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Segmentation and Target Segmentation and Target MarketingMarketing

Market Segmentation:

Divide the market into segments of customers

Target Marketing:

Select the segment to cultivate

#1 #2

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Identifying Segment.Identifying Segment.

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Target MarketTarget Market

The Marketing EnvironmentThe Marketing Environment

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• Includes:Includes:– Microenvironment: actors close to the Microenvironment: actors close to the

company that affect its ability to serve company that affect its ability to serve its customers.its customers.

– Macro environment: larger societal Macro environment: larger societal forces that affect the microenvironment.forces that affect the microenvironment.•Considered to be beyond the control of the Considered to be beyond the control of the

organization.organization.

Marketing Marketing EnvironmentEnvironment

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Actors in the Actors in the MicroenvironmentMicroenvironment

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• Suppliers: Suppliers: – Provide resources Provide resources

needed to produce needed to produce goods and services.goods and services.

– Important link in Important link in the “value delivery the “value delivery system.”system.”

– Most marketers Most marketers treat suppliers like treat suppliers like partners.partners.

The Company’s The Company’s MicroenvironmentMicroenvironment

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The Company’s The Company’s MicroenvironmentMicroenvironment

• Marketing Intermediaries: Marketing Intermediaries: – Help the company to promote, sell, and Help the company to promote, sell, and

distribute its goods to final buyersdistribute its goods to final buyers•ResellersResellers

•Physical distribution firmsPhysical distribution firms

•Marketing services agenciesMarketing services agencies

•Financial intermediariesFinancial intermediaries

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5 Types of Customers5 Types of Customers

• Consumer markets Consumer markets

• Business markets (B to B)Business markets (B to B)

• Reseller marketsReseller markets

• Government marketsGovernment markets

• International markets International markets

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CompetitorsCompetitors

• Must understand competitor’s strengthsMust understand competitor’s strengths

• Must differentiate firm’s products and Must differentiate firm’s products and offerings from those of competitorsofferings from those of competitors

• Competitive strategies should Competitive strategies should emphasize firm’s distinctive emphasize firm’s distinctive competitive advantage in marketplace competitive advantage in marketplace

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The Macro environmentThe Macro environment

• The company and all of the other The company and all of the other actors operate in a larger macro actors operate in a larger macro environment of forces that shape environment of forces that shape opportunities and pose threats to the opportunities and pose threats to the company.company.

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The Company’s Macro The Company’s Macro environmentenvironment

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Pakistan DemographicsPakistan Demographics

• Age StructureAge Structure– 0-14 years 39% ( male 20% Female 18.9%)0-14 years 39% ( male 20% Female 18.9%)– 15-64 years 56.9% ( male 29% Female 27% )15-64 years 56.9% ( male 29% Female 27% )– 65 years and over 4.1% ( male 1.9% Female 65 years and over 4.1% ( male 1.9% Female

2.1%2.1%– Population growth 2.09%Population growth 2.09%

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Better Educated PopulationBetter Educated Population

• Age 15 and over can read and writeAge 15 and over can read and write

• Total PopulationTotal Population

– 48.7% 48.7% – Male 61.7%Male 61.7%– Female 35.2%Female 35.2%

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Life expectancy Life expectancy

• Total PopulationTotal Population

• 63.3963.39

• Male 62Male 62

• Female 64.44Female 64.44

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Economic EnvironmentEconomic Environment

• Income Income DistributionDistribution– Upper classUpper class– Middle classMiddle class– Working classWorking class– UnderclassUnderclass

Consists of factors that affect consumer purchasing power and spending

patterns.

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Natural EnvironmentNatural Environment

• Involves the Involves the natural resources natural resources that are needed as that are needed as inputs by inputs by marketers or that marketers or that are affected by are affected by marketing marketing activities.activities.

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Technological Technological EnvironmentEnvironment

•Most Most dramatic dramatic force now force now shaping our shaping our destiny.destiny.

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Cultural EnvironmentCultural Environment

• The institutions The institutions and other forces and other forces that affect a that affect a society’s basic society’s basic values, values, perceptions, perceptions, preference, and preference, and behaviors.behaviors.