1. Segmentation and Targeting
ATM Semester 2
Lecture 1
By Sanemkhan Nurillaeva

2. Target market strategies Customer Profiles
Agenda
Segmentation
PITA Model
Target market strategies
Customer Profiles

3. Target Marketing Process
Target marketing strategy consists of 3 separate steps
Dividing the market into meaningful segments
Selecting segments
Design a unique marketing mix for each segment
(Solomon, et.al, 2013)

4. 1. Segmentation

5. Segmentation: Definition
Market Segmentation
Dividing a market into distinct groups of buyers with different needs, characteristics or behavior, who might require separate products or marketing mixes.
(P. Kotler)
The process of dividing a larger market into smaller pieces based on one or more meaningful , shared characteristics
(Solomon, et.al, 2013)

6. 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

7. Social Class Social Grade Description % HRP population (UK) AB
Higher & intermediate managerial, administrative, professional occupations
22.17 C1
Supervisory, clerical & junior managerial, administrative, professional occupations
30.84 C2
Skilled manual occupations
20.94 DE
Semi-skilled & unskilled manual occupations, Unemployed and lowest grade occupations
26.05
Office of National Statistics (2011)

8. Population Density in Uzbekistan
UN Office for the Coordination of Humanitarian Affairs (2009)

9. Population in Uzbekistan

10. Population in Uzbekistan
Age structure: 0-14 years: 24.9% (male 3,693,838/female 3,514,734)  years: 20.5% (male 3,008,779/female 2,934,534)  years: 43% (male 6,178,921/female 6,255,715)  years: 6.8% (male 926,129/female 1,036,576)  65 years and over: 4.8% (male 588,881/female 791,609) (2014 est.)

11. 2. PITA model

12. PITA = Population*Incidence*Times*Amount
PITA Model
Companies are most fascinated by increasing sales to present customers and finding attractive customer segments.
Sales volume is a simple mathematical formula. Understanding the formula should help unlock some possibilities on how to generate new sales volume.
PITA = Population*Incidence*Times*Amount

13. 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.

14. PITA Model Example Trombopol –medicine used
in order to prevent heart attacks
Target: Uzbek Male years
(≈927,000)
PITA= 927,000*5%*12times a year*
6000 sums= bln UZS

15. 3. Targeting

16. Targeting: Definition
Targeting –Evaluating attractiveness of each potential segment and decide which of these groups marketers will invest resources in to try to turn them into customers
(Solomon, et.al, 2013)
Target market – The customer group or groups selected by the firm

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

18. 1. Undifferentiated Marketing
Company concentrates on common needs which must be greater than the needs that separate them
Whole
Market
Marketing mix
Company

19. Undifferentiated Marketing Example
Organization
Marketing mix
Target market
Everybody
Product
Price
Promotion
Place
Post
Office

20. 2. Differentiated Marketing
Company develops a separate marketing mix to meet the needs of each segment
Marketing mix 1
Marketing mix 2
Marketing mix 3
Segment 1
Segment 2
Segment 3
Company

21. UMS tariffs in Uzbekistan
Differentiated Marketing Example
UMS tariffs in Uzbekistan

22. Differentiated Marketing Example
Marketing mix 1
Marketing mix 2
Marketing mix 3
Businessmen
Students
Young Entrepreneurs

23. 3. Concentrated Marketing
Company focuses its efforts on offering one or more products and to a single segment using certain marketing mix
Marketing mix
Segment 1
Segment 2
Segment 3
Company

24. Concentrated Marketing Example
Marketing mix
Industrial Cars
Luxury Sport Cars
Family Cars

25. 4. Customized Marketing
Company often works in B2B sector with one or few large clients and develops a product and services that only these clients will use.
Marketing mix 1
Marketing mix 2
Marketing mix 3
Customer 1
Customer 2
Customer 3
Company

26. Customized Marketing Example
Marketing mix 1
Marketing mix 2
Marketing mix 3
Supermarket
Construction Group
Factory

27. 4. Customer Profiles

28. Customer Profile: Definition
Customer/Segment –Description of the “typical” customer in that segment.
Once a marketer has identified a set of usable segments, it is helpful to generate a profile of each to really understand segment members’ needs and to look for business opportunities
(Solomon, et.al, 2013)

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

30. Customer Profile Example
Jasur: Male 20-25, Uzbek
Web Sites:
Facebook
OK.ru
YouTube
Gazeta.UZ
Afisha.Uz
Games:
PES 2016
Dota
Candy Crash Saga
War Craft
Channels to watch:
ТНТ
Yoshlar
MY5
МУЗ ТВ
Places to Shop:
Korzinka.uz
MAKRO
Poytaht
Entertainment:
Bowler
Premier Hall
Hobby:
Playing Football
Places to Eat:
Bibigon
BBQ Burger
PlovSamsa.uz
Caramel coffee and pastry

31. Customer Profile
Determining 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.

33. 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