Segmentation and Targeting ATM Semester 2 Tutorial 1 By Dildara Gapparova/Pavel Galkin

Agenda Segmentation PITA Model Target market strategies Customer Profiles

What is it Segmentation? The process of dividing a larger market into smaller pieces based on one or more meaningful , shared characteristics. (Solomon, et.al, 2013)

Psychographic /Lifestyle Segmenting consumer markets Behavioural End use Benefits sought Usage rate Loyalty Attitude Readiness to purchase Geographic Region County size City size Density Climate Demographic Age Gender Race Ethnicity Marital status Family size Family life cycle Income Psychographic /Lifestyle Social Class Activities Interests Opinions

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Questions which you can use in order to find out your segment of customers: Are they Male or Female? What is their age or age range? What is their family background? What is their cultural Background? What is their educational Background? (University/College/High School) Where do they live and work? Are they married, single or living with a partner? Do they have children? If so, how old would their children be? Do they have children still living at home? What films and books did they enjoy? What is their income approximately? What are their dreams?

PITA = Population*Incidence*Times*Amount PITA Model PITA = Population*Incidence*Times*Amount P – Population, a number of targeted people I – Incidence is the proportion of the target population that has (or would) purchased what you are selling T – Times, frequency of purchase A – Amount of money consumers (or merchants) are willing to pay.

Population in Uzbekistan

Population in Uzbekistan Age structure:  0-14 years: 24.9% (male 3,693,838/female 3,514,734)  15-24 years: 20.5% (male 3,008,779/female 2,934,534)  25-54 years: 43% (male 6,178,921/female 6,255,715)  55-64 years: 6.8% (male 926,129/female 1,036,576)  65 years and over: 4.8% (male 588,881/female 791,609)

Targeting Strategies There are 4 main Targeting Strategies (Solomon, et.al, 2013) 1. Undifferentiated Marketing 3. Concentrated Marketing 2. Differentiated Marketing 4. Customized Marketing

Targeting Strategies 1. Undifferentiated Marketing 3. Concentrated Marketing 2. Differentiated Marketing 4. Customized Marketing

Why do we need to know Customer Profile?

Customer Profile: Definition Customer Profile shows customer destinations, shopping and eating habits, interests, activities and media preferences. This information helps to find ways of “catching” target customers through marketing communications of the company.

Customer Profile Websites TV Channels Games Entertainment Places to eat Shopping Hobby

Customer Profile Example Jasur: Male 20-25, Student from Tashkent, Uzbek Websites TV Channels Entertainment Games Shopping Places to eat Hobby

Reading Brassington F. and Pettit S. (2003) Principles of Marketing, Pitman Publishing. Chapter 5 Jobber, D.(2001) Principles and Practice of Marketing, McGraw Hill. Chapter 7 P.Kotler, Principles of Marketing,3rd European edition,2002, Prentice Hall. Chapter 9 and 10 Solmon, M. et al (2013) Marketing: Real People, Real Decisions, 2nd European ed. Pearson Education Chapter 6