Entrep 7

Market Segmentation

An entrepreneurial marketing strategy designed primarily to divide the market into small segments with distinct needs, characteristics, or behaviour (Kotler & Armstrong 2014).

i. Perceptions ii. Knowledge iii. Reactions iv. Benefits v. Loyalty vi. Responses

Behavioral Segmentation considers the following (6)

i. Gender ii. Age iii. Income iv. Occupation v. Education vi. Religion vii. Ethnic group viii. Family size

Demographic segmentation considers the following (8)

Climate Dominant Ethnic group Culture Density Classification of the geographical unit

Geographic segmentation cosiders the following (5)

Behavioral Segmentation

dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product

market positioning

It is believed to be the most important aspect of an entrepreneurial venture and plays a significant role in the practice of entrepreneurship.

Size of the segment and its expected growth Existing and probable structure of the segment Capability of the business

Market Segment Evaluation

differentiated marketing

Several segments are covered and products are designed to suit the specific needs of a particular segment.

Distinctive advantage.

The attribute is distinct to the product and can hardly be copied by the competitors.

Beneficial

The attribute provides valuable benefits to the target consumers

Identifiable

The benefit or attribute is easily associated with the product. The customers should be able to easily identify any benefit that can be derived from the product.

Efficient and rewarding

.The cost in attaching the attribute or value to the product is not higher than the expected benefits in terms of profit.

geographic segmentation Demographic segmentation Psychological segmentation Behavioral segmentation

4 types of market segmentation

Market Targeting

A stage in market identification process that aims to determine the set of buyers with common needs and characteristics. They are the market segment that the entrepreneurial venture intends to serve.

Positioning or Perceptual Map

Market positioning is usually done with the help of the this. This shows the position of similar products competing in the market as perceived by the customers.

Concentrated (or niche) marketing

Only one or few segments are covered, but the product is designed for the majority of the consumers in the segment market.

Accessibility of the market segment. Size of the market segment. Distinction of the market segment.

Points to consider in segmentation

MASS OR UNDIFFERENTIATED MARKETING

Products are mass produced for the whole market where consumers are not differentiated

niche entrepreneurial marketing

The entrepreneur must divide the total market and focus his/her business strategy to a smaller market

identifiable Beneficial Distinctive Advantage Efficient and Rewarding

The following criteria may be considered in identifying the attributes or benefits to be promoted: (4)

Deciding on the Market Position

The last phase of market positioning after differentiating the product from the others in terms of benefits or attribute is to make a decision on where to position the product.

psychological segmentation

The market is divided in terms of what the customers think and believe.

geographic segmentation

The total market is divided according to geographical locations in the Philippines like provincial regions, cities, provinces, municipalities, and even barangay units.

price and quality.

There are two basic dimensions that must be considered in deciding the market position of the product:

lower price and more benefits.

There are two major dimensions that will differentiate the product from its competitors in the market:

Homogenous

having similar interests, preferences, needs, wants, and other related variables)

Market Identification

is a strategic marketing approach and process that is intended to define the specific customer of the product.

i. Needs and wants ii. Attitude iii. Social class iv. Personality traits v. Knowledge and awareness vi. Brand concept vii. Lifestyle

psychological segmentation considers the following (7)

Market Positioning

refers to the process of arranging a product to occupy a clear, distinct, and desirable place in relation to the other competing products in the mindset of target consumers (Kotler & Armstrong, 2013). It is considered the last stage in the product identification process after the entrepreneur has conducted market segmentation and has already identified the particular segment to serve.

demographic segmentation

segmenting markets by age, gender, income, ethnic background, and family life cycle This is the easiest and most widely used method for segmenting the market. Various researches have also determined that there exists a direct relationship between the demographic variables and the needs and wants of customers.

Positioning

simply refers to the act of occupying a certain place. In the field of entrepreneurship, it may either refer to the act of placing the business in a specific place in the industry or placing the product in a certain place in the market.

Business Positioning

simply refers to the process of determining the place of the business in the industry.

Individual or one-on-one marketing

the business provides a product that is suited or fitted to the particular need of the consumers. It is based on the concept that the consumers have different needs and wants.