GOOD DAY!

MRS. ANGEL GRACE J. RITUAL

QUARTER 2
ENTREPRENEURSHIP 12
OBJECTIVES
At the end of our lesson, you are expected to:
Determine who the customers are in terms of:
a. Target market
b. Customer requirement
c. Market size
WHAT I KNOW? : STATE IF THE FOLLOWING
STATEMENTS ARE TRUE OR FALSE.
FALSE Demographic segmentation is the total market divided
___________1.
according to geographic location.
TRUE
___________2. Market targeting is a stage in market identification process
that aims to determine the set of buyers with common needs and
characteristics.
TRUE
___________3. Targeting a specific market does not mean that you are
excluding people who do not fit your criteria.
TRUE
___________4. Service requirement is an intangible thing or product that
cannot be touched, but can be felt.
FALSE
___________5. Market size is like world global measurement.
TARGET MARKET
It is a sage in market identification
process that aims to determine the
buyers with common needs and
characteristics.
 COMMON METHODS USED FOR
SEGMENTING THE MARKETS
• Geographic Segmentation
• Demographic Segmentation
• Psychological Segmentation
• Behavioral Segmentation
GEOGRAPHIC SEGMENTATION
The total market is divided according to geographical
location.
These are the variables to consider:
a. Climate
b. Dominant ethnic group
c. Culture
d. Density (either rural or urban)
DEMOGRAPHIC SEGMENTATION

It is divided based on consumers.

These are the variables to consider:
a. Gender e. Education
b. Age f. Religion
c. Income g. Ethnic group
d. Occupation h. Family size
PSYCHOLOGICAL SEGMENTATION
It is divided in terms of how customers think and
believe.
These are the variables to consider:
a. Needs and wants e. Knowledge
b. Attitudes f. Awareness
c. Social class g. Brand concept
d. Personality traits h. Lifestyle
BEHAVIORAL SEGMENTATION
It is divided in terms of customers’ behavior pattern
as they interact with a company.
These are the variables to consider:

a. Perceptions d. Benefits
b. Knowledge e. Loyalty
c. Reaction f. Responses
CUSTOMER REQUIREMENTS

These are the specific

characteristics that the customers
need from a product or a service.
 TWO TYPES OF CUSTOMER
REQUIREMENTS

• Service Requirement
• Output Requirement
SERVICE REQUIREMENTS
An intangible thing or product that cannot be
touched but the customer can feel the
fulfillment. It includes all aspects of how a
customer expects to be treated while
purchasing a product and how easy the buying
process goes.
 ELEMENTS IN SERVICE
REQUIREMENT
• On-time delivery
 ELEMENTS IN SERVICE
REQUIREMENT
• On-time delivery
•Service with a smile
 ELEMENTS IN SERVICE
REQUIREMENT
• On-time delivery
•Service with a smile
•Easy payment
OUTPUT REQUIREMENTS
A tangible thing/s that can be seen.
Characteristics specifications that a consumer
expects to be fulfilled in the product.
Customers will avail services as a product,
then various service requirements can take the
form of output requirements.
MARKET SIZE
The entrepreneur’s most critical task is to
calculate the market size, and the potential
value that market has for their start-up
business. Market research will determine the
entrepreneurs’ possible customers in one
locality.
 STEP-BY-STEP METHOD USED IN CONDUCTING
A STRATEGIC MARKETING RESEARCH FROM
RELIABLE SOURCES
• Approximate number of customers that will buy
the product or avail your services.
• Estimate the customers who probably dislike to
buy your product or avail the services.
• Estimate the market share, that means plotting and
calculating of the competitor’s market share to
determine the portion of the new venture.
ASSESSMENT: CHOOSE THE LETTER OF THE
CORRECT ANSWER.

1. The following variables are to be considered in

behavioral segmentation, except

a. Perception c. Reaction
b. Brand concept d. Benefits
ASSESSMENT: CHOOSE THE LETTER OF THE
CORRECT ANSWER.

2. What is market size?

a. Tangible things that can be seen
b. Size of arena where the entrepreneur will play business.
c. The most important part of the success of the company.
d. Another variation of segmentation marketing.
ASSESSMENT: CHOOSE THE LETTER OF THE
CORRECT ANSWER.
3. Tangible things that can be seen refers to

a. Service requirement
b. Output requirement
c. Customer requirement
d. Entrepreneur’s output
ASSESSMENT: CHOOSE THE LETTER OF THE
CORRECT ANSWER.

4. Service requirement is a/an _________ thing or product

that cannot be touched but customer can feel its fulfillment.

a. Tangible c. Service
b. Intangible d. Output
ASSESSMENT: CHOOSE THE LETTER OF THE
CORRECT ANSWER.

5. Geographic segmentation refers to:

a. Divided according to geographical location
b. Divided based consumers
c. Divided in terms for customers think and believe
d. All of the above
ASSESSMENT: CHOOSE THE LETTER OF THE
CORRECT ANSWER.

6. It is a sage in market identification process that aims to

determine the buyers with common needs and characteristics.

a. Market size c. Service

b. Customers d. Target Market
II. IDENTIFICATION

What are the 4 common

methods used for segmenting
the markets?
ASSESSMENT: CHOOSE THE LETTER OF THE
CORRECT ANSWER.

1. The following variables are to be considered in

behavioral segmentation, except

a. Perception c. Reaction
b. Brand concept d. Benefits
ASSESSMENT: CHOOSE THE LETTER OF THE
CORRECT ANSWER.

2. What is market size?

a. Tangible things that can be seen
b. Size of arena where the entrepreneur will play business.
c. The most important part of the success of the company.
d. Another variation of segmentation marketing.
ASSESSMENT: CHOOSE THE LETTER OF THE
CORRECT ANSWER.
3. Tangible things that can be seen refers to

a. Service requirement
b. Output requirement
c. Customer requirement
d. Entrepreneur’s output
ASSESSMENT: CHOOSE THE LETTER OF THE
CORRECT ANSWER.

4. Service requirement is a/an _________ thing or product

that cannot be touched but customer can feel its fulfillment.

a. Tangible c. Service
b. Intangible d. Output
ASSESSMENT: CHOOSE THE LETTER OF THE
CORRECT ANSWER.

5. Geographic segmentation refers to:

a. Divided according to geographical location
b. Divided based consumers
c. Divided in terms for customers think and believe
d. All of the above
ASSESSMENT: CHOOSE THE LETTER OF THE
CORRECT ANSWER.

6. It is a sage in market identification process that aims to

determine the buyers with common needs and characteristics.

a. Market size c. Service

b. Customers d. Target Market
What are the 4 common methods used
for segmenting the markets?
• Geographic Segmentation
• Demographic Segmentation
• Psychological Segmentation
• Behavioral Segmentation