Mr.Afridi, Kabul Institute, Kabul1 Market Segmentation, Targeting, and Positioning Waleed Khan Afridi MS-Leading to PhD Member SDPI, South Asia Member PJMS

Mr.Afridi, Kabul Institute, Kabul2 Overview of Market Segments and Target Markets Market Segments: Groups of customers with different wants, needs, behaviors in a market are called market segments. Target Market: A specific Market Segment of (customers or organizations) for which the seller designs specific promotional activities is called as Target Market. Market Segmentation: A process of dividing the total market for a good or service into small, same groups.

Mr.Afridi, Kabul Institute, Kabul3 Benefits of Market Segmentation Customers with similar wants, needs and characteristics can be focused. It is easy to design promotional activities for a specific segment. By targeting a specific segment, much investment can be saved. It is easy to manage a specific segment of market.

Mr.Afridi, Kabul Institute, Kabul4 Process of Market Segmentation Intuition based on experience and judgment. Copying competitors and earlier market entrants. Process Steps: Identify the wants and needs of the customers which are not satisfied in a market. Identifying the characteristics that distinguish segments (age, gender, likes and dislikes). Identify the size of the segments and estimate demand for the product (Sales). Identify Needs Identify Characteristics Estimate Demand for products Market Segmentation Process

Mr.Afridi, Kabul Institute, Kabul5 Ultimate Consumer and Business Consumers Ultimate consumers who buy goods or services for their own personal or household use. Business users who buy goods or services to use in their businesses, to make other products, or to resell to other business users or consumers.

Mr.Afridi, Kabul Institute, Kabul6 C ONSUMER MARKETS ARE COMMONLY FURTHER SEGMENTED ON THE BASIS OF: Geography Demographics Psychographics

Mr.Afridi, Kabul Institute, Kabul7 Segmentation basis Typical market segments Geographic: RegionNew England, Middle Atlantic, and other census regions City PopulationUnder 25,000; 25, ,000; 100, ,000; 500,001-1,000,000; etc. Urban-ruralUrban, suburban, rural ClimateHot, cold, sunny, rainy, cloudy Demographic: IncomeUnder $10,000; $10,001-$25,000; $25,001- $35,000; $35,001-$50,000; over $50,000 AgeUnder 6, 6-12, 13-19, 20-34, 35-49, 50-64, 65 and over GenderMale, female Family life cycleYoung, single; young, married, no children, etc. Social classUpper class, upper middle, lower middle, upper lower, etc

Mr.Afridi, Kabul Institute, Kabul8 Segmentation basis Typical market segments (cont.) Demographic (cont.): EducationGrade school only, high school graduate, college graduate OccupationProfessional, manager, clerical, sales, student, homemaker, unemployed Ethnic backgroundAfrican, Asian, European, Hispanic, Middle Eastern, etc. Psychographic: PersonalityAmbitious, self-confident, aggressive, introverted, extroverted, sociable Life-styleActivities (golf, travel); interests (politics, art); opinions (conservation, capitalism) ValuesValues and Life-Styles

Mr.Afridi, Kabul Institute, Kabul9 G EOGRAPHIC SEGMENTATION Regional distribution because people within a given region tend to share the same values attitudes and style preferences. Urban, suburban, and rural distribution.

Mr.Afridi, Kabul Institute, Kabul10 Geographic Segmentation (Example) Nestle Mineral Water Company, in Pakistan decided to divide the Karachi Market (Capital City of Sind Province) into segments on the basis of Geography, and Geographic Segmentation was done. Karachi Market was divided into Rural, Urban and Sub-Urban Areas. Individuals needs and wants of clean drinking water were identified in Urban Areas, Rural Areas and Sub Urban Areas. Individuals living in those areas wanted clean drinking water plants in their local areas. According to the needs and wants of the consumers living in Rural Areas, Urban Areas and Sub-urban areas, clean drinking water plants (Mini-size) were established in the locales (Streets) etc.

Mr.Afridi, Kabul Institute, Kabul11 D EMOGRAPHIC SEGMENTATION Age, Gender, Education etc Age Social class: A measure made up of a combination of characteristics such as level of education, occupation, and the type of neighborhood one lives in. Ethnicity

Mr.Afridi, Kabul Institute, Kabul12 Demographic Segmentation (Example) Dolce and Gabbana a US Canvas firm, decided to segment the market of South Carolina on the basis of Demographic characteristics and those consumers who’s ethnicity belonged to Africa were targeted, meaning that they focused Black consumers. D&G decided to produce Black Jeans Paints as the black Jeans were not available in the markets and they were according to the need and wants of Black Consumers (American African).

Mr.Afridi, Kabul Institute, Kabul13 P SYCHOGRAPHIC SEGMENTATION HOW A PERSON THINKS, FEELS, AND BEHAVES. Personality characteristics. Lifestyles, including activities, interests, and opinions. Values, are principles of society that are acceptable to the society members.

Mr.Afridi, Kabul Institute, Kabul14 Psychographic Segmentation (Example) Arctic engineers, the producers of Gymtronics (Weight reducing device), decided to segment the market of California State of USA on the basis of Life Style characteristics of Consumers. In this way the needs of consumers were identified who were over weight and wanted to reduce weight to enhance their lifestyles activities. Gymtronics guaranteed weight loss and thus Psychographic Segmentation was done.

Mr.Afridi, Kabul Institute, Kabul15 Target Market Strategies A Process of focusing a specific market segment by shifting all promotional activities to that segment. Targeting includes advertising, personal selling and direct marketing. Market aggregation—treat the total market as a single segment. Kabul City is a total market for ACER Computers. Single-segment concentration—focus on one segment. ACER Computers has targeted a segment of Foreigners as they have money and are rich. Multiple-segment segmentation—select two or more segments and devise different marketing mixes for each. ACER Computers have targeted Foreigners and those who work in offices, mean Officer Workers.

Mr.Afridi, Kabul Institute, Kabul16 Thank you very much for your time! Mr.Afridi Please send you feedback through . Keep Smiling Please…..!

Disclaimer It is to notify that these slides have been made with the help of the Text Books and Reference Books that are permitted by the Preston University, USA ( and the Kardan University (An affiliate of Preston USA), Kabul, Afghanistan. The students/users are advised to use the slides without any doubt and fear of getting falsified knowledge. In case of any doubt or problem the Mr.Afridi may please be contacted. Recommended Books: Marketing (Concepts and Cases) Thirteen Edition/Special Indian Edition (LPE) by Etzel, Walker, Stanton and Pandit, McGraw Hill Publishers. Principles of Marketing, (LPE) Twelfth Edition by Philip Kotler and Gary Armstrong, Pearson Education Publishers.