WEEK 3

IDENTIFYING CUSTOMERS AND MARKETS

WHOSE PROBLEM ARE YOU TRYING TO SOLVE?
WHAT IS THE
DIFFERENCE BETWEEN
CUSTOMER VS. CONSUMER
BE HONEST AND GIVE ME YOUR THOUGHTS
CUSTOMER VS. CONSUMER
CUSTOMER

The one who purchase

Can resell for a profit
A monetary transaction is a must

CONSUMER
May not purchase but is the end user
Does not resell for a profit
Monetary transaction is optional
THEREFORE
IDENTIFYING
CUSTOMERS AND
CONSUMERS...
is vital in the success of your
entrepreneurial venture as it will
affect your strategies in various
aspects of your business.
 HOW DO YOU PICK
WHICH CUSTOMERS
ARE YOUR MARKET?
AS AN ENTREPRENEUR WITH LIMITED RESOURCES,
YOU NEED TO SEGMENT THE MARKET AND IDENTIFY
THE SLICE OF THE MARKET THAT YOU ARE GOING
TO GO AFTER.

THAT IS YOUR NICHE.

HOW DO YOU FIND YOUR NICHE?
Niche marketing strategy focuses
on a micro-segment of the
market.
Niche markets get better referrals
for entrepreneurs, more repeat
business, and have less
competition due to its unique
nature.
All these advantages also result
in easier marketing of
product/service.
EXAMPLES OF NICHE

Bee’s Wrap is looking to replace plastic

wrap with options made from beeswax. The
natural alternative to food storage is not
only environmentally friendly, but also more
cost-effective for consumers because
they’re reusable.

TomboyX, an underwear brand saw the

opportunity to hone in on a specific
consumer group’s needs to sell underwear
“for any body”.
 TO SEGMENT YOUR
MARKET WILL
BRING CLOSER YOUR NICHE
THE PRACTICE OF DIVIDING YOUR
TARGET MARKET INTO APPROACHABLE
GROUPS
THE FOUR MARKET SEGMENTS

1. Demographic
2. Psychographic
3. Geographic
4. Behavioral
THE FOUR MARKET SEGMENTS
THE FOUR MARKET SEGMENTS
REMEMBER MARKET SIZE?
TAM, SAM, & SOM
TAM or Total Available Market is the total market demand
for a product or service.
SAM or Serviceable Available Market is the segment of the
TAM targeted by your products and services which is within
your geographical reach.
SOM or Serviceable Obtainable Market is the portion of
SAM that you can capture.
TAM, SAM, & SOM
ADDITIONAL KNOWLEDGE...
Understand what prompts customers to want to buy products/services
Develop a mental picture of your customers
Acquire focused knowledge about your market
DEVELOP A MENTAL PICTURE?
CUSTOMER PERSONA