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Chapter 3 Getting to Know the Market Pptx

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johnreypardilla12
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© © All Rights Reserved
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CHAPTER III

GETTING TO KNOW
THE MARKET
COSTUMER
PROFILING

CHAPTER III : GETTING TO KNOW THE


MARKET
CUSTOMER PROFILING
Customer profiling is a way to create a
portrait of your customers to help you make
design decisions concerning your service.
Your customers are broken down into groups
of customers sharing similar goals and
characteristics and each group is given a
representative with a photo, a name, and a
description.
METHODS OF
COSTUMER PROFILING

CHAPTER III : GETTING TO KNOW THE


MARKET
DEMOGRAPHICS
METHODS
OF
CUSTOMER
PSYCHOGRAPHIC PROFILING

S
DEMOGRAPHIC
S
DEMOGRAPHI
CS ETHNIC
INCOME SOCIAL
AG CLASSE CLASSE
BACKGROUND

E S S

RELIGIOU
OCCUPATION DOMICILES
S BELIEF
AGE
DEMOGRAPHI
CS
INCOME
CLASSE
S
INCOME Determine the purchasing power of the
costumers.
CLASSES
Class A - HIGH INCOME
CLASSES
Class B - UPPER MIDDLE INCOME
CLASSES
Class C - MIDDLE INCOME
CLASSES
Class D - LOWER MIDDLE INCOME
CLASSES
Class E - LOW INCOME CLASSES
DEMOGRAPHIC
S
SOCIAL
CLASSE
S
SOCIAL This is often dictate what is acceptable or unacceptable
behavior. These classes or groups often include family,
CLASSE friends, neighbors, fellow workers, and social affiliations.
S
DEMOGRAPHI
CS
ETHNIC
BACKGROUN
D
The cultural beliefs of people such as the food they eat, how ETHNIC
they save and how they spend, and their levels of BACKGROUN
conservatism or progressiveness. D
DEMOGRAPHIC
S
RELIGIOU
S BELIEFS
RELIGIOU
S BELIEFS
DEMOGRAPHIC
S
OCCUPATIONS
Occupations such as those of factory foremen, doctors,
OCCUPATION taxi drivers, nurses, and teachers also determine what
kinds of goods and services these people would buy.
S
DEMOGRAPHIC
S
DOMICILE
S
Domiciles or habitats, or areas of residence and
DOMICILES
environmental surroundings oftentimes, define and limit the
choices available to costumers.
PSYCHOGRAPHIC
S
PSYCHOGRAPHIC
S
MOTIVATION PERCEPTIO LIFESTYL
N E
is the way a person chooses to recieve or
PERCEPTIO
interpret information from the external world.
N
PSYCHOGRAPHI
CS
MOTIVATION
Motivation goes to the roots of costumer's needs
and want. MOTIVATION
NEED WANT
PSYCHOGRAPHIC
S
LIFESTYLE
Lifestyle classifications, it talks about what
LIFESTYLE
people value the most.
TECHNOGRAPHIC
S
TECHNOGRAPHIC
S
Classifies people according to
level of expertise in using a
product or service.
EXAMPLE:
TECHNOGRAPHIC
S
APPLICATION OF
COSTUMER PROFILING

CHAPTER III : GETTING TO KNOW THE


MARKET
APPLICATION OF COSTUMER
PROFILING

To develop a product or service


FIRST to test out in a market place.
WAY

a. The customers most attracted to the


product or service can then be profiled.
b. After profiling, the next step is to find
out how huge this market is for exploitation
purposes.
To profile the different types of
SECOND
costumers in a given industry or
WAY areas as to their needs and want.

a. From these types the entrepreneur


could then choose the customer group with
the best potential.
b. Products or services can be
developed by the entrepreneur to match
this chosen customer group.
MARKET MARKET
SEGMENTATIO MAPPING
N

MARKET
AGGREGATION
MARKET
SEGMENTATION

CHAPTER III : GETTING TO KNOW THE


MARKET
Customers with similar needs and
wants and similar willingness and
ability to pay can be grouped into one
costumer segment.
MARKET
Within this costumer segment, we SEGMENTATION
can have finer cuts. We can have
different costumer sub-segments.
Within these sub-segments we can
even have finer and finer cuts.
Therefore, we can produce products
and services that are highly specialized
for any type of costumer segment.
MARKET
AGGREGATION
Some entrepreneurs prefer
to appeal to broader market if
MARKET
possible. They want market
aggregation rather than market
AGGREGATION
segmentation. They prefer to
deal in commodities like rice,
bread, and water that appeal to
market aggregates rather than
market segments.
MARKET MAPPING
Similar to sales data mining,
market mapping refers to grouping
costumers and products according
to certain market variables. An
entrepreneur can use one or a
combination demographics, MARKET
psychographics, technographics to MAPPING
create a market map. Table 1 is an
example of a market map based
on a students' school life stage or
age and household income
bracket.
HOUSEHOLD INCOME BRACKET
EXAMPLE
SCHOOL
AGE
STAGE Lower Upper
Low Middle High
Middle Middle

Post-Tertiary 22-UP

Tertiary 17-21

Secondary 13-16

Elementary 6-12

Pre-School 2-5

Table 1. MAP 1 - Market Map


(Before K to 12)
Focusing on the tertiary school stage, the students
can further be mapped according to their household
income and occupational preferences.
Zeroing in on occupational preferences at a certain
income level, a technographic and psychographic grid
combination can be drawn.
Taking Accountancy as the preferred occupation,
students can be classified according to their
mathematical aptitude (technographic) and according
to their motivation for taking the Accountancy course
(psychographic).
STUDENT'S
MARKET APTITUDE EXAMPLE
MOTIVATION IN
TAKING THE
COURSE Poor Fair Good Excellent

Parent's
Occupation

Likes Numbers

Job Availability

Friends' Influence

Percieved Ease or
Difficulty

Other Reasons
Table 1. MAP 2 - Students in
Accountancy
EXAMPLE

Products or services can be mapped


according to their relative positioning in the
market based on certain-costumer
parameters.
School offering medical degrees, for
example, can be mapped according to the
percieved degree of dificulty of entry and
their tuition fees.
HIGH
TUITION

LA
UST SALLE

LOW HIGH
DIFFICULTY DIFFICULTY
FEU ATENEO

PUP UP

LOW
TUITION
Figure 1. MAP 3 - School Positioning in
Medical Degree
The purpose of market mapping is
to provide the market analyst a better
understanding of the market as a
whole and to paint a clearer picture of
where the different competitors are
relative to the different market PURPOS
segments. Market mapping would also E
allow entrepreneurs to discover
market segments that are relatively
unserved o underserved. They could
then develop products and services
that fulfill the gaps in the marketplace.

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