CHALIMBANA UNIVERSITY

STUDENT NAME : KUFUNA KAPELWA

ID : 2104138032

YEAR OF STUDY : FOURTH YEAR

PROGRAM : PRIMARY DEGREE

COURSE : ENTREPRENEURSHIP

PHONE : 0954647144

Question: (a) How does marketing philosophy help a start-up entrepreneur

(b) Justify eight criteria used to segment a market and give detailed examples.

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Understanding the basics of marketing in entrepreneurship is crucial for the success of any
new business. Marketing is the process of promoting and selling products or services through
various channels, and it's essential for entrepreneurs to have a basic understanding of how it
works. This includes understanding the different marketing channels available, such as social
media, email, and content marketing, as well as the basics of customer behavior and market
research. Marketing philosophy helps entrepreneurs reach their target audience, communicate
the value of their products or services, and build relationships with customers. By
consistently promoting their brand and products, entrepreneurs can increase visibility, create
demand, and drive growth for their business. Hence this assignment will discuss How
marketing philosophy help a start-up entrepreneur and also look at Justify eight criteria used
to segment a makert and give detailed examples.

Before going into our discussion let us look at the term marketing philosophy describes the
approach a business takes to promote the products or services they sell to prospective
customers.

There are 5 marketing management philosophies that influence a business's approach to

motivating prospective customers and are Production, Product orientation, Sales orientation,
Marketing orientation, Holistic marketing orientation and Production Concept The
fundamental issues in starting a business arise from market needs and desires. When an
entrepreneur/businessman attempts to answer a critical set of fundamental business questions,
it becomes the basic foundation of that business.

An entrepreneur must first identify the needs and desires of the targeted customer group. The
following step is to implement a marketing strategy based on a Marketing philosophy for the
process of developing, communicating, and delivering products to customers in order to meet
their needs and desires. The marketing philosophy will undoubtedly identify the customer's
needs and desires. Kotler, P., Keller, K.L. (2007).

The implication of the marketing concept is very important for management. It is not
something that the marketing department administers, nor is it the sole domain of the
marketing department. Rather, it is adopted by the entire organization. From top management
to the lowest levels and across all departments of the organization, it is a philosophy or way
of doing business. The customers' needs, wants, and satisfaction should always be foremost
in every manager and employees' mind. Drummond, G., Ensor, J. (2005).

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Having looked at how marketing philosophy help a start-up entrepreneur. Let us now justify
eight criteria used to segment a marketing and give detailed examples.

There are different types of market segmentation allow companies to understand their market
better and create more effective messaging, products, and marketing campaigns. Knowing
which methods of market segmentation are right and when to use each helps you make the
right moves at the right time. So, if you’ve decided to segment your market, let us explain the
various ways to do it and get you on the path to success.

The first one is Demographic segmentation this has do with who is buying. Typically,
segmentation starts with demographic audience analysis it’s usually what we first think of
when defining our customer personas. Geographic segmentation forms part of this, although
it’s often referred to in its own right. This type of market segmentation sticks to basic
characteristics that can be easily identified: Age, Gender, Ethnicity, Income level, Marital
status, Family size, Education level and Location. Sutton, D., Klein, T. (2003).

Demographic segmentation is useful for deciding how to target marketing or services to

particular people or groups. It helps understand how different groups of people respond to
different messages, products, or services. For example, suppose a business wanted to target a
certain age group with a particular product or service. In that case, demographic segmentation
could help them identify the right audience and tailor their messaging accordingly. Sutton,
D., Klein, T. (2003).

The second one is Behavioral segmentation, how are they buying Behavioral segmentation is
a great way to gain insight into the actions and behaviors of consumers. It can be used to
identify buying patterns and preferences and tailor products, services, and marketing
messages to specific customer segments. Additionally, it can help companies better
understand which customers are most likely to respond to certain campaigns or promotions.
Brown, S. Postmodern marketing. In: J. Baker (ed.) (2008).

It’s an ongoing process of collecting and analyzing behavioral data. Over time, the data you
collect will reveal more about your consumers, such as: Purchasing habits , Browsing
behaviour, Interaction with your brand, Interaction with your competitors, Buying history and
Brand loyalty. An ecommerce site or retailer, for example, may make segments based on the
channel or device people use to reach its site. In contrast, a gaming site might segment
according to the frequency of purchases or which competing gaming sites users visit. Brown,
S. Postmodern marketing. In: J. Baker (ed.) (2008).

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One example of behavioral segmentation is segmenting customers based on their purchase
frequency. This could involve creating segments such as customers who purchase once a
month, a quarter, or annually. This helps companies understand the different types of
customers it has and tailor its marketing and product offerings accordingly.

The third one is Firmographic segmentation, what types of companies are buying.
Firmographic segmentation goes hand in hand with company research. It analyzes the
industry, company size, revenue, location, and history of your potential customers. For
example, a company may decide to segment customers by revenue size. Companies with
higher revenues could be placed in the high-value segment, while those with lower revenues
would be placed in the low-value segment. As a result, it can tailor its resources and
marketing efforts accordingly. Sutton, D., Klein, T. (2003).

Fourth one is Psychographic segmentation, why are they buying? It’s a tough question to
answer. But understanding the motivation of your target audience is key. Some factors that
influence why customers buy from you could include the following: Lifestyle, Values,
Beliefs, Interests and Hobbies, Political orientation and Goals. Of course, you’ll only need to
focus on the ones that are relevant to your industry. An example of how to do psychographic
segmentation would be to divide a market of luxury car buyers into three distinct groups:
Aspirational: These customers aspire to own a luxury car and are more likely to be influenced
by luxury car advertisements. Sophisticated: These customers are knowledgeable about
luxury cars and prefer to spend time researching and evaluating their options.
Traditional: These customers prefer a more classic look and feel for their luxury cars, and are
likely to be driven by word-of-mouth recommendations. Morgan, R.E. (1996).

Fifth one is Transactional segmentation, how do they transact? When it comes to online
shopping and eCommerce sites, transactional segmentation keeps all the receipts. It considers
payment method, purchase value, use of coupons or special offers, and transactions based on
categories or top-selling products. It’s a type of segmentation that can optimize pricing
strategies and measure customer retention. One way to do transactional segmentation is to
look at customer purchase history. For example, if you’re an apparel retailer, you can look at
the types of items customers purchase and create segments based on that. This may include a
segment for customers who mostly purchase dresses, another for those who purchase pants,
or another for those buying a variety of items. You could then use these segments to tailor

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marketing messages and offers to each customer group, helping to increase engagement, the
relevance of messaging, and sales. Morgan, R.E. (1996).

The six one is Technographic segmentation, what type of tech do they use? Technographic
segmentation is the process of segmenting customers based on the technology they use. This
can be done in several ways. One example would be to segment customers according to the
operating systems they use. For instance, if you are a software company, you could segment
customers based on whether they use Windows, Mac OS, Linux, Android, etc. You could
also segment customers according to the software or device they use. Narver, J.C., Slater,
S.F. (1990).

Seventh is Seasonal segmentation, when are the peak periods of interest? Some industries
are strongly impacted by the seasons and divide their target markets accordingly. We’re not
just talking about weather or holidays, though. Consider cultural, sports, or political events
that stir human interest and alter buying behavior. Sutton, D., Klein, T. (2003)

Eighth is Benefit segmentation: what benefits do people respond to? This type of market
segmentation is based on the potential benefits a customer receives. While it’s sometimes
considered a type of behavioral segmentation, it’s worthy of a mention in its own right. An
example is when customers are segmented based on their preferred benefits, such as loyalty
rewards or discounts. Narver, J.C., Slater, S.F. (1990).

For instance, a company may have a loyalty program that offers discounts or rewards to
customers who have shopped with it for a certain amount of time or who have reached a
certain spending threshold. They may have a different program for customers who prefer free
shipping or early access to new products. By segmenting customers based on their preferred
benefits, the company can tailor its marketing efforts to target customers more effectively and
increase sales in tandem. Another way to look at this type of segmentation is by the perceived
benefit a product offers to a customer. The supplement sector gives us a great example of this
to showcase. Let’s say a company offers a range of health supplements, some for weight loss,
some for muscle gain, and some for anti-aging. In this instance, a company could perform
segmentation based on the benefits a customer is seeking. This way, should they offer similar
products with the same benefits, they have a readily available market to take them to. Sutton,
D., Klein, T. (2003).

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In conclusion, when an entrepreneur talks about creating a marketing strategy, then it
depends on customer market research and the knowledge demands of customers. The
marketing concept allows an entrepreneur to know their customers and target them based on

their needs and wants.

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 References

Drummond, G., Ensor, J. (2005) Introduction to Marketing Concepts. Burlington: Elsevier

Butterworth Heinemann.

Kotler, P., Armstrong. (2008) Principles of Marketing. 12th Edition. Upper Saddle River:
Pearson Education Inc.

Sutton, D., Klein, T. (2003) Enterprise Marketing Management: The New Science of
Marketing, Hoboken: John Wiley & Sons, Inc.

Brown, S. Postmodern marketing. In: J. Baker (ed.) (2008) The Marketing Book. Oxford:
Butterworth Heinemann is an imprint of Elsevier, pp. 19-32.

Kotler, P., Keller, K.L. (2007) Fundamentals of Marketing Management, in Lithuanian.

Morgan, R.E. (1996) Conceptual foundations of marketing and marketing theory,

Management
Decision, Vol. 34, no 10, pp. 19-26,.

Narver, J.C., Slater, S.F. (1990) The effects of marketing orientation on business profitability,

Journal of Marketing, Vol. 54, October, pp. 20–35.

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