Marketing Aspect

Submitted by:
Steffane P. Mata
MBA-1 Entrepreneurship
May 02, 2020
 2.1 The Target Market:
Determining and
Understanding it.

2.2 Potential Market

Demand and How to
Estimate it.
Suggested Inclusions:
 1. How to group (or segment) the market.
The Target Market 2. How to identify which segment to
focus on (target).
There are five skills 3.How to be more familiar with your
you need to acquire target.
that will help you
understand the 4. Know who else are making similar
market: products or offering similar services
(competition).
5. How to estimate the size of the target
market that will buy your product or use
your service.

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1. Segmenting the Market
Market segmentation refers to the process of The chart below is an example of Philippine Market
dividing prospective buyers into groups that Segment according to age group.
have common needs and will respond
similarly to a marketing action.
30%
35%
A market can be grouped according to these
variables: geographic (region of the world or
country, size of country, climate),
demographic (population - age, gender,
sexual orientation, income, occupation, 20%
15%

education, etc.), psychographic (personality,

lifestyle, values, attitudes), or behavioral
Infants Below 2 yrs old Teenagers 13-19 yrs old Children 2-12 yrs old
(product, benefit sought, rate of usage, brand
Adults 20 yrs old and above
loyalty, readiness-to-buy stage.
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2. Targeting
•To target is to select from
among the big group of
possible buyers or users,
a specific group or type
of buyers to cater to.
•The discipline in
marketing is to target one
segment at a time.
The table below shows an example of a food and beverage
company that has targeted particular segments and served
almost all segments.
Segment Targeted Marketing
Breakfast Table Eight O’clock, Magnolia Fresh Milk, San Mig
Coffee, Purefoods Bacon
Night on the Pale Pilsen, San Mig Light, Ginebra Gin, Red
Town Horse Beer, Coke, Matador, Crispy Pata
Kiddie Party Tender Juicy Hotdog, Chicken Nuggets, Fun
Chum Juice, Chicken Popcorn, Jellyace, Magnolia
Ice Cream
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 3. Understanding Your Target
•The usual practice of some businesses in
studying their target market is to use what
is popularly called market research.
•Market research is the process of collecting
and analyzing information as to how the
goods or services move from the producer
to the consumer.
•Gathering Insights. One way to be familiar
with a target market is by getting to know
them up close, knowing where they go,
what they do, and what things they buy and
services they avail.
Here is a list of some of the commonly used
tools for gathering information and getting
insights about the target market:
• Surveys
• Focus group discussions (FGDs)
• Observing in context (shadowing, expert
walkthroughs, day-in-the-life survey, draw the
experience, fly on the wall)
• Emphatic tools (mock journey, empathy
tools, body storming)
• Prototyping.
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4. Analyzing the Competition
Competitor analysis is, first, Competitor analysis is,
knowing what your secondly, understanding
competitor’s marketing is. This why the target market is
includes: the competitor’s buying or will buy from
products or services, how the competitor.
much they cost, how they are
distributed, and how they are
made known to the target
market.

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 Estimating Potential
Market Demand
Estimation is an educated guess. The best
way to be very certain and confident
about estimates for potential market
demand is to look for facts about the
industry where the entrepreneur intends
to enter.
•Estimating potential market demand is a
marketing skill that has an impact on
projecting sales, sales growth, and capital,
machine, and manpower requirements.
•The estimated potential market demand
is the numerical representation of how
well the entrepreneur understands the
target market.
•A very simple way of estimating demand is by using the
national census.
Example:
Let us assume that you want to produce garments for
women. The national census indicates that there are 10
million women in the country. Assuming that these women
will buy two blouses in one year, the market demand for
blouses would be 20 million blouses. The blouse that you
want to produce is made of very high quality and would be
quite expensive; only the economically well-off can afford it.
The census says that there are 1 million women in the
country who belong to the A socio-economic bracket. So,
given that the women buy two blouses a year, the total
demand for high quality blouses would be two million pieces.
Taking into consideration that there are 19 competitors who
can offer the same blouse of similar quality, two million
blouses divided by 20 firms (19 competitors + you) would
result in a potential demand for your high quality blouses at
100,000 pieces a year.
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 SUMMARY

 In this chapter, you learned that central to marketing is the target market, and the foremost
competency that a beginning entrepreneur like you should develop as a marketer is the ability to
understand that target market.

 To do this, it is important for you to have the following skills: grouping similar people together to form
market segments; analyzing and deciding which of the segments you will target or sell to; and
gathering insights into that target market using surveys, FGDs, contextual observations, empathic
tools, and prototyping.

 Acquiring such additional skills as knowing your competitor’s marketing and estimating the demand
for your product or service will enable you to understand your target market better. The latter skills
are especially useful in business planning especially in forecasting your sales, sales growth, and
deciding the investment, manpower, and machine requirements of your new enterprise.

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References:
• Rasos, Marco. “Marketing Goods and Services,”, Introduction to
Entrepreneurship. Quezon City: SERDEF Inc., 2006. Ziglar, Zig.
Selling 101. USA: Thomas Nelson Inc, 2003.

• www.encyclopedia.thefreedictionary.com
• www.ideo.com
• E-book: Your Guide to Starting a Small Business Enterprise

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 ~End of My Report~

THANK YOU
Stay at Home and
Be Safe.
May 02, 2020