MARKET

Customer Analysis

  • Customers: Identify who the customers are based on three factors:

    • Customers Requirements

    • Target Market

    • Market Size

Importance of Market Intelligence

  • Market Intelligence: Includes customer profiling that helps entrepreneurs to formulate correct strategies and tactics.

Understanding Customer Requirements

  • Significance of Customers: Customers are the lifeblood of any business.

  • Key Questions for Entrepreneurs:

    • Who buys?

    • What do they buy?

    • When do they buy?

    • Where do they buy?

    • Why do they buy?

Defining Target Market

  • Primary Target Market:

    • Individuals who need the product, are willing to buy, and have the financial capacity to do so.

  • Secondary Target Market:

    • Individuals with limited purchasing power and fewer demands; however, they can be persuaded to buy with effective marketing strategies.

Understanding Market Size

  • Market Size: An approximation of the number of buyers and sellers in a particular market, indicating the vastness or tininess of that market.

Process of Market Segmentation

  • Market Segmentation: Involves grouping similar or homogeneous consumers based on:

    1. Demographics

    2. Psychographics

    3. Geographics

    4. Behavior

Demographic Segmentation

  • Definition: Grouping customers according to socio-economic variables such as:

    • Income range

    • Social class

    • Occupation

    • Gender

    • Age

    • Religion

    • Ethnicity

Psychographic Segmentation

  • Definition: Grouping customers based on:

    • Perceptions

    • Lifestyle

    • Motivations

    • Inclinations

Geographic Segmentation

  • Definition: Grouping customers according to their location, which could include:

    • Street

    • Village or Barangay

    • Municipality

    • City

    • Province

    • Region

Behavioral Segmentation

  • Definition: Grouping customers based on their behavioral patterns, influenced by:

    • Occasions

    • Desired benefits

    • Loyalty

    • Usage of products or services

Market Size Determination

  • Focus on understanding the overall market size for entrepreneurial engagement.

Overview of Market Size

  • Market Size: Represents the space in which an entrepreneur operates, including the number of buyers and sellers. It informs the potential range of market participation.

Steps to Determine Market Size

  1. Estimate Potential Market: Approximate the number of customers willing to buy the product or service.

  2. Eliminate Unlikely Customers: Exclude customers who are not likely to make a purchase.

  1. Estimate Market Share: Analyze competitors’ market share to ascertain the remaining market portion available for new ventures.