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Cognitive- being or relating to or involving cognition.

Cognition- the psycological result of perception of learn
ing and reasoning.
Segmentation- separation by the creation of a boundary
that divides or keeps apart.
Homogenous- all of the same or similar kind or nature.
Heterogenous- consisting of elements that are not of the
same kind or nature
Demographic- a statistic characterizing human populati
on (or segments of human population broken down by a
ge or sex or income, etc.)
Psycological- mental or emotional as opposed to physic
al nature
Difinition of terms
Exploit- to get value or use from (something)
INSTRUCTION: Say "LIKE" and gesture a "THUMBS
-UP" if the statement is CORRECT. Say "DIS-LIKE" an
d gesture "THUMBS-DOWN" if the statement is INCO

 It is the strategic marketing approach and process i
ntended to define the specific customer of each pro
 Market Segmentation- the market is divided in terms
of what the consumers think and believe.

 The most widely used and easiet method for

segmenting the market is a demographic met

Discussed by:
Ian Christian U. Cadiz
Francis John R. Rebosura
Market Segmentation

 Discuss the concept of market segmentation and;

 Identiy approaches in segmenting the market.
Market Segmentation
Nature and Concept:
The entrepreneur must acquire the required competenc
y in order to gain competitive advantage. He/She must;

 Understand fully and practice correctly the concept

s and principles of entrepreneurship.
 Develop the character traits common among succes
sful of entrepreneurs; and
Market Segmentation
Nature and Concept:

 Enhance the cognitive, tachnical and interpersonal

skills required in the practice of entrepreneurship.
Market Segmentation
Nature and Concept:
He must scan and critically evaluate the micro and macr
o environment of the business including existing interrel
ated forces in every environment by using the appropriat
e environmental scanning tools. The entrepreneur condu
cts environmental scanning to determine the following:
Market Segmentation
Nature and Concept:

1) Availability of raw materials

2) Sustainability of the business venture to the locality
3) Estimated cost of the business venture
4) Expected growth of the industry where the proposed
business venture will operate
5) Position of the proposed business in the industry
6) Business competency
Market Segmentation
After assessing the entrpreneurial competency and busin
ess competency of the chosen venture, the entrepreneur
determines the market or customers.
 Entrepreneurial concepts  Scanning of the environment
and principles  Physical Environment
 Entrepreneurial  Societal Environment
characteristics  Industry Environment
 Entrepreneural skills  Internal Environment

Entrepreneurial Business
Competency competency

Competitive advantage
and distinctie advantage
Nature and form of the
business to open

Market Segmentation
When the product is produced to exploit business opport
unity, it is designed especially for the defined marker. Th
e entrepreneurial approach indicates that he business has
clearly identified the specific market for each product.
There are many powdered milk products in the market.
Some are intended for the infants, for babies aged 1 to 3
years old and for children aged 4 to 6 years old. Some ar
e intended for young adults and for senior citizens. Their
contents and nutrients differ from each other.
Market Segmentation
It is the strategic marketing approach and process intend
ed to define the specific customer of each product.

There are three strategic marketing approach that will as

sist the entrepreneur in defining the specific market for
each product.
1) Market segmentation
2) Market targeting; and
3) Market positioning
Market segmentation Market positioning

Market targeting


Market Segmentation
Is an entrepreneurial marketing strategy designed primar
y to define the market into small segment with distinct
needs, chracteristics, or behaviors. The entire market is
composed of different segments wih various chracteristi
cs, behaviour, culture, traditions and needs. Since the m
arket cannot readily served becuase the customers are he
terogenous, the entrepreneur has to find ways to cater to
homogenous customers only and this is usually done by
market segmentation.
Market Segmentation

Segment 7 Segment 8

m ent e nt 2
1 Se g m

Segment 3

Segm 6
ent 4 ent
Segment 5

Market Segmentation
The entrepreneur must devide tha total market and focus
his/her business strategy to a smaller market that is consi
dered homogenous or have similar interests, preferences,
needs, wants, and other related variables. The identified
market segment will be the market that can be served bett
er by the entrepreneurial venture based on its competenci
es. This entrepreneurial approach is sometimes called nic
he entrepreneurial marketing. There are no strict rules
as to how will be the market divided other than the assur
ance that te smaller segments must be homogenous.
Market Segmentation
The commonly methods for segmenting the mar
ket are:
1) Geographic segmentation
2) Demographic segmentation
3) Psychological segmentation, and
4) Behavioral segmetation
Market Segmentation
In geographic segmentation the total market is
divided according to geographical locations in th
e Philippines like provincial regions, cities, provi
nces, municipalities, and even barangay units.
Market Segmentation
When the entrepreneur divides the total market into sma
ller segment the ff. variables must be considered
1) climate
2) dominant ethnic group
4)density (eithier rural or urban)
5)classification of the geographical unit (e.g., first class,
second class, etc.)
Market Segmentation
In demographic segmentation, the market is di
vided based on the demographic variables of the
Market Segmentation
The comon demographic variables are the ff.
1) Gender
2) Age
3) Income
4) Occupation
5) Eduction
6) Ethnic Group
7) Family Size
Market Segmentation
The most widely used and easiest method for seg
menting the market is a demographic method. Va
rious researhers have also determined that there e
xist a direct relagionship between a demographic
vaiable and the needs and wants of the customer
Market Segmentation
In psycological segmentation, the market is divided in ter
ms of what the consumers think and believe. It is based o
n the ff. variables:
1) Needs and wants
2) Attitude
3) Social class
4) Personality traits
5) Knowledge and awareness
6)Brand concept
Market segmentation
enuers who own and manage elegant and luxury
hotels may have segmented the market based on
social class. These entrepreneurs intend to cater t
o the needs and wants of the upper class in the m
Market Segmentation
In behvioral segmention, he market is divided based
on the ff. varibles:
1) Perceptions
2) Kowledge
3) Reactions
4) benefits
5) Loyalty
6) Responses
Market Segmentation
Entrepreneurs who have constructed athletic gymnasiu
ms may have divided the market based on he health ben
efits that their users will derive from them. The makers i
ntend to serve the needs and wants of health concious cu
stomers. An entrepreneur producing powder detergent m
ay have segmented the market based on the loyalty of th
e customers, and intend to serve only the needs and wan
ts of the loyal customers.
Market Segmentation
Market segmentation is a strategy that can assis
t the entrepreneur in identifying the particular ho
mogenous segment to serve.
The ff. Important factors must be considered in
segmenting the market:
1) Accessibility of the market segment
2) Size of the market segment
3) Distinction of the market segment
Market Segmentaion
 Market segmentation is a marketing strateg
y designed to determine the specific consum
ers of the entrepreneurial venture since the t
otal market is heterogenous. It devides the
market into small segments with distinct nee
ds, characteristics or behaviors.
Market Segmentaion
The commonly methods for segmenting the m
arket are:
1) Geographic segmentation
2) Demographic segmentation
3) Psychological segmentation, and
4) Behavioral segmetation
INSTRUCTION:Write TRUE if the statement is CORR
ECT if otherwise write FALSE and STATE YOUR REA

1) Consumers have common wants.

2) The entrepreneurial venture can serve all the require
ments of the total market
3) In the process on determining the position of the busi
ness in the market, the entrepreneur has to segment the
total market.
4) Market segmentaion applies only to small entreprene
urial ventures.
5) Once the market segment has already been identified,
the product will be designed specifically for such marke
t segment.
6) In Geographic segmentation, the total market may be
divided on the income of the population.
7) Demogaphic segmentaion involves dividing the total
market based on the gender of the customers.
8) When a wider geographical area has been selected as
the target market, it will be beneficial if the products are
9) There are definite and strict rules to be followed on se
gmenting the market.
10) It is a must for the entrepreneur to segment the mark