DETERMINE WHO THE

CUSTOMERS IN TERMS OF:

TARGET MARKET SIZE

MARKET

CUSTOMER
REQUIREMENT
 WHAT IS TARGET
MARKET?

A target market is a group of consumers or

organizations most likely to buy a company’s
product or services.
 THE 3 MAJOR TYPES
OF TARGET MARKET

THE INDUSTRIAL MARKET

THE CONSUMER MARKET
 Individuals groups or
 Individuals and
organizations that purchase
households who buy
your product or service for
goods for their own use or
direct use in producing other
benefit are part of the
products or for use in their day
consumer market.
to day operations.

THE RESSELER MARKET

 Middlemen or intermediaries
such as wholesalers and
retailers who buy finished
goods and resell them for a
profit.
 3 STEPS TO IDENTIFY YOUR TARGET
MARKET

1.Identify why a 3. Research your

customer would want market
to buy your product/
service

2. Segment your
overall market
IDENTIFY WHY A CUSTOMER WOULD WANT TO BUY
YOUR PRODUCT/ SERVICE

The first step in identifying your target market is understanding what

your products or services have to offer to a group of people or
businesses.to do this identify your product or service’s features and
benefits. A feature is a characteristics of a product or service that
automatically comes with it.

For example if a toothpaste has a stain removing

formula. That’s a feature. The benefit to the customer ,
however , is whiter teeth.
 FEATURES: BENEFITS:
Stain removing formula whiter teeth
 SEGEMENT YOUR OVERALL MARKET

 Segmenting your market allows you to create a highly focused

campaign that will directly meet the needs and desires of a specific
group.

 Market segmentation is the process of breaking down larger target market

into smaller segments with specific characteristics.

 Segmentation will help you customize a product/service or other parts of

marketing mix such as advertising to reach and meet the specific needs of
narrowly defined customer group.

Example of market segmentation is the athletic shoe

industry. Major manufacturers of athletic shoes have
several segmented markets. One segment is based on
gender and on the other segment is based on the type of
sport activity.
 TYPES OF
MARKET
SEGMENTATION
GEOGRAPHIC SEGMENTATION

Geographic segmentation divides customers into

segments based on geographical areas such as
nations, states, regions, countries, cities.

DEMOGRAPHIC SEGMENTATION

The demographic segmentation divides customer into segments based on

demographic values such as age, gender, family size, family life cycle,
occupation, education, religion, generation, social class and nationality.

PSYCHOGRAPHIC SEGMENTATION

The psychological variables derives two principal types

of customer: personality profiles and lifes tyle profiles

BEHAVIOURAL SEGMENTATION

Behavioural segmentation is based on the customer’s attitude

towards, use of, or response to a product
DECISIONS INVOLVE IN TARGETING, INCLUDING STRATEGY

 Which segments to targeting.

 How many products to be offer.
 Which product to offer in which segments.
TARGETING
STRATEGIES
  Ignore segments- target anyone.
 Provide an offering that appeals to a lot
of different people.
UNDIFFERENCIATED
 Get your message out as widely as
(MASS) MARKETING
possible.
 Focus on common needs not
differences.

DIFFERENCIATED  Target several segments

(SEGMENTED)  Design different offers from each
MARKETING segments

CONCENTRATED
 Target one or more very specific and
( NICHE)
usually very small segments
MARKETING

 Tailor products to suit specific

MICRO MAR KETING
individuals or specific locations
 WHAT IS CUSTOMER
REQUIREMENT?

 Is a specification that originates with customers

as opposed to internal stake holders. This can
be both functional and non functional
requirement for products services and
experiences.
 Can be documented directly by customers
themselves or collected and refine by an internal
business analyst or market research team.
 2 TYPES OF CUSTOMER REQUIREMENT

Intangible aspects of purchasing

SERVICE a product that a customer
REQUIREMENT expects to be fulfilled.it consist
of elements like on time delivery,
service with a smile, easy
payment etc. it encompasses all
aspects of how a customer
expects to be treated while
purchasing the product.

OUTPUT There are mostly tangible

REQUIREMENTS characteristics feature or
specifications that a consumer
expects to be fulfilled in the
product.
 THE 3 LEVELS OF CUSTOMER REQUIREMENTS

 MUST HAVES
These are the bare minimum requirements expected by the customers
; if fulfilled customer will be not show any exceptional appreciation but
if not fulfilled the customer will show dissatisfaction. The customers do
not explicitly express their desire but expect to be understood
 SATISFIERS
There are the requirements that customer express their desire for
explicitly if you offer better or more of these satisfiers then the
customer will appreciate it more and will be more satisfied
 DELIGHTERS
These are the extras or the add ons. Absence of these will not leave
customer dissatisfied; in fact the absence of this might no be even
noticed. But adding this would increase the customer’s satisfaction
greatly and will leave them delighted.
 WHAT IS MARKET SIZE?

Market size is an estimate of the market

for a product or service. Estimates of
market size are used in business
planning, product development and
marketing areas such as sales planning.
TYPES OF MARKET SIZE
TOTAL AVAILABLE MARKET (TAM)

o It determines the number of customer who needs the product of the service
that you are offering.

SERVED ABLE MARKET (SAM)

o It shows the number of customer who can by the product.
o Who are ready to buy the products or avail the service.

SERVICE OBTAINABLE MARKET (SOM)

o Part of the SAM

o What companies are eager to achieve or to occupy

POTENTIAL AVAILABLE MARKET (PAM)

o Show the global factor of any product

Prepared by: Wilfreda
L. Cruz
John Ronnel Naldo