ENTREPRENEURSHIP S.Y. 2021-2022-ST.

THERESE OF LISIEUX
MIDTERM LEARNING RESOURCES

Week 5- Lesson 5
 

(source: https://www.evergreensgv.org/blog/2019/3/19/transformational-transitions-part-2-pray-for-wisdom & https://www.deviantart.com/nowitzkitramonto/art/St-Aloysius-Gonzaga-455018171)

Welcome to our fifth academic week! This week, a new lesson to study is presented below and another learning task is to be accomplished. Future
entrepreneurs, you got this!

Great job as we were able to complete the steps of Opportunity Spotting and Assessment last week!  You were able to screen the proposed solution/s
based on viability, profitability and customer requirements as you have discovered the S2- Screening Opportunity of Opportunity Spotting and Assessment.
Under S2, we have made clear that it is the process of cautiously selecting the best opportunity. Wherein, opportunity metrics such as market potential,
financial feasibility, management team and personal resources are used under S2 to filter the better business opportunities to take. You were also able to
select the best product/ service that will meet the market need as we discussed the S3- Seizing Opportunity of Opportunity Spotting and Assessment. This is
the “pushing through” with the chosen opportunity. Of course, the chosen opportunity is the most profitable and feasible among other opportunities. After the
long and rigorous process, the entrepreneur is now ready to make the best out of the chosen opportunity.

Additionally, innovation is the process of positively improving an existing product or service. It is a key driver for economic growth. The different types of
innovation according to the degree of distinctiveness are: breakthrough innovation; technological innovation; and ordinary innovation.

The academic advising schedule of your respective subject teacher is provided below, young business enthusiast. We hope to help you make the most of
the semester even better with this service, boss.

This week, we will elaborate on The Marketing Plan, specifically The Business Plan, Value Proposition and Unique Selling Proposition, and Knowing Your
Customers. Way to go, boss! Keep the faith!
 Peace be with you!

“The Brand Wars” (Motivational Activity)

Blessed Day, future entrepreneurs! This activity allows you to better understand the market as a whole and to paint a clearer picture of the market you
want to exploit. The more you know your market, the better you will be able to determine customer needs and wants and the more chances of reaching
them. Simply provide a brief and comprehensive answer for the activity below.

Consider the body essential product you have chosen to rebrand from last week’s performance task. It is necessary for you to think of TWO (2)
brands of the said body essential product and ideally, these brands must be something you or your family have purchased before. This is for you to be able
to compare and contrast the two.

Great start! Thank you for really meaning business.

As mentioned earlier, for the fifth week of the school year, we will begin our discussion on The Business Plan.

DEFINITION OF BUSINESS PLAN

 What is a business plan?

It is a comprehensive paper that outlines the basic concept underlying a business and describes how the concept will be realized--- specifically, what
problem will be solved. A business plan is an entrepreneur’s game plan to take the startup plunge. The business plan should lay out your basic idea for
the venture, where you are now, where you want to go and how you intend to get there.
It is the blueprint to keep the entrepreneur on the right track. It gives a sense of purpose to the business. It provides guidance, influence, leadership
and communication of ideas, goals and means to the partners, employees and others.

DEFINITION OF VALUE PROPOSITION

What is value proposition?

A value proposition simply states why a customer should buy a certain product or avail a service.
It is the major driver in customer purchase for service availment.
It needs to be direct in addressing the problems of the customers and should differentiate itself from the competitors.

Without explicitly saying so, Uber, a Transport Network Vehicle (TNV) Service, expertly highlights everything that sucks about taking a traditional taxi
and points out how its service is superior. The simple yet highly effective “Tap the app, get a ride” excellently conveys the simplicity and ease that lies at the
heart of what makes it such a tempting service: one tap and a car comes directly to you, your driver knows exactly where to go and payment is very
convenient.

TIPS ON CREATING EFFECTIVE VALUE PROPOSITION

Make your value proposition straight to the point. It must be concrete/ specific. There are no complications.
Highlight the value of your product/ service.
Adapt to the language of your market. Ensure that your target market understands clearly what you are trying to say.
Add credibility-enhancing elements. Include testimonials from customers, partners or stakeholders. Several management certifications such as the ISO
seal and international/ national accreditations can make your product/ service more reliable/ trustworthy.

Bet you want to jump in? BOSS Says what on this query: How do you offer value/ meaning to other people? Is it necessary to do this? Why or why
not?

DEFINITION OF UNIQUE SELLING PROPOSITION

 What is unique selling proposition?

This refers to how you will sell the product or service to your customers. After creating your value proposition, you have to figure out how to advertise or
promote your product/ service.
You can do this in promotion strategies, pricing, physical attributes or human resources.

TIPS ON CREATING EFFECTIVE UNIQUE SELLING PROPOSITION

Identify and rank the uniqueness of the product/ service attribute. This will compel customers to buy from you and not from your competitors. This will
be elaborated as I will walk you through the 7Ps or the Marketing Mix.
Be very specific. Emphasize what makes your product/ service a different and a better one. By being specific and honest, you don’t give your
customers the feeling that they are being fooled.
KISS. Keep it short and simple.

Here’s another question for you, boss: Why is it important to embrace your uniqueness? 

BOSS Says: _________________________________________________________________

Remember: The value proposition and the unique selling proposition will only work effectively when customers feel the true benefits of the product/
service being offered.

Questions and/or clarifications? Send them via USL-NEOLMS chat or through Gmail. I’ll be more than willing to address these.

KNOWING YOUR CUSTOMERS

 What is marketing research?

It is a comprehensive process of understanding the customer’s intricacies and the industry they revolve in.
Results from the marketing research is an entrepreneur’s major investment as this will lead him in designing the right marketing mix. To accurately
describe your customers, marketing research is the right tool to use.

What is market size?

It is simply the size of the area where the entrepreneur’s business will play. It is the approximation of the total number of buyers and sellers in a
particular market. The entrepreneur is required to determine the market size first to gauge the vastness of the market where he intends to join. So that
he may assess if there is customer potential or any established competitor/s.

What is direct/ indirect competitor?

Amihan, Alena and Danaya are selling swords while Pirena is offering shields.
Amihan, Alena and Danaya are direct competitors while Pirena is an indirect competitor.
Direct competitors offer the same products/ services.
Indirect competitors don’t offer exactly the same product type but still compete with the business indirectly.

            Screen break! Take care of your eyes for a little while, dear business enthusiast. Don’t forget to blink.

What are customer requirements?

Customers are the lifeblood of the business for without them, no business can thrive. You can sell the best-tasting food, most fashionable apparels or
latest gadgets but without your customers, you cannot grow.
“Customer is always right” is a mantra in business because their thoughts, feelings and experiences shape the business. Do you agree, young
business enthusiast?
Customer requirements are specific features and characteristics that the customers need from a product or service. For example, in buying shoes,
some would buy because of the style/ color, some due to cheaper price, others because of quality. In restaurants, some would go to carinderias for
taste-like-home foods, some go to fast food chains for fast service, others go to fine dining because of cozy ambiance.

We end this week’s topic with the inspiring words from Bill Gates of Microsoft Corporation, “We were young, but we had good advice and
good ideas and lots of enthusiasm.” Young as you may be, having your plans for the future will take you to places. Just like in entrepreneurship,
developing your business plan as the entrepreneur, provides you guidance on how to effectively run your business in the present  with the hopes
that in the long run, the business will continue to thrive. As you carry out the plans you have today, may it lead you to where you want to be in the
future. Good advice was exemplified in the Tips in Creating Value Proposition and Unique Selling Proposition while ideas and lots of enthusiasm
should be applied in Knowing Your Customers. Inspired by your plans with good advice, good ideas and lots of enthusiasm, you can go a long
way towards a better, bigger and brighter life.

That’s a wrap for our Week 5 Module in Entrepreneurship. YOU DID IT, BOSS!

GENERALIZATION

A business plan is an entrepreneur’s game plan to take the startup plunge. The business plan should lay out your basic idea for the venture, where you are
now, where you want to go and how you intend to get there.

A value proposition simply states why a customer should buy a certain product or avail a service. It is the major driver in customer purchase for service
availment.
Unique selling proposition refers to how you will sell the product or service to your customers. After creating your value proposition, you have to figure out
how to advertise or promote your product/ service.

Marketing research is a comprehensive process of understanding the customer’s intricacies and the industry they revolve in.

Market size is simply the size of the area where the entrepreneur’s business will play.

Direct competitors offer the same products/ services. Indirect competitors don’t offer exactly the same product type but still compete with the business
indirectly.

Customers are the lifeblood of the business for without them, no business can thrive. Customer requirements are specific features and characteristics that
the customers need from a product or service.

REFERENCES

Textbooks:

Batisan, Ronaldo. (2016). Entrepreneurship. DIWA Learning Systems Inc.

3-G E-learning LLC. 2nd edition. (2018). Entrepreneurship. 3-G E-learning LLC, USA.

Aduana, Nick. (2016) Entrepreneurship in the Philippine Setting. C & E Publishing, Inc.

Gallardo, et. al. (2018). Entrepreneurship. Anvil Publishing, Inc.

Morato, Eduardo. (2016). Entrepreneurship. Rex Book Store.

Online Resources:

Unique Selling Proposition. https://www.entrepreneur.com/encyclopedia/unique-selling-proposition-usp Retrieved September 10, 2021

4 Ways to Find Your Unique Value Proposition. Young Entrepreneur Council. https://www.inc.com/young-entrepreneur-council/what-is-a-unique-value-
proposition-how-do-you-find-
it.html#:~:text=A%20unique%20value%20proposition%20(UVP,slogan%2C%20catchphrase%20or%20positioning%20statement. Retrieved September 10,
2021

Twin, Alexandra. Market Research.

https://www.investopedia.com/terms/m/market-research.asp#:~:text=Market%20research%20is%20the%20process,in%20the%20product%20or%20service.
Retrieved September 10, 2021

Young business enthusiast, please accomplish the students’ feedback form for Week 5 learning content and task. Click the link below. Thank you so much.

ENTREPRENEURSHIP WEEK 5 FEEDBACK FORM

 
ENTREPRENEURSHIP S.Y. 2021-2022 - St. Gregory the Great
MIDTERM LEARNING RESOURCES

Week 6 - Lesson 6
 

(source: https://dribbble.com/shots/4995711-keep-learning)
 How are you, dear Louisian GEM? Here’s to our sixth academic week! Hold on as this week, a new lesson to study is presented below and another
learning task is to be accomplished. As it gets tougher, don’t forget to take care of yourself. Feel free to reach out to me.

Give yourself credits as last week, we were able to commence with The Marketing Plan
specifically the topics on The Business Plan, Value Proposition (VP) and Unique Selling
Proposition (USP) and Knowing Your Customers! You were able to define what a business
plan is and explain its importance in the venture.  For VP and USP, we have stressed that
the former refers to how you will sell the product or service to your customers while the
latter is the major driver in customer purchase for service availment. Under Knowing Your
Customers, we have made clear that customers are the lifeblood of the business for
without them, no business can thrive. You can sell the best-tasting food, most fashionable
apparels or latest gadgets but without your customers, you cannot grow.

If you happen to still remember your Course Overview, can you guess what will be our topics this week? Correct! You will understand more about
customers as I present to you the Primary and Secondary Target Market. NO MONKEY BUSINESS it is and so we begin.  

determine who the customers are in terms of: Primary and Secondary Target market; and
classify or profile the customers into appropriate segments.

Can wants be really prioritized over needs? Why or why not?

As a student, how can you help in the elimination of job discrimination?
In real life, should there also be a different personality to be shown to different types of people? Why or why not?

(Motivational Activity)

This activity will introduce the next topics to you and for you to have an idea how the said topics are applied in real life. This is entitled as “BUY-GO!”
and works exactly the same as the famous game “BINGO!”. You just have to CHECK THE BOX/ES with the statement/s you agree with. You may now start
to BUY and GO!
 If you have checked all boxes in the first column, demographic factors were used by the entrepreneur. If you have checked all boxes in the second
column, psychographic factors were used by the entrepreneur. If you have checked all boxes in the fourth column, geographic factors were used by the
entrepreneur. If you have checked all boxes in the fifth column, behavioral factors were used by the entrepreneur. If you have checked all boxes in the third
column, you would agree that market segmentation is really essential.

(source: https://www.adweek.com/tv-video/media-companies-and-buyers-are-finally-getting-serious-about-data-and-audience-targeted-advertising/)

Most entrepreneurs believe in the misconception that they can serve all type of customers or, if not, a wide range of customers. Little do they know that this
thinking may lead to failure. Entrepreneurs must focus only on customers whom they can serve beneficially because they will be wasting resources if they
will target all, or worse, target none. 

The entrepreneur can tap a primary target and a secondary target market as resources are limited during the startup stage. With this, the probability of
success is higher as the entrepreneur can focus to sell to the identified customer groups. 

☞
This includes customer profiling which drives the entrepreneur  on what correct strategies and tactics to employ. This can only be obtained through a
meticulous market segmentation process. 

(source: https://info.hurree.co/market-segmentation-pillar#whatismarketsegmentation,https://geniusmonkey.com/blog/all-dayparts-are-essential-to-successful-marketers/ & https://camiewritesblog.wordpress.com/2016/03/10/market-

segmentation/)

It is the process of grouping similar or homogeneous customers according to demographic, psychographic, geographic (location), behavior and
technographic.
 It is an entrepreneurial strategy designed primarily to divide the whole market into smaller segments.
  Since the entire market cannot be readily served because the customers are heterogenous, the entrepreneur has to find ways to cater to
homogeneous customers only. This is usually done by market segmentation.
Watch and learn more on this video:

»BOSS Says something for Week 6! Here’s the question:

                                                                                  As a student, how can you help in the elimination of job discrimination? What’s your
answer, BOSS?

✔It is the process of grouping customers according to relevant

socioeconomic variables such as age, religion, gender, occupation, income
range, social class and ethnicity.

✔It is the most widely used and easiest method to segment the market.

              (source: https://www.lotame.com/what-is-market-segmentation/) ✔It is also called socioeconomic segmentation.

1. In Gender and Age group, this is the reason why different milk brands
cater to different age groups. There are milk for babies, for adults and for
senior citizens. Male teenagers prefer or demands trendy clothes, rubber
shoes, barber shops and gyms while single females prefer or demands
beauty products, bags, spa and beauty salons.

2. Religion and Ethnicity is also a factor. There are restrictions in various

religions and beliefs and as an entrepreneur, you have to consider this. Do
not offer products/services that doesn’t approve of their said beliefs. In a
Roman Catholic community, they celebrate Christmas so Christmas
products are profitable. But in a community which doesn’t celebrate it, do
not do so.
(source:http
3. Income and Social Class are other variables. These represent the
purchasing power of individuals which means that if one have higher
income, most probably he belongs to a higher social class. If one have
lower income, most probably he belongs to a lower social class. Higher
social classes especially the rich and the middle class to include, can afford
luxury while the lower class (unfortunate) can only afford the simplest, sad
to say. Some eat at carinderia due to limited budget, some at fast food
chains because of higher budget and some eat at fine dining simply
because they can afford it.

4. Occupation must also be taken into account. We have the blue- and
white-collar jobs, respectively. Blue collar jobs are professions which require
more of physical strength while white-collar jobs demand for greater critical
thinking skills. Make sure to position effectively your products/ services to
 them. If there are a lot of businessmen in your area, you can put up a coffee
shop wherein they can meet their clients/ partners. If there are a lot of
farmers, you can offer fertilizers. If there are a lot of fishermen, you can
offer boats/ motor. Factory foremen, doctors, taxi drivers, engineers and
teachers also determine what kinds of goods/ services will the buy/ avail.

➤Learn more on this video:

✔It is a process of grouping customers according to their perceptions, way

of life, motivations and inclinations.

✔Psychographic segmentation is how marketers learn to position their

products so that compatible customers can “discover” them. It’s how brands
find the right customer match based on customer attitudes and lifestyles.

✔You may not realize it, but psychographic segmentation is the primary
driving factor in your life.

✔Psychographic segmentation is similar to demographic segmentation, but

it deals with characteristics that are more mental and emotional. 

1. Perception is a process wherein an individual receives an external

stimulus using the five senses: seeing, hearing, smelling, touching and
tasting. Perception affects consumer behavior in the sense that if we see an
appetizing meal of a restaurant in a post, somehow we end up craving for it
and ultimately buying it. If we see a fashionable top, we also do the same. If
we hear a bell, immediately, we think of ice cream or ice drop. If we hear the
tune of Nestle cart, immediately, we think of its frozen products such as ice
cream. If we hear “Taho!” being shouted, we knew that a soy delicacy is
coming right to us. We are into light materials when it comes to fabrics that
is why, we feel and touch first the material of the apparel as we fit it to see if
we are comfortable wearing it. That is the use of sense of touch. In tasting,
of course, we want mouth-watering and delicious meals. If the taste is not
good to us, we will not try that food again.

2. Motivation goes to the roots of customer’s needs and wants. This can
either be physiological or psychological. Physiological motivation includes
(source: https://www.lotame.com/what-is-market-segmentation/)
the person’s needs such food, shelter and clothing. Psychological
motivation involves the person’s preferences. His food can be those from
fancy restaurants. His shelter can be a condominium unit. His clothing must
be branded. Psychological motivation focuses on likes or dislikes.

3. Way of life is also a variable. You can live simply with the basic things
around you or the other way around. Whichever it is, there are goods/
services which an individual buys/avails depending on his way of life. One
can be contented with a phone and PC while some prefers phone, tablets
and laptops. Some eats vegetables and fruits while some prefers meat.
(source: https://turtl.co/blog/create-
4. Customers’ inclinations involve preferring one product over another as
a result of gaining a refreshing experience when using the product. Children
often go to school where they parents studied out of other good schools
because of the quality education they’ve got from the said institution. We do
our grocery shopping in one mart we like best. We buy our medicines from
the pharmacy we trusted. We buy the shampoo our hair feels out of other
products. We dine at our favorite restaurant.

➤Learn more on this video:

 
»Here’s another question for you, boss: In real life, should there
also be a different personality to be shown to different types of
people? Why or why not? 

BOSS Says: __________________________________________

 ✔It is simply grouping customers according to their location.

✔It can be as small as street, a barangay, a town, city, province or region.

✔Area of residence affects how people buy goods and/or avail services.
Meat products especially are offered widely in Luzon and parts of Visayas.
While in other Visayan areas and the Mindanao, this good can be offered
(source: https://www.lotame.com/what-is-market-segmentation/) because of religious beliefs. As you can see, geography encompasses the
culture and lifestyle of people and it can say what are the only feasible
goods/ services in a certain location.

In Baguio and Tagaytay, bulalo and nilaga can be profitable specialties

because of the cold weather residents experience.

In Tuguegarao City, people love pansit batil patong and cold desserts are
also a thing.

➤Learn more on this video:

(source: https://themarketrecord

✔It is the process of grouping the customers according to their actions.

These behaviors are activated occasions, desired benefits, loyalty and
usage of products and services.

✔To that end, the entrepreneur need to study the customers’: a.) attitude
toward his/her product, service, or brand in general b.) use of your product
or service and response to that service        c.) overall knowledge of your
brand and products d.) purchasing tendencies
(source: https://www.lotame.com/what-is-market-segmentation/)
1. Occasions massively affects our buying behavior. As Filipinos, we are
fond of celebrations. We buy gifts for the holidays. We become extra special
on Valentine’s Day. Birthdays and graduations entice customers to go to
buffet restaurants or hotels or resorts to celebrate. Barangay and town
fiestas are also big. We prepare a lot of foods and festivities. Ten various
viands, for an instance, is still few for us when there is something to
celebrate. The karaoke is reserved a month or a week before the event.
During these times, it’s as if we have unlimited purchasing power.

2. Using customer’s desired benefits helps the entrepreneur determine the

exact needs of the customer. Wash and dry services are old. Wash, dry and
press is the new normal. Haircut is out. Haircut with free massage is in.

3. Loyalty is the result of maintain satisfied customers. An entrepreneur’s

goal is to inform, persuade, and remind customers to buy the good/ avail
the service consistently. Loyalty programs and rewards are created to get
customers buy/ avail from us only.

4. Usage of products or availment of service describes to the

entrepreneur how often a product is being used or the service is being (source: ht

availed. There can be customers who can be considered light users,

medium users and heavy users depending on their purchase and/or
availment frequency. When it comes to rice, fruits and vegetables or to
prime commodities, many of us buy often. Chocolates, sweets and pasta
are not bought just sometimes.

➤Learn more on this video:

 
 »Screen break! What's the 20-20-20 rule? If you find yourself gazing at
screens all day, your eye doctor may have mentioned this rule to you.
Basically, every 20 minutes spent using a screen; you should try to look
away at something that is 20 feet away from you for a total of 20 seconds.

✔It is a market research analysis tool used to identify and profile the
characteristics and behaviors of consumers through the process of market
segmentation. Traditionally market researchers focused on various
demographic, psychographic, and lifestyle schemes to categorize and
describe homogeneous clusters of consumers that comprise possible target
markets. With the advent of personal computers and home video in the late
1980s and the explosion in Internet use, personal digital assistants,
BlackBerries, video games, cell phones, etc. in the 1990s, information and
communication technologies have emerged as a central focus and defining
force in a wide range of occupations and lifestyles.

✔Technographic segmentation was developed to measure and categorize

consumers based on their ownership, use patterns, and attitudes toward
information, communication and entertainment technologies.

✔The concept and technique was first introduced in 1985 by Dr. Edward
Forrest  in a study of VCR  users, it was elaborated upon in the article
"Segmenting VCR Owners" published in the  Journal of Advertising
Research. The article suggested that the profiling of technology consumers
"should be based on an amalgam of variables which might best be referred
to as 'technographic'... which focuses on the motivations, usage patterns,
attitudes about technology... as well as measures of a person's fundamental
values and lifestyle perspective."

✔There are six different technographic profiles for individuals. These six
profiles are thought of as a ladder, where each rung up the individual has a
deeper relationship with technology. From least to most active, individual
technographic profiles include:

a. INACTIVES - Inactives are users who don’t engage at all. These

individuals don’t create their own content and also have no interest in
engaging with or looking at anyone else’s.
(source: https://www.commbox.io/6-ways-to-use-customer-segmentation-to-deliver-
b. SPECTATORS - One level up from Inactives, Spectators don’t create
a-better-customer-experience/)
content but will observe others’. This could include watching a YouTube
video, listening to a podcast, reading a blog, or consuming any other type of (source: https://www.usertesting

  digital media.

c. JOINERS - Joiners are another level up. Here, individuals own and
maintain social profiles. These individuals don’t post, though.

d. COLLECTORS - Collectors are individuals who are starting to engage

with content more actively. Collectors will tag pages, follow blogs, and even
use RSS feeds.

e. CRITICS - At the critic level, individuals start posting. Typically, this

begins with comments on content from others and can include contributions
to forums or review sites.

f. CONVERSATIONALISTS - Conversationalists use statuses on social

networks to share short updates. Posting from Conversationalists is limited
to content that spurs a discussion.

g. CREATORS - At the final level, Creators are the most deeply involved.
Creators develop their own content, including blogs, videos, podcasts, and
all other digital media the five rungs below them interact with.
Technographic profiles aren’t just applicable to consumers. A company’s
technographic profile is less about online interactions and more focused on
businesses’ hardware/software use and spend. This data directly informs
technology, SaaS, and pro-service needs.

➤Learn more on this video:

☞
               

      (source: https://www.marketingmag.com.au/hubs-c/death-broad-market-advertising/& https://blog.coldwellbanker.com/living-near-times-square-pros-and-cons/cb-times-square-nyc-jpg/)

Market aggregation happens when an entrepreneur prefers to deal with a broader market because the product/service he offers such as rice, bread, fruits,
vegetables, haircut and transportation is suited for an undifferentiated market. Meaning, all or almost all, regardless of segments, need these goods/
services.

                     

On the question, “Can wants be really prioritized over needs? Why or why not?”, BOSS Says:

Do you agree with this statement of Robert Kiyosaki, author of

the best-selling book Rich Dad, Poor Dad? As you have learned,
market segmentation is an entrepreneurial strategy designed
primarily to divide the whole market into smaller segments. You can
state that indeed this is a challenging but a necessary task for the
entrepreneur to carry out. Without of course the entrepreneur’s will to
execute this, he is letting go of the opportunity to earn and go big.
                                              We can also relate this in life. When you don’t have the courage to
face your responsibilities, you are foregoing your chance to make it
in life. Whether in business or in life, nothing is given, everything is
earned and it is earned the hard way. The decision is yours.  

That’s my GEM! You finished absolutely strong this Week 6!

Keep going!

Market Segmentation is the process of grouping similar or homogeneous customers according to demographic, psychographic, geographic (location) and
behavior. It is an entrepreneurial strategy designed primarily to divide the whole market into smaller segments. Since the entire market cannot be readily
served because the customers are heterogenous, the entrepreneur has to find ways to cater to homogeneous customers only. This is usually done by
market segmentation.

Demographic segmentation is also called socioeconomic segmentation. It is the process of grouping customers according to relevant socioeconomic
variables such as age, religion, gender, occupation, income range, social class and ethnicity. It is the most widely used and easiest method to segment the
market.

Psychographic segmentation is a process of grouping customers according to their perceptions, way of life, motivations and inclinations.

Geographic segmentation is simply grouping customers according to their location. It can be as small as street, a barangay, a town, city, province or
region. Area of residence affects how people buy goods and/or avail services.
Behavioral segmentation is the process of grouping the customers according to their actions. These behaviors are activated occasions, desired benefits,
loyalty and usage of products and services.

Market aggregation happens when an entrepreneur prefers to deal with a broader market because the product/ service he offers such as rice, bread, fruits,
vegetables, haircut and transportation is suited for an undifferentiated market. Meaning, all or almost all, regardless of segments, need these goods/
services.

REFERENCES

Textbooks:

Batisan, Ronaldo. (2016). Entrepreneurship. DIWA Learning Systems Inc.

3-G E-learning LLC. 2nd edition. (2018). Entrepreneurship. 3-G E-learning LLC, USA.

Aduana, Nick. (2016) Entrepreneurship in the Philippine Setting. C & E Publishing, Inc.

Gallardo, et. al. (2018). Entrepreneurship. Anvil Publishing, Inc.

Morato, Eduardo. (2016). Entrepreneurship. Rex Book Store.

Online Resources:

(2019). What is Market Segmentation? https://www.lotame.com/what-is-market-segmentation/ Retrieved September 3, 2021

Oxford Reference. (2021). Market Aggregation. Oxford University Press. https://www.oxfordreference.com/view/10.1093/oi/authority.20110803100134942 

Retrieved September 3, 2021

Young business enthusiast, please accomplish the students’ feedback form for Week 6 learning content and task. Click the link below. Thank you so much.

ENTREPRENEURSHIP WEEK 6 FEEDBACK FORM

(source: https://www.behance.net/gallery/82263303/Xinwen-Mao)