ENTREP - Market Segmentation

1. Availability of raw materials 2. Suitability of the business venture to the locality 3. Estimated cost of the business venture 4. Expected growth of the industry where the proposed business venture will operate. 5. Position of the proposed business in the industry 6. Business competency

The entrepreneur conducts environmental scanning to determine the following:

1. Accessibility of the market 2. Size of the market segment. 3. Distinction of the market segment

Factors to considered in segmenting the market.

geographic segmentation

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

Perception, Knowledge, Reaction, Benefits, Loyalty, Responses

In behavioral segmentation the market is divided based on the following variables:

Gender, Age, Income, Occupation, Education, Religion, Ethnic Group, Family Size

In demographic segmentation, the market is divided based on the demographic variables of the consumers

Market Identification

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

Market Segmentation

Is an entrepreneurial marketing strategy designed primarily to divide the market into small segments with distinct needs, characteristics, or behavior

1. Geographic Segmentation 2. Demographic Segmentation 3. Psychologcial Segmentation 4. Behavioral Segmentation

The commonly used methods for segmenting the market are

Climate, Dominant Ethnic Group, Culture, Density (either rural or urban), Classification of the geographical unit (e.g., first class, second class, etc.)

The entrepreneur divides the total market into a smaller segment using geographical segmentation, the following variables must be considered.

Not all will become customers of the business venture.

Why there is a need for the entrepreneur to clearly identify and define the customers of his/her proposed business venture?

Market Segmentation

is a strategy that can assist the entrepreneur in identifying the particular homogenous segment to serve.

1. market segmentation 2. market targeting, and 3. market positioning

three strategic marketing approaches

Kotler & Armstrong, 2014

who are the people who said: "Market Segmentation is an entrepreneurial amrketing strategy desigend primarily to divide the market.."

Needs and Wants, Attitude, Social Class, Personality Traits, Knowledge, Brand Concept, Lifestyle

•In psychological segmentation the market is divided in terms of what the customers think and believe. It is based on the following variables:

1. understand fully and practice correctly the concepts and principles of entrepreneurship 2. Develop the character traits common among successful entrepreneurs; and 3. enhance the cognitive, technical, and interpersonal skills required in the practice of entrepreneurship.

•The entrepreneur must acquire the required competency to gain competitive advantage. He/She must:

Market segmentation

•is a marketing strategy designed to determine the specific consumers of the entrepreneurial venture since the total market is heterogenous. It divides the market into small segments with distinct needs, characteristics, or behaviors