RECOGNIZE A POTENTIAL MARKET patterns, and where they overlap or diverge from your

current customers.
Finding what are the needed products for the market and
to whom are those products for. Ask yourself:

THE POTENTIAL MARKET - What other products do my customers need now?

- What related products will they need in the future?
Is the part of the market you can capture in the future. It - Who else could make use of the products I am
includes the demographic groups that are not currently selling now?
your customers but could become customers in the future - What demographic information does that new
(Lake, L, 2019). group have in common with my current
customers?
MARKET - What demographic information does that new
group have in common with each other?
refers to the group of consumers or organization that is
interested in the product, has the resources to purchase These questions will help you identify both new ways to
the product, and is permitted by law and other regulations market your current products or services, as well as new
to acquire the product. products and services that you can begin selling.

THE IMPORTANCE OF POTENTIAL MARKET • For example, a business that makes baby products
(Lake, L, 2019) and markets them towards parents could identify
potential markets such as:
Potential markets are an important part of a business's
future growth. Potential markets allow you to: o Toddler products marketed at parents of
older children.
1. Ensure the future of your business by identifying o Baby and Toddler products marketed at
new customers. grandparents.
2. Think pro-actively about ways for your business to o Baby and toddler products marketed at
grow and change. childcare providers.
3. Show the potential of your business to investor or
collaborators. THE MARKET NEED
4. Increase your revenue.
5. Create a plan B that will weather changes in the Businesses should start by knowing the consumer's
economy or market. interests, desires and needs.

“By identifying and pursuing potential markets, you are not • It’s easier to sell what consumers want and need
increasing your market share for today; you are ensuring than try to sell something they don’t see the
your market share will increase for the future.” benefit in buying. In a fast-moving world, it should
be a competitive edge having the chance of
HOW TO IDENTIFY YOUR POTENTIAL MARKETS monitoring the market, detecting what can be a
(Lake, L, 2019) source of a profitable new business. Market needs
inform organizations about what products
To identify your new potential markets, consider every develop, for what customers, at what cost,
target demographic that you currently sell to, as well as through which distribution channels, reducing
those you have not yet targeted. Identify what they have the uncertainty that a new product/service
in common with each other, new milestones that they development always brings with it. (Miller &
will encounter in their lives that will impact their buying Business Intelligence Braintrust, 2002)
 MARKET IDENTIFICATION 2. MARKET TARGETING
(Aduana, N.L., 2016) • Is a stage in market identification process that
aims to determine the set of buyers with
is a strategic marketing approach and process that is common needs and characteristics.
intended to define the specific customer of the product.
Segmentation matrix - the size of the segment is usually
THREE ENTREPRENEURIAL MARKETING STRATEGIES expressed in terms of estimated product demand.

1. Market segmentation 3. MARKET POSITIONING

2. Market targeting • refers to the process of arranging a product to
3. Market positioning occupy a clear, distinct and desirable place in
relation to other competing products in the
1. MARKET SEGMENTATION mindset of target consumers.
• is an entrepreneurial marketing strategy designed
primarily to divide the market into small Business positioning - refers to the process of
segments with distinct needs, characteristics, or determining the place of the business in the industry.
behavior.
Positioning - refers to the act of occupying a certain
place.
Factors in segmenting the market:
Process of determining the market position:
a. Accessibility of the market segment - the market
segment must be accessible to the business. 1. Positioning or Perceptual Map – shows the
b. Size of the market segment – the market segment position of similar products competing in the
must be large enough to provide wealth to the market as perceived by the customers.
entrepreneurial venture.
c. Distinction of the market segment - the market 2. Evaluating the benefits of every market
segment must be easily differentiated from the position - once the target position in terms of
total market. price and quality dimensions has been
evaluated, the entrepreneur determines the
4 methods in segmenting the market: advantages, benefits and attributes of the
product.
a. Geographic segmentation – Is divided according
to geographical locations in the Philippines like 3. Deciding on the market position – there are two
provincial regions, cities, provinces, basic dimensions that must be seriously
municipalities and even barangay units. considered in deciding the market position of the
product. These are price and quality.
b. Demographic segmentation – the market is
divided based on the demographic variables of Guide questions in deciding the Market Position:
the consumers. (e.g. Gender, Age, Income,
Occupation, Education, Religion, Ethnic Group 1. Will the product be sold at a higher price due to its
and Family size) attributes and benefits?
2. Will the product be sold at the same price as the
c. PSYCHOLOGICAL segmentation – Is divided in competitor’s price in spite of its benefits?
terms of what the customers think and believe. 3. Will the product be sold at the same price as the
(Needs and wants, Attitude, Social Class, competitor’s because they have similar benefits?
Personality traits, Knowledge awareness, Brand 4. Will the product be sold at a lower price because it
concept and Life style) offers less benefits?
5. Will the product be sold at a higher price even if it
d. Behavioral segmentation – such as perceptions, offers less benefits?
knowledge, reactions, benefits, loyalty and
responses.
 CONCEPTS ABOUT PRODUCT AND SERVICE THE DIFFERENCE BETWEEN PRODUCT AND SERVICES

Product
• According to Morato Jr., E.A., 1977, product is the
Product Services
tangible good or intangible services that the
enterprise offers to its customers in order to satisfy 1. It is tangible. It is intangible
their needs and to produce their expected results.
• Products are often identified with their brand 2. Quality standards can It is very difficult to attain
names to distinguish them from other products in be attained. quality standards.
the market.
3. It may be an asset It involves expenditure
NEW PRODUCT DEVELOPMENT sometimes, e.g., without any tangible
fridge, television set, return benefit.
(THE ENTREPRENEURIAL MIND)
etc.

1. Creative mind 4. Physical possession is Physical possession is not

• conceptualizes and designs a product that possible. possible.
consumer find some use for. It likewise produces a
product that is pleasing to see, touch, smell, hear 5. It can be stored. It cannot be stored.
and taste. (Morato Jr., E.A., 1977) 6. It can be transported. It cannot be transported.

2. Technical mind 7. The producer and the The producer of service is

• is the technology originator. The entrepreneur seller may be the seller too, e.g., medical
may not necessarily possess the technical mind but different persons and legal services.
this is what drives him or her to convert new
8. Assembling is very Assembling has no
knowledge into something highly functional and important. relevance at all.
operational (Morato Jr., E.A., 1977)
9. Skill of the seller Skill of the service
3. Business mind alone cannot provider is the deciding
• harnesses the potentials of new products by determine sale. factor in most cases, e.g.,
legal, catering and medical
creating the market space for them. It also
services.
organizes sufficient forces and resources to
develop, launch, and commercialize the new 10. Production and Production and
product in order to maximize its market value. distribution need not distribution of service will
(Morato Jr., E.A., 1977) take place have to be done
simultaneously simultaneously, e.g.
provision of electricity.
SERVICES
11. Packing plays a It has no relevance in the
A service business provides services to customers. The crucial role in the marketing of service.
primary sources of income are the different services marketing of any
rendered or provided to customers. product.

12. Both Brand name and Brand mark and Trade

Technically, service entrepreneurial ventures are classified
Trade name are name are important in the
as non-professional service and professional service. important in the marketing of services
marketing of any
Non-professional service ventures include laundry product
shops, car repair shops, beauty parlors, and banking
institutions. On the other hand, professional service 13. Labelling is an It has no relevance.
integral part of
ventures include law offices, medical clinics, and auditing
marketing. It is
and consultancy services. (Aduana, N.L.,2016) required as per law.