Ibrahim Sameer (MBA - Specialized in Finance, B.

Com Specialized in Accounting & Marketing)

Consumer Orientation
Customer orientation

refers to customer-centric
provides a personalized

business.

This

model

customer experience that focuses on establishing

healthy relationships between service providers and consumers by first identifying a customer's needs.

Product Orientation
This orientation focuses on the production of the

product and is based on the assumption that the more you can produce, the more you can sell. There is an assumption that customers wish only to buy the product produced and have no other motivations for

purchasing.

Product Orientation
For product orientation to be successful, monopoly

market conditions normally have to exist and this is rarely seen today.

B2C
B2C is an acronym for "business to consumer". A B2C

business is one that provides products or services direct to the consumer.

B2B
The term business-to-business, also called B2B, is a

way to describe the transactions that take place from one company conducting commerce with another company. The consumer in these trades is always another business.

B2C vs. B2B

Definition

What is the meaning of Segmentation?

Definition
Dividing a market into distinct groups with distinct

needs, characteristics, or behavior who might require separate products or marketing mixes.

Definition
What is the meaning of Segmentation?
Segmentation is a way for organizations to divide up

the mass market into smaller groups of potential customers with similar characteristics.

Requirement for Segmentation

Measurable

Differential

Effective Segmentation

Accessible

Substantial

Requirement for Segmentation

Measurable
Measurable/identifiable

and

lead

to

ease

of

identification (who is in each segment?)

It is large enough to measure i.e. it is identifiable and

of a substantial enough size.

Requirement for Segmentation

Accessible
Accessible lead to the marketer being able to reach

selected market targets through marketing efforts.

Requirement for Segmentation

It has to be accessible i.e. possible to reach potential

customers

via

organization's

promotion

and

distribution channels.
It

can

be

cost-efficiently

reached

by

market

intervention

Requirement for Segmentation

Substantial
Substantial segments that are sufficiently large to be

worthwhile serving as distinct market targets.

It has to be large enough to earn profit

Requirement for Segmentation

Differentiable
Meaningful

segments

that

have

different

preferences/needs, and show clear variations in

market behavior/response to specialized marketing efforts.

Requirement for Segmentation

It has to be stable or durable so that it does not vanish

over time
It has to be internally homogeneous (i.e. potential

customers in the same segment prefer the same product qualities) and externally heterogeneous (i.e. as different as possible between segments).

Requirement for Segmentation

It needs to respond similarly to a market stimulus.

Segmentation Bases
Different basis of segmentation include the following:
Geographic segmentation

Demographic segmentation
Psychographic segmentation

Segmentation Bases
Geographic segmentation
This is where a market is segmented into geographic

sections, for example by country, by region, by city, or

by town. Geographic segmentation works on the principle that consumers in a certain geographic area have similar characteristics, values and attitudes.

Segmentation Bases
Certainly this can be seen clearly by some brands who

segment by country, adopting their brand and

products to suit the cultural differences in each

country; for example, by adapting menus, or the colour/size of packaging, etc.

Segmentation Bases
Demographic Segmentation
Demographic factors include: age, sex, family life cycle

and income; and the market is segmented accordingly.

For example, the clothing industry segment on a mixture of demographic criteria, i.e. clothes for men, women and children.

Segmentation Bases
Retailers in the clothing trade will target different age

groups, e.g. Top Shop and Top Man target the younger,

18-25-year-old market, whereas Next target the 25-plus

age group. Many brands have developed for customers at certain stages of the family life cycle.

Segmentation Bases
Common examples should be retailers such as Early

Learning Centre and Mother Care who are aimed at

families with young children, while other brands such

as the Saga travel company specialize in holidays for pensioners.

Segmentation Bases
Psychographic Segmentation
This is where consumers are grouped together because

they share similar attitudes, values, beliefs and/or

lifestyles.

Segmentation Bases
For example, some industries such as the entertainment

industry have been developed around lifestyle, and examples of this can be seen in recent years in the UK with the growth in private gyms targeted at people wishing to follow a particular healthy lifestyle; and in coffee shops

catering for a more mobile population, such as business

people and retired people on days out.

Segmentation Bases
Other brands have changed or have been developed to

support a specific consumer group's values, such as the

introduction of ecologically friendly products or

organic foods, while consumers who share concerns about animal welfare will buy free range eggs.

Targeting
Define Target Marketing?
Consists of a set of buyers who share common

needs or characteristics that the company decides

to serve.

Targeting
Selecting Target Market Segments
Undifferentiated (mass) marketing Differentiated (segmented) marketing Concentrated (niche) marketing

Targeting
Undifferentiated strategy
Sometimes referred to as mass marketing is when an

organization aims its resources at the entire market with one particular product in the hope that a sufficient amount of buyers would be attracted.

Targeting
For example, Coca Cola used to do this with its original

Coca Cola drink.

Targeting
Concentrated strategy
Where an organization concentrates its marketing

effort on one particular segment e.g. Rolls Royce cars aim its vehicles at the premium segment.

Targeting
Differentiated strategies
Where an organization targets several segments and

develops distinct products/services with separate marketing mix strategies aimed at the varying groups.

Targeting
For example, an airline can offer business class, first

class and economy class tickets with separate marketing programmes to attract the different groups.

Q&A