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Entrepreneurial Business
competency competency
Competitive
advantage
and
distinctive
advantage
Nature and
form of the
business to
open
Who is
the
market?
.
Market Identification
Market Segmentation is an entrepreneurial
marketing strategy designed primarily to divide the
market into small segments with distinct needs,
characteristics, or behavior (Kotler & Armstrong,
2014).
The entrepreneur must divide the total market and
focus his/her business strategy to a smaller market
is considered homogeneous or have similar interest,
preferences, needs, wants, and other related
variables. This entrepreneurial approach is
sometimes called niche entrepreneurial marketing.
Geographic Segmentation – divides the total market according
to geographical locations in the Philippines like provincial
regions, cities, provinces, municipalities, and even barangay
units. When dividing, the following must be considered.
Climate
Dominant ethnic group
Culture
Density (either rural or urban)
Classification of the geographical unit (e.g. first class,
second class, etc.)
Demographic Segmentation – divides the market based on the
demographic variables of the customers. The common
demographic variables are the a) Gender, b) Age, c) Income, d)
Occupation, e) Education, f) Religion, g) Ethnic group, h) Family
size.
The most widely used and easiest method for segmenting the
market is the demographic method. Various researches have
also determined that there exists a direct relationship between
demographic variables and the needs and wants of the
customers.
Psychological Segmentation – divides the market in terms of
what the customers think and believe. It is based on the
following variables
• Needs and wants
• Attitude
• Social class
• Personal traits
• Knowledge and awareness
• Brand concept
• Lifestyle
Behavioral Segmentation – divides the market based on the
following variables:
• Perceptions
• Knowledge
• Reactions
• Benefits
• Loyalty
• Responses
Market targeting is 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.
Market Segment Evaluation
Factors to consider in evaluating the market:
1. Size of the segment and its expected growth
2. Existing and probable structure of the segment
3. Capability of the business
Segmentation Matrix
Market Segmentation Matrix is an analytical
business tool that allows you to see how
various segments have performed with a
set of products.
Segmentation Matrix
The size of the segment is usually expressed in
terms of estimated product demand, while the
expected growth may be expressed in terms of
potential profitability of the segment.
Segmentation Matrix
The forces of competition may be classified as
strong, moderate, or weak.
“
The process of determining the market position of the
product includes the following steps:
1. The entrepreneur determines if the market
position is distinct from others.
2. The entrepreneur evaluates the advantages or
benefits of every possible market position.
The process of determining the market position of the
product includes the following steps:
3. The entrepreneur decides on the market position.
Two major dimensions that will differentiate the product
from its competitors in the market:
Lower prices
More benefits
The positioning or perceptual map show the position of
similar products competing in the market as perceived
by customers.
Once the target position in terms of price and
quality dimensions has been evaluated, the
entrepreneur determines the advantages, benefits, and
attributes of the product. There are no specific rules on
how many attributes or benefits the product must have.
The following criteria may be considered in identifying
the attributes or benefits to be promoted:
1. Identifiable
2. Beneficial
3. Distinctive advantage
4. Efficient and rewarding
Two basic dimensions that must be seriously
considered in deciding the market position of the
product
Price
Quality
Questions to consider in deciding the market position
of the product:
1. Will the product be sold at a higher price due to
its attributes and benefits?
2. Will the product be sold at the same price as the
competitor’s price in spite of its benefits?
Questions to consider in deciding the market position
of the product:
3. Will the product be sold at the same price as the
competitor’s because they have similar benefits?