Contents

Declaration Preface 1. Introduction 1 . 1 R e v i e w o f L i t e r a t ur e 1.2 Objective of the study 1.3 ethodolo!y 1.4 Li#itations of $tudy 2. Introduction 2.1 'o(ia 2.1.1'o(ia )ision* ission $tate#ent 2.1.2 ,bout the -o#.any 2.1.30istory of 'o(ia 2.1.4-o#.any Profile 2.1."$1O2 ,nalysis 2.2Introduction to ar(etin! 2.3 ar(et $e!#entation 2.3.1-onsiderations for ar(et $e!#entation 2.3.2$e!#entation 3asis 2.3.34ffective $e!#entation 2.4 ar(et $e!#entation for 'o(ia 2.4.1$e!#entation of 'o(ia 2.4.2'o(ia #obile .hones by $eries 2.4.3Lifestyle and Psycho!ra.hic 3asis for 'o(ia 2.4.42he $e!#entation of 'o(ia conducted on the basis of Price 3.,nalysis and Inter.retation 4. -onclusion ". Reco##endations %. 3iblio!ra.hy &. ,nne6ure

i ii 1 3 4 " % & + 1/ 12 14 2/ 24 33 3& 42 "+ "5 %/ %3 %% %& +2 +% +& iv

Introduction
Introduction to Project 2his Project deals with )arious done by 'o(ia -o. Ltd. in the ar(et. ar(et $e!#entation done in obile

Industries. 2his Project #ainly focuses on )arious

ar(et $e!#entation

'o(ia is a world leader in #obile co##unications7 drivin! the !rowth and sustainability of the broader #obility industry. 'o(ia connects .eo.le to each other and the infor#ation that #atters to the# with easy8to8use and innovative .roducts li(e #obile .hones7 devices and solutions for i#a!in!7 !a#es7 #edia and businesses. 'o(ia .rovides e9ui.#ent7 solutions and services for networ( o.erators and cor.orations. ar(etin! is one of the #ost i#.ortant functions in business. It is the disci.line re9uired to understand custo#ers: needs and the benefits they see(. ,cade#ics does not have one co##only a!reed u.on definition. 4ven after a better .art of a century the debate continues. In a nutshell it consists of the social and #ana!erial .rocesses by which .roducts ;!oods or services< and value are e6chan!ed in order to fulfill the needs and wants of individuals or !rou.s. ar(et se!#entation is the .rocess of identifyin! (ey !rou.s or se!#ents within the !eneral #ar(et that share s.ecific characteristics and consu#er habits. Once the #ar(et is bro(en into se!#ents7 co#.anies can develo. advertisin! .ro!ra#s for each se!#ent7 focus advertisin! on one or two se!#ents or niches7 or develo. new .roducts to a..eal to one or #ore of the se!#ents. -o#.anies often favor this #ethod of #ar(etin! to the one8si=e8

fits8all #ass #ar(etin! a..roach7 because it allows the# to tar!et s.ecific !rou.s that #i!ht not be reached by #ass #ar(etin! .ro!ra#s. 2he #ar(et can be divided into se!#ents by usin! four >se!#entation basis>? Psycho!ra.hic7 behavioristic7 !eo!ra.hic7 and de#o!ra.hic basis.2he basic criteria for se!#entin! a #ar(et is are custo#er needs. 2o find the needs of the custo#ers in the #ar(et it is i#.ortant to under!o a #ar(et research.Psycho!ra.hic and behavioristic bases are used to deter#ine research. .references and de#and for a .roduct and advertisin! content7 while !eo!ra.hic and de#o!ra.hic criteria are used to deter#ine .roduct desi!n and re!ional focus.

Review of Literature
2his literature review will analy=e the .roject on @ ar(et $e!#entation of 'o(iaA and on .ast and current research that has been done which relates to the #ar(et se!#entation. 2his critical analysis of literature contains data about #ar(etin! and se!#entation strate!ies collected fro# various sources. It is i#.ortant to understand why .eo.le and #ar(et needs to be divided into different se!#ents. , se!#ented #ar(et is seen as an o..ortunity to effectively focus on .articular custo#ers. 2his a..eals to .otential custo#ers and also #ar(eters7 as they (now that this is what they will have to do. 2his study also shows how 'o(ia7 a #obile !iant7 se!#ents its #ar(et and focuses its .roducts efficiently towards the custo#ers of a .articular se!#ent. 2his !ives a co#.etitive advanta!e to the co#.any by servin! its custo#ers well.

Objective of the Study

2he objectives of the .resent study are?8 1< 2o (now about 'o(ia -o#.any. 2< 2o (now about the stren!ths7 wea(nesses7 o..ortunities and threats of 'o(ia. 3< 2o (now about #ar(etin!. 4< 2o (now about #ar(et se!#entation. "< 2o (now the #ar(et se!#entation used by 'o(ia.

Methodology
Research always starts with a 9uestion or a .roble#. Its .ur.ose is to 9uestion throu!h the a..lication of the scientific #ethod. It is a syste#atic and intensive study directed towards a #ore co#.lete (nowled!e of the subject studied. ar(etin! research is the function which lin(s the consu#er7 custo#er and .ublic to the #ar(eter throu!h infor#ation8 infor#ation used to identify and define #ar(etin! o..ortunities and .roble#s !enerate7 refine7 and evaluate #ar(etin! actions7 #onitor #ar(etin! actions7 #onitor #ar(etin! .erfor#ance and i#.rove understandin! of #ar(et as a .rocess. 2here are two ty.es of data collection #ethod use in #y .roject re.ort. B Pri#ary data B $econdary data. Cor #y .roject7 I decided on .ri#ary data collection #ethod by a..roachin! custo#ers directly and throu!h references to (now their views about the co#.any. $econdary data collection #ethod was used by referrin! to various websites7 for collectin! infor#ation re!ardin! .roject under study.

Limitations of Study
1 < 2he study is based on secondary data7 the infor#ation .rovided 2nd hand about 'o(ia. 2< 2he .resent study suffers fro# all the li#itations of case study #ethod.

Introduction 2he co#.any I have chosen to analyse in #y .roject is the #obile .hone !iant 'o(ia. 2his .roject tells us briefly what 'o(ia actually is7 its co#.any structure and overall view on the si=e and sales of the co#.any D also the )arious ar(et se!#entation $trate!ies followed by the#.

$ince Eanuary 2//47 'o(ia Frou. has consisted of four different business !rou.s? obile Phones7 ulti#edia7 4nter.rise $olutions and 'etwor(s. GIn ar(et O.erations and 2echnolo!y addition7 there are two hori=ontal !rou.s that su..ort the #obile device business !rou.s? -usto#er and Platfor#s.H In the year 2//4 'o(iaAs net sales for #obile .hones were 1+"/& #illion euro7 which went down 12I fro# 2//3. 'o(iaAs #ar(et areas were 4uro.e*,frica* iddle 4ast ;""I of net sales<7 ,sian Pacific and -hina ;2"I< and ,#ericas ;2/I<. 'o(iaAs #ar(et share in 4uro.e was 4".+I in 2//37 in 2//4 it was 34.+I and in the third 9uarter of 2//" it was 3%I. 2he avera!e nu#ber of .ersonnel for 2//4 was "3"11. ,t the end of 2//47 'o(ia e#.loyed """/" .eo.le worldwide. In 2//47 'o(iaJs .ersonnel increased by a total of 414% e#.loyees. 'o(iaAs turnover for the third 9uarter of 2//" was +4/3 #illion euro fro# which #obile .hones brou!ht in %2I7 #ulti#edia 1&I7 4nter.rise solutions 2I and 'etwor(s 5I. G2he year 2//4 was de#andin! for 'o(ia. In res.onse7 the co#.any set five to. .riorities in the areas of custo#er relations7 .roduct offerin!7 RDD efficiency7 de#and8 su..ly #ana!e#ent and the co#.anyAs ability to offer end8to8end solutions. 'o(ia is #a(in! !ood .ro!ress in these areas7 and is now better .ositioned to #eet future challen!es.

No ia !ision"Mission Statement
Our !ision K , world where everyone can be connected. K In 2/1"7 " billion .eo.le always connected7 and 1// fold #ore networ( traffic. K ItAs a world of e6.eriences7 shared e6.eriences.

Our Promise K 1e hel. .eo.le feel close to what #atters to the#. K One of our basic needs as hu#an bein!s is the need to co##unicate and share. K Our .ro#ise is to hel. fulfil this need7 to hel. the# feel close to what #atters to the#.

Our #$$roach K -onsu#er understandin! drives us. K 1e observe first7 then desi!n. 1e act on our consu#er insi!hts. K 1e ta(e a very hu#an a..roach to technolo!y 1. $i#.le 2. Reliable 3. Intuitive 4. 46.eriences to fall in love with. K Internet is our 9uest. Internet innovation7 creativity7 #edia and services will be available anyti#e7 anywhere. K'o(ia wants to brin! the best of internet to #obile . Our Resolution%&row' (ransform' )uild K Frow the nu#ber of .eo.le usin! no(ia devices. K2ransfor# the devices .eo.le use. K 3uild new businesses K Our business and .eo.leAs e6.ectations for #obile devices and services are chan!in!. 'o(iaAs .ro#ise is to hel. .eo.le feel close to what #atters to the#.

#bout the Com$any 'o(ia8 -onnectin! Peo.le L 'o(ia -or.oration ;'M$4? 'ON< is one of the world:s lar!est teleco##unications e9ui.#ent #anufacturers. 1ith head9uarters in Neilanie#i of 4s.oo7 Cinland7 this Cinnish teleco##unications co#.any is best (nown today for its leadin! ran!e of #obile .hones. 'o(ia also .roduces #obile .hone infrastructure and other teleco##unications e9ui.#ent for a..lications such as traditional voice tele.hony7 I$D'7 broadband access7 .rofessional #obile radio7 voice over IP7 wireless L,' and a line of satellite receivers. 'o(ia .rovides #obile co##unication e9ui.#ent for every #ajor #ar(et and .rotocol7 includin! F$ 7 -D ,7 and 1-D ,. 'o(ia was established in 1+%" as a wood8.ul. #ill by Credri( Idesta# on the ban(s of 'o(ia ra.ids. Cinnish Rubber 1or(s established its factories in the be!innin! of 2/th century nearby and be!an usin! 'o(ia as its brand. $hortly after 1orld 1ar I Cinnish Rubber 1or(s ac9uired 'o(ia wood #ills as well as Cinnish -able 1or(s7 a .roducer of tele.hone and tele!ra.h cables. ,ll three co#.anies were #er!ed as 'o(ia -or.oration in 15%&. 2he na#e 'o(ia ori!inated fro# the river which flowed throu!h the town of the sa#e na#e ;'o(ia<. In the 15&/s 'o(ia beca#e #ore involved in the teleco##unications industry by develo.in! the 'o(ia DO 2//7 a di!ital switch for tele.hone e6chan!es. In the 15+/s7 'o(ia offered a series of .ersonal co#.uters called i(ro i((o. 0owever7 these o.erations were sold to International

-o#.uters7 Ltd. ;I-L<7 which was later #er!ed with Cujitsu8$ie#ens ,F. 'o(ia also be!an develo.in! #obile .hones for the ' 2 networ(P unfortunately7 the co#.any ran afoul of serious financial .roble#s in the 155/s and strea#lined its #anufacturin! of #obile .hones7 #obile .hone infrastructure7 and other teleco##unications areas7 divestin! itself of other ite#s7 such as televisions and .ersonal co#.uters. In 2//47 'o(ia resorted to si#ilar strea#linin! .ractices with layoffs and or!ani=ational restructurin!7 althou!h on a si!nificantly s#aller scale. 2his7 however7 di#inished 'o(ia:s .ublic i#a!e in Cinland7 and .roduced a nu#ber of court cases alon! with7 at least7 one television show critical of 'o(ia. Recently7 'o(ia joined other #obile .hone #anufacturers to e#brace 2aiwanese Ori!inal Device anufacturers. 'o(ia si!ned a contract with anufacturer7 to develo. three hi!h8 3enQ7 a 2aiwanese Ori!inal Device

end #obile .hones7 which are scheduled to retail by the end of 2//".

*istory of No ia 'o(ia:s history started in year 1+%"7 when en!ineer Credri( Idesta# established a wood8.ul. #ill in $outhern Cinland and started #anufacturin! .a.er. Due to the 4uro.ean industriali=ation and the !rowin! consu#.tion of .a.er and cardboard 'o(ia soon beca#e successful. In 1+5" Credri( Idesta# handed over the reins of the co#.any to his son8in8law. 'o(ia was ,ctually founded in 15%" by Credri( Idesta# in Cinland as a .a.er #anufacturin! co#.any. In 152/7 Cinnish Rubber 1or(s beca#e a .art of the co#.any7 and later on in 15227 Cinnish -able 1or(s joined the#. ,ll the three co#.anies were #er!ed in 15%& to for# the 'o(ia Frou.. 'o(ia created the ' 2 #obile .hone standard in 15+1 and launched the first ' 2 .hone7 obira -ity#an7 in 15+&. 2he co#.any delivered the first F$ .hones 8 was introduced. In the networ( to Rad(ilinia7 a Cinnish co#.any in 15517 and in 15527 'o(ia 1/11 8 a .recursor for all 'o(iaAs current F$ 155/s7 'o(ia .rovided F$ services to 5/ o.erators across the world.

,nother si!nificant #ove of the co#.any durin! this .eriod was the divest#ent of its non8core o.erations li(e I2. 2he co#.any focused on two core businesses 8 #obile .hones and teleco##unications networ(s. In the 155/s7 'o(ia .rovided F$ services to 5/ o.erators across the world. ,nother si!nificant #ove of the co#.any durin! this .eriod was the divest#ent of its non8core o.erations li(e I2. 2he co#.any focused on two core businesses 8 #obile .hones and teleco##unications networ(s. 'o(ia:s history contains #any achieve#ents that were the first of their (ind in the world. any #ilestones have been e6.erienced in the #obile .hone technolo!ies business since the +/As. 2he success with the ' 2 and F$

and the .roducts they s.awned secured 'o(ia:s .osition as the world:s

leadin! teleco##unications co#.any. 2he list of 'o(ia:s #ilestones .rovided a !ood insi!ht in the history of wireless co##unications. 'o(ia has been involved in #a(in! the world:s first ' 2 networ( and the world:s first .oc(et8si=ed #obile .hone. 2he world:s first device to use the $y#bian O$ was also .roduced by 'o(ia. 'o(ia was able to offer advanced .roducts fro# the be!innin! of the 5/s. 4arly invest#ents in RDD were thus handso#ely rewarded. 'o(ia ensured its continued !rowth by refor#in! its .roduction in the #iddle of the 5/s. 2he new .hone #odels and standardi=ed technical solutions #ade it .ossible to .roduce an increasin!ly e6tensive .roduct ran!e #ore effectively. 2he e6tensive ran!e of #obile .hone #odels7 coverin! all user !rou.s7 is one of the reasons why 'o(ia beca#e the #ar(et leader.

Com$any Profile No ia+s first century,-./0%-1/2 2he first 'o(ia century be!an with Credri( Idesta#:s .a.er #ill on the ban(s of the 'o(ianvirta river. 3etween 1+%" and 15%&7 the co#.any would beco#e a #ajor industrial forceP but it too( a #er!er with a cable co#.any and a rubber fir# to set the new 'o(ia -or.oration on the .ath to electronicsR 1+%"? 2he birth of 'o(ia Credri( Idesta# establishes a .a.er #ill at the 2a##er(os(i Ra.ids in south8western Cinland7 where the 'o(ia story be!ins. 1+5+? Cinnish Rubber 1or(s founded 4duard PolSn founds Cinnish Rubber 1or(s7 which will later beco#e 'o(ia:s rubber business. 1512? Cinnish -able 1or(s founded ,rvid 1ic(stro# starts Cinnish -able 1or(s7 the foundation of 'o(ia:s cable and electronics businesses. 153&? )erner 1ec(#an7 industry heavywei!ht Cor#er Oly#.ic wrestler )erner 1ec(#an beco#es President of Cinnish -able 1or(s.

15%/? Cirst electronics de.art#ent -able 1or(s establishes its first electronics de.art#ent7 sellin! and o.eratin! co#.uters. 15%2? Cirst in8house electrical device 2he -able 1or(s electronics de.art#ent .roduces its first in8house electrical device 8 a .ulse analy=er for nuclear .ower .lants. 15%&? 2he #er!er 'o(ia ,b7 Cinnish Rubber 1or(s and Cinnish -able wor(s for#ally #er!e to create 'o(ia -or.oration.

(he move to mobile,-1/.%-112he newly for#ed 'o(ia -or.oration was ideally .ositioned for a .ioneerin! role in the early evolution of #obile co##unications. ,s 4uro.ean teleco##unications #ar(ets were dere!ulated and #obile networ(s beca#e !lobal7 'o(ia led the way with so#e iconic .roducts... 15&5? obira Oy7 early .hone #a(er obira Oy be!ins life as a joint venture between

Radio tele.hone co#.any

'o(ia and leadin! Cinnish television #a(er $alora.

15+1? 2he #obile era be!ins 'ordic obile 2ele.hone ;' 2<7 the first international #obile .hone

networ(7 is built. 15+2? 'o(ia #a(es its first di!ital tele.hone switch 2he 'o(ia DO2//7 the co#.anyAs first di!ital tele.hone switch7 !oes into o.eration. 15+4? obira 2al(#an launched obira 2al(#an .ortable .hone.

'o(ia launches the 15+&?

obira -ity#an B birth of a classic obira -ity#an7 the first handheld ' 2 .hone.

'o(ia launches the 1551? F$

B a new #obile standard o.ens u. call.

'o(ia e9ui.#ent is used to #a(e the worldAs first F$

Mobile revolution,-113%-111 In 15527 'o(ia decided to focus on its teleco##unications business. 2his was .robably the #ost i#.ortant strate!ic decision in its history. ,s ado.tion of the F$ standard !rew7 new -4O Eor#a Ollila .ut 'o(ia at

the head of the #obile tele.hone industryAs !lobal boo# B and #ade it the world leader before the end of the decade...

1552? Eor#a Ollila beco#es President and -4O Eor#a Ollila beco#es President and -4O of 'o(ia7 focusin! the co#.any on teleco##unications. 1552? 'o(iaAs first F$ handset handset7 the 'o(ia 1/11.

'o(ia launches its first F$

1554? 'o(ia 2une is launched 'o(ia launches the 21//7 the first .hone to feature the 'o(ia 2une. 1554? 1orldAs first satellite call 2he worldAs first satellite call is #ade7 usin! a 'o(ia F$ 155&? $na(e B a classic #obile !a#e 2he 'o(ia %11/ is the first .hone to feature 'o(iaAs $na(e !a#e. 155+? 'o(ia leads the world 'o(ia beco#es the world leader in #obile .hones. 1555? 2he Internet !oes #obile 'o(ia launches the world:s first 1,P handset7 the 'o(ia &11/. handset.

No ia now,3444%today 'o(iaAs story continues with 3F7 #obile #ulti.layer !a#in!7 #ulti#edia devices and a loo( to the future... 2//2? Cirst 3F .hone 'o(ia launches its first 3F .hone7 the 'o(ia %%"/. 2//3? 'o(ia launches the '8Fa!e obile !a#in! !oes #ulti.layer with the '8Fa!e. 2//"? 2he 'o(ia 'series is born 'o(ia introduces the ne6t !eneration of #ulti#edia devices7 the 'o(ia 'series. 2//"? 2he billionth 'o(ia .hone is sold 'o(ia sells its billionth .hone B a 'o(ia 11// B in 'i!eria. Flobal #obile .hone subscri.tions .ass 2 billion. 2//%? , new President and -4O B 'o(ia today Olli8Pe((a Nallasvuo beco#es 'o(iaAs President and -4OP Eor#a Ollila beco#es -hair#an of 'o(iaAs board. 'o(ia and $ie#ens announce .lans for 'o(ia $ie#ens 'etwor(s. 2//& 'o(ia reco!ni=ed as "th #ost valued brand in the world. 'o(ia $ie#ens

'etwor(s co##ences o.erations. 'o(ia launches Ovi7 its new internet services brand. 2//+ 'o(ia:s three #obile device business !rou.s and the su..ortin! hori=ontal !rou.s are re.laced by an inte!rated business se!#ent7 Devices D $ervices.

S5O( #nalysis
$1O2 ,nalysis7 is a $trate!ic .lannin! tool used to evaluate the $tren!ths7 1ea(nesses7 O..ortunities7 and 2hreats involved in a Project or in a 3usiness venture. It involves s.ecifyin! the objective of the business venture or .roject and identifyin! the internal and e6ternal factors that are favorable and unfavorable to achievin! that objective. S5O( #nalysis of No ia Modern S5O( #nalysis , $1O2 analysis conducts an e6ternal and internal scan of 'o(ia:s business environ#ent7 it is an i#.ortant .art of the strate!ic .lannin! .rocess. 4nviron#ental factors internal to the fir# usually can be classified as stren!ths ;$<7 or wea(nesses ;1<7 and those e6ternal to the fir# can be classified as o..ortunities ;O< or threats ;2<. $uch an analysis of the strate!ic environ#ent is referred to as a $1O2 analysis. 2he $1O2 analysis .rovides infor#ation that is hel.ful in #atchin! the fir#:s resources and ca.abilities to the co#.etitive environ#ent in which it o.erates. ,s such7 it is instru#ental in strate!y for#ulation and selection.

Strengths Is a do#inant .layer in the s#art .hone #ar(et via its #ajority ownershi. of $y#bian and its .ro.rietary $eries %/ user interface which are .rojected to re.resent #ajority of the 1// sold in the ne6t 4 years. 33I #ar(et share still the lar!est cell .hone vendor by far7 with double the #ar(et advanta!es 3rand .osition? .robably one of the to. 2/ brands in the world share of nearest co#.etitr $i=e should enable 'o(ia to a#orti=e RDD costs and to !et cost s#art.hones

5ea nesses 2he '8Fa!e is considered a flo.

3ein! the #ar(et leader and its increase role in $y#bian is !ivin! 'o(ia a bad i#a!e7 #uch li(e icrosoft in the P- industry. $low to ado.t new ways of thin(in!? a !ood e6a#.le are cla#shell .hones which are .referred by #any custo#ers. 'o(ia was reluctant to .roduce a cla#shell until this year7 when it launched its first #odel.

O$$ortuntiies Increase their .resence in the -D , #ar(et7 which they are just enterin!7 as well as 3F and 4d!e 'ew !rowth #ar(ets where cell .hone ado.tion still has roo# to !o7 includin! India and other countries. Levera!e its infrastructure business to !et .reference and a stron!er .osition with carriers

(hreats Late in the !a#e in 3F creates a ris( to be dis.laced by leaders li(e otorola7 nFo 3ird<

LF7 '4- and

others.

,sian O4 s who are enterin! the #ar(et very a!!ressively ;2-L7 OD s ;02- and others< enablin! carriers to levera!e their custo#er .ower by.assin! the handset vendor. O.erators want to lessen their de.endency on handset vendors and the do#inance of 'o(ia. Oran!e7 O27 and #any other o.erators !lobally are sellin! their own brand of .hones.

Production 6nits
Networ s technology -hina Cinland Fer#any India

Mobile devices and technology 3ra=il -hina Cinland Freat 3ritain 0un!ary India e6ico Ro#ania $outh Norea

Introduction to Mar eting

> ar(etin! is the .rocess of .lannin! and e6ecutin! the conce.tion7 .ricin!7 .ro#otion7 and distribution of ideas7 !oods7 services7 or!ani=ations7 and events to create and #aintain relationshi.s that will satisfy individual and or!ani=ational objectives.> 2he new definition of #ar(etin!7 as released by the ,#erican ar(etin! ,ssociation is?8

ar(etin! is an or!ani=ational function and a set of .rocesses for creatin!7 co##unicatin! and deliverin! value to custo#ers and for #ana!in! custo#er relationshi.s in ways that benefit the or!ani=ation and its sta(eholders. > ar(etin! is a social and #ana!erial .rocess by which individuals and !rou.s obtain what they need and want throu!h creatin! and e6chan!in! .roducts and value with others.> ;Notler D ,r#stron! 15+&< 2he ission of #ar(etin! is satisfyin! custo#er needs. 2hat ta(es .lace in a

social conte6t. In develo.ed societies #ar(etin! is needed in order to satisfy the needs of society:s #e#bers. Industry is the tool of society to .roduce .roducts for the satisfaction of needs. ar(etin! is one of the #ost i#.ortant functions in business. It is the disci.line re9uired to understand custo#ers: needs and the benefits they see(. ,cade#ics do not have one co##only a!reed u.on definition. 4ven after a better .art of a century the debate continues. In a nutshell it consists of the social and #ana!erial .rocesses by which .roducts ;!oods or services<

and value are e6chan!ed in order to fulfill the needs and wants of individuals or !rou.s. ,lthou!h #any .eo.le see# to thin( that > ar(etin!> and >,dvertisin!> are synony#ous7 they are not. ,dvertisin! is si#.ly one of the #any .rocesses that to!ether constitute ar(etin!.

5hat is Mar eting7 2he ter# #ar(etin! has chan!ed and evolved over a .eriod of ti#e7 today #ar(etin! is based around .rovidin! continual benefits to the custo#er7 these benefits will be .rovided and a transactional e6chan!e will ta(e .lace. 2he -hartered Institute of re9uire#ents .rofitabilityA If we loo( at this definition in #ore detail ar(etin! is a #ana!e#ent ar(etin! define #ar(etin! as @2he #ana!e#ent

.rocess res.onsible for identifyin! 7 antici.atin! and satisfyin! custo#er

res.onsibility and should not be solely left to junior #e#bers of staff. ar(etin! re9uires co8ordination7 .lannin!7 i#.le#entation of ca#.ai!ns and a co#.etent #ana!er;s< with the a..ro.riate s(ills to ensure success. ar(etin! objectives7 !oals and tar!ets have to be #onitored and #et7 co#.etitor strate!ies analysed7 antici.ated and e6ceeded. 2hrou!h effective use of #ar(et and #ar(etin! research an or!anisation should be able to identify the needs and wants of the custo#er and try to delivers benefits that will enhance or add to the custo#ers lifestyle7 while at the sa#e ti#e ensurin! that the satisfaction of these needs results in a healthy turnover for the or!anisation.

Phili. Notler defines #ar(etin! as @satisfyin! needs and wants throu!h an e6chan!e .rocessA 1ithin this e6chan!e transaction custo#ers will only e6chan!e what they value ;#oney< if they feel that their needs are bein! fully satisfied7 clearly the !reater the benefit .rovided the hi!her transactional value an or!anisation can char!e. P.2ailor of www.learn#ar(etin!.net su!!ests that : ar(etin! is not about .rovidin! .roducts or services it is essentially about .rovidin! chan!in! benefits to the chan!in! needs and de#ands of the custo#erA.

#dvantages Identifies needs and wants of consu#ers Deter#ines de#and for .roduct ,ids in desi!n of .roducts that fulfill consu#ers needs Outlines #easures for !eneratin! the cash for daily o.eration7 to re.ay debts and to turn a .rofit Identifies co#.etitors and analy=es your .roduct:s or fir#:s co#.etitive advanta!e Identifies new .roduct areas Identifies new and*or .otential custo#ers ,llows for test to see if strate!ies are !ivin! the desired results

8isadvantages Identifies wea(nesses in your business s(ills Leads to faulty #ar(etin! decisions based on i#.ro.erly analy=ed data -reates unrealistic financial .rojections if infor#ation is inter.reted incorrectly Identifies wea(nesses in your overall business .lan

Levels of Mar eting

Strategic Mar eting $trate!ic ar(etin! atte#.ts to deter#ine how an or!ani=ation co#.etes

a!ainst its co#.etition in a #ar(et .lace. In .articular7 it ai#s at !eneratin! a co#.etitive advanta!e relative to its co#.etition. O$erational Mar eting O.erational ar(etin! e6ecutes #ar(etin! functions to attract and (ee.

custo#ers and to #a6i#i=e the value derived fro# the#7 as well as to satisfy the custo#er with .ro#.t services and #eetin! the custo#er e6.ectations. O.erational ar(etin! includes the deter#ination of the #ar(etin! #i6.

9unctions of Mar eting ar(et research

,dvertisin! and sales .ro#otion Public Relations $ellin! $ervicin! ethods of .ay#ent and credit

(he Social 9unction of Mar eting In #odern society .roduction and consu#.tion are a.art fro# each other. ar(etin! connects the#. Cro# the societal .oint of view7 #ar(etin! is a .hiloso.hy7 which shows how to create effective .roduction syste#s and conse9uently .ros.erity. 3usiness is a subsyste# of society7 which has both a social and an econo#ic role. 2hus7 a co#.any #ust o.erate in a way that will #a(e .ossible the .roduction of benefits for society and7 at the sa#e ti#e7 .roduce .rofits for the co#.any itself. ;Davis7 N. et al. 15+/< 2he role of #ar(etin! in society #eans also res.onsibilities. In addition to econo#ic and social res.onsibility7 ecolo!ical res.onsibility is nowadays e#.hasi=ed. ,ccordin! to so#e definitions7 environ#ental res.onsibility is .art of social

res.onsibility. I#.rove#ent of #ar(etin! is related to the chan!in! e#.hases of econo#ic7 social and environ#ental res.onsibility. Food.aster and atthews ;15+2< analy=ed three .atterns of thou!ht7 which can be distin!uished for a co#.any:s social res.onsibility? 1. 2he invisible handP 2. 2he hand of !overn#entP and 3. 2he hand of #ana!e#ent. 1. 2he invisible hand view ;.ro#oted by e.!. ilton Cried#an< concludes

that the only social res.onsibilities of business or!ani=ations are to #a(e .rofits and to obey laws. Cree and co#.etitive #ar(et8.lace will ensure the #oral behaviour of co#.anies. 2he co##on !ood is best served when individuals and or!ani=ations .ursue co#.etitive advanta!e. 2. 2he hand of !overn#ent view ;.ro#oted by e.!. Eohn Nenneth Falbraith< concludes that co#.anies are to .ursue rational and .urely econo#ic objectives. It is the re!ulatory hand of the law and .olitical .rocess which !uides these objectives towards co##on !ood. 3. 2he hand of #ana!e#ent view ;.resented by Food.aster D atthews<

would .ut the res.onsibility of a co#.any:s actions into the hands of the co#.any itself. It is concluded that the #oral res.onsibilities of an individual #ay be .rojected into an or!ani=ation7 and that the conce.ts of an individual:s res.onsibility and a co#.any:s res.onsibility are lar!ely .arallel. 2herefore7 or!ani=ations should be no less or no #ore res.onsible than ordinary .ersons.

(he (raditional and Integrated 9unctions of Mar eting 2raditionally7 #ar(etin! has been seen as a lin( between .roduction and custo#er. 2he situation could be ca.tured better by usin! the ter# sellin!. $ellin! is associated to the so8 called >Production and $ales 4ras of ar(etin!>. $lo!ans? > a(e what you can #a(e> and >Fet rid of what you have #ade> describe the traditional view of #ar(etin!*sellin!. 2he followin! fi!ure shows the role of traditionally oriented #ar(etin! in ;traditionally oriented< #ana!e#ent. ar(etin! was born out of a need to ta(e better into consideration the de#and factors in .roduction .lannin!. 2he function of #ar(etin! is to channel infor#ation of consu#er needs to the .roduction and satisfaction of needs to consu#ers. 2he basic .ower of #ar(etin! is the as.iration to .roduce and sell only that (ind of .roducts which have de#and. inte!rates the whole co#.any to serve this de#and. between .roduction and consu#.tion. ar(etin! ar(etin! ai#s at

effective .roduction syste#s7 where infor#ation is trans#itted effectively

Mar et Segmentation
ar(et se!#entation is one of two !eneral a..roaches to #ar(etin!P the other is #ass8#ar(etin!. In the #ass8#ar(etin! a..roach7 businesses loo( at the total #ar(et as thou!h all of its .arts were the sa#e and #ar(et accordin!ly. In the #ar(et8se!#entation a..roach7 the total #ar(et is viewed as bein! #ade u. of several s#aller se!#ents7 each different fro# the other. 2his a..roach enables businesses to identify one or #ore a..ealin! se!#ents to which they can .rofitably tar!et their .roducts and #ar(etin! efforts. 2he ar(et8$e!#entation .rocess involves #ulti.le ste.s. 2he first is to

define the #ar(et in ter#s of the .roduct:s end users and their needs. 2he second is to divide the #ar(et into !rou.s on the basis of their characteristics and buyin! behaviors. Possible bases for dividin! a total #ar(et are different for consu#er #ar(ets than for industrial #ar(ets. 2he #ost co##on ele#ents used to se.arate consu#er #ar(ets are de#o!ra.hic factors7 characteristics7 !eo!ra.hic location7 and .erceived .roduct benefits. De#o!ra.hic $e!#entation involves dividin! the #ar(et on the basis of statistical differences in .ersonal characteristics7 such as a!e7 !ender7 race7 inco#e7 life sta!e7 occu.ation7 and education level. -lothin! #anufacturers7 for e6a#.le7 se!#ent on the basis of a!e !rou.s such as teena!ers7 youn! adults7 and #ature adults. Eewelers use !ender to divide #ar(ets. -os#etics and hair care co#.anies #ay use race as a factorP ho#e builders7 life sta!eP .rofessional .eriodicals7 occu.ationP and so on.

Psycho!ra.hic $e!#entation is based on traits7 attitudes7 interests7 or lifestyles of .otential custo#er !rou.s. -o#.anies #ar(etin! new .roducts7 for instance7 see( to identify custo#er !rou.s that are .ositively dis.osed to new ideas. Cir#s #ar(etin! environ#entally friendly .roducts would sin!le out se!#ents with environ#ental concerns. $o#e financial institutions atte#.t to isolate and ta. into !rou.s with a stron! interest in su..ortin! their colle!e7 favorite s.orts tea#7 or .rofessional or!ani=ation throu!h lo!!ed credit cards. $i#ilarly7 #ar(eters of low8fat or low8calorie .roducts try to identify and #atch their .roducts with .ortions of the #ar(et that are health8or wei!ht8conscious. Feo!ra.hic $e!#entation entails dividin! the #ar(et on the basis of where .eo.le live. Divisions #ay be in ter#s of nei!hborhoods7 cities7 counties7 states7 re!ions7 or even countries. -onsiderations related to !eo!ra.hic !rou.in! #ay include the #a(eu. of the areas7 that is7 urban7 suburban7 or ruralP si=e of the areaP cli#ateP or .o.ulation. Cor e6a#.le7 #anufacturers of snow8re#oval e9ui.#ent focus on identifyin! .otential user se!#ents in areas of heavy snow accu#ulation. 3ecause #any retail chains are de.endent on hi!h8volu#e traffic7 they search for7 and will only locate in7 areas with a certain nu#ber of .eo.le .er s9uare #ile. Product 3enefit $e!#entation is based on the .erceived value or advanta!e consu#ers receive fro# a !ood or service over alternatives. 2hus7 #ar(ets can be .artitioned in ter#s of the 9uality7 .erfor#ance7 i#a!e7 service7 s.ecial features7 or other benefits .ros.ective consu#ers see(. , wide s.ectru# of businessesTfro# ca#era to ,uto#obile this ty.e of se!#entation to #atch u. with custo#ers. ar(etersTrely on any co#.anies

even #ar(et si#ilar .roducts of different !rades or different acco#.anyin! services to different !rou.s on the basis of .roduct8benefit .reference. Cactors used to se!#ent industrial #ar(ets are !rou.ed alon! different lines than those used for consu#er #ar(ets. $o#e are very differentP so#e are si#ilar. Industrial #ar(ets are often divided on the basis of or!ani=ational variables7 such as ty.e of business7 co#.any si=e7 !eo!ra.hic location7 or technolo!ical base. In other instances7 they are se!#ented alon! o.erational lines such as .roducts #ade or sold7 related .rocesses used7 volu#e used7 or end8user a..lications. In still other instances7 differences in .urchase .ractices .rovide the se!#entation base. 2hese differences include centrali=ed versus decentrali=ed .urchasin!P .olicy re!ardin! nu#ber of vendorsP buyer8seller relationshi.sP and si#ilarity of 9uality7 service7 or availability needs. ,lthou!h de#o!ra.hic7 !eo!ra.hic7 and or!ani=ational differences enable #ar(eters to narrow their o..ortunities7 they rarely .rovide enou!h s.ecific infor#ation to #a(e a decision on dividin! the #ar(et. Psycho!ra.hic data7 o.erational lines7 and7 in .articular7 .erceived consu#er benefits and .referred business .ractices are better at .in.ointin! buyer !rou.in!sTbut they #ust be considered a!ainst the broader bac(!round. 2hus7 the (ey is to !ather infor#ation on and consider all se!#entation bases before #a(in! a decision. Once .otential #ar(et se!#ents are identified7 the third ste. in the .rocess is to reduce the .ool to those that are ;1< lar!e enou!h to be worth .ursuin!7 ;2< .otentially .rofitable7 ;3< reachable7 and ;4< li(ely to be res.onsive. 2he fourth ste. is to =ero in on one or #ore se!#ents that are the best tar!ets for

the co#.any:s .roduct;s< or ca.acity to e6.and. ,fter the selection is #ade7 the business can then desi!n a se.arate #ar(etin! #i6 for each #ar(et se!#ent to be tar!eted. ,do.tin! a #ar(et8se!#entation a..roach can benefit a co#.any in several s.ecific areas. Cirst7 it can !ive custo#er8driven direction to the #ana!e#ent of current .roducts. $econd7 it can result in #ore efficient use of #ar(etin! resources. 2hird7 it can hel. identify new o..ortunities for !rowth and e6.ansion. ,t the sa#e ti#e7 it can brin! a co#.any the broad benefit of a co#.etitive advanta!e. , co#.any cannot serve all custo#ers in a broad #ar(et such as co#.uters or soft drin(s. 2he custo#ers are too nu#erous and diverse in their buyin! re9uire#ents. , co#.any needs to identify the #ar(et se!#ents it can serve effectively. 0ere we will e6a#ine levels of se!#entation7 .atterns of se!#entation7 #ar(et se!#ent .rocedures7 bases for se!#entin! consu#er and business #ar(ets7 and re9uire#ents for effective se!#entation. any co#.anies are e#bracin! tar!et #ar(etin!. 0ere sellers distin!uish the #ajor #ar(et se!#ents7 tar!et one or #ore of these se!#ents7 and develo. .roducts and #ar(etin! .ro!ra#s tailored to each instead of scatterin!. ar(et se!#entation is the .rocess of identifyin! (ey !rou.s or se!#ents within the !eneral #ar(et that share s.ecific characteristics and consu#er habits. Once the #ar(et is bro(en into se!#ents7 co#.anies can develo. advertisin! .ro!ra#s for each se!#ent7 focus advertisin! on one or two se!#ents or niches7 or develo. new .roducts to a..eal to one or #ore of the se!#ents.

Considerations for Mar et Segmentation

2o identify se!#ents7 #ar(eters e6a#ine consu#ers: interests7 tastes7 .references7 and socioecono#ic characteristics in order to deter#ine their .atterns of consu#.tion and how they will res.ond to various #ar(etin! strate!ies. 2he .ri#ary infor#ation #ar(eters see( is why consu#ers .urchase s.ecific .roducts or services but not others. -atalo! retailers and direct8#ar(etin! fir#s #a(e u. so#e of the (ey users of #ar(et se!#entation7 althou!h #any other (inds of co#.anies and or!ani=ations use this techni9ue.

(o whom do you sell and how do you $romote sales7 ar(et se!#entation7 however7 wor(s effectively only for certain (inds of .roducts and services. Cirst7 to deter#ine whether to se!#ent a #ar(et7 #ar(eters #ust find out if the #ar(et can be identified and #easured7 which entails deter#inin! which consu#ers belon! to s.ecific #ar(et se!#ents. $econd7 #ar(eters #ust deter#ine if the se!#ents are lar!e enou!h to be .rofitable. 1hile #ar(eters can easily divide the total #ar(et into s#aller !rou.s7 these !rou.s #i!ht be so s#all that they do not justify the e6.enses associated with #ar(et se!#entation. 2hird7 #ar(eters #ust be able to reach the se!#ents throu!h their advertisin!. If the #e#bers of a .articular se!#ent do not share interest in a

co##on #a!a=ine or television show7 for e6a#.le7 then #ar(eters have no way of reachin! the se!#ent and so the se!#ent is su.erfluous. Courth7 #ar(eters #ust !au!e the res.onsiveness of the se!#ents and find out if a .ro.osed se!#ent would li(ely res.ond to a #ar(etin! ca#.ai!n. If it is not .robable that a se!#ent will react to a .ro#otion7 then the se!#ent is not useful. Cifth7 #ar(eters #ust deter#ine if the se!#ents will chan!e in the near future. $ince it ta(es ti#e to .re.are a #ar(etin! strate!y for s.ecific se!#ent and since it ta(es ti#e for #ar(et se!#entation to be .rofitable7 creatin! se!#ents where consu#er needs and wants are li(ely to chan!e would not be .roductive.

Re$resentation of Mar et Segment

Mar et 8emand ,!!re!ate of the de#ands of all .otential custo#ers ;#ar(et .artici.ants< for a s.ecific .roduct over a s.ecific .eriod in a s.ecific #ar(et. Mar et segment Identifiable !rou. of individuals7 fa#ilies7 fir#s7 or or!ani=ations7 sharin! one or #ore characteristics or needs in an otherwise ho#o!enous #ar(et. ar(et se!#ents !enerally res.ond in a .redictable #anner to a #ar(etin! or .ro#otion offer. 1. $et of .otential custo#ers? 1ho have si#ilar needs 1ho reference each other when buyin! 2. ,re ali(e in the way they? Perceive value )iew .roducts and services Purchase .roducts and services

5hy 8efine # Mar et Segment7 4asier to understand custo#er needs Cocus Gwhole solutionH to a narrower set of custo#er needs 4asier to beco#e a leader in a s#aller #ar(et ;3i! fish in s#all .ond< ore effective use of #ar(etin! dollars Fenerally #ore .rofitable

5hy Mar et Segmentation7 , #ajor (ey to a co#.anyAs success is its ability to select the #ost a..ro.riate #ar(et se!#entation because a co#.any cannot tar!et whole #ar(et. 2here are !eneral !uidelines for selection of tar!et #ar(ets? K 2ar!et #ar(et should be co#.atible with the or!ani=ation !oals and i#a!e. 2he tar!et #ar(et should #atch the #ar(etin! o..ortunity with the co#.anyAs resources. ,n or!ani=ation should consciously see( #ar(ets that will !enerate a sufficient sales volu#e at a low cost to result in a .rofit. , co#.any should select a #ar(et wherein the nu#ber of co#.etitors and their si=e are s#all.

2he total #ar(ets for #any .roducts is to varied8too hetero!eneous. 2his variation Is due to the differences in buyin! habits ways to use the .roducts #otives for buyin! etc. ar(et se!#entation ta(es these difficulties into account.

)enefits of Mar et Segmentation 3etter #ar(etin! job and efficient use of #ar(etin! resources. $#all fir# with li#ited resources can co#.ete effectively in one or two #ar(et se!#ents. , co#.any can desi!n .roducts that really #atch the #ar(et de#ands. ,dvertisin! #edia can be used #ore effectively toward each se!#ent of #ar(et.

8rawbac s of Mar et Segmentation u$to some e:tent It is an e6.ensive .ro.osition in both the .roduction and #ar(etin! of .roducts. $e!#entation increases #ar(etin! e6.enses in several ways i.e. Inventory cost !oes u.7 advertisin! cost !oes u.7 ad#inistrative e6.ense !oes u..

Segmentation )asis
2he #ar(et can be divided into se!#ents by usin! four >se!#entation basis>? Psycho!ra.hic7 behavioristic7 !eo!ra.hic7 and de#o!ra.hic basis. 2he basic criteria for se!#entin! a #ar(et is are custo#er needs. 2o find the needs of the custo#ers in the #ar(et it is i#.ortant to under!o a #ar(et research. Psycho!ra.hic and behavioristic bases are used to deter#ine .references and de#and for a .roduct and advertisin! content7 while !eo!ra.hic and de#o!ra.hic criteria are used to deter#ine .roduct desi!n and re!ional focus.

8ifferent mar et variables

&eogra$hic segmentation Feo!ra.hic basis focus on .references contin!ent on re!ional factors7 such as re!ion ;e.!.7 'orth or $outh<7 county7 .o.ulation density7 urban or rural location7 and cli#ate. -ollectin! and analy=in! infor#ation accordin! to the .hysical location of the custo#er or other data source. Feo!ra.hic se!#entation is often used in #ar(etin!7 since co#.anies sellin! .roducts and services would li(e to (now where their .roducts are bein! sold in order to increase advertisin! and sales efforts there. Feo!ra.hic se!#entation calls for dividin! the #ar(et into different !eo!ra.hical units such as nation7 states7 re!ions7 countries7 cities7 or nei!hborhoods . 2he co#.any can o.erate in one or a few !eo!ra.hic areas7 or o.erate in all but .ay attention to local variations .

8emogra$hic Segmentation ar(et se!#entation based on differences in de#o!ra.hic factors ;which nor#ally #atch consu#er wants and needs< of different !rou.s of consu#ers. It is one of the five co##on se!#entation strate!ies7 and ai#s to define s.ecific niches that re9uire custo#8tailored .ro#otion. De#o!ra.hics include .ersonal characteristics such as !ender7 a!e7 #arital status7 social attributes ;such as ethnicity and reli!ion<7 and inco#e level.

In de#o!ra.hic se!#entation 7 the #ar(et is divided into !rou.s on the basis of variables such as a!e 7 fa#ily life cycle 7 !ender 7 inco#e 7 occu.ation 7 education 7 reli!ion 7 race 7 !eneration 7 nationality 7 and social class. De#o!ra.hic variables are the #ost .o.ular bases for distin!uishin! custo#er !rou.s. One reason is that consu#er wants7 .references7 and usa!e rates are often associated with de#o!ra.hic variables. ,nother is that de#o!ra.hic variables are easier to #easure.

#ge and Life%Cycle Stage -onsu#er wants and abilities chan!e with a!e. ,!e and life cycle can be tric(y variables. Cor e6a#.le7 the Cord otor -o#.any desi!ned its ustan! auto#obile to a..eal to youn! .eo.le who wanted an ine6.ensive s.orts car . 3ut Cord found that #any #ustan!s were .urchased by older buyers. It then reali=ed that its tar!et #ar(et was not the chronolo!ically youn! but the .sycholo!ically youn!.

Life Stage Person in the sa#e .art of the life cycle #ay differ in their life sta!e. Life sta!e defines a .ersonAs #ajor concern7 such as !oin! throu!h a divorce7 !oin! into a second #arria!e7 ta(in! care of older .arents7 decidin! to cohabit with another .erson7 decidin! to buy a new ho#e7 and so on.

 &ender en and wo#en tend to have different attitudinal and behavioral orientations7 based .artly on !enetic #a(eu. and .artly on sociali=ation .ractices. Fender differentiation has lon! been a..lied in clothin!7 hairstylin!7 cos#etics and #a!a=ines. 2he auto#obiles industry is be!innin! to reco!ni=e !ender se!#entation7 since there are now #ore wo#en car owners7 so#e #anufacturers are desi!nin! features to a..eal to wo#en7 althou!h they sto. short of advertisin! the cars as wo#enAs cars. Income Inco#e se!#entation is lon!8 standin! .ractice in such .roducts and services cate!ories as auto#obiles7 boats7 clothin!7 cos#etics7 and travel. 0owever7 inco#e does not always .redict the best custo#ers for a !iven .roduct. &eneration any researchers are now turnin! to !eneration se!#entation. 4ach !eneration is .rofoundly influenced by the ti#es in which it !rows u.8 the #usic7 #ovies7 .olitics7 and definin! events of that .eriod. De#o!ra.hers call these !rou.s GcohortsH.

 Social Class $ocial class has a stron! influence on .reference in cars7 clothin!7 ho#e7 furnishin!s7 leisure activities7 readin! habits7 and retailers. desi!n .roducts and services for s.ecific social classes. any co#.anies

Psychogra$hic Segmentation 2he division of a hetero!eneous #ar(et into relatively ho#o!eneous !rou.s on the basis of their attitudes7 beliefs7 o.inions7 .ersonalities and lifestylesP so#eti#es called >$tate8of8 ind> $e!#entation. Personality the distinctive character of an individualP used as a basis for the .sycho!ra.hic se!#entation of a #ar(et in which individuals of relatively si#ilar .ersonality7 with si#ilar needs or wants7 are !rou.ed into one se!#ent. In .sycho!ra.hic se!#entation7 buyers are divided into different !rou.s on the basis of lifestyle or .ersonality or values. Peo.le within the sa#e de#o!ra.hic !rou. can e6hibit very different .sycho!ra.hic .rofiles.

Lifestyle Peo.le e6hibit #any #ore lifestyles than are su!!ested by the seven social classes. Peo.le differ in attitudes7 interest7 activities7 and these affect the !oods and services they consu#e. -o#.anies #a(in! cos#etics and

furniture are always see(in! o..ortunities in lifestyles se!#entation7 but lifestyle se!#entation does not always wor(. Personality ar(ers have used .ersonality variables to se!#ent #ar(ets. 2hey endow their .roducts with a Gbrand .ersonalityH that corres.onds to a tar!et consu#er .ersonality. 2he co#.any utili=es .roduct features7 services7 and i#a!e #a(in! to trans#it the .roductAs .ersonality. !alues $o#e #ar(ers se!#ent by core values. -ore values !o #uch dee.er than behavior or attitude7 and deter#ine7 at a basic level7 .eo.leAs choices and desires over the lon! ter#.

)ehavioral Segmentation ar(et se!#entation based on differences in the consu#.tion behavior of different !rou.s of consu#ersTtheir life8styles7 .atterns of buyin! and usin!7 .atterns of s.endin! #oney and ti#e7 etc. One of the five co##on se!#entation strate!ies7 its objective is to define s.ecific niches that re9uire custo# tailored .ro#otion. In behavioral se!#entation7 buyers are divided into !rou.s on the basis of their (nowled!e of7 attitude toward7 use of7 or res.onse to a .roduct. any #ar(eters believe that behavioral variables8 occasions7 benefits7 user status7 usa!e rate7 loyalty status7 buyer8readiness

sta!e7 and attitudeTare the best startin! .oints for constructin! #ar(et se!#ents. Occasions 3uyers can be distin!uished accordin! to the occasions when they develo. a need7 .urchase a .roduct7 or use a .roduct. Occasions se!#entation can hel. fir#s e6.and .roduct usa!e. Cor e6a#.le in Pa(istan tea is usually consu#ed at brea(fast. , co#.any can consider occasions of critical life events or transitions8#arria!e7 childbirth7 illness7 relocation7 career chan!e Tas !ivin! rise to new needs. )enefits 3uyers can be classified accordin! to the benefits they see(7 .eo.le vary considerably in the benefits they see( fro# the sa#e .roduct. 1. Road 1arriors? .re#iu# .roducts and 9uality service. ;1%I< 2. Feneration C? fast fuel7 fast service7 and fast food. ;2&I< 3. 2rue 3lues? branded .roducts and reliable service. ;1%I< 4. 0o#e bodies? convenience. ;21I< ". Price $ho..ers? Low .rice. ;2/I<

6ser Status ar(ets can be se!#ented into nonuser7 e68users7 .otential users7 first ti#e users7 and re!ular users of a .roduct. ar(et8share leaders tend to focus on

attractin! .otential users because they have the #ost to !ain. $#aller fir#s focus on tryin! to attract current users away fro# the #ar(et leader.

6sage Rate ar(ets can be se!#ented into li!ht7 #ediu#7 and heavy .roduct users. 0eavy users are often a s#all .ercenta!e of the #ar(et but account for hi!h .ercenta!e of total consu#.tion Loyalty Status -onsu#ers have varyin! de!rees of loyalty to s.ecific brands7 stores7 and co#.anies. 3uyers can be divided into four !rou.s accordin! to brand loyalty status? 1. 0ard8core loyals? -onsu#ers who are buy one brand all the ti#e. 2. $.lit loyals? -onsu#ers who are loyal to two or three brands. 3. $hiftin! loyals? -onsu#ers who shift fro# one brand to another. 4. $witchers? -onsu#ers who show no loyalty to any brand.

)uyer%readiness stage , #ar(et consists of .eo.le in different sta!es of readiness to buy a .roduct. $o#e are unaware of the .roduct7 so#e are aware7 so#e are infor#ed7 so#e

are interested7 so#e desire the .roduct7 and so#e intend to buy. 2he relative nu#bers #a(e a bi! difference in desi!nin! the #ar(etin! .ro!ra#.

#ttitude Cive attitude !rou.s can be found in a #ar(et? enthusiastic7 .ositive7 indifferent7 ne!ative7 and hostile. Door8to8door wor(ers in .olitical ca#.ai!n use the voterAs attitude to deter#ine how #uch ti#e to s.end with that voter. 2hey than( to enthusiastic voters and re#ind the# to voteP they reinforce those who are .ositively dis.osedP they try to win the votes of indifferent votersP they s.end no ti#e tryin! to chan!e the attitudes of ne!ative and hostile voters.

6sage Segmentation 2here are two ways of carryin! out usa!e se!#entationP firstly custo#ers are s.lit accordin! to their wei!ht of use. 8 heavy users*buyers bein! #ore i#.ortant tar!ets than li!ht users. 2his se!#entation can be carried out directly on custo#er databases and can be e6tre#ely .owerful in focusin! activity based on the value to the business7 not just the nu#ber of contacts.

Segmentation !ariables

8ata

&eogra$hic 1orld re!ion -ountry -ities Density -li#ate 8emogra$hic ,!e Fender Ca#ily si=e Ca#ily life cycle

,sia Pa(istan ,ll #ajor cities of Pa(istan Urban 0ot and Dry ,ll a!es ale7 Ce#ale 1827 3847 "V Moun!7 $in!leP Moun!7 Moun!7 childrenP Older7

arried7 no childrenP arried with

arried with childrenP Older7

arried with no children under 1+P

Inco#e Occu.ation 4ducation Reli!ion Race 'ationality Psychogra$hic $ocial class Lifestyle )ehavioral Occasions 3enefits User status ,ttitude .roduct

Older7 $in!leP Other Rs.3/7///V Cro# #iddle class to u..er class $chools7 -olle!es7 Universities ajor reli!ion of Isla#7 -hristianity and 0induis# and s#all .ercenta!e of others ,sian Pa(istani 1or(in! class7 iddle class7 U..er class. ,ctuali=es7 Culfilled7 3elievers7 ,chievers7 $trivers7 46.erienceAs #a(ers and $tru!!lers Parties7 3irthdays7 $.orts and Re!ular Occasions Quality7 2aste7 4cono#y7 0ealth Cirst ti#e user towards Positive

Patterns of Mar et Segmentation

ar(et se!#ents can be build u. in #any ways7 one way is to identify .reference se!#ents. Cor e6a#.le coo(ies buyers are as(ed how #uch they value sweetness and saltiness in biscuits as two .roduct attributes. 2hree different .atterns can e#er!e.
1. *omogeneous Preferences? shows a #ar(et where all the consu#ers

have rou!hly the sa#e .references. 2he #ar(et shows no natural se!#ents. 1e would .redict that e6istin! brands would be si#ilar and cluster around the #iddle of the scale in both sweetness D saltiness.

2. 8iffused Preferences? ,t the other e6tre#e7 consu#er .references

#aybe scattered throu!hout the s.ace7 indicatin! that custo#ers vary !reatly in their .references. 2he first brand to enter the #ar(et is li(ely to .osition in the center to a..eal to the #ost .eo.le.

3. Clustered Preferences? 2he #ar(et #i!ht reveal distinct .reference

clusters7 called natural #ar(et se!#ents. 2he first fir# in this #ar(et has three o.tions. It #i!ht .osition in the center7 ho.in! to a..eal to all !rou.s. It #i!ht .osition in the lar!est #ar(et se!#ent ;concentrated #ar(etin!<.It #i!ht develo. several brands7 each .ositioned in a different se!#ent. If the first fir# develo.ed only one brand7 co#.etitors would enter and introduce brands in the other se!#ents.

(he Segmentation Process

Once a co#.any has !athered infor#ation fro# these se!#entation bases7 it #ust decide how to divide the #ar(et7 bearin! in #ind that #ar(et se!#entation see(s to #ini#i=e the differences within a se!#ent and #a6i#i=e the differences a#on! se!#ents. -onse9uently7 de.endin! on the .roduct or service to be #ar(eted7 si#.le divisions alon! a!e7 !ender7 or !eo!ra.hic lines alone #ay yield se!#ents that are too va!ue to be of use. Instead7 #ar(eters #ay have to consider several characteristics or clusters of characteristics in order to divide the #ar(et into useful se!#ents. Cor e6a#.le7 when considerin! beer consu#.tion7 #ar(eters #ust loo( at both a!e and !ender? the #ajority of beer drin(ers are both youn! and #ale. 2o be!in se!#entin! the #ar(et7 #ar(etin! #ana!ers #ust select the se!#entation bases they will use to develo. the se!#ents7 de.endin! on the .roducts or services to be #ar(eted. ar(eters #ay select a few se!#entation bases they believe are the #ost relevant at the outset and develo. #ar(et se!#ents usin! the#. On the other hand7 they #ay co#.ile a lar!e array of infor#ation usin! all the se!#entation bases and use this infor#ation to !rou. consu#ers in various se!#ents. 'e6t7 #ar(eters conduct any .ri#ary #ar(et analysis they #ay need7 by .re.arin! 9uestionnaires and sa#.les and by assessin! the res.onse to the#. Usin! this infor#ation7 #ar(eters try to deter#ine the #ost fruitful se!#entsTthe ones with !reatest si#ilarities within the#. 3ecause this .rocess can be labor8intensive and re9uire advanced (nowled!e of statistics7 co#.anies often rely on outside

fir#s or artificial intelli!ence technolo!y to .roduce #eanin!ful #ar(et se!#ents.

Once relevant7 stable7 reachable7 .rofitable #ar(et se!#ents are established7 #ar(eters can tar!et the se!#ents they believe will offer the best o..ortunities for !rowth !iven their .roducts and resources and the ones they believe that corres.ond to the .roducts bein! #ar(eted the best. Cinally7 #ar(eters can develo. and launch advertisin! ca#.ai!ns that a..eal to the various se!#ents.

-o#.anies tend to choose the lar!est se!#ents7 althou!h the se!#ents with the #ost consu#ers are not always the #ost .rofitable and usually have the #ost co#.etition. -onse9uently7 #ar(eters #i!ht benefit fro# considerin! tar!etin! s#aller se!#ents or se!#ents i!nored by co#.etitors7 such as low8 inco#e consu#ers7 which is fre9uently referred to as Gniche #ar(etin!.H

Method of Segmentation
, co#.any also #ay o.t to tar!et just one se!#ent of the #ar(et7 e#.loyin! the #ar(et se!#entation #ethod of concentration. ,fter considerin! various se!#entation bases and conductin! research7 a co#.any #i!ht find that its co#.etitors are not reachin! s.ecific se!#ents and decide to tar!et this se!#ent or niche e6clusively. , co#.uter #a(er7 for instance7 could concentrate solely on the ho#e8user se!#ent of the #ar(et and i!nore the needs of the other se!#ents. 2o do so7 the co#.uter #a(er would have to offer .roducts that #eet ho#e8user needs at .rices these consu#ers could afford. $ince concentrated #ar(etin! costs less than differentiated #ar(etin!7 it #ay a..eal to s#all businesses in .articular. ,fter choosin! a #ethod of #ar(et se!#entation7 #ar(eters #ust inte!rate the #ethod into an overall #ar(etin! strate!y. 2he #ar(etin! strate!y will try to #a(e the tar!et .roduct or service a..eal to the tar!et se!#ent throu!h an advertisin! ca#.ai!n develo.ed based on se!#entation infor#ation such as a!e7 !ender7 or location. ar(eters also consider what a co#.any:s strate!ic .osition in a #ar(et isTe.!.7 if it is a co#.uter su..lier to ho#e users or businessesTand creates a #ar(etin! .ro!ra# that will hel. a co#.any achieves or #aintain this .osition. If the se!#ent is .ro.erly defined for a s.ecific .roduct or service7 then develo.in! .ro#otional strate!ies and reachin! the tar!et se!#ent should be relatively easy. 2he infor#ation used to hel. create the #ar(et se!#ents should hel. #ar(eters choose a#on! .ro#otional techni9ues ;e.!.7 direct #ar(etin!7 advertisin!7 .ublicity7 and sales .ro#otion<7 .ricin! strate!ies7 and distribution

strate!ies. 2his infor#ation also should hel. #ar(eters choose a#on! various advertisin! #edia. ,fter collectin! a lar!e a#ount of infor#ation about their custo#ers7 #ar(eters can .lan .ro#otions and .roducts that will a..eal to various se!#ents over a lon! ti#e by deter#inin! what .roducts a se!#ent wants in the future and offerin! the# at the a..ro.riate ti#e

(arget Costing Is a disci.lined .rocess that uses data and infor#ation in a lo!ical series of ste.s to deter#ine and achieve a tar!et cost for the .roduct. In addition7 the .rice and cost are for s.ecified .roduct functionality7 which is deter#ined fro# understandin! the needs of the custo#er and the willin!ness of the custo#er to .ay for each function. 2he 3asic Process? rocess the basic sta!es in the 2ar!et8-ostin! .rocess? 1. define the .roduct 2. set the tar!et 3. achieve the tar!et 4. #aintain co#.etitive cost 2he sta!es are #ar(et8driven? Define the Product answers the funda#ental 9uestions of G1hat are you sellin!WH G2o who#WH G1hat do they want it to doWH

 $et the 2ar!et addresses the issue of G1hat will they .ay for itWH G1hat should it cost to .roduceWH ,chieve the 2ar!et is concerned with G0ow can we !et thereWH G,re we !ettin! thereWH aintain -o#.etitive -ost deals with G0ow can we stay aheadWH

;ntre$reneurial Strategy, Define #ar(et se!#ent s#all enou!h to allow you to ca.ture 2"I to 3/I share 3e a G3i! fish in s#all .ondH Ideal? 3e the only su..lier in a very narrowly defined #ar(et.

;ffective Segmentation
'ot all se!#entation is useful. Cor e6a#.le7 table salt buyers could be divided into blond and brunette custo#ers7 but hair color is not relevant to the .urchase of salt. Curther#ore7 if all salt buyers buy the sa#e a#ount of salt each #onth7 believe all salt is the sa#e7 and would .ay only one .rice for salt7 this #ar(et would be #ini#ally se!#entable fro# a #ar(etin! .oint of view. 2o be useful7 #ar(et se!#ent #ust be? Measurable? 2he si=e7 .urchasin! .ower7 and characteristics of the se!#ent can be #easured. $ubstantial? 2he se!#ents are lar!e and .rofitable enou!h to serve. , se!#ent should be the lar!est .ossible ho#o!eneous !rou. worth !oin! after with a tailored #ar(etin! .ro!ra#. It would not .ay7 for e6a#.le7 for an auto#obile #anufacturer to develo. cars for .eo.le who are under four feet tall. #ccessible? 2he se!#ents can be effectively reached and served. 8ifferentiable? 2he se!#ents are conce.tually distin!uishable and res.ond differently to different #ar(etin!8#i6 ele#ents and .ro!ra#s. If #arried and un#arried wo#en res.ond si#ilarly to a sale on .erfu#e7 they do not constitute se.arate se!#ents. #ctionable? 4ffective .ro!ra#s can be for#ulated for attractin! and servin! the se!#ents.

Mar et Segmentation for No ia

2he decibel levels in the cellular #ar(et are increasin! with service .roviders ste..in! on the !as. 'ot to be left behind7 handset #anufacturers are usin! .recise se!#entation to carve u. their share. Divide and rule see#s to be wor(in!L ,ccordin! to a re.ort .ublished in ay 2//17 the all8India cellular

subscriber fi!ures stand at 3+7&17"14. 1ith a!!ressive #ar(etin! by service .roviders7 this fi!ure is e6.ected to increase at a very ra.id rate. If current decibel levels in the #ar(et are anythin! to !o by7 these e6.ectations are well on the way to bein! #et. 0owever7 a#idst this entire #elee one cannot i!nore the efforts of the handset #anufacturers. 3oth service .roviders and handset #anufacturers have been co#.le#entin! each other well with each fuellin! the de#and for the other. Industry observers attribute the success of handset #anufacturers to shrewd #ar(et se!#entation. 2he bi! three of the #obile handset #ar(et 8 'o(ia7 4ricsson and otorola7 have studied the #ar(et and se!#ented it .recisely.

Segmentation of No ia
-onnectin! .eo.leL 'o(ia7 ar!uably the bi!!est .layer in the world7 has divided the #ar(et into four se!#ents?

*i%fliers, 2he bi!!est se!#ent as far as 'o(ia is concerned consists of :0i8Cliers:7 cor.orate e6ecutives who use a #obile .hone to increase .roductivity at wor(. ,!ed between 2"84"7 the se!#ent loo(s for data trans#ission and other business8related features. In #ost cases7 the co#.any s.onsors the handset7 hence .rice is not a #ajor consideration.

(rendsetters, In any technolo!y ado.tion cycle7 the first se!#ent to ado.t an e#er!in! technolo!y is dubbed as :the early ado.ters:. Cor 'o(ia7 these early ado.ters are :2rendsetters: who are #ost rece.tive to advanced #odels. 2his was the se!#ent at which 1,P8enabled #odels were ai#ed.

Social contact, 2he third se!#ent for 'o(ia is the u.wardly #obile7 socially8conscious se!#ent that uses a #obile to stay in touch. 2oday:s youth and affluent housewives constitute two #ajor chun(s of the se!#ent.

#ssured, 2he fourth and last se!#ent as defined by 'o(ia co#.rises of -4Os7 hi!h8.rofile celebrities7 industrialists and other hi!h >net worth> individuals. 2he fact that the se!#ent cannot do without a #obile .hone #a(es it the :assured: se!#ent.

&eogra$hic 1orld re!ion B ,sia -ountry B India -ities B Reach out #a6i#u# .laces 8emogra$hic ,!e B ,ll a!e !rou. Fender B ale7 Ce#ale

Inco#e B ,ll inco#e !rou.s Occu.ation B 4very sector Reli!ion B Irres.ective of reli!ion Psychogra$hic $ocial class B ,ll class of .eo.le Lifestyles B Urban7 rural7 and even far villa!es )ehavioural 3enefits B Quality Loyalty status B $tron!

No ia mobile $hones by Series

No ia -444 series

1/11 X 11//*11/1 X 111/*111/i X 1112 X 12// X 12/+ X 1%// X 1%1/ X 1%"/ No ia 3444 series 211/i X 211"i X 231/ X 2%// X 2%// classic X 2%1/ X 2%3/ X 2%"/ X 2%"1 X 2&// classic X 2&3/ classic X 2&%/ No ia <444 series 31//*31//b*31/" X 311/ X 311/ classic X 312/ X 312/ classic X 31"" X 32//*32//b*32/" X 321/ X 322/ X 323/ X 32"/ X 331/ X 331" X 333/ X 341/ X 3"// classic X 3"1/*3"5/*3"5" X 3"1/i X 3%//*3%2/*3%"/*3%%/ X 3%// slide X 3&2/ classic No ia 0444 series "/&/ X "1// X "11/ X "13/ O.ress "23/*"23" X "3// X "31/ O.ress usic X "2// X "21/ X "22/ O.ress usic X "32/ X "33/ usic X

obile 2) 4dition X

""// $.ort X ""1/ X ""3/ X "%1/ X "&// X "&3/ X "+// No ia /444 series %/1/ X %/2/*%/21 X %/3/ X %/&/ X %/+" X %1// X %1/1 X %1/3 X %11/*%12/ X %11/ 'avi!ator X %111 X %12/*%121*%124 classic X %131*%133 X %13% X %1"1 X %1&/ X %21/ X %21/ 'avi!ator X %22/ classic X %23/ X %233 X %2""i X %2%/ $lide X %2%" X %2&/ X %2&"i X %2+/*%2++ X %25/ X %3// X %3//i X %3/1 X %3/3

classic X %31/i X %31"i X %"// classic X %"// slide X %""" X %%// X %%// fold X %%// slide X %%1/i X %%2/ X %%3/ X %%"/ X %%"/ fold X %%&/ X %%+/ X %%+1*%%+2 X %&// classic X %&1/ 'avi!ator X %&2/ classic X %&3/ X %+// X %+1/ X %+2/ X %+22 No ia 2444 series &11/ X &1%/ X &21/ X &2"/ X &2+/ X &3%/ X &3+/ X &35/ X &"// Pris# X &%// X &%1/ X &%"/ X &&// X &&1/ X &5// Pris# No ia .444 series +11/ X +21/ X +2"/ X +31/ X +%// Luna X ++// X ++"/ X +51/ No ia Communicator 5///*511/*511/i X 521/*525/ X 521/i X 53//*53//i X 5"// No ia Cseries -% No ia ;series 4"/ X 4"1 X 4"2 X 4"" X 4%/ X 4%1*4%1i X 4%2 X 4%3 X 4%" X 4%% X 4&/ X 4&1 X 4&2 X 4&" X 45/ -o##unicator No ia Nseries

'&/ X '&1 X '&2 X '&3 X '&" X '&% X '&+ X '&5 X '+/ ;Internet 4dition< X '+1 ;'+1 +F3< X '+2 X '+" X '+% + P X '5/ X '51 ;'51 +F3< X '52 X '53 X '53i X '5" X '5" +F3 X '5% X '5& No ia =series O3 X O% Internet (ablet &&/ X '+// X '+1/ ;1i ,O 4dition< X '5// N%&age -lassic X QD X QD $ilver 4dition Others

)ertu lu6ury .hones 'o(ia $UR)1 or.h X 'o(ia ,eon X 'o(ia +++ X 'o(ia 4co $ensor X 'o(ia

-once.t

Lifestyle and Psychogra$hic )asis for No ia

2he descri.tors of se!#entation are? ,ctivities Interests O.inions

(he Segmentation of No ia conducted on the basis of Price

(he $rice ranges are as follows, 1/// B "/// "/// B 5/// 5/// B 1"/// 1"/// B 21/// 21/// 8 3//// 3//// 8 above

Range -, >-444 ? 0444@ 5or ers and labourers no(ia 1%"/? rs 37&"/ no(ia 12//? rs 274// no(ia 12/+? rs 37/// no(ia 2%1/? rs 375"/ no(ia 2%2%? rs 471// no(ia 231/? rs 37%"/ no(ia 1112? rs 27+// no(ia 1%//? rs 37/"/ no(ia 111/i? rs 2%2"

 no(ia 311/? rs 4&"/ 9eatures, 2he no(ia .hones fallin! in this ran!e are #ostly used by the #anual wor(ers because they cannot afford a hi!h .rice #obile .hone. $o#e students also use cell .hone fro# this ran!e as they have the fear of snatch of #obile .hone. obile .hones fallin! in this cate!ory are si#.le .hones who only #eet the .ur.ose of #essa!in! and callin!. 2hese .hones do not have additional features such as ca#era7 blue tooth or infra red. 2he only feature available in this .hone is C .referred by laborers7 security and watch #en. radio7 which is #ost

#ctivities, 2hese .eo.le are #ostly laborers7 .lu#bers7 security !uards and watch#an. 2hey wor( in .laces li(e factories7 construction sites and houses etc. 2hey have hobbies li(e listenin! to radio. 2hey have no other s.ecial hobby7 as they donAt !et s.are ti#e for the#selves. 2hey only celebrate events li(e 4id Ra#=an and weddin!s. 2hey donAt have any vacations as they belon! to the lower class who wor(s day and ni!ht to earn #oney. 2hey wor( to on daily and hourly basis.

 2hey cannot afford any s.ecial entertain#ent but the only entertain#ent available to the# within their ran!e is C 2hey have no club #e#bershi.s 2hey only sho. for thin!s that are essential and re9uired for daily use. radio.

Interests, 2hey have bi! fa#ilies. 2hey live in areas li(e lyari7 lalo(heth and landhi etc. 2hey wor( in factories7 construction site and are not well .aid. 2hey often wor( on daily or hourly basis. 2he only recreation facility available to the# is =oolo!ical !arden7 s#all .ar(s and seaside. 2hey donAt follow any fashion. 2hey donAt s.end #oney on hotelin!. O$inion, 2hey are not concerned about the#selvesP their only .riority is their fa#ily. 2hey tend to act very e#otionally towards social issues. 2hey trust their leaders blindly. 2hey are not sure about their future so they tend to live in .resent and thin( only about the .resent.

 2hey are stron! followers of the culture. 2hey .ass their cultural values to their ancestors and !ive !reat i#.ortance to the#. Range3, >0444 ? 1444@ middle managers 'o(ia 2%3/P Rs %2"/ 'o(ia %/+/P Rs "+// 'o(ia %/&/P Rs "3"/ 'o(ia %/2/P Rs "+"/ 'o(ia &3%/P Rs &/"/ 'o(ia 311/ -lassicP Rs +1//

9eatures, 2he #ain users of this se!#ent are #iddle #ana!ers because they have li#ited and avera!e salary and cannot afford to s.end it on unnecessary e6.enses. 2hey do not (ee. #obile for show off .ur.ose. 2he core feature of this se!#ent is ,udio )ideo Player7 C -a#era7 4DF47 FPR$ and 46.andable e#ory. 2his se!#ent offers u. to #a6i#u# 3 hours of tal( ti#e. 2he need to re#ain in connection with internet7 this se!#ent offers 4DF4 connectivity so they can faster access infor#ation7 includin! e#ails or news cli.s. Radio

 1ith the )F, ca#era7 users can ca.ture s.ecial #o#ents with i#a!es and video cli.s or connect to their collea!ues usin! .ush to tal( technolo!y. ,ffordable7 business tool for any occasion. #ctivities, 2hey are #ostly #iddle #ana!ers in factories and offices. 2hey earn a reasonable a#ount of #oney which is li#ited and s.ent on their .ersonal and daily use. 2hey s.end #ost of their ti#e surfin! on internet. 2hey are .art of .arties and dinners or!ani=ed by friends or in offices. 2hey tend to s.end their free and leisure ti#e with their friends on dinner. 2hey li(e to s.end their vacations in their ho#e. 2hey do not !o out of the city for vacations as they want to rela6 and !et a brea( fro# office wor(. Cor entertainin! the#selves7 they !o out with friends on dinners and .arties. 2hey li(e to watch #ovies and internet surfin! is also co##on. 2hey !o out on .laces li(e 2ari9 road7 $adder etc to sho. for the#selves. ost of their salaries are s.ent on their .ersonal use. -ric(et and !a#es li(e CIC, are of their #ajor interest. Interests, 2hey are the earnin! #e#bers of their fa#ily but their salaries are s.ent #ostly on their .ersonal use. 2hey !o out to eat at .laces li(e bundoo (han7 NC-7 cDonalds.

 2hey are #oderate followers of fashion. 2hey tend to ado.t fashion which are in their ran!e and suitable to the#.

O$inions, 2hey are self oriented7 s.end their salary on the#selves. 2hey are confident are have a stron! belief in the#selves. 2hey are not .olitically loyal to any s.ecific !rou. neither are they affected by the .olitical #ove#ents of the !rou.. 2he have a stron! focus on the wor( they are doin!. 2hey are hi!hly deter#ined and focused about their wor(. 2hey have education of bachelors or bco# de!ree. 2heir #ain focus is on their future develo.#ent. 2hey are always thin(in! about .rofit #a6i#i=ation. 2hey want to achieve success in short ti#e. 2hey are not stron! followers of culture.

Range <, >1444 ? -0444@ university students 'o(ia "2//P Rs 54// 'o(ia %1"1P Rs 5&"/ 'o(ia &%1/P Rs 1/1"/ 'o(ia %111P Rs 1/"// 'o(ia 4"/P Rs 113"/ 'o(ia %23/iP Rs 113"/

 'o(ia %131P Rs 11&// 'o(ia "3//P Rs 115// 'o(ia &"// Pris#P Rs 12/// 'o(ia %233P Rs 123// 'o(ia %3//P Rs 12%"/ 'o(ia '&2P Rs 13"// 'o(ia 4%2P Rs 132// 'o(ia &3&3P Rs 13"// 'o(ia %12/ -lassicP Rs 145// 9eatures, 2he cell .hones fallin! in this ran!e are #ostly used and .o.ular in university or colle!e students. 2hese cells have a stylish loo( and have all the essential features such as ,udio )ideo Player7 C and 46.andable e#ory. Radio7 3luetooth7 -a#era7 4DF47 FPR$

2hey are .o.ular a#on! this !rou. because they have hi!h resolution #e!a .i6el ca#era7 they li(e to clic( .hotos of fa#ily and friends and they want to save their #e#ories. 2hey have hi!h #e#ory7 so they can download son!s videos and share it with their friends. 2hey are stylish .hones usually used to show off their .ersonality and attitudes. #ctivities,

 2hese students s.end #ost of their ti#e in universities and their friends. 2hey li(e to (ee. these cell .hones to show off and to !ive i#.ression about their status. 2heir #ain hobby is to slee.7 watch #ovies7 listenin! to #usic7 !oin! out with friends and .artyin!. 2hey are active #e#bers of societies #ade in universities and colle!e. 2heir #ain source of entertain#ent is internet7 they li(e net surfin!7 chattin! and or(uttin! and watchin! #ovies. 2hey are fashion conscious and sho. fro# .laces li(e dol#en #all7 foru# etc. 2hey .lay internet !a#es and cric(et.

Interests, 2he university students have hi!h level affiliation for their friends. 2hey s.end less ti#e with their fa#ilies due to their busy schedules. 2hey do not have any job as they are studyin!7 they so#eti#es do internshi.s. 2hey !o out to .laces li(e arena7 #illenniu# #all and snoo(er clubs etc. 2hey are #ost fashion conscious .eo.leP they ada.t the#selves with the latest fashion. 2hey li(e to eat jun( food. 2hey !o out to hotelin! on re!ular basis7 .i==as7 bur!ers7 ti((as are their favorites.

O$inion, 2hey are the #ost self8confident .eo.le7 they li(e to be .o.ular and reco!ni=ed. 2hey have social issues li(e conflict between friends7 disa!ree#ent with fa#ily or .arents on various issues. Cor e.!. s.endin! ni!hts at friends .lace and co#in! to ho#e at late hours. 2hey use forei!n .roducts of hi!h 9uality which shows status and i#a!e. 2hey are care free and do not s.end ti#e worryin! about their future. 2hey are less culture oriented. 2hey easily ada.t to western culture.

Range A, >-0444 ? 3-444@ music lovers" high memory 'o(ia '&/ usic 4ditionP Rs 1%///

'o(ia "31/P Rs 1%4// 'o(ia %2++P Rs 1%&"/ 'o(ia 32"/ ;1F3<PRs 1%&"/ 'o(ia &35/P Rs 1&3// 'o(ia "&//P Rs 1+4// 'o(ia 4"1iP Rs 2//// 'o(ia '&3P Rs 2////

 'o(ia "%1/P Rs 2/"//

9eatures, 2his se!#ent contains cell .hones for #usic lovers. 2hese #obile .hones are s.ecifically o.ti#i=ed for entertain#ent7 #usic and !a#es. 2hese usic .hones offer dedicated #usic or !a#in! (eys7 e6.anded #e#ory7 lar!e L-D screen and e6tended battery .erfor#ance to .rovide 9uic( and easy access to entertain#ent content. 2hese .hones offer u. to 1+ hours of #usic .laybac(7 #e#ory for u. to 37/// son!s on an o.tional 4F3 #icro$D card and dedicated #usic (eys. #ctivities, 2hey li(e to listen to #usic and download son!s fro# the FPR$. 2hey download #ovies and share it with their friends. 2hey li(e to ta(e .art in #usic events such as concerts or functions. 2hey s.end their vacations surfin! on net7 watchin! 2) and listenin! to #usic. 2hey are #ost fashion conscious .eo.leP they are trend followers and li(e to ado.t fashion that is #ost .o.ular and uni9ue. 2hey !o out for sho..in! at .laces li(e foru#7 dol#en7 and #illenniu# #all. 2hey li(e to .lay !a#es on their #obile .hones.

Interests, 2heir social circle includes .eo.le who are also interested in #usic and #ovies. Cor entertain#ent .ur.ose7 they !o out to concerts and attend various functions 2hey are the #ost fashion conscious .eo.le. 2hey s.end their .oc(et #oney on buyin! .roducts that show attitude and their i#a!e. 2hey are fond of eatin! .i==as7 bur!ers7 donuts etc. O$inions, 2hey are hi!hly confident and are #ostly wannabeAs. 2hey have social issues of reco!nition and self estee#. 2hey use hi!h 9uality .roducts that show off their i#a!e. 2hey loo( the#selves as future sin!er and their #ain focus is on beco#in! another sin!in! idol. 2hey are #ost wea( followers of culture. 2hey easily ado.t western culture. ,nd for!et their cultural values.

Range 0, >3-444 ? <4444@ communicator" high and young business $eo$le 'o(ia 4%"P Rs 213// 'o(ia '&3 usic 4ditionP Rs 21"// 'o(ia 4%1P Rs 22"//

 'o(ia 53//iP Rs 22&// 'o(ia 4&/P Rs 22&// 'o(ia %"// sliderP Rs 233// 'o(ia &5// Pris#P Rs 232"/ 'o(ia 4%1iP Rs 2"5"/ 'o(ia '&%P Rs 2%+// 'o(ia '+1P Rs 2&2// 9eatures, Moun! and ener!etic business #en fall into this cate!ory of a!e 3/ B 4/. 2hese .eo.le are youn! and ada.t new chan!es 9uic(ly. 2hey are busy #ost of the ti#e so they want 9uic( solutions for their .roble#s 2hey want easy access to everythin!. 2hey li(e challen!in! and new thin!s. 2he cell .hones fallin! in this cate!ory are business .hones includin! co##unicators and hi!h #e#ory stora!e .hones. 2hese .hones enable to connect the business .eo.le to one another. 2hey have a lot of stora!e s.ace and connect to FPR$ anywhere. 2hey can ta(e their office wor( with the# and can even download heavy files. #ctivities,

 2hey are youn! business .eo.le who are business oriented. 2he have #ost e#.hasis on achievin! their tar!ets in the shortest #eans ti#e. 2heir hobbies are surfin! on internet and findin! out (nowled!e about latest technolo!y etc. 2hey attend business #eetin!s and business cere#onies. 2hey !o out to forei!n countries for vacation as they want to s.end so#e ti#e away fro# wor( and rela6. 2hey #e#ber of various clubs such as Narachi club7 country cree( club7 !olf club etc. 2hey buy forei!n .roducts and sho. fro# forei!n country. 2hey #ostly buy branded .roducts. 2hey .lay s.orts such as !olf and yachtin! etc. Interests, 2hey have s#all and !rowin! fa#ilies. 2hey have houses in .osh and .o.ular areas. 2hey are future oriented and tend to #a6i#i=e .rofits. 2hey are very conscious about their diet. 2hey !o out to dinner on restaurants li(e bar b Q tonite and hotels li(e P-7 ,),RI etc.

O$inions, 2hey are future oriented their #ain e#.hasis is on .rofit #a6i#i=ation. 2hey !ive less i#.ortance to .olitical issues.

 2hey are hi!hly concerned about the econo#ic conditions in the country. 2hey use hi!h 9uality and branded .roducts.

Range /, ><4444 % above@ educated $olitician 'o(ia '5"P Rs 3%&"/ 'o(ia '53iP Rs 35&"/ 'o(ia +%//P Rs 41/// 'o(ia '+2P Rs 443// 'o(ia '5"iP Rs 443// 'o(ia 45/P Rs 45&// 'o(ia ++//P Rs "/+// 9eatures, It is both a #obile .hone and #edia .layer rolled into one. $i#ilar as the '5" and F%//7 the candy bar '+2 is .ac(ed with lots of advanced function and features such as 0$DP,7 3luetooth 2./ with ,2DP7 1i8 Ci7 inte!rated FP$7 C #ctivities, 2he se!#ent usin! these cell .hones are #ostly educated .olitician. 2heir hobbies are huntin!7 horse ridin!7 clubbin! and yachtin!. radio7 #icro$D and 2)8out.

 2hey s.end their vacations in forei!n countries. 2hey have #e#bershi. in Narachi club7 cree( club etc. 2hey sho. fro# forei!n countries and #ostly buy e6.ensive and branded .roducts.

Interests, 2hey have s#all fa#ilies and usually they are #ostly less fa#ily oriented7 they s.end less ti#e with their fa#ilies. 2hey live in hi!hly .osh areas such as Defence and -lifton etc. 2hey have hi!hly re.uted ran(s in the society. 2hey !o out to clubs and for horse ridin!7 !olfin! etc. 2hey buy .roducts that are branded and #ost e6.ensive. 2hey li(e to eat continental7 -hinese and Italian foods. 2hey ta(e hi!h interest in #edia. 2hey (ee. the#selves u. to date with the latest news related to .olitics7 business and society. 2hey are econo#ically and financially well8off. 2hey !et education fro# forei!n countries and also send their children abroad for hi!her education. 2hey are not concerned or followers of their culture. 2hey chan!e the#selves as the society .ro!resses and trend chan!es.

#nalysis and Inter$retation

1e as(ed total 1/ 9uestions7 which were #ainly close8ended 9uestions. Out of 1/7 & were answerable in either M4$ or 'O. ,nd the re#ainin! 3 9uestions had o.tions for each. 2he results of the 9uestion 'u#ber 17273747%7& and 57 which are answerable in either M4$ or 'O are below7 Question 'o. Mes I 'o I 1. +&." 12." 2. +&." 12." 3. 1// / 4. %2." 3&." %. &" 2" &. "/ "/ 5. 3&." %2."

In 9uestion nu#ber "7 I as(ed that 'o(ia is costlier as co#.ared to other #obile handsets that .rovides sa#e features as 'o(ia7 but still why do you .refer 'o(iaW "&I .eo.le told that because it is user friendly. 25I .eo.le told that it is because of the 'ONI, 3rand 'a#e. 1here 14I .eo.le told that it is because of better features. In 9uestion nu#ber + I as(ed that 46ce.t 'o(ia what are your other .referred #obile .hone brandsW 2"I .eo.le told that they .refer $a#sun!7 12."I told LF7 3&."I told otorola and re#ainin! 2"I told they .refer other brands.
Q1. Do you thin( 'o(ia handsets are u.dated with the latest featuresW

13%

yes no

87%

Q2. ,re 'o(ia #obiles readily available in the #ar(etsW

13%

yes no

87%

Q3. Do you thin( 'o(ia #obiles are user friendlyW

0%

yes no

100%

Q4. Do 'o(ia .rovide !ood after sales service co#.ared to other #obile

.honesW

30% yes no 70%

Q%. Does a 'o(ia .hone co#e with reasonable .riceW

25% yes no 75%

Q&. If a #obile co#.any offers sa#e features7 9uality and .rice as 'o(ia7

will u still !o for 'o(iaW

50%

50%

yes no

Q5. 1ill you !o for other #obile .hone brand with less .rice and #ore

featuresW

38% yes 62% no

Q". 'o(ia is costlier as co#.ared to other #obile handsets that .rovides

sa#e features as 'o(ia7 but still why do you .refer 'o(iaW

32% 52%

user friendly brand nam e better features

16%

Q+. 46ce.t 'o(ia your other .referred #obile .hone brandsW

25%

25% samsung LG 13% m otorola others

37%

Conclusion
Cro# the above .roject I have co#e to this conclusion that 'o(ia has i#.le#ented various se!#entation strate!ies for its .roducts on a lar!e scale D beco#in! no.1 leader in the world of #obile .hones. 'o(ia se!#ents its #ar(et accordin! to various variables. 2he #ain se!#entation is done on the basis of .rice. ,s .er #y o.inion 'o(ia had introduced various sche#es to attract .eo.le D !ain #ore !oodwill into #ar(et. I would li(e to conclude that 'o(ia had been launchin! various new .roducts D strate!ies throu!hout the year but still it is the no.1 brand leader in #obile .hones. any .eo.le around the !lobe are .urchasin! 'o(ia .hones7 as they are very chea.7 !ood D efficient to o.erate. 'o(ia have used better D efficient #ar(et se!#entation strate!ies to #ar(et its .roducts accordin! to various se!#ents of custo#ers in the #ar(et. 'o(ia as such has used all #odern D !ood techni9ues to tac(le .roble#s of custo#ers in #ar(et. -usto#er care D feedbac( is also !iven #ore i#.ortance. 3etter7 efficient D advanced techni9ues are used to increase the sales of .roduct. ,lso 'o(ia is lar!est #anufacturer of #obile .hones in India D also the no.1 leader in it. )arious se!#entation strate!ies are bein! enrolled into the #ar(et to increase the sales of the .roducts. 'ew #odels D their strate!ies are bein! well utili=ed to enhance the .roduct.

Recommendations
I would li(e to .rovide certain reco##endations towards this Project re.ort. 2hey are as follows? I would li(e to su!!est that the force in the #ar(et. ,s far as launchin! of new #odels is concerned7 the -o#.any should try to offer sales of such .roducts at an affordable Price. 2he -o#.any should try to brin! #ore attractive offers D discounts to the custo#ers of se!#ents to #a(e the# #ore brand loyal towards the#. ar(etin! areas for $ales should be increased. 2hey should try to ado.t new strate!ies to re!ain whole sales

3iblio!ra.hy

1ebsites visited?

www.no(ia.co# htt.?**www.no(ia.co#*about8no(ia*co#.any

www.!oo!le.co# htt.?**www.!oo!le.co.in*YhlZenDsourceZh.D9Z#ar(etVse!#entation VofVno(iaD#etaZDa9Z&Da9iZ!1/Da9lZDo9Z#ar(etVseD!s[rfaiZ Df.Zfe4cbc+"4b&cd%&d

www.scribd.co# htt.?**www.scribd.co#*searchW catZredesi!nD9Z.rojectVonVno(iaDsa.6Z43Dsa.yZ1"

#nne:ure 1. Do you thin( 'o(ia handsets are u.dated with the latest featuresW a< M4$ b< 'O 2. ,re 'o(ia #obiles readily available in the #ar(etsW a< M4$ b< 'O 3. Do you thin( 'o(ia #obiles are user friendlyW a< M4$ b< 'O 4. Do 'o(ia .rovide !ood after sales service co#.ared to other #obile .honesW a< M4$ b< 'O ". 'o(ia is costlier as co#.ared to other #obile handsets that .rovides sa#e features as 'o(ia7 but still why do you .refer 'o(iaW a< 'o(ia brand na#e b< 3etter features c< User friendly d< ,ll the above

%. Does a 'o(ia .hone co#e with reasonable .riceW a< M4$ b< 'O &. If a #obile co#.any offers sa#e features7 9uality and .rice as 'o(ia7 will u still !o for 'o(iaW a< M4$ b< 'O +. 46ce.t 'o(ia your other .referred #obile .hone brandsW a< $a#sun! b< LF c< otorola d< Others 5. 1ill you !o for other #obile .hone brand with less .rice and #ore featuresW a< M4$ b< 'O 1/. 0ow do you rate the after sale service of 'o(iaW a< )ery !ood b< Food c< 'either !ood nor bad d< 3ad e< )ery bad