ENTREPRENEURSHIP
RECOGNIZE A POTENTIAL MARKET
JASMIN MAE RIVERO
SPECIAL SCIENCE TEACHER I
AUGUST 16, 2024
What is a Market?
It refers to the group of consumers
or organizations that is interested
in the product, has the resources
to the product, and is permitted by
law and other regulations to
acquire the product.
Target Market
It is the market a company wants
to sell its products and services
to, and it includes a targeted set
of customers from whom it
directs its marketing efforts
Market Segmentation
It is a process that consists
of sectioning the target
market into smaller groups
that share similar
characteristics
1. Geographic Segmentation
the total market is divided
according to geographical
location.
GEOGRAPHIC
SEGMENTATION
is made up of two words
from the Greek English word “graphy,”
word “geo,” which means “the
meaning “Earth”, study of”
usually in the
sense of “ground
or land”
“The study of land”
1. Geographic Segmentation
Variables to consider:
a. Climate
b. Dominant ethnic group
c. Culture
d. Density (either rural or urban)
2. Demographic
Segmentation
- divided based on the
consumers
DEMOGRAPHIC
SEGMENTATION
is made up of two words
from the Greek English word “graphy,”
word “demos,” which means “the
meaning people study of”
“The study of people”
DEMOGRAPHIC
SEGMENTATION
Is defined as a market segmentation
method based on variables such as age,
gender, income, etc.
This segmentation helps organizations
understand consumer behavior
accurately that in turn, helps them
perform better.
segmenting by
gender
segmenting by
gender
Men and women have
differences in how they
perceive the ways in which
the market works.
Even market researchers are
very clear about the difference
in the reasoning of the two
groups and for this reason,
make gender-specific products.
segmenting by
gender
For perfumes, clothing,
shoes, and even cars there
are gender specifications
that product manufacturers
understand and work based
on those specific needs.
SEGMENTING BY
AGE
9/10
SEGMENTING BY
AGE
One of the most important variables
for demographic segmentation is age.
A generation is a set of people who
were born during the same era, grew
up with the same type of experiences
with some geographic segmentation.
9/10
SEGMENTING BY
AGE
For example, baby boomers are those
born between 1946 and 1964. People
born in this generation have certain
similar characteristics and thought
processes. People in generation X were
born between 1965 and 1981.
9/10
Q1
SEGMENTING BY Q2
INCOME AND
EXPENDITURE Q3
PATTERNS Q4
Q5
0 1 2 3 4
0 0 0 0
SEGMENTING BY INCOME
AND EXPENDITURE Q1
PATTERNS Q2
Q3
Income is also an important Q4
variable, as it helps determine Q5
product pricing. 0 1
0
2
0
3
0
4
0
Most manufacturers take the demographic
segment into account when pricing the
product.
SEGMENTING BY INCOME
AND EXPENDITURE Q1
PATTERNS Q2
Q3
However, there are other Q4
manufacturers that only focus Q5
on the higher-income segment 0 1
0
2
0
3
0
4
0
of society.
Cars, technology, clothing, etc. are created more
specifically for these segments as they prefer luxury
over anything else.
2. Demographic
Segmentation
Variables to consider
a. Gender e. Age
b. Income f. Occupation
c. Education g. Religion
d. Ethnic group h. Family size
3. Psychographic
Segmentation
– divided in terms of how customers
think and believe. It is a type of
targeting that allows businesses and
marketers to divide customers based
on psychological traits that may
influence their buying behaviors.
3. Psychographic
Segmentation
Variables to consider:
a. Personality
b. Lifestyle
c. Social status
d. Activities, Interests, and Opinion (AIO)
e. Attitudes
4. Behavioral
Segmentation
– divided according to
customers’ behavior
patterns as they interact
with a company.
4. Behavioral
Segmentation
Variables to consider:
▪ Volume of usage▪ Brand Loyalty
▪ End use ▪ Price Sensitivity
▪ Benefit expectation
