DETERMINE WHO THE

CUSTOMERS ARE IN TERMS OF:

Customers Requirements
Target Market
Market Size
 which includes customer
profiling , drives the
entrepreneur on what
correct strategies and
tactics to employ.
 Customers are said to be the
lifeblood of the business. Their
thoughts, feeling and experiences
shape the decision of the business.
 Entrepreneur should know Who
buys, What, When, Where and Why
they buy.
• Primary Target Market – are people who
needs your product, willing to buy and has
the power to buy
• Secondary Target Market – people who has
limited purchasing power and fewer
demands but can be enticed to buy once
effective marketing strategies are applied.
 It is approximation of the
numbers of buyers and
sellers in a particular
market(vastness or
tininess of the market).
 is the process of grouping
similar or homogeneous
consumers according to:
1)demographic
2)psychographic
3)geographic (location)
4)behavior.
• Process of grouping costumers
according to relevant socio
economics variables (income
range and social class,
occupation, gender, and age,
religion, ethnicity) for the
business venture.
• the process of grouping
costumers according to their
perceptions, way of life,
motivations, and
inclination.
 Is simply grouping according to
their location (It can be a street, a
village or a barangay, municipality,
city, province, or religion)
 This segmentation matters more if
the locations targeted have
different sets of qualities
mentioned previously.
 Is the process of grouping the
customers according to their
actions.
 This behavior are instigated by
occasions, desired benefits,
loyalty and usage of products or
availment of services.
 Is simply the size of the arena
where the Entrepreneur’s will play.
 It is approximation of the numbers
of buyers and sellers in a particular
market
 Determine the vastness or tininess
of the market where he/she intends
to join
1. Estimate the potential market –
the approximate number of
customers that will buy the
product or avail the service
2. Eliminate the customers who
are probably unlikely to buy the
product or avail the service
3. Estimate the Market Share –
plotting and calculation of the
he competitor’s market share
to determine the remaining
portion for the new ventures
 500 families with an average 5members/family
 Only 475 families eat rice
 They consume an ave. of 1kilo of rice per day
 There are 4 other retailers in the area and they
have equal market shares of 20% each
 The other 20% of market is buying in bulk(per
sack) in grocery stores.
 The ave. net profit per kilo is P10.
1. What is your Market Size? (No.
of consumers/ out of the given
population/#)
2. What is your Market Share?
3. Possible Net Income/annum
(No. of consumption/fam. Out of
market share x and net
income/annum)
Market size
= 475 families x 1kilo per day x 365days
= 173,375 kilos of rice
Market size profit
=173 375 kilos x 10
= P1,733,750./annum
= Market Size x estimated Market Share
= P1, 733,750 x 20%
=P 346,750.
Reduced P2. on Mark-up
Potential Market share = 173375 kilos x 20%x8
Potential Market Share/profit = P277, 400.
 800 families with an average 6members/family
 Only 700 families eat rice
 They consume an ave. of 1kilo of rice per day
 There are 5 other retailers in the area and they
have equal market shares of 20% each
 The other 20% of market is buying in bulk(per
sack) in grocery stores.
 The ave. net profit per kilo is P15.
1. What is your Market Size? (No.
of consumers/ out of the given
population/#)
3. What is your Market Share?
2. Possible Net Income/annum
(No. of consumption/fam. Out of
market share x and net
income/annum)
THANK YOU