To Segment English Training Market And Define Target Market For An Organization (English Training Provider.pdf

To segment English Training market and define target market... Chapter 1: Theoretical Foundation on Market Segmentation and Target Market Selection I.. Strategies for Meeting the Target

University of Economics Ho Chi Minh City School of International Business –

(English Training provider)?

To segment English Training

market and define target market

for an organization (English

Training provider)

Teacher: Assoc Prof Trần Mai Đông

Ho Chi Minh city, November 2023

University of Economics Ho Chi Minh City School of International Business –

Class Code: CT3_B2.404

Class name: 23C1BUS50307003

Teacher: Assoc Prof Trần Mai Đông

Teacher’s Feedback

Source of Reference

By Phillip Kotler & Gary Armstrong

https://www.studocu.com/vn/document/truong-dai-hoc-kinh-te-

tai-chinh-thanh-pho-ho-chi-minh/xac-suat-thong-ke/mktt-quadqqswdwdwd/74021763?

XNq0KmRuICwQ

fbclid=IwAR36wpPh42QYzOPv97tYj2MFQUEl80zAAKXQ7QQV20aPXM-By Nguyen Trung Truong

Brief contents

Chapter 1: Theoretical Foundation on Market Segmentation and Target

Market Selection

I. Market Segmentation

I.1 Definition

of Market Segmentation

I.2. Criteria for Market Segmentation

I.2.1 Geographic segmentation:

I.2.2 Demographic segmentation:

I.2.3 Psychographic segmentation:

I.2.4 Behavioral segmentation:

I.3. Conditions for Effective Market Segmentation

II. Selecting the Target Market

II.1 Concept of the Target Market and Target Audience

II.2 Assessing Market Segments

II.3 Choosing the Target Market Segment

II.4 Strategies for Meeting the Target Market

Chapter 2:

Current Market Segmentation Status and Target Market Selection for the

Vietnam-U.S Society English Center (VUS)

I. Overview of the English Language Training Market in Vietnam I.1 Brief Overview of the English Language Training Market in Vietnam I.2 Some English Language Centers in Vietnam

II. Overview of VUS

II.1 The Formation Period of the Vietnam-U.S Society English Center

II.2 Some Branches of VUS

II.3 Training Programs

II.4 Mission and Vision

III. Market Segmentation for English Language Training at VUS III.1 Criteria for Market Segmentation for English Language Training III.2 Market Segments for the Vietnam-U.S Society English Center (VUS)

III.2.1 Ages 4 - 11:

III.2.2 Ages 22 - 30:

III.2.3 Ages 30 - 40:

III.2.4 Ages 50 - 60:

III.2.5 Ages 18-22, IELTS 5.5-6.0:

III.2.7.Ages 16-18, IELTS 6.0, University Admission:

III.2.8 Ages 16-18, National High School Graduation Exam Preparation: III.2.9 Ages 27-35, aspiring to work abroad:

III.2.10 For learners who need remedial English:

CHAPTER 3 EVALUATING AND DEFINING TARGET

MARKET SEGMENTS FOR VUS:

I. Evaluating and Defining Target Market Segments:

1 Evaluation of 10 market segments for VUS:

1.6 IELTS 6.5 and above, study abroad:

1.7 Ages 16-18, IELTS 6.0, University Admission:

1.8 Ages 16-18, National High School Graduation Exam

Preparation:

1.9. Ages 27-35, aspiring to work abroad:

1.10 For learners who need remedial English:

2 Market segmentation:

3 Selection of a strategy to meet the target segment:

II Proposing Development Directions for VUS to Meet Target Market Segments

1 Focus on developing personalized and customized learning solutions:

2 Strengthen digital learning offerings:

3 Enhance marketing and outreach efforts:

4 Invest in teacher training and development:

5 Expand into new markets and segments:

English is becoming more than just a language; it's a vital tool for international communication English proficiency is not only advantageous but also required for people who enjoy learning, exploring, and interacting in a multicultural

atmosphere That's why learning English has grown in popularity Consequently,

we will learn about a crucial component of training program implementation at English teaching centers from our group's presentation today That is, classifying students according to market goals We will also study the new trends, obstacles, and possibilities this market faces, as well as the elements critical to the industry's expansion Finally, we will gain a better understanding of the value of investing in English learning and selecting the best training technique through detailed study and analysis of the English training market segment We hope that this presentationwill provide you with an overview of the English training market and enable you tomake informed judgments about which English learning ways would best suit yourspecific objectives

Chapter 1: Theoretical Foundation on Market Segmentation and Target Market

Selection

I.1 Definition of Market Segmentation

Market segmentation is the process of dividing a market into smallersegments with distinct needs, characteristics, or behaviors that might requireseparate marketing strategies or mixes

I.2 Criteria for Market Segmentation

I.2.1 Geographic segmentation:

Geographic segmentation divides the market into different geographicalunits such as nations, regions, states, countries, cities, or evenneighborhoods

I.2.2 Demographic segmentation:

Demographic segmentation divides the market into segments based onvariables such as age, life-cycle stage, gender, income, occupation,education, religion, ethnicity, and generation

I.2.3 Psychographic segmentation:

Psychographic segmentation divides a market into different segments based

on social class, lifestyle, or personality characteristics

I.2.4 Behavioral segmentation:

Behavioral segmentation divides a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.

I.3 Conditions for Effective Market Segmentation

 First, measurable ability: The variables you use for segmentation must be directly related to customer consumption of products and services

 Second, feasibility: In order to meet the needs and desires of the allocated market segments, companies and organizations must have sufficient resources Understanding the characteristics and behaviors of each client segment can assist them in determining the best method to reach that consumer group

 Third, uniqueness: Each market group must have a different reaction when exposed to the market's products and services This means that each part they build must be distinct and distinct from the others

II.1 Concept of the Target Market and Target Audience

 Target Market is a segment of people with common characteristics that are

identified as potential customers for a product of a company Simply put, thetarget market is the premise for a company to develop a marketing strategy that is tailored

 Target Audience is a narrower term and a specific group of people who are

most likely to buy products or services This group of people is targeted by the company's product advertisements

II.2 Assessing Market Segments

Market segmentation will be evaluated based on 3 criteria:

 Criterion 1: Market size and growth rate

Scale is shown in market sales

The growth rate is shown in the growth rate of sales Businesses always want to increase consumption and profits Profitability is also affected by competitors

Criterion 2: The attractiveness of the market structure

The five forces that determine the attractiveness of the market structure are:

Figure Michael Porter's 5-forces model.

 Threat of New Entrants:

Simply put, these are businesses that are not yet operating in the business field of your company but will join as soon as possible These businesses will be a major potential threat to the business

If a market has low levels of competition, and high profits, but is not "exclusive" distribution, then sharing market share with businesses that come later is a matter

of course

 Supplier Bargaining Power:

Suppliers play an important role and directly impact the profitability of businesses For example, creates pressure on businesses by reducing quality, increasing product prices, delivering goods late, increasing production costs, and making profits for businesses

 Customer Bargaining Power

Customer Bargaining Power affects the attractiveness of an industry Customer power is high if customers have a lot of power over businesses.

 Threat of Substitutes

Simply put, these are products or services that can meet the needs of customers in away that is better or cheaper than the products or services of the company If there are many effective substitutes, the company will face strong competitive pressure

 Internal Competition

Internal Competition is the level of rivalry between businesses in the same industry If an industry has many strong competitors, prices will often be low and competition will be fierce Businesses need to find ways to create unique competitive advantages and maintain differentiation in order to survive in a competitive environment

 Criterion 3: Business goals and resources

It is necessary to consider business goals and resources in relation to market segments

Businesses should only enter market segments that ensure greater value delivery

II.3 Choosing the Target Market Segment

Target market segment selection is the process of identifying one or more market segments that are considered the most attractive for the company to focus marketing efforts on in order to achieve their business goals

Companies can consider five market coverage patterns (options for target market selection), including:

 Focus on one market segment: Focusing on one market segment allows the

company to take advantage of specific opportunities and create a

competitive advantage in that area

 Differentiated targeting: The company can choose several different market

segments as target markets, and these segments are not related to each other Each market segment is attractive and suitable for the company's capabilitiesand objectives

 Market specialization: The company focuses on producing a certain type of

product to meet the needs of many market segments The market segment is

small in size and does not promise any profit-making business opportunities,and competitors are less interested.

 Product specialization: The company chooses a specific group of

customers as the target customer and focuses all efforts on that group of customers

 Mass marketing: The company meets the needs of all customers for the

products they need All customers are the target market of the company Only large companies can do this

II.4 Strategies for Meeting the Target Market

The choice of target market strategy will go through four forms from large to smalltargets, including:

Figure Marketing strategy

(Source: https://www.sortlist.com/blog/differentiated-marketing/ )

 Undifferentiated marketing: This is mass marketing designed to appeal to

a wide range of customers, using a single message in each market segment.For example, a center in Tan Phu district decided to organize a discount campaign when registering for summer courses They advertised the discount widely on all media channels without clearly defining the target audience, that is, the discount applies to everyone, including those who are not interested in learning English or

do not have specific needs

 Differentiated marketing: This is multi-segment marketing that focuses on

a specific market, attracting 2 or more target audiences, market segments, or different demographics

For example, Center Y decided to create a differentiated marketing campaign to reach people who want to learn English This center implemented measures such asidentifying target audiences, creating unique messages, selecting communication

channels, etc., from which the campaign created a strong connection and enhanced brand awareness in the eyes of the target audience.

 Niche marketing: This is a strategy in which a company pursues a large

market share of one or a few smaller segments or niches

Example: English centers implement a course with a target of 500+, but if students achieve results beyond the expected initial score, they will be rewarded depending

on the specific score level to attract students

 Micromarketing: Targets a specific small segment, an individual, and local

customer segments (localized marketing)

Example: A center near UEH University applies a micro-marketing strategy by creating a series of promotions exclusively for students here They offer a 30% discount for all students at workshops to support their studies This helps them attract and maintain the interest of their target audience, which is students studying

at UEH

Chapter 2: Current Market Segmentation Status and Target Market Selection for

the Vietnam-U.S Society English Center (VUS)

 Nowadays, language education is indispensable Training centers havecreated numerous opportunities for English learning for students, universitystudents, and working professionals The English language training market

in Vietnam is developing strongly, offering a variety of learning andemployment opportunities

 *Vietnam USA Society English center(VUS), British council, IDP English, Apollo English, ILA Vietnam, Weset English Center,

II Overview of VUS

II.1 The Formation Period of the Vietnam-U.S Society English Center

-VUS was established on August 11, 1997 It is one of the long-standinglanguage training systems with a high reputation nationwide

-VUS's resources include over 30,000 enrolled students, a 100% foreignteaching staff, 2,500 qualified and excellent teachers, and 200 master's anddoctoral degree holders Additionally, VUS boasts modern and high-qualityfacilities

 Currently, VUS has 77 branches nationwide, with 40 branches located in HoChi Minh City Here are some branches in Ho Chi Minh City:

 - 45B Hòa Bình, Tân Thới Hoà, Tân Phú

 - 135 An Dương Vương, Phường 8, Quận 5

 - 651-651B Quang Trung, Phường 11, Gò Vấp

 - 187 Trường Chinh, Tân Thới Nhất, Quận 12

 - 120-122 Phạm Văn Đồng, Hiệp Bình Chánh, Thủ Đức

 - VUS offers various training programs catering to different learner groups,including students, university students, working professionals, and adults

 - The center currently provides programs such as preschool education,children's English, communication courses, and IELTS preparation

 - Tuition Fees range from 5,200,000 VND to 11,200,000 VND



 - Providing for the younger generation of Vietnam a solid Englishfoundation to have promotion in career in the future

 - Become the leading English education organization, acknowledged andinfluential in the community

 - Message: English is not just a skill; it is the opportunity for personaldevelopment





 III.1 Criteria for Market Segmentation for English Language Training



 Geographic Segmentation

 Urban market: The urban market is the largest and is growing at the fastestrate Consumers in urban areas typically have higher salaries, a greater needfor English learning, and more options for training facilities

 Rural market: This market is smaller in scale and develops at a slower rate.Consumers in rural marketplaces frequently have lower incomes, fewerneeds for English learning, and fewer options for training facilities

 Big city market: The country's economic, cultural, and educational centersare located in large cities such as Hanoi, Ho Chi Minh, and Da Nang TheEnglish training market in major cities is frequently quite active, withseveral high-quality training institutions

 Small City and Town Market: The English training market in small citiesand towns is not always as developed as it is in larger ones However, thedemand for English instruction in these areas is growing

 Demographic Segmentation

 Age :

One of the most prominent segmentation criteria is age Students, workingpeople, and the elderly are some of the age groupings of English learners.Each age group has various learning requirements and goals

 Occupation:

Another significant aspect influencing the necessity of learning English isoccupation Individuals who work in English-speaking professions such astourism, business, diplomacy, etc often have a greater need to acquire thelanguage

 Income:

The ability to pay for English classes is heavily influenced by one's income.High-income individuals may frequently afford higher-quality Englishlessons