LECTURE MODULE 17 - FROM MARKET SEGMENT TO CUSTOMER

📌 Learning Objectives:

By the end of this lecture, students should be able to:

1. Describe the stages of the marketing and sales funnel using a people-based approach.

2. Identify and differentiate the roles of Marketing and Sales in each stage.

3. Analyze the attributes of individuals at every stage of the funnel.

4. Apply real-world examples to illustrate each stage from awareness to conversion.

Module Content

I. Introduction to the Funnel Concept

 A funnel represents how a wide audience is gradually narrowed down into actual paying
customers.

 Each stage represents a different level of customer awareness and interest.

 Divided into Marketing-led stages (attract and nurture) and Sales-led stages (qualify and
convert).

II. Stages of the Funnel

1. Market Segment People

Definition:
The total pool of people that match the ideal customer profile for a product or service.

Attributes:

 Not yet aware of your brand

 Identified through market research (demographics, location, behavior, income, lifestyle)

Example:

 A dental clinic in Iloilo targeting working professionals aged 25–45

 A milk tea brand aiming at high school and college students

2. Audience / Reach

Definition:
People who are exposed to your marketing message through media or word of mouth.

Attributes:

 Saw a post, ad, billboard, flyer, or TV/radio spot

 No engagement yet—just visibility

 May or may not remember the brand

 Facebook users who saw your sponsored ad

 Passersby who saw your store signage

 Viewers of your YouTube video ad

3. Engaged Prospects

Definition:
Audience members who take small actions that indicate interest.

Attributes:

 Clicked on a post, liked a page, commented, visited a website

 Curious, possibly comparing with other brands

 At the "consideration" phase

Example:

 A person who clicked your ad and browsed your product catalog

 Someone who liked and shared your Instagram reel

 Participants in a free webinar or live stream

4. Leads

Definition:
People who provided their contact information, indicating deeper interest.

Attributes:

 Subscribed to a newsletter

 Downloaded a free guide or coupon

 Booked a free consultation or demo

 They trust you enough to share their information

Example:

 Someone who signed up for your email list to get updates on new shoes

 A homeowner who filled out a form to inquire about solar panels

5. Marketing Qualified Leads (MQLs)

Definition:
Leads who have taken further actions that suggest they’re ready to be passed on to Sales.

Attributes:

 Visited pricing pages, watched product demos, downloaded technical sheets

 Fit your buyer profile

 High interest but not yet contacted by sales

 A student who downloads a brochure for an online master's program

 A buyer who adds items to their cart multiple times but hasn't purchased

6. Sales Qualified Leads (SQLs)

Definition:
Leads reviewed and accepted by the sales team for direct follow-up.

Attributes:

 Expressed interest in purchasing

 Meet criteria: Budget, Authority, Need, and Timeline (BANT)

 Ready for 1-on-1 interaction

Example:

 A company manager who asked for a formal quotation

 A family asking for house tour schedules

7. Sales Prospects

Definition:
SQLs who are now being actively pursued by the sales team.

Attributes:

 Sales is engaging them through calls, proposals, meetings

 Objections and negotiations may arise

 May be close to decision-making

Example:

 A customer attending a second product demo

 A decision-maker reviewing contract terms

8. 🛍Customers

Definition:
The final goal — individuals who made a purchase or signed a deal.

Attributes:

 Completed a transaction

 May be open to upselling or referrals

 Should be retained for repeat business

Example:

 Someone who bought a smartphone from your store

 A business that subscribed to your monthly service package

| Market Segment People |

|------------------------------|

| Audience / Reach |

|------------------------------|

| Engaged Prospects |

|------------------------------|

| Leads |

|------------------------------|

| Marketing Qualified Leads |

|------------------------------|

| Sales Qualified Leads |

|------------------------------|

| Sales Prospects |

|------------------------------|

| Customers |

✅ Top to mid (Marketing)

Assessment / Quiz (Sample Questions)

1. What’s the difference between an MQL and an SQL?

2. Give an example of someone at the “Engaged Prospect” stage.

3. Why is collecting contact information important before considering someone a “Lead”?

4. What role does branding play in turning an “Audience” into “Engaged Prospects”?

5. Which stage in the funnel typically involves 1-on-1 interaction? Why?

Answers to Assessment / Quiz

1. What’s the difference between an MQL and an SQL?

 Marketing Qualified Lead (MQL): A lead who has shown interest by interacting with marketing
content (e.g., downloading a brochure or attending a webinar) and fits the buyer profile, but has
not yet been evaluated by Sales.

 Sales Qualified Lead (SQL): An MQL that has been reviewed and approved by the sales team
because the person meets buying criteria such as budget, authority, need, and timeline — and is
ready for direct sales engagement.
2. Give an example of someone at the “Engaged Prospect” stage.

 A college student who clicks on a Facebook ad for a local milk tea shop and visits the menu on
the website but doesn’t buy yet.

 A parent who likes and comments on a private school’s open house announcement.

3. Why is collecting contact information important before considering someone a “Lead”?

 Because once you have their contact information (email, phone number, etc.), the person is now
reachable and trackable — allowing the business to nurture the relationship, send offers, and
guide the lead down the sales funnel.

 Without contact info, the person remains anonymous and cannot be followed up on.

4. What role does branding play in turning an “Audience” into “Engaged Prospects”?

 Strong branding builds recognition, trust, and emotional connection — encouraging people to
interact.

 If your brand stands out and feels trustworthy or relevant, people are more likely to click, like,
comment, or explore what you offer.

5. Which stage in the funnel typically involves 1-on-1 interaction? Why?

 The Sales Prospect stage.

 At this point, the sales team is actively engaging the lead through calls, meetings, presentations,
or negotiations — because the person is close to making a decision, and personal interaction
helps answer objections and build trust to close the sale.