MARKET 1

Week 5-6

Video presentation

At the end of this topic, you should be able to

1. define and describe generic markets* and

product-markets.
*A market consisting of buyers with similar needs that are satisfied
by sellers in many different ways.

2. know what market segmentation is and how to

segment product-markets into submarkets.

3. know dimensions that may be useful for
segmenting markets.

Search for Opportunities can Begin by

Understanding Markets

What is a
companys
market?

Dont just focus

on the product

Generic
markets to
productmarkets

Broaden market
definitions to
find
opportunities

Ethical Issues in Selecting Segmenting Dimensions

Ethical
Issues

Exploitation

Creates
Unnecessary
Wants

Does Harm

International
Issues

Different Cameras for Different Customer Needs

Very Specific
Segmentation

Old definition of Target segment

Age
Sex

Educational Attainment
Occupation
Income
Location

18 60 years old
Male and Female
Pre-school to College
Student Professional
Php 5,000 150,000
Urban

Question: How about non-demographic specific

products?
i.e.

(90%-92% market share)

Age and Gender

Product Usage
Different age groups will use the same product differently
Sex Male and Female

Age and Gender

Product Usage

For a demographic specific product such as

Males Male Condoms
Question: Why does male condom commercials always
target the females?

Age and Gender

To whom the product
benefits the most
Infant formula (What is the

message/benefit?)
Healthy baby = Good ______?
The same reason why breast milk

always targets the mother and never the

father
Father (What is the message?)
The need to provide (unsought goods)

The benefit of the product must

match the expectation of the product

Age and Gender

Different product lines of Coca-Cola

Coke as a non-demographic specific product still segments the

market on its products

Educational Attainment
Level of analysis

Takes out the PlayStation from box

Takes out the PlayStation from box
Quickly unlocks level 19
Quickly turns to page 8 of manual

Educational Attainment

Wii failed

Wii succeeded

Occupational level
Product Aspirations

Occupational level is not the same as Occupation

Can you identify the frosh is the campus?
College of business students, age 16 20, gender M&F
Occupational level
Frosh
Sophomores
Junior
Seniors
Behaviors

Occupational level
Entrepreneur
President
VP EVP-SVP-AVP
Director
Manager
Supervisor
White collar
Blue collar
Unemployed
Unemployed
Students
Retired / Pension
Housewife / Houseband

Everyone wants to
climb the corporate
ladder
i.e. The supervisor acts
like a manager
i.e. The security guard
acts and thinks like the
owner of the company

Income level
Income level is not a real good basis for purchase.
People will save on an item/service they really
want.
Minimum wage earners wanting a cute dog

Location
Culture, Assimilate Makibagay
Why is location important?

Different behaviors Different Cultures

Fast Food Manager

Corporate Manager

 Convenience goods
Psychological

Specialty goods
Belongingness

*Both barangays will buy the same Pandesal

Psychographic segmentation
1. Media Itinerary
Education
Occupation

2. Purchase Itinerary
Occupation
Income

You cannot separate them

Midterm paper (20% of final grade)

Group midterm paper (max 5 members per group)
Chose your product
Given your product, describe it and its target segment.
Describe all segments of the market
No research
No websites
No survey
Answers the questions on sheer observations and your own notes alone

Have