RECOGNIZE A POTENTIAL MARKET

ENTREP WEEK 3
Activity 1
DIRECTION:
To check your prior information about the topic,
please evaluate the pictures below and list down at
least three (3) potential markets that entrepreneurs
should consider during this COVID – 19 pandemic
and indicate their needs. Write your answer in the
space provided.
ACTIVITY 2. FIX ME
Direction: Arrange the scrambled letters to form a correct
word
What is Potential Market?
POTENTIAL MARKET
• It can help the company to understand the level of
investment. If it has a very small market, it has a very
small fraction of the total population that are shows
interest in the product or category.
• For example, you want to calculate the potential market for
facemask. For this, the entire population is divided into
different segments which show interest in the product and
then all the segments are added up. As we are in the new
normal the product well be a part for our basic needs.
Importance of Potential Market
1. identifying new customers to ensure the future of your
business.
2. Think proactively about ways for your business to grow
and change.
3. Show the potential of your business to investors or
collaborators.
4. Increase your profit.
5. Create a strategic plan when there will be changes in the
economy or market.
I. MARKET IDENTIFICATION
• Market identification is a strategic marketing
method that is proposed to define the detailed
customer of the product.
• There are three strategic marketing methods that
will assist the entrepreneur in defining the specific
market of the product: market segmentation,
market targeting, and product positioning
A. Market Segmentation
• Dividing the market into these segments helped the
entrepreneurs address the more specific market
needs, media, pricing patterns and decision criteria
in each of their different market segments.
• The methods for market segmentation:
demographic, geographical, psychological and
behavioral
Market segmentation
• is a strategy that can assist the entrepreneur
in identifying the particular similar segment to
serve.
• the consumer population basically has
different attitudes, perceptions, inclinations or
responses
METHODS OF MARKET SEGMENTATION
1. Demographic Segmentation
• method of dividing the whole market based on age,
gender, ethnicity, income, level of education,
religion and profession/role in the company.
• purpose is to limit the market into their similarities
and finding the best strategy to satisfy their needs
and wants.
METHODS OF MARKET SEGMENTATION
2. Geographical Segmentation
• is often the easiest to identify and groupings the
costumers based by their physical location.
• can be defined by country, region, city and postal
code
• can be also a part of seasonal segmentation came
from the response of businesses to Covid – 19
pandemic
METHODS OF MARKET SEGMENTATION
3. Psychological/Psychographic Segmentation
• is that the market is divided in terms of what
the customers think and believe like the
personality traits, hobbies, life goals, values,
belief and lifestyles.
METHODS OF MARKET SEGMENTATION
4. Behavioral Segmentation
• is that the market is divided based on the
variables such as perceptions, knowledge,
reactions, benefits, loyalty and responses.
Example of market segmentation
Important Factors to be considered in
Segmenting the Market
1. Accessibility of the market segment.
– The market segment must be accessible to the
business
2. Size of the market segment.
– The market segment must be large enough to provide
wealth to the entrepreneurial venture.
3. Distinction of the market segment.
– The market segment must be easily differentiated.
A. Market Targeting
• is a stage in market identification process that aims
to determine the set of buyers with common needs
and characteristics.
• In the market targeting phase, the entrepreneur has
already divided the total market and is now in the
process of:
1. Evaluating each market segment and
2. Selecting the target market segment or
segments to serve
Available Market
• Prospect who are willing and capable (have
sufficient resources) buyers and have access to a
particular market or service.
(www.businessdictionary.com) 
• It is defined as the number of people who are both
willing and capable of buying a particular product or
service in a particular market. (www.mbaskool.com)
MARKET SEGMENT SELECTION
Examples of Entrepreneurial Marketing
Strategies in Selected Segments
Activity 3:
Direction:
• Match the variables in column A with the
method of segmentation in column B. Write
the letter as your answer in the space
provided before the number.
Activity 4
Activity 5: Give examples of business that
uses entrepreneurial marketing strategies
in selected segments.
Direction: Select the best answer by writing the letter on the
space provided before each number.
_______1. A part of the total population that has shown
some level of interest in buying a particular product or
service.
a. Potential market c. Market target
b. Available market d. Market Identification
_______2. The number of people who are both willing and
capable of buying a particular product or service in particular
market.
a. Potential market c. Market target
b. Available market d. Market Identification
Direction: Select the best answer by writing the letter on the
space provided before each number.
_______3. It is the strategic marketing approach & process
that is intended to define the specific customer of the
product.
a. Market identification c. Market size
b. Market segmentation d. Market growth
_______4. It is a strategy that can assist the entrepreneur in
identifying the particular homogenous segment to serve.
a. Market identification c. Market size
b. Market segmentation d. Market growth
Direction: Select the best answer by writing the letter on the
space provided before each number.
_______5. Maria and Jose want to start their restaurant
business focusing on grilled foods. Jose is thinking of idea
on limiting the market into their similarities in religion since
certain religions prohibit eating specific species. He wants to
find the best strategy to satisfy their needs and wants. If you
were Maria, what would you recommend to Jose?
a. Demographic segmentation c. Behavioral segmentation
b. Geographic segmentation d. Psychological segmentation