Chapter 3 - Getting To Know The Market

CHAPTER III
GETTING TO KNOW
THE MARKET
COSTUMER
PROFILING
CHAPTER III : GETTING TO KNOW THE

MARKET
CUSTOMER PROFILING
Customer profiling is a way to create a
portrait of your customers to help you make design
decisions concerning your service. Your customers
are broken down into groups of customers sharing
similar goals and characteristics and each group is
given a representative with a photo, a name, and a
description.
METHODS OF
COSTUMER PROFILING

MARKET
DEMOGRAPHICS
PSYCHOGRAPHICS
TECHNOGRAPHICS
DEMOGRAPHICS
DEMOGRAPHIC
SINCOME
AGE SOCIAL
CLASSES CLASSES
ETHNIC
BACKGROUN
D
RELIGIOU
OCCUPATIO DOMICILES
S BELIEF N
AGE
DEMOGRAPHICS
INCOME
CLASSES
INCOME Determine the purchasing power of the
costumers.
CLASSES
Class A - HIGH INCOME
CLASSES
Class B - UPPER MIDDLE
INCOME CLASSES
Class C - MIDDLE INCOME
CLASSES
Class D - LOWER MIDDLE
INCOME CLASSES
Class E - LOW INCOME CLASSES
DEMOGRAPHICS
SOCIAL
CLASSES
SOCIAL This is often dictate what is acceptable or unacceptable
behavior. These classes or groups often include family,
CLASSES friends, neighbors, fellow workers, and social affiliations.
DEMOGRAPHICS
ETHNIC
BACKGROUND
The cultural beliefs of people such as the food they eat, how they
save and how they spend, and their levels of conservatism or ETHNIC
progressiveness. BACKGROUND
DEMOGRAPHICS
RELIGIOUS
BELIEFS
RELIGIOUS
BELIEFS
DEMOGRAPHICS
OCCUPATIONS
Occupations such as those of factory foremen, doctors,
taxi drivers, nurses, and teachers also determine what kinds
OCCUPATIONS of goods and services these people would buy.
DEMOGRAPHICS
DOMICILES
Domiciles or habitats, or areas of residence and
environmental surroundings oftentimes, define and limit the DOMICILES
choices available to costumers.
PSYCHOGRAPHICS
PSYCHOGRAPHICS
MOTIVATION PERCEPTION LIFESTYLE

is the way a person chooses to recieve or interpret
PERCEPTION information from the external world.
PSYCHOGRAPHICS
MOTIVATION
Motivation goes to the roots of costumer's needs
and want.
MOTIVATION
NEED WANT
PSYCHOGRAPHICS
LIFESTYLE
Lifestyle classifications, it talks about what people
LIFESTYLE value the most.
TECHNOGRAPHICS
TECHNOGRAPHICS
Classifies people according to

level of expertise in using a
product or service.
EXAMPLE:
TECHNOGRAPHICS
APPLICATION OF
COSTUMER PROFILING

MARKET
APPLICATION OF COSTUMER
PROFILING
To develop a product or service to

FIRST WAY test out in a market place.
a. The customers most attracted to the product or

service can then be profiled.
b. After profiling, the next step is to find out how
huge this market is for exploitation purposes.
To profile the different types of
SECOND WAY costumers in a given industry or
areas as to their needs and want.
a. From these types the entrepreneur could

then choose the customer group with the best
potential.
b. Products or services can be developed by
the entrepreneur to match this chosen customer
group.
MARKET MARKET
SEGMENTATION MAPPING
MARKET
AGGREGATION
MARKET
SEGMENTATION

MARKET
Customers with similar needs and wants and
similar willingness and ability to pay can be
grouped into one costumer segment.
MARKET
Within this costumer segment, we can have SEGMENTATIO
finer cuts. We can have different costumer sub- N
segments. Within these sub-segments we can even
have finer and finer cuts. Therefore, we can produce
products and services that are highly specialized for
any type of costumer segment.
MARKET
AGGREGATION
Some entrepreneurs prefer to appeal
to broader market if possible. They want
market aggregation rather than market MARKET
segmentation. They prefer to deal in AGGREGATION
commodities like rice, bread, and water
that appeal to market aggregates rather
than market segments.
MARKET
MAPPING
Similar to sales data mining, market
mapping refers to grouping costumers and
products according to certain market
variables. An entrepreneur can use one or a MARKET
combination demographics, psychographics, MAPPING
technographics to create a market map. Table
1 is an example of a market map based on a
students' school life stage or age and
household income bracket.
HOUSEHOLD INCOME BRACKET
EXAMPLE
SCHOOL
AGE
STAGE Lower Upper
Low Middle High
Middle Middle
Post-Tertiary 22-UP
Tertiary 17-21
Secondary 13-16
Elementary 6-12
Pre-School 2-5
Table 1. MAP 1 - Market Map (Before K to

12)
Focusing on the tertiary school stage, the students
can further be mapped according to their household income
and occupational preferences.
Zeroing in on occupational preferences at a certain
income level, a technographic and psychographic grid
combination can be drawn.
Taking Accountancy as the preferred occupation,
students can be classified according to their mathematical
aptitude (technographic) and according to their motivation
for taking the Accountancy course (psychographic).
MARKET APTITUDE
STUDENT'S EXAMPLE
MOTIVATION IN
TAKING THE
Poor Fair Good Excellent
COURSE
Parent's
Occupation
Likes Numbers
Job Availability
Friends' Influence
Percieved Ease or
Difficulty
Other Reasons
Table 1. MAP 2 - Students in Accountancy

EXAMPLE
Products or services can be mapped according to

their relative positioning in the market based on certain-
costumer parameters.
School offering medical degrees, for example, can be
mapped according to the percieved degree of dificulty of
entry and their tuition fees.
HIGH
TUITION
UST LA SALLE
LOW HIGH
DIFFICULTY DIFFICULTY
FEU ATENEO
PUP UP
LOW TUITION
Figure 1. MAP 3 - School Positioning in Medical
Degree
The purpose of market mapping is to
provide the market analyst a better
understanding of the market as a whole and to
paint a clearer picture of where the different
competitors are relative to the different market PURPOSE
segments. Market mapping would also allow
entrepreneurs to discover market segments that
are relatively unserved o underserved. They
could then develop products and services that
fulfill the gaps in the marketplace.

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CHAPTER III

CHAPTER III : GETTING TO KNOW THE

CHAPTER III : GETTING TO KNOW THE

MOTIVATION PERCEPTION LIFESTYLE

Classifies people according to

CHAPTER III : GETTING TO KNOW THE

To develop a product or service to

a. The customers most attracted to the product or

a. From these types the entrepreneur could

CHAPTER III : GETTING TO KNOW THE

Table 1. MAP 1 - Market Map (Before K to

Table 1. MAP 2 - Students in Accountancy

Products or services can be mapped according to

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