MARKET SEGMENTATION

Learning across Curriculum:

1. Mathematics - Students can calculate market size using

statistical data.
2. Social Science - Students can explore the social and
cultural factors that influence customer
requirements.
3. Economics - Students can analyze the demand and
supply factors that affect the target market.
Objective:
The learners will be able
to determine who the customers are
in terms of target market, customer
requirements, and market size.
MOST ESSENTIAL LEARNING COMPETENCIES
2.2 Determine who the customers are in
terms of:
2.2.1 Target market;
2.2.2 Customer requirements; and
2.2.3 Market size
(CS_EP11/12ENTREP-Od-8)
MARKET
MARKET SEGMENTATION
is the practice of dividing your target market
into approachable groups. Market
segmentation creates subsets of a market
based on demographics, needs, priorities,
common interests, and other psychographic
or behavioural criteria used to better
understand the target audience.
 FOUR TYPES
OF
MARKET SEGMENTATION
MARKET SEGMENTATION
 Geographical Segmentation
Process of grouping customers relevant
socio – economic variable.
Ex: Customer’s country
Region, State
Language
 Demographic Segmentation
This is often the most common form of
segmentation as it focuses on basic
customer demographics
Ex: Age
Gender
Occupation
Income
 Psychographic Segmentation
This type of data is often harder to collect,
as it deals with customer emotions and feelings.
However, it can add valuable insight into your
customers' motives and preferences.
Ex: Lifestyle
Hobbies
Values / opinions
 Behavioral Segmentation
This form of market segmentation includes buying
behavior, spending habits, social media
interactions,
or previous customer feedback.
Ex: Occasion
Decision
Behaviors
Consider the following
question/s of your
Target Market
 Accessible
are you able to reach the subgroup you’ve
identified through cost-effective and
practical marketing and distribution channels?
 Measurable
can you estimate each subgroup's size
easily, so that you can allocate
marketing spend accordingly?
 Substantial
is the segment large, established and
stable enough to justify its
own marketing activity?
 Viable
can people within the subgroup
afford your product,
and will they see clear and
desirable advantages of using it,
compared with other products and services?