Market Segmentation, Targeting, and Positioning

Waleed Khan Afridi
Mr.Afridi, Kabul Institute, Kabul

MS-Leading to PhD Member SDPI, South Asia 1 Member PJMS

needs.Overview of Market Segments and Target Markets • Market Segments: Groups of customers with different wants.Afridi. • Market Segmentation: A process of dividing the total market for a good or service into small. behaviors in a market are called market segments. Kabul Institute. Kabul 2 . same groups. Mr. • Target Market: A specific Market Segment of (customers or organizations) for which the seller designs specific promotional activities is called as Target Market.

• By targeting a specific segment. Kabul 3 . needs and characteristics can be focused. • It is easy to manage a specific segment of market. Kabul Institute. • It is easy to design promotional activities for a specific segment.Benefits of Market Segmentation • Customers with similar wants.Afridi. much investment can be saved. Mr.

• Identify the size of the segments and estimate demand for the product (Sales). gender. Kabul . • Process Steps: • Identify the wants and needs of the customers which are not satisfied in a market. likes and dislikes).Process of Market Segmentation • Intuition based on experience and judgment.Afridi. • Copying competitors and earlier market entrants. Kabul Institute. Estimate Demand for products Identify Needs Identify Characteristics Market Segmentation Process 4 Mr. • Identifying the characteristics that distinguish segments (age.

Ultimate Consumer and Business Consumers • Ultimate consumers who buy goods or services for their own personal or household use. Mr. Kabul Institute. • Business users who buy goods or services to use in their businesses. or to resell to other business users or consumers. Kabul 5 .Afridi. to make other products.

Afridi. Kabul 6 . Kabul Institute.CONSUMER MARKETS ARE COMMONLY FURTHER SEGMENTED ON THE BASIS OF: • Geography • Demographics • Psychographics Mr.

upper middle. over $50. single. female Young. upper lower. suburban. 65 and over Male. $25. young.000. rural Hot. and other census regions Under 25. Kabul Institute.Segmentation basis Typical market segments • • • • • • • • • • • • • • • • • Geographic: Region New England.001-$25. etc. 6-12.000. Upper class. Kabul 7 . cold. 100. sunny.000 Under 6. $35. no children. 35-49.000.001500. 500.000. 13-19.000.Afridi.000.000.000. 25. 20-34. cloudy City Population Urban-rural Climate Demographic: Income Age Gender Family life cycle Social class Under $10.001-1.000. etc Mr.001-$50. $10. Middle Atlantic.001-100. lower middle.001$35. Urban. married. rainy. etc. 50-64.

Middle Eastern.Afridi.) • • • • • • Demographic (cont. Kabul Institute. opinions (conservation.Segmentation basis Typical market segments (cont. introverted. travel). high school graduate. sales. unemployed Ethnic background African. Asian. clerical. etc. aggressive. European. extroverted. Hispanic. capitalism) Values and Life-Styles Mr. college graduate Occupation Professional. • • • • • • Psychographic: Personality Life-style Values Ambitious.): Education Grade school only. homemaker. art). manager. interests (politics. student. sociable Activities (golf. Kabul 8 . self-confident.

Afridi. Kabul 9 .GEOGRAPHIC SEGMENTATION • Regional distribution because people within a given region tend to share the same values attitudes and style preferences. suburban. and rural distribution. • Urban. Mr. Kabul Institute.

clean drinking water plants (Mini-size) were established in the locales (Streets) etc. Rural Areas and Sub Urban Areas.Geographic Segmentation (Example) • Nestle Mineral Water Company. Urban and Sub-Urban Areas. Karachi Market was divided into Rural. Individuals living in those areas wanted clean drinking water plants in their local areas.Afridi. Kabul 10 . Kabul Institute. According to the needs and wants of the consumers living in Rural Areas. Mr. in Pakistan decided to divide the Karachi Market (Capital City of Sind Province) into segments on the basis of Geography . Individuals needs and wants of clean drinking water were identified in Urban Areas. and Geographic Segmentation was done. Urban Areas and Sub-urban areas.

• Ethnicity Mr. and the type of neighborhood one lives in. occupation.Afridi. Kabul Institute. Gender. Education etc • Age • Social class: A measure made up of a combination of characteristics such as level of education.DEMOGRAPHIC SEGMENTATION Age. Kabul 11 .

Demographic Segmentation (Example) • Dolce and Gabbana a US Canvas firm.Afridi. 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. Kabul Institute. Mr. Kabul 12 . 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).

• Values. • Personality characteristics.Afridi. AND BEHAVES. Kabul Institute.PSYCHOGRAPHIC SEGMENTATION HOW A PERSON THINKS. and opinions. FEELS. interests. Mr. Kabul 13 . including activities. are principles of society that are acceptable to the society members. • Lifestyles.

Mr. 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.Psychographic Segmentation (Example) • Arctic engineers. Gymtronics guaranteed weight loss and thus Psychographic Segmentation was done.Afridi. Kabul 14 . Kabul Institute.

personal selling and direct marketing. • Multiple-segment segmentation—select two or more segments and devise different marketing mixes for each.Target Market Strategies A Process of focusing a specific market segment by shifting all promotional activities to that segment. mean Officer Workers. Kabul 15 .Afridi. • Market aggregation—treat the total market as a single segment. Kabul City is a total market for ACER Computers. ACER Computers have targeted Foreigners and those who work in offices. Targeting includes advertising. ACER Computers has targeted a segment of Foreigners as they have money and are rich. Kabul Institute. Mr. • Single-segment concentration—focus on one segment.

Kabul Institute.! Mr. Keep Smiling Please…. Kabul 16 .com) • Please send you feedback through email.Thank you very much for your time! • Mr.Afridi.Afridi (waleedafr@yahoo..

Afridi may please be and the Kardan University (An affiliate of Preston USA). • Recommended Books: • Marketing (Concepts and Cases) Thirteen Edition/Special Indian Edition (LPE) by Etzel.preston. Afghanistan. (LPE) Twelfth Edition by Philip Kotler and Gary Armstrong. Walker. USA (www.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. In case of any doubt or problem the Mr. • Principles of Marketing. McGraw Hill Publishers. Kabul. . Stanton and Pandit. Pearson Education Publishers. The students/users are advised to use the slides without any doubt and fear of getting falsified knowledge.

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