Targeting

The act of
evaluating and
comparing the
identified groups
and then selecting
one or more of
them as the
prospects

Requirements for Effective Segmentation

1-Measurable
That based on Size power & Size, purchasing power, characteristics of the
segments can be measured
2-Substantial
That based on Segments are large & profitable enough to serve
3_ Accessible
That based on Segments can be effectively reached & served
4- Differentiable
That based on Distinguishable & respond differently to different Marketing mix elements & programs

5-Actionable
That based on Programs can be formulated for serving the segments
To sum up : "Marketers don’t create a segment; they identify segments and then focus on which one to target"

Stage V Select Specific Market Segments

Finally, you take all this information, and identify
specific target markets.
ie. University students who have part-time jobs,
and do not have credit cards

Stage V Select Specific Market Segments

Finally, you take all this information, and identify
specific target markets.
ie. University students who have part-time jobs,
and do not have credit cards

Stage IV Forecast Probably Market Share

Once the market potential has been estimated, you

have to determine how much of that market you can

obtain (what “market share” can you capture.

Then you develop specific marketing strategy for the

segments you are trying to develop.

Stage III Forecast Market Potentials

You create a “Forecast” of the market potential within

each segment.

This is the “go, no-go” stage. When you are at this

stage you gather the information on sales potential

to determine whether you can go further ahead and

justify further analysis. And we must say that

Forecast - “what if” - an expectation of future

Action.

Stage II Develop Relevant Profiles for each Segment

Once the segments have been identified you should develop a profile of the relevant customer

needs and behaviors in each segment. You must answers some question such as :

What does your customer look like (profile)!!?

What do they like!!?

What do they do!!?

- You need this description to be very precise in

order to make your marketing “match” the needs

of the customer

Bases of Segmenting

segments should be selected so that you
These segmentation variables can be used singly or in combination
Calls for dividing the market into different geographical units such as states, regions, countries and Neighborhood

• Region
•City or Metro size
• Density
• Climate

Demographic
• Age
• Family Size
• Family lifecycle
• Gender
• Income
• Education
• Occupation
• Religion
• Race
• Generation
• Social Class
• Nationality


Psychographic
• Lifestyle
• Personality
Behavioral
• Occasions
• Benefits (Unique
Selling proposition) Crest
• User status
• Usage Rate

• Loyalty Status: high-core
loyals –Split loyals
– Shifting loyals -
Switchers Buyer-readiness stage
• Attitude toward product

Stage I: Identify Market Segmentation Bases

This process starts when a company looks at the

Potential customers and identifies those

customers as having particular characteristics -

these characteristics will allow the marketing

Company to classify them into market segments.

The can group together customers who have similar needs.

Segmentation of Demand

Firstly we should ask why segmentation?

Segmentation:

A process of subdividing the market into

Distinct subsets of customers that behave

In the same way or have similar need

SWOT Analysis

STEP FOUR:Analyze the information

After collecting the data the researcher will tabulate the data & apply

Statistical methods & techniques

STEP FIVE:

Present the findings

The researcher should not overwhelm management with figures & statistical

Techniques but rather should present major findings that are relevant to the

Major marketing decisions facing management

STEP THREE: Collect the information

The third step in Marketing Research Process

Collect the information

The most expensive & the most prone to error:

- Some respondents will not be at home

- Some respondents will refuse to co-operate

- Some respondents will give biased answers

- Some interviewers will be biased & dishonest

contact Methods

How the Subject should be contacted, The choices are:

1- Mail Questionnaire: it is the Best way to reach people who would not give personal interviews or could be biased or distorted

By interviews

Telephone Interviewing:

It Is the Best method for gathering information quickly, but it has to be short & not too personal

Personal Interviewing:

Most expensive – additional observations – it is

Subject to interviewers bias or distortion

Sampling Plan

This plan calls for three decisions:

Sampling Unit “Who is to be surveyed “

Defining the Target population that will be sampled, where the sampling frame

Must be developed so that everyone in the population has an equal chance of

Being sampled

Sample Size how many people should be surveyed?

Larger samples are more reliable, however samples less than 1% of the

Population can give good reliability

Sampling Procedure

How should the respondents be chosen?

Research Instruments

1-Questionnaires: Consists of a set of questions presented to respondents for

Their answers, it the most common instrument used for

Collecting primary data for its flexibility

But for successful Questionnaires It Should be:

1- Carefully developed & debugged before administrated on a large scale

2- Carefully choosing questions wording & sequence

3 - Avoid repeated & boring questions - Choose simple and direct unbiased questions

4- Logical Order

Carefully choosing questions’ form

-Close-end questions: Have specific answers. (e।g।: Answered by Yes/No)

Open-end questions: Free to express thoughts. (How Interviewee thinks & Feel ,……etc

Develop the Research Plan

We know that The Marketing Manager needs to know the
Designing the Research plan calls for
Cost of the research plan before approving it

Designing the Research plan calls for decisions on:
1-data source
2-research Approaches
3-research Instruments
4-sampling plan
5- Contact method
Data Sources
The research plan can call for gathering primary data or secondary data or both
Primary Data: Data gathered for a specific purpose or a specific research project
Secondary Data: Data collected for another purpose & already exist somewhere
Sources of Secondary Data
- Internal Sources
- Government Publications
- Periodicals & Books
- Commercial Data

Research Approaches

Research Process

There are many steps but shortly ill talk about it

�� Step 1: Define the Problem, the

Decision Alternatives and the Research

Objectives

�� Step 2: Develop the

Research Plan

�� Data Sources (primary, secondary)

�� Research Approaches

�� Observational research

�� Focus group research

�� Survey research

�� Experimental research; Behavioral data

Marketing Myopia

What are business leaders myopic about?
Four self‐deceiving conditions causing firms to
believe that they are in a growth industry:
1. Expanding and more affluent population
2. No competitive substitutes
3. Mass production and declining unit costs
4. Preoccupation with the product
for example
When Henry Ford first created the Model T, he was the only
one mass producing cars. He didn’t have to think about
“The Marketing Concept.” But, as more and more
producers started making cars, they had to think about what
customers need and want in order to stay in business.

Marketing Core Concepts

�� Need: basic human requirements; a state of felt
Deprivation; Do marketers “create needs”??
�� Want: a specific object that can satisfy a need
�� Demands: wants for specific products backed by
an ability to pay
Marketing Planning 24

Marketing & Market Research

Market research on the eye of its leaders
“Marketing is becoming a battle based more on
Information than on sales power” (Kotler)
"Great wisdom not applied to action and behavior is
Meaningless data“ (Peter Drucker)
Research Defined
Systematic design, collection,
analysis, and reporting of data
and findings relevant to a specific marketing situation facing a company

Marketing MIX

Business Orientations to the Marketplace

Firstly we must know the the difference between:

Production concept: assumes consumers favor

those products that are widely available and

affordable. (Focus: wide distribution; high

volume).

2. Product concept: assumes consumers will favor

those products that offer the most quality,

performance, and features.

3.Selling concept: assumes that consumers will

either not buy or not but enough of the

organizations’ products unless the organization

makes a substantial effort to stimulate the

customer’s interest in the product. (Focus:

needs of the seller)

4.Marketing concept: holds that the key to

achieving organizational goals consists in

determining the needs and wants of target

markets and delivering the desired satisfactions

more effectively and efficiently than

competitors. (Focus: different needs of buyers)

5. Societal marketing concept: [adds to the

marketing concept the words] … for the

objective of preserving and enhancing the

consumer’s and society’s well being. (Focus:

needs of buyers and society)

Business Practices Changed

Business Practices Changed:
this compare between old economy new economy

old economy :

1 Organize by product units.
2 Focus on profitable transactions.
3 Look primarily at financial scorecard
4 Focus on shareholders
5 Marketing does the marketing
6 Build brands through advertising.
7 Focus on customer acquisition
8 No customer satisfaction measurement


New economy:



1 Organize by customer segments.
2 Focus on customer lifetime value
3 Look also at marketing scorecard g
4 Focus on stakeholders
5 Everyone does the marketing
6 Build brands through behavior
7 Focus on customer retention and growth
8 Measure customer satisfaction and
9 retention rate
10 Under‐promise, over‐deliver

What is Marketing

The development of definitions of marketing

MARKETING is the performance of business activities

that direct the flow of goods and services from

producers to consumers. (The 1935 Definition)

MARKETING is the process of planning and executing

the conception, pricing, promotion and distribution of

ideas, goods and services to create exchanges that

satisfy individual and organization objectives. (The 1985 Definition)

MARKETING is an organizational function and a set of

processes for creating, communicating and delivering

value to customers and for managing customer

relationships in ways that benefit the organization and

its stakeholders.

(The 2000 Definition)

Marketing on the eye of its leaders

Marketing on the eye of its leaders :

Kotler & Drucker on Marketing
The future is not ahead of us. It has already
Happened. Unfortunately, it is unequally
Distributed among companies, industries &
Nations
Peter Drucker:
The business enterprise only
has two basic functions:
marketing & innovation.

What marketing represent to Kotler
Human activity directed as satisfying needs and
wants through exchange processes.
�� For this exchange occur, there must be:
1 Two parties
2 Each with something of value to the other
3 Capable of communication and delivery
4 Free to accept/reject the offer
5 Agreement to terms
What is marketing? Is marketing selling?
Of course not but why? The actually said that
Selling is only the tip of the
iceberg
“There will always be need for
some selling. But the aim of marketing is to
make selling nonessential. The aim of
marketing is to know and understand the
customer so well & the product or service that
fits him and sells itself. Ideally, marketing
should result in a customer who is ready to
buy. All that should be needed is to make
the product or service available.”
Peter Drucker said

But finally thanks to Mr. Ramy Khodeir and his teamthey help me to prepare this study