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Segmentation and Targeting
ATM Semester 2
Lecture 1
By Sanemkhan Nurillaeva
Agenda
•
•
•
•
Segmentation
PITA Model
Target market strategies
Customer Profiles
Target Marketing Process
Target marketing strategy consists of 3 separate steps
1)
2)
3)
Dividing the market into meaningful segments
Selecting segments
Design a unique marketing mix for each segment
(Solomon, et.al, 2013)
1. Segmentation
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)
Segmenting consumer markets
Demographic
• Age
• Gender
• Race
• Ethnicity
• Marital
status
• Family size
• Family life
cycle
•Income
Behavioural
• End use
• Benefits
Geographic
• Region
• County
size
• City size
• Density
• Climate
Psychographic
/Lifestyle
• Social Class
• Activities
• Interests
•
Opinions
sought
• Usage rate
• Loyalty
• Attitude
•Readiness to
purchase
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)
Population Density in Uzbekistan
UN Office for the Coordination of Humanitarian Affairs (2009)
Population in Uzbekistan
Population in Uzbekistan
Age structure: 0-14 years: 24.9% (male 3,693,838/female 3,514,734)
15-24 years: 20.5% (male 3,008,779/female 2,934,534)
25-54 years: 43% (male 6,178,921/female 6,255,715)
55-64 years: 6.8% (male 926,129/female 1,036,576)
65 years and over: 4.8% (male 588,881/female 791,609) (2014 est.)
2. PITA model
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
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.
PITA Model Example
Trombopol –medicine used
in order to prevent heart attacks
Target: Uzbek Male 55-64 years
(≈927,000)
PITA= 927,000*5%*12times a year*
6000 sums= 3.3372 bln UZS
3. Targeting
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
(Solomon, et.al, 2013)
Targeting Strategies
There are 4 main Targeting Strategies
(Solomon, et.al, 2013)
1. Undifferentiated Marketing
3. Concentrated Marketing
2. Differentiated Marketing
4. Customized Marketing
1. Undifferentiated Marketing
Company concentrates on common
needs which must be greater than
the needs that separate them
Company
Marketing mix
Whole
Market
Undifferentiated Marketing Example
Organization
Post
Office
Marketing mix
Target market
•Product
•Price
•Promotion
•Place
Everybody
2. Differentiated Marketing
Company develops a separate
marketing mix to meet the needs
of each segment
Company
Marketing mix 1
Segment 1
Marketing mix 2
Segment 2
Marketing mix 3
Segment 3
Differentiated Marketing Example
UMS tariffs in Uzbekistan
Differentiated Marketing Example
Marketing mix 1
Businessmen
Marketing mix 2
Students
Marketing mix 3
Young
Entrepreneurs
3. Concentrated Marketing
Company focuses its efforts on
offering one or more products and
to a single segment using certain
marketing mix
Segment 1
Company
Marketing mix
Segment 2
Segment 3
Concentrated Marketing Example
Industrial Cars
Marketing mix
Luxury Sport Cars
Family Cars
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.
Company
Marketing mix 1
Customer 1
Marketing mix 2
Customer 2
Marketing mix 3
Customer 3
Customized Marketing Example
Marketing mix 1
Supermarket
Marketing mix 2
Construction
Group
Marketing mix 3
Factory
4. Customer Profiles
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)
Customer Profile Example
Jasur: Male 20-25, Student from Tashkent, Uzbek
Entertainment
Hobby
Games
Customer Profile Example
Jasur: Male 20-25, Uzbek
• Web Sites:
• Channels to watch:
⁻
⁻
⁻
⁻
⁻
Facebook
OK.ru
YouTube
Gazeta.UZ
Afisha.Uz
⁻
⁻
⁻
⁻
• Games:
⁻
⁻
⁻
⁻
⁻
⁻
⁻
ТНТ
Yoshlar
MY5
МУЗ ТВ
• Places to Shop:
PES 2016
Dota
Candy Crash Saga
War Craft
Places to Eat:
⁻Bibigon
⁻BBQ Burger
⁻PlovSamsa.uz
⁻Caramel coffee and pastry
Korzinka.uz
MAKRO
Poytaht
Entertainment:
⁻Bowler
⁻Premier Hall
Hobby:
⁻ Playing Football
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.
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