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ENTREP_Q1-M7-9_OpScreeningMarket Segmentation Targeting

The document outlines the distinction between goods and services, emphasizing the importance of opportunity screening for entrepreneurs through the 12 Rs, which include relevance, responsiveness, and risks. It also discusses market segmentation strategies based on geographic, demographic, psychographic, and behavioral factors, as well as the benefits of such segmentation. Additionally, it covers market targeting strategies and criteria for selecting an ideal target market, focusing on substantiality, financial capability, and reachability.

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TAWAGUEN LHERMA
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8 views

ENTREP_Q1-M7-9_OpScreeningMarket Segmentation Targeting

The document outlines the distinction between goods and services, emphasizing the importance of opportunity screening for entrepreneurs through the 12 Rs, which include relevance, responsiveness, and risks. It also discusses market segmentation strategies based on geographic, demographic, psychographic, and behavioral factors, as well as the benefits of such segmentation. Additionally, it covers market targeting strategies and criteria for selecting an ideal target market, focusing on substantiality, financial capability, and reachability.

Uploaded by

TAWAGUEN LHERMA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Opportunity

Screening
GOODS refer to tangible products that consumers can
observe with their senses.
(Ilano 2016,140). These are material things needed and
wanted by consumers.
Examples: Foods, Clothing, Cleaning Materials,
Transportations etc.
SERVICES refer to intangible offerings that are abstract
and cannot be observed with our senses. (Ilano 2016,
140). A key characteristic of services is that the “act of
delivery” itself is the product and provide services
rather than make goods.
Examples: Laundry Shops, tutorial services, hotel
accommodations, repair shops, travel agencies,
beauty parlors etc.
The 12 Rs of
Opportunity
Screening
1. Relevance to Vision,
Mission and Objectives of
the Entrepreneur.
• Opportunity must be
aligned with the vision,
mission and objectives of
an entrepreneur to attain
the long term goal of the
business.
2. Resonance to Values
• It is essential that the
opportunities you
choose to pursue
matches with your
values and desired
virtues.
3. Reinforcement of
Entrepreneurial Interests
• As a potential entrepreneur,
it is best to select an
opportunity close to your
interests to develop your
skills.
4. Revenues
• Revenues depend not
only on the quality of the
opportunity, but on the
future enterprise’s ability
to strategize and develop
a saleable product or
service.
5. Responsiveness to
Customer Needs and
Wants
• If your choice fits well
with unfulfilled customer
wishes, then you have a
better chance to succeed.
6. Reach
• Opportunities that can be
expanded by adding similar
products or services,
branches or franchise outlets
have good visions for
attaining rapid
development.
7. Range
• The broader the
variety of potential
product or service
offerings, the more
attractive is the
opportunity.
8. Revolutionary Impact
• The next big thing in the
market is likely to be the
opportunity. It can be a
game changer that
revolutionizes industries
and makes old products
and services obsolete.
9. Returns
•Opportunities with low production or servicing
costs but higher prices would most likely yield
higher returns on sales and return on investment.
10.Relative Ease of
Implementation
• The best opportunities
are those that are easy
for you to implement,
but very difficult for
others.
11. Required Resources
Opportunities requiring
fewer resources from an
entrepreneur may be
more profitable than
those requiring more
resources.
12. Risks
Some opportunities are
riskier than others because
they are untested or have a
very small market base.
Sales might be seasonal or
cyclical.
Market
Segmentation
Market segmentation
- is an entrepreneurial marketing
strategy designed primarily to
divide the market into small
segments with distinct needs,
characteristics, or behavior (Kotler
& Armstrong, p. 12)
- It is the process of dividing the
market into homogenous part or
groups.
Traditionally, markets are
segmented according to the
following variables
1. GEOGRAPHIC
SEGMENTATION = Total
markets are into cities,
regions, rural and urban
areas based on location.
2. DEMOGRAPHIC
SEGMENTATION = Market is
divided according to
personal traits of their
consumers like Age,
Gender, Income, Religion,
Nationality. It is the easiest
and most common used in
market segmentation.
Example#1: In Gender
Segmentation, Ana focuses only
on shoes for women.
Example #2: Lamoiyan
Corporation Hapee Toothpaste
began by appealing to kids
using bright toothpaste with
fruity flavors.
3. PSYCHOGRAPHIC
SEGMENTATION = market is
divided based on mental and
emotional characteristics of
what the customers think and
believe in. Their needs,
wants, lifestyles, attitudes,
personalities, social classes
and other variables should be
considered.
4. BEHAVIORAL
SEGMENTATION = Market is
divided on the way
customers used and acted
toward the products. It is
based on the customers’
knowledge, responses,
perceptions, reactions,
benefits and loyalty.
BENEFITS OF MARKET SEGMENTATION
1. Improves campaign performances
2. Informs product development
3. Reveals areas to expand
4. Improves business focus
5. Informs other business decisions
Market Targeting
MARKET TARGETING is a
process of choosing and
identifying the specific target
market from the entire
market.
BASIC ENTREPRENEURIAL
MARKETING STRATEGIES
1. INDIVIDUAL or ONE-
ON-ONE MARKETING –
Products/Services are
tailored to the
needs of the
individual consumer
2. DIFFERENTIATED
MARKETING - Several
segments are covered
and products/ services
are designed to suit
the specific needs of a
particular segment
3. CONCENTRATED MARKETING -
sometimes called niche
marketing is another variation
of segmentation marketing
where the business selects only
one or few segments to cover
but the products/ services are
designed for the majority of
the consumer in the segment
of the market.
4. MASS OR UNDIFFERENTIATED
MARKETING - Undifferentiated
marketing strategy takes into
consideration the fact that the
customers have common needs
and wants. Products/services are
mass-produced for the whole
market where consumers are no
differentiated.
SELECTION OF IDEAL
TARGET MARKET
1. Substantial – The
selected target markets
must be huge enough
in terms of quantity
and or total
consumption capability.
2. FINANCIALLY
CAPABLE- The target
customer must have
the financial means or
paying capacity to
purchase the
product/service.
3. REACHABLE - must be
within reach to permit
product distribution, It
should be reachable by
various marketing
activities (advertising,
promotion, internet, and
digital marketing)
4. HOMOGENOUS – Must
react similarly to
specific marketing
stimuli.
A homogenous market
is an ideal target
market.
FACTORS THAT WILL HELP
YOU DEFINE YOUR TARGET
MARKET
1. ANALYZE YOUR PRODUCT OR
SERVICE from the customer's
point of view. The
entrepreneur has to
determine what does the
product/service does to
the ideal consumer.
2. CHECK OUT THE
COMPETITION it’s time to see
who are your competitor and
who do you think are your
competitors pursuing? Who
are their current customers?
Do not go to the same
market.
3. CONSIDER THE
PSYCHOGRAPHICS OF YOUR
TARGET. Psychographics
are the more personal
characteristics of a person.
Know how your product or
service will fit into your
target's lifestyle.
4. CHOOSE SPECIFIC
DEMOGRAPHICS TO
TARGET Figure out not
only who needs for
your product or
service, but also who is
most likely to buy it.

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