Republic of the Philippines

Department of Education
National Capital Region
DIVISION OF CITY SCHOOLS – MANILA
Manila Education Center Arroceros Forest Park
Antonio J. Villegas St. Ermita, Manila

PRINCIPLES OF MARKETING
Quarter 1 Week 8 Module 8

Learning Competency:
After going through this module, you
are expected to:
1. Identify and segment market for a product or
service; and
2. Relate the topic in real life experiences

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 Learning Module for Principles of Marketing

HOW TO USE THIS MODULE?

Before starting the module, I want you to set aside other task/s that may
disturb you while enjoying the lessons. Read the simple instructions
below to successfully enjoy the objectives of this kit. Have fun!
1. Follow carefully all the contents and instructions indicated in
every page of this module.
2. Write on your notebook the concepts about the lessons.
Writing enhances learning, that is important to develop and
keep in mind.
3. Perform all the provided activities in the module.
4. Let your facilitator/guardian assess your answers using the
answer key card.
5. Analyze conceptually the posttest and apply what you have
learned.
6. Enjoy studying!

PARTS OF THE MODULE

• Expectations - These are what you will be able to know after

completing the lessons in the module.
• Pre-test - This will measure your prior knowledge and the concepts to
be mastered throughout the lesson.
• Looking Back to your Lesson - This section will measure what
learnings and skills did you understand from the previous lesson.
• Brief Introduction- This section will give you an overview of the
lesson.

• Activities - This is a set of activities you will perform with a partner.

• Remember - This section summarizes the concepts and applications
of the lessons.
• Check your Understanding - It will verify how you learned from the
lesson.
• Post-test - This will measure how much you have learned from the
entire module.

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 Learning Module for Principles of Marketing

LESSON
8 MARKET SEGMENTATION

EXPECTATIONS

As we study and immerse ourselves in “Principles of Marketing” in the process,

it is necessary to know some Marketing Principles and Strategies. The module is
subjected to discuss Module 8 – Market Segmentation.
1. Identify and segment market for a product or services; and
2. Relate the topic in real life experiences

PRETEST

Directions: Write the letter of the correct answer that best completes the
sentence.
____1. An article or substance that is manufactured or refined for sale
A. Service B. Machine C. Product D. Production E. Sales

____2. A ______ is an object or system made available for consumer use

A. Sales B. Credit C. Product D. Production E. Service

____3. An action of helping or doing work for someone.

A. Product B. Sales C. Service D. Production E. Help

____4. A system supplying a public need such as transport, communications,

or utilities such as electricity and water.
A. Sale B. Product C. Service D. Production E. Help

____5. A _________ is a group of people who share one or more common

characteristics, lumped together for marketing purposes. Each market
segment is unique, and marketers use various criteria to create a target
market for their product or service
A. Marketing B. Division C. Market Segment D. Market E. Absent

Great, you finished answering the

questions. You may request your facilitator
to check your work. Congratulations and
keep on learning!

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 Learning Module for Principles of Marketing

LOOKING BACK TO YOUR LESSON

VISUAL THINKING APPROACH

Directions: Analyze the situations based on the pictures and its descriptions.
Discuss based on the hint or instructions in its opposite box, explain by writing
on the space provided for.

Pictures Explain here.

1.
Cargo trucks in the Roxas Blvd., Manila.
Consumer market or business market?
Discuss

2.
Is this a business market or consumer
market? How is the buying behavior of
this kind of market?

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 Learning Module for Principles of Marketing

3.

Is this a business market or consumer

market? How is the buying behavior of this
kind of market?

4. Group of Banks. Is this a business

market or consumer market? How is the
buying behavior of this kind of market?

5.
Farmers in Luzon, Philippines.
business market or consumer
market? How is the buying behavior
of this kind of market?

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 Learning Module for Principles of Marketing

BRIEF INTRODUCTION

According to Kotler (1999), Market segmentation means dividing a

market into distinct groups of buyers with different needs, characteristics
or behaviors, who might require separate products or marketing mixes.
The company identifies different ways to segment the market and develops
profiles of the resulting market segments. Market targeting involves evaluating
each market segment's attractiveness and selecting one or more of the
market segments to enter.

Market segment is a group of consumers who respond in a similar 'way

to a given set of marketing stimuli and market targeting the process of evaluating
each market, segment's attractiveness and selecting tine or more segments to
enter. Product position is the way the product is defined by consumers in
important attributes the place the product occupies in Consumers’ minds
relative to competing products.

Source: Kotler, Philip, Armstrong, Gary. Harris, Saunders, John and Wong, Veronica (1999).
Principles of Marketing Second European Edition published by Prentice Hall Europe.

Market segmentation is when you divide your visitors and customers into
segments, or groups, based on qualities that they have in common. There’s an
infinite number of ways to divide your customers into groups. That’s why your

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 Learning Module for Principles of Marketing
own market segmentation definition can – and probably will – be different from
your competitors.
4 Types of Market Segmentation and Market Segmentation Examples

1. Demographic - Demographic market segmentation is when you divide

your customers into groups based on their demographic information, such
age, income, gender, education level, single or married, family size, race,
job title, religion, and more.
2. Geographic - Geographic segmentation is when you separate customers
based on where they are. Geographic can be international, national,
regions, cities, district, and others.
3. Behavioral. This refers to the usage of the customer in products and/or
services:
(1) How many times she goes to salon?
(2) How they use your website? (which pages they visited, which links
they clicked, what time they shop, when was the last time they
shopped, etc.)
(3) What they know about your products? (are they still learning or
ready to make a purchase)
(4) How they use your products? (do they come back often to refill their
supply or get more)
(5) How they make decisions? (are they impulsive or slow to buy?).
4. Psychographic - This strategy is about a customer’s beliefs, values,
personality, and lifestyle. All these traits can affect their shopping
decisions. Psychographic groups might be a mix of other types of
segmentation, like their age or religion (demographic) or their location
(demographic). These details often play a role in a person’s attitudes and
lifestyle.

Benefits of Market Segmentation:

1. It saves you time and money. Instead of using one generic strategy for
all your customers, market segmentation can help you to cater your
efforts to specific groups of people. This means you won’t be wasting
time and money on ineffective campaigns, because your efforts will
be targeted and based on customer data.
2. It builds better relationships with your customers. The process of
market segmentation involves constantly learning more about your
customers. The more you learn about them, the better you can serve
them and create the perfect shopping experience.
3. It helps you identify your brand’s strengths, weaknesses, and
opportunities. Customer segmentation can show you how your
brand and campaigns are performing. You can see performance
down to how popular an item is in a customer segment.

Source: Virgilito, D. (2019, December 09). What is Market Segmentation? Market Segmentation Definition.
Retrieved June 30, 2020, from https://www.oberlo.com/blog/market-segmentation

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 Learning Module for Principles of Marketing

ACTIVITIES

Activity: Brainstorming
Objective: Demonstrate the learning on market segmentation.
Materials: Pen and Paper
Procedure:
1. Based on your answer in the activity number 1 above
2. Come-up with a random product and service that best fits to each type of
market segment.
3. Discuss your answer in a pad paper.
4. Share your answers to your partner or peers.

Indicate what
Cite product or
Market
No. Criteria service that is best fit
Segmentation is
to this segment.
this?
1 Joey loves sweet food.

2 Majority of the renters are

female.
3 The dominant age group is 18-
22.
4 Many of the residents are
Roman Catholic.

5 Americans love this type of

Leisure.

6 Sister going to salon because of

her friend’s wedding.
7 High school graduates

8 Earning 30,000-50,000 a month

9 Meat lovers

10 Gabby monthly purchases in

Shopee and/or Lazada.

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 Learning Module for Principles of Marketing

REMEMBER

Market Segmentation allows a business to precisely reach a consumer with

specific needs and wants. Market segmentation is the process of dividing a
market of (potential) customers into groups, or segments, based on different
characteristics. Characteristics may refer to segmenting consumer markets
Geographic, Demographic, Psychographic, and Behavioral.
Geographic segmentation is when a business divides its market based on
geography. by area, such as cities, regions, countries, and international regions.
Demographic segmentation is market segmentation according to age, race,
religion, gender, family size, ethnicity, income, and education. Demographics
can be segmented into several markets to help an organization target its
consumers more accurately
Psychographic segmentation involves dividing your market into segments
based upon different personality traits, values, attitudes, interests, and lifestyles
of consumers. Psychographic segmentation is a way to categorize audiences and
customers by factors that relate to their inner personalities and characteristics
Behavioral segmentation is a marketing strategy based on actual
consumer buying behavior. Behavior is an action that is observable and
measurable. Behavior is observable. It is what we see or hear, such as a student
sitting down, standing up, speaking, whispering, yelling, or writing. Behavioral
segmentation is the observation of each customer's actions for marketers to then
send their tailored messaging.

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 Learning Module for Principles of Marketing

CHECK YOUR UNDERSTANDING

Critical Thinking Questions:

Directions: Answer the critical thinking questions below regarding the buying
behavior of consumer market and Business Market. Place your answers in a
separate pad paper.
1. Based on your daily life experiences, choose one (1) product in each market
segment (Geographic, Psychographic, Demographic, Behavioral), and explain
how such product plays an important role to the end user.
2. How is technology making it easier for businesses to target potential
customers? Explain.

Rubrics for Grading the Essay:

5- If the paragraph consists of 5 or more sentences with correct and complete
Information.
4- If the paragraph consists of 3 to 4 sentences with correct information.
3- If the paragraph consists of 2 to 3 sentences with correct information.
2- If the paragraph consists of 2 sentences with correct information.

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 Learning Module for Principles of Marketing

POST-TEST
Directions: Write the letter of the correct answer that best completes the
sentence.
____1. Is a group of consumers who respond in a similar 'way to a given set of
marketing stimuli and market targeting the process of evaluating each
market, segment's attractiveness and selecting tine or more segments to
enter?
A. Market B. Target C. Market Segment D. Product Position
____2. Is the way the product is defined by consumers in important attributes
the place the product occupies in Consumers’ minds relative to competing
products?
A. Market B. Target C. Product Position D. Market Segment
____3. This market segmentation strategy is about a customer’s beliefs, values,
personality, and lifestyle.
A. Demographic B. Geographic C. Psychographic D. Behavioral
____4. Business divides its market based on geography. by area, such as cities,
regions, countries, and international regions.
A. Behavioral B. Demographic C. Geographic C. Psychographic
____5. It means dividing a market into distinct groups of buyers with different
needs, characteristics or behaviors, who might require separate products
or marketing mixes?
A. Market B. Target C. Market Segmentation D. Product Position

REFLECTIVE LEARNING SHEET

Directions: Write a reflective learning on the (topic) by answering the questions

inside the box. You may express your answers in a more critical and creative
presentation of your great learning.

Market segmentation What other examples

What learnings have I
guides me to ponder can I contribute to
found from this lesson?
on… explore and think more?

What learnings can I What good character What is my conclusion

share with my family have I developed from on the lesson?
and peers? this lesson?

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 Learning Module for Principles of Marketing

E-SITES

To further explore the concept learned today and if it possible to connect

the internet, you may visit the following links:
Topic: 4 Main Types of Market Segmentation & Their Benefits
link: https://www.youtube.com/watch?v=OqcTwveJmRU

REFERENCES

GARROVILLAS, Eduardo P (2007), Out of the Box Marketing Principles, that work and
make sense. Books Atbp. Publishing Corp,.
GO, Josiah (1996). Contemporary Marketing Strategy in the Philippine Setting, Manila:
National Bookstore
KOTLER, Philip, Armstrong, Gary. Harris, Saunders, John and Wong, Veronica (1999).
Principles of Marketing Second European Edition published by Prentice
Hall Europe.
MEDINA, Roberto G. (2008), Principles of marketing revised edition REX Bookstore.
VIRGILLITO, D. (2019, December 09). What is Market Segmentation? Market
Segmentation Definition. Retrieved June 30, 2020, from
https://www.oberlo.com/blog/market-segmentation

https://study.com/academy/lesson/what-is-demographic-segmentation-in-
marketing-definition-advantages-disadvantages.html
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact
=8&ved=2ahUKEwi3uanqn4fqAhUD7WEKHV6zA6cQFjADegQIARAQ&url=ht
tps%3A%2F%2Ftrackmaven.com%2Fmarketing-dictionary%2Fmarket-
segmentation%2F&usg=AOvVaw2e6HbyJTOAcHgNWoIKjVB6
https://www.investopedia.com/terms/m/market-segment.asp
https://www.qualtrics.com/experience-management/brand/what-is-market-
segmentation/

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 Learning Module for Principles of Marketing

Acknowledgements

Development Team of the Module

Writers: Jupiter Q. Whiteside, MBA

Mark Vincent B. Emit, PhD

Editor: Isabel A. Gumaru, DBA

Evaluator: Ellaine Dela Cruz, DBA

Manuel L. Hermosa, EdD
Validators & Reviewers:
Remylinda T. Soriano, EPS, Math
Angelita Z. Modesto, PSDS
George B. Borromeo, PSDS

Management Team:
Maria Magdalena M. Lim, CESO V, Schools
Division Superintendent-Manila
Aida H. Rondilla, Chief Education Supervisor
Lucky S. Carpio, EPS
Lady Hannah C. Gillo, Librarian II-LRMS

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 Learning Module for Principles of Marketing

ANSWER KEY

PRETEST: 1-5. Letter C.

LOOKING BACK TO YOUR LESSON:

The Learners expected to analyze and Discuss the situations based on the pictures and its
descriptions. based on the hint or instructions in its opposite box, explain by writing on the
space provided for.

Explain here. Please refer to the suggested rubrics for checking the essay.
Explain here.

1) Cargo trucks in the Roxas Blvd., Manila. Business Market. Business market Business to
Business refers to all those organizations that purchase goods and/or services for the
purpose of utilization in the manufacturing of other products or services. The wholesaling &
retailing firms are also included in the category of business market.
2) Sidewalk vendors. Consumer market.
3) Public Utility Vehicle. Consumer market.
4) Group of Banks. Business market.
5) Farmers in Luzon, Philippines. Consumer Market.

Suggested Rubrics for Grading the Essay:

5- If the paragraph consists of 5 or more sentences with correct and complete
Information.
4- If the paragraph consists of 3 to 4 sentences with correct information.
3- If the paragraph consists of 2 to 3 sentences with correct information.
2- If the paragraph consists of 2 sentences with correct information
1- if the paragraph consists of only one sentence with correct information.

ACTIVITIES:
Activity 1. Brainstorming Activity
Objective: Demonstrate the learning on business market and consumer
market. 1 point each.
No. Criteria Indicate what Cite product or service that is best fit to
Market this segment.
Segmentation
is this?
1. Joey loves sweet food Psychographic Learners can cite sweet products like red
Segmentation ribbon, magnolia ice cream, chocolate
bars of Toblerone etc.
2. Majority of the renters are Demographic Dormitories near in schools, female bed
female Segmentation. spacer rent. Etc.

3. The dominant age group is Demographic The group of Generation Z. Loves

18-22 Segmentation. Computer games, tik tok and other
trending in social media.
4. Many of the residents are Demographic Can sell religious articles like Saints
Roman Catholic Segmentation. images and others.

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 Learning Module for Principles of Marketing
5. Filipino love this type of Psychographic Shopping. Videoke. Watching
Leisure Segmentation. telenovelas. Going to Beaches.

6. Sister going to salon Behavioral Salon services. Bench Fix Salon, Reyes
because of her friend’s Segmentation. Cuters, Cre8te Salon, wow salon and
wedding. others.

7. High school graduates Demographic Preparing for College or Universities

Segmentation. entrance exams.
buy review materials. Buying College
uniforms or school items like bag, books,
notebooks, etc.
8. Earning 30,000-50,000 a Demographic Middle middle income for a family of five.
month Segmentation.
source: Philippine Institute for
Development Studies (PIDS) 2018.
9. Meat lovers Psychographic Purchasers meat item in fast food chains
Segmentation like Jollibee, McDonalds, etc.
10. Gabby monthly purchases Behavioral Shopee, Lazada and other online
in Shopee and/or Lazada. Segmentation. shopping applications and services.

CHECK YOUR UNDERSTANDING:

Critical Thinking Questions:

1. Based on your daily life experiences, choose one (1) product in each market
segment (Geographic, Psychographic, Demographic, Behavioral), and explain
how such product plays an important role to the end user.
✓ Refer to page 6 to 7 for answers.
✓ You can use the suggested rubrics for checking the explanations.
2. How is technology making it easier for businesses to target potential
customers? Explain.
✓ You can use the suggested rubrics for checking the explanations.

POST-TEST : 1-5. Letter C.

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