basic SWOT analysis is
the first step to creating a marketing plan.
Additionally, you should also have an understanding of the current market. How do you compare to
your competitors? Doing a competitor analysis should help you with this step.
Think about how other products are better than yours. Plus, consider the gaps in a competitor's
approach. What are they missing? What can you offer that'll give you a competitive advantage? Think
about what sets you apart.
Answering questions like this should help you figure out what your customer wants, which brings us to
step number two.
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2. Define your target audience.
Once you have a better understanding of the market and your company's situation, make sure you
know who your target audience is.
If your company already has buyer persona's, this step might just mean you have to refine your
current personas.
If you don't have a buyer persona, you should create one. To do this, you might have to conduct market
research.
Your buyer persona should include demographic information such as age, gender, and income.
However, it will also include psychographic information such as pain points and goals. What drives your
audience? What problems do they have that your product or service can fix?
Once you have this information written out, it'll help you define what your goals are, which brings us to
step number three.
3. Write SMART goals.
My mother always used to tell me, "You can't go somewhere unless you have a road map." Now, for
me, someone who's geographically challenged, that was literal advice.
However, it can also be applied metaphorically to marketing. You can't improve your ROI unless you
know what your goals are.
After you've figured out your current situation and know your audience, you can begin to define
your SMART goals.
SMART goals are Specific, Measurable, Attainable, Relevant, and Time-bound. This means that all
your goals should be specific and include a time frame for which you want to complete it.
For example, your goal could be to increase your Instagram followers by 15% in three months.
Depending on your overall marketing goals, this should be relevant and attainable. Additionally, this
goal is specific, measurable, and time-bound.
Before you start any tactic, you should write out your goals. Then, you can begin to analyze which
tactics will help you achieve that goal. That brings us to step number four.
4. Analyze your tactics.
At this point, you've written down your goals based on your target audience and current situation.
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Now, you have to figure out what tactics will help you achieve your goals. Plus, what are the right
channels and action items to focus on.
For example, if your goal is to increase your Instagram followers by 15% in three months, your tactics
might include hosting a giveaway, responding to every comment, and posting three times on Instagram
per week.
Once you know your goals, brainstorming several tactics to achieve those goals should be easy.
However, while you're writing your tactics, you have to keep your budget in mind, which brings us to
step number five.
5. Set your budget.
Before you can begin implementing any of your ideas that you've come up with in the steps above, you
have to know your budget.
For example, your tactics might include social media advertising. However, if you don't have the budget
for that, then you might not be able to achieve your goals.
While you're writing out your tactics, be sure to note an estimated budget. You can include the time it'll
take to complete each tactic in addition to the assets you might need to purchase, such as ad space.
Now that you know how to create your marketing plan, let's dive into the elements that a high-level
marketing plan should include.
Marketing Plan Elements
Marketing plans can get quite granular to reflect the industry you're in, whether you're selling to
consumers (B2C) or other businesses (B2B), and how big your digital presence is. Nonetheless, here
are six elements every effective marketing plan includes:
1. Business Summary
In a marketing plan, your Business Summary is exactly what it sounds like: a summary of the
organization. This includes the company name, where it's headquartered, and its mission statement --
all of which should be consistent with the business as a whole.
Your marketing plan's Business Summary also includes a SWOT analysis, which stands for the
business's strengths, weaknesses, opportunities, and threats. Be patient with your business's SWOT
analysis; you'll write most of it based on how you fill out the next few marketing plan elements below.
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2. Business Initiatives
The Business Initiatives element of a marketing plan helps you segment the various goals of your
department. Be careful not to include big-picture company initiatives, which you'd normally find in a
business plan. This section of your marketing plan should outline the projects that are specific to
marketing. You'll also describe the goals of those projects and how those goals will be measured.
3. Target Market
Here's where you'll conduct some basic market research. If your company has already done a thorough
market research study, this section of your marketing plan might be easier to put together.
Ultimately, this element of your marketing plan will help you describe the industry you're selling to, an
analysis of your competitors, and your buyer persona. A buyer persona is a semi-fictional description of
your ideal customer, focusing on traits like age, location, job title, and personal challenges.
4. Market Strategy
Your Market Strategy uses the information included in your Target Market section to describe how your
company should approach the market. What will your business offer your buyer personas that your
competitors aren't already offering them?
5. Budget
Don't mistake the Budget element of your marketing plan with your product's price or other company
financials. Your budget describes how much money the business has allotted the marketing team to
pursue the initiatives and goals outlined in the elements above.
Depending on how many individual expenses you have, you should consider itemizing this budget by
what specifically you'll spend your budget on. Example marketing expenses include a marketing
agency, marketing software, paid promotions, and events (those you'll host and/or attend).
6. Marketing Channels
Lastly, your marketing plan will include a list of your marketing channels. While your company might
promote the product itself using certain ad space, your marketing channels are where you'll publish the
content that educates your buyers, generates leads, and spreads awareness of your brand.
If you publish (or intend to publish) on social media, this is the place to talk about it. Use the Marketing
Channels section of your marketing plan to lay out which social networks you want to launch a business
page on, what you'll use this social network for, and how you'll measure your success on this network.
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Part of this section's purpose is to prove to your superiors, both inside an outside Marketing, that these
channels will serve to grow the business.
VI. LEARNING ACTIVITIES
1. Discuss the concepts of competitors, product and market.

2. Describe the classes of competitors.
3. Discuss market segmentation.
VII. ASSIGNMENT
If you are an Engineer Manager, you are tasked to design public market of Bambang, how will
this be? And please illustrate your answer.
VIII. REFERENCES
https://simplicable.com/new/competitor
https://www.investopedia.com/terms/p/product_differentiation.asp
https://mailchimp.com/marketing-glossary/product-differentiation/
https://www.aha.io/roadmapping/guide/product-strategy/what-is-product-positioning
https://www.toppr.com/guides/business-economics/meaning-and-types-of-markets/types-of-market-
structures/
https://businessjargons.com/market-structure.html
https://www.investopedia.com/terms/m/market-segment.asp
https://www.qualtrics.com/au/experience-management/brand/what-is-market-segmentation/
https://smallbusiness.chron.com/definition-market-size-65724.html
https://corporatefinanceinstitute.com/resources/knowledge/strategy/beachhead-strategy/#:~:text=A
%20beachhead%20market%20can%20be,product%2C%20and%20the%20market%20itself.
https://blog.hubspot.com/marketing/marketing-plan-template-generator
Disclaimer: This document does not claim any originality and cannot be used as a substitute for prescribed textbooks.
The information presented here is merely a collection by the faculty member for his respective teaching assignments.
Various sources as mentioned at the end of the document as well as freely available material from internet were consulted
for preparing this document. The ownership of the information lies with the respective authors or institutions. Further, this
document is not intended to be used for commercial purpose and the faculty member is not accountable for any issues,
legal or otherwise, arising out of use of this document. The faculty member makes no representations or warranties with
respect to the accuracy or completeness of the contents of this document and specifically disclaim any implied warranties
of merchantability or fitness for a particular purpose.
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Republic of the Philippines

NUEVA VIZCAYA STATE UNIVERSITY

College: COLLEGE OF ENGINEERING

DEGREE PROGRAM BSECE COURSE NO. Eng’g 3

I. UNIT TITLE/CHAPTER TITLE:

II. LESSON TITLE: Competitors and Market

III. LESSON OVERVIEW:

IV. DESIRED LEARNING OUTCOMES:

1. Discuss the concepts of Competitors, Products and Market.

2.1 Product Differentiation

Product differentiation is a marketing strategy that strives to distinguish a company's products or

How Product Differentiation Works

Promoting Product Differentiation

Measuring Product Differentiation

Types of product differentiation

Advantages of product differentiation

Building brand loyalty

Achieving higher price points

Narrowing down your target audience

Investing in your future

Types of Product Differentiation strategy

Performance and Reliability

Location and Service

Benefits of Product Differentiation

Examples of Product Differentiation

2.2 Product Positioning

Why is product positioning important?

What influences how a product is perceived?

Mission The overall direction for where your product is headed.

What is the best way to develop a positioning strategy?

Developing a positioning strategy is a collaborative exercise. It often involves product

 Understand the customer

 Analyze the market

What is a product positioning statement?

For [group of users] that [need/want], [company/product] is a [category/solution] that uniquely

Here is a sample positioning statement for Fredwin Cycling:

What influences how a product is perceived?

There are seven core areas that contribute to the CPE:

3.1 Market Structure

The Market Structure refers to the characteristics of the market either organizational or competitive,

Types of Market Structures

 All firms only have the motive of profit maximization

 And there is no concept of consumer preference

The major determinants of the market structure are:

1. The number of sellers operating in the market.

3.2 Market Segments

Understanding Market Segments

Types of Market Segmentation

While typically a subset of demographics, geographic segmentation is typically the easiest. Geographic

Demographic segmentation sorts a market by demographic elements such as age, education, income,

Firmographic segmentation is similar to demographic segmentation. The difference is that

Behavioral segmentation divides markets by behaviors and decision-making patterns such as

Psychographic segmentation takes into account the psychological aspects of consumer behavior by

How to Get Started with Segmentation

Ensuring Effective Segments

 Measurable: Measurable means that your segmentation variables are directly related to

3.3 Market Size

Potential New Markets

Market Size and Market Value

Market Share Calculations

3.4 Beachhead Market

3.5 Creating your Market

1. Conduct a situation analysis.