Lesson 2: Recognizing Potential Market (Segmentation)

Question 1

• why the consumer should buy a product/service
• adds form of value in their lives

Answer 1

Value Proposition

Question 2

• target customer
• needs/opportunity
• name of product
• name of enterprise

Answer 2

Value Proposition

Question 3

• how you sell your product/service
• tagline
• desires of your customer

Answer 3

Unique Selling Proposition (USP)

- identify uniqueness
- be specific
- keep it short and simple (kiss)

Question 4

what are the three factors that will determine your customers?

Answer 4

1. target market
2. customer requirements
3. market size

Question 5

determine the buyers with common needs and characteristics

Answer 5

target market

Question 6

what are the 4 strategies in segmenting market?

Answer 6

1. geographic segmentation
2. demographic segmentation
3. psychological segmentation
4. behavioral segmentation

Question 7

a. climate
b. dominant ethnic group
c. culture
d. density (either rural or urban)

Answer 7

geographic segmentation

Question 8

a. gender
b. age
c. income
d. occupation
e. education
f. religion
g. ethnic group
h. family size

Answer 8

demographic segmentation

Question 9

a. needs and wants
b. attitudes
c. social class
d. personality traits
e. knowledge and awareness
f. brand concept
g. lifestyle

Answer 9

psychological segmentation

Question 10

a. perceptions
b. knowledge
c. reaction
d. benefits
e. loyalty
f. responses

Answer 10

behavioral segmentation

Question 11

specific characteristics customers need from a service/product

Answer 11

customer requirements

Question 12

2 types under customer requirements

Answer 12

1. service requirement
2. output requirement

Question 13

intangible thing but can fulfill customers
- on-time delivery
- service with a smile
- easy-payment
- how customers expect to be treated

Answer 13

service requirement

Question 14

tangible things
- customers will avail services as a product, then various service requirements can take a form of output requirements

Answer 14

output requirement

Question 15

• most critical task to calculate
• approximate number of sellers and customers in one locality

Answer 15

market size

Question 16

• to estimate the potential market
• to estimate the customers who will probably dislike your product/service
• to estimate the market share

Answer 16

market size

Question 17

3 strategies for market sizing

Answer 17

1. Total Available Market (TAM)
2. Serviceable Available Marker (SAM)
3. Serviceable Obtainable Market (SOM)

Question 18

reference to the total market demand for goods or services

Answer 18

Total Available Market (TAM)

Question 19

part of the TAM targeted by the entrepreneur’s goods or services that is within reach

Answer 19

Serviceable Available Market (SAM)

Question 20

portion of SAM that realistically reachable

Answer 20

Serviceable Obtainable Market (SOM)

Question 21

process of gathering, analyzing, and interpreting the information about the products or services to be offered for sale to the potential customers in the market

Answer 21

Market Research

Question 22

inaccuracy cause mistakes leading to inaccurate results

Answer 22

data collection

Question 23

3 methods to identify market needs

Answer 23

1. Focus Group Discussion (FGD)
2. Social listening
3. Keyword Research

Question 24

brings together 6-10 people in a room to provide feedback

Answer 24

Focus Group Discussion (FGD)

Question 25

gives you access to what people are saying across social media and the web

Answer 25

Social Listening

Question 26

use of search engines, most common words and phrases entered

Answer 26

Keyword Research

Question 27

3 data collection techniques

Answer 27

1. Survey
2. Interview
3. FGP - length of session 9-20 min., 8-10 members

Question 28

Methods in marketing sizing

Answer 28

1. To estimate the potential market
2. To estimate the potential customers that will dislike your product/service
3. To estimate the potential market share - calculate the market share of competitors to know your portion of the new venture