Module 3.

3
Market
Segmentation
Market Segmentation

Is the process of dividing the market

into homogenous parts or groups. It
is necessary to divide the total
population into parts or segments
with particular characteristics to
identify the segments where
marketing efforts will be controlled.
Consumer Segmentation
Variables
Geographic Segmentation
Demographic Segmentation
Psychographic Segmentation
Behavioral Segmentation
Geographic Segmentation

Pertains to where the population is

located.
Demographic
Segmentation
Pertains to the general
characteristics of the population.
Psychographic
Segmentation
Pertains to the general
characteristics of the population.
Behaviorgraphic
Segmentation
Is the segmentation variable most
indicative of purchase behavior.
Target Market

Refers to a group of potential

customers to whom a company
wants to sell its products and
services. This group also includes
specific customers to whom a
company directs its marketing
efforts. A target market is one part of
the total market for a good or service.
Target Market

The target market of a product or

service is defined as its most
probable and most logical
consumers, and may likewise be its
heaviest consumers.
Metro Manila Population
11,278,564
By Gender:
Male 49.3%
Female 50. 7%
By Marital Status:
Single 31.1%
Married 46.2%
Separated 22.7%
Widow/Widower
By Income Class:
Class AB 21.2%
Class C 41.3%
Class D 22.4%
Class E 15.1%
By Age:
Below 10 14.8%
10 to 20 21.4%
21 to 30 19.7%
31 to 40 17.9%
41 to 50 11.7%
51 to 60 8.4%
Above 60 6.1%
Substantial

The selected target

market must be large
enough in terms of
quantity and/or total
consumption capability.
Reachable

Must be within physical

reach to permit product
distribution it should
also be reachable by
various marketing
activities.
Homogeneous

Must react similarly to

specific marketing
stimuli. A homogeneous
market is an ideal target
market.
Positioning

Is the process of
communicating the image of a
brand into the minds of
consumers. The objective is to
make the brand stand out in
comparison to its competition.
Unique

A brand must select a

position that is not
currently occupied by
another brand.
Beneficial

The selected position

must be perceived by
its customers as
beneficial.
Credible

Once a brand position is

selected, it must ensure
that it performs and
fulfills the promise of its
position.
Perceptual Mapping

Involves the
identification of a
competitive brand’s
position using two
variable or axes.
Communicating Brand
Position
The brand position of a product/service
must be consistent and communicated
effectively to its target market. The
continuous and consistent
communication of the brands positioning
to its target market is important to create
impact in the market. All elements of the
product must be consistent to the brands
selected positioning.
Elements in Communicationg
Brand Positioning
Packaging
Labelling
Selling Price
Advertising
Brand Endorser
Tagline
Competitive Advantage

Is defined as superiority
an organization over its
competitor.
3 Major Types of Competitive
Advantage

Cost Advantage
Differential Advantage
Focus Advantage