Learning Area PRINCIPLES OF MARKETING Grade Level 11

W8 Quarter 3rd Quarter Date

I. LESSON TITLE Consumer Buying Behavior, Market Segmentation, and Positioning

II. MOST ESSENTIAL LEARNING Differentiate the buying behavior and decision-making of individual/household
COMPETENCIES (MELCs) customers versus the business (organizational) customer. (ABM_PM11-le-i-13)
Identify and segment the market for a product or service. (ABM_PM11-le-i-14)
Select the appropriate target market segment and its positioning.
(ABM_PM11-le-i-15)
III. CONTENT/CORE CONTENT The learners demonstrate an understanding of the importance of information,
the market characteristics affecting consumer behavior, and the bases of
market segmentation.
References: So. R.C. & Torres, O.2016 DepEd Principles of Marketing
Textbook.Quezon City. Vibal Group, Inc. pp. 43-66.
Teacher’s Manual pp.28-36
Suggested
IV. LEARNING PHASES Learning Activities
Timeframe
A. Introduction Welcome back! This is your last lesson for this quarter. You did a great job!
Panimula At the end of this lesson, you are expected to:
15mins 1. differentiate the buying behavior and decision-making of
individual/household customer versus the business (organizational)
customer;
2. identify and segment market for a product or service
3. Select the appropriate target market segment and its positioning
4. write mini-marketing research.
Before we begin, let us have some warm-up.
Activity 1: Venn D.
Directions: Using the Venn Diagram, provide the similarities and differences
between the buying behavior of an individual and an organization. Write your
comparison in your notebook.
B. Development Lucky Me. Nissins. What instant noodles do you prefer? Why? We purchase
Pagpapaunlad products because of different reasons. Let us study and understand more
about consumer market buying behavior.
80mins
Consumer Markets: It is a marketplace consisting of individuals or households
who purchase goods for personal consumption normally in smaller quantities
but frequently.

So, R.C. & Torres, O. 2016. DepEd Principles of Marketing Textbook. Quezon City.
Vibal Group, Inc. pp. 43

What cell phone brand do you use? Why?

Consumer buying behavior is initiated by marketing stimuli which refers to the

elements of the marketing mix. It is the sum total of a consumer’s attitudes,
intentions, preferences, and decisions when buying a product or service.
They come from different ages, genders, nationalities, regions, country, with
varying income, culture, learning, perceptions, personalities, social, and
psychological profiles. These are the different characteristics or segmentation
variables affecting consumer behavior.

Cultural Social Personal Psychological

Culture: forms a Family: have a Motivation
person’s wants strong influence Age and life cycle -Maslow’s
and behavior on consumer Hierarchy of Needs
ex. Our Muslim buying behavior ex. buying food
brothers prefer to ex. More Filipino over make-up.
buy halal food families have
grown-up using
Colgate rather
than another
toothpaste
brand
Subculture: a Role and Personality and
group with shared Status Self-concept Perception
value systems
Social Class: Lifestyle: manner of
society’s division Reference living that reflects a Beliefs and
who share interest, Groups: serves person’s values and Attitudes
behavior, and as role models attitudes
values and inspirations. -activities/interest
-opinions
Economic situation Learning
Occupation

Individual consumers purchased goods for personal consumption, for example,

you buy shampoo because you take care of your hair. How about the
organizational markets?

Organizational Markets: These are business organizations that sell and

purchase goods and services of vast quantities for some use other than
personal consumption.

There are three types of organizational markets: government, industries

(reprocess a product or service), and resellers (buy physical products and resell
them again without any processing).

Likewise, there are three types of organizational buying decisions:

New Task: When the organization has never bought before or has not
purchased for a long period of time. Usually, it requires an extended period of
time for evaluation before the actual purchase to materialize especially if the
product/service is highly technical.
Straight Rebuy: This is a routine repeat purchase of a product/service with
exactly the same specifications as previously purchased. It doesn’t require
evaluation as long as the specifications, terms, processes, and delivery time
does not change.
Modified Rebuy: a rebuy with some changes in specifications and terms.

Similar to consumer markets, the following are the organizational segmentation

variables: industry affiliation (company’s primary business activity);
organizational size (by the amount of capitalization, number of employees,
sales revenues, etc.); geographic location (travel and logistics cost, location
concentration); and, end-use application (the way a product/service is used
by a purchasing company/firm).

Organizational Buying Behavior:

⮚ responds to new product/service heard or read
⮚ responds to changing preferences and demands of the market to
supplement its product lines or expansion
⮚ responds to specific needs including price, supply, technical
specifications, terms of conditions, delivery, warranties, etc.

Economic and personal factors are the two major influencers of organizational
buyers. Specifically, they are classified as follows:
1. Environmental factors: economic situation, technology, politics, competition
 2. Organizational factors: company policies, structure, procedures, systems,
etc.
3. Interpersonal factors: different interest, personalities, authorities involved of
the purchasing process
4. Individual factors: each organization has its own personal preferences,
motivations, perceptions, etc.

Organizational consumers purchased goods to reproduce and/or to sell their

processed products, for example, supermarkets purchased stocks to sell to
individual consumers.

Market Segmentation: It is the process of dividing the market into

homogeneous parts or groups. It is used to identify customers with similar
needs and wants. It is important in defining and better understanding your
target market.

Consumer Segmentation Variables:

There are four major variables used in market segmentation:
1. Geographic: pertains to population location segmented in regions, cities,
urban, rural areas, climate zone, coastal and central landmasses, density, or
areas with a low, medium, or heavy concentration of population, among
others.
2. Demographic: refers to the general characteristics of the population.
(age, gender, civil status, religion, income, occupation, education, nationality,
race, family size)
3. Psychographic: refers to the psychological profile of consumers
segmented based on their lifestyle, social class, personality, benefits sought,
buying psychology, attitude, beliefs, etc. It is one of the most effective
segmentation variables in predicting purchase behavior.
4. Behaviorgraphic: is the segmentation variable most indicative of purchase
and sales however, information is not available in public databases to all
organizations. In this case, you may have to conduct marketing research to
determine its ratio in the total population.

Target Market: the most probable and most logical, heaviest set of buyers
sharing common needs and characteristics that businesses decide to pursue
and serve.

Elements of Ideal Target Market:

1. Substantial: the size of the selected target market must be large enough in
terms of quantity and/or total consumption capability. Example: Males and
females residing in Imus City who belong to classes B,C,D, married, ages
between 40-55, and who are plantitos and plantitas are looking for carnivorous
plants. If the size is sufficient, the company may proceed to market its
product/service offering. If not, the company may include and expand to
other segment brackets previously not targeted by reducing the number of
sub-variables or the combination of the two options.
2. Financially Capable: it is having the financial means to afford the purchase
price of the product/service. It is an essential element of an ideal target
market.
3. Reachable: must be within physical reach to permit product distribution
and various marketing activities.
4. Homogenous: must react similarly to specific marketing stimuli to ensure
effective and efficient marketing activities.
C. Engagement Positioning
Pakikipagpalih Positioning is the process of communicating the image of a brand into the
an 20 mins minds of the consumers to make it stand out in comparison to its competitors.
It is a consumer-driven strategy for the introduction of a product in which the
objective is to occupy a distinctive place in the minds of the target market and
maximize its potential benefit for the firm. It is the heart of marketing strategy.
Example: Open a Coke, open happiness.
Brand: is a term, sign, name, design, symbol, or combination intended to
identify the goods or services or one seller or group of sellers and to
differentiate them from competitors.
 The Cornerstone of Positioning Strategy
These four strategic questions would determine the brand’s position in the
consumer’s mind
1. Who am I? 3. For who am I?
2. What am I? 4. Why me?
Selecting a Good Brand Position
1. Perceptual Mapping: It is a graphic presentation of customer perceptions
relevant to product characteristics. It displays company ranks compared to
competing companies. Using the perceptual map, new products launched
into the market can select the position they wish to occupy. This is after a
comprehensive assessment of the number, size, and intensity of competition in
each quadrant of the map.
2. Communicating Brand Position
All elements of the product must be consistent to the brand’s selected
positioning and communicated effectively to its target market. This is important
to create a strong perception and impact in the market.
3. Identifying and Selecting Competitive Advantage
It is defined as the superiority of an organization over its competitor. It answers
the question: “Why should customers purchase from this company instead of its
competitors?” The three major types of competitive advantage are 1. Cost
Advantage; 2. Differential Advantage; and, 3. Focus Advantage
D. Assimilation Mini-Marketing Research
Paglalapat Directions: Conduct individual mini-marketing research. Follow the guidelines
60 mins and format provided below. (Steps 1-3)

Step1: Choose a concrete topic (a topic of your interest and is home-based)

Example: Global pandemic consumers or organization buying behavior.
The positioning of a new product during the pandemic.
Step2: Develop a research proposal (include the research objective/s and
an outline of your research design / include consumer segmentation and
positioning.)
Step3: Data Collection (1.write the questionnaire; 2. pre-test questionnaire;
3. make revisions to questionnaires, if necessary; 4. conduct online interviews)
V. ASSESSMENT Mini-Marketing Research
(Learning Activity Sheets for Directions: These are the last two parts to complete your mini-marketing
Enrichment, Remediation or
Assessment to be given on
research. Follow the guidelines and format provided below. (Steps 4-5).
Weeks 3 and 6) 60 mins
Step4: Analysis of data (develop at least 3 cross-tabulations of data; analyze
and interpret the results; present it in summary graphs and tables; write your
conclusions; make recommendations [3-5 action points]
Step5: Write and present the research report (it should include the ff: title
page [1page]; table of contents[1page]; executive summary [5-10pages])
VI. REFLECTION In your notebook, write your insight about the lesson using the prompts below:
I understand that ________________________________________________.
5 mins I realize that _____________________________________________________.
I need to learn more about ______________________________________.
Prepared by: Ma. Cristina F. Pabalate, SDO Imus City Checked By: Feliz A. Tayao, Cherie L.
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