Determine_Customers_Presentation_Entrep.pptx

Determine Customers Presentation

1. Determine who the customers

2. Determining Who the Customers Are Learning Competencies: • 2.2.1 Identify the target market • 2.2.2 Identify customer requirements • 2.2.3 Identify market size

3. What is a Customer? A customer is an individual or organization that buys products or services. They are the main focus of any business strategy.

4. What is a Target Market? A specific group of people a business aims to serve. Based on: • Age, gender, income, location • Interests and buying behavior Helps focus marketing and product design.

5. Examples of Target Markets

6. What is Market Size? refers to the total potential demand for a product or service in a specific market. It represents the number of potential customers and the amount they might spend.

7. Why Know Your Market Size? • Avoids overproduction or underproduction • Supports better investment decisions • Helps set realistic sales targets

8. How to measure Market Size 1. Number of potential customers Count of people or organizations who might buy your product. 2. Total revenue potential Estimate how much money all potential customers might spend on your product or service per year.

9. Example: You want to open a milk tea shop in town. You estimate 5,000 young people (aged 15–25) like milk tea. Average spending per person: ₱100 per visit, 2 visits per month. Total annual spending: 5,000 × ₱100 × 2 × 12 = ₱12 million.

10. Activity Group task: 1. Identify a local product or service. 2. Define its target market. 3. List at least three cx requirements. 4. Estimate its potential market size.

11. Questions?