The Pakistani market has a large young population, with over 60% under the age of 30, and an average household size of over 6 people, presenting opportunities for segmenting based on age and family structure. It has a growing middle class but still significant income disparities across regions, allowing for segmentation by income level. Gender roles remain traditional in many areas of Pakistan, influencing the products and services women and men demand.

1. Chapter 2

2. Market Segmentation
 Also known as mass marketing or undifferentiated
marketing.
 “Producing a single product and offering it to all
consumers with a single marketing program”.
 Opposite of segmentation.

3. Characteristics
 Offering standard product.
 Little or no change from competition.
 Heavy use of mass promotion.
 Distinguishing the product as being superior.
 Products are as per the choice of producers not
consumers.

4. Market Segmentation
 “Dividing the market into different segments.”
 Today is the “Age of Diversity.”
 All consumers are different.
 So are their demands.
 Selecting the right segment is the key to success.

5. Characteristics
 Viewing market as being made up of small segments.
 Homogeneous within the segment.
 Heterogeneous with other segments.
 Different products are produced for different people.
 E.g. General Motors, P&G etc

6. Benefits of Market Segmentation
 Know what consumers WANT.
 Fewer and similar consumers.
 Detailed knowledge of consumers characteristics.
 Consumer database is also built and used.
 Results in more profits.
 Niche Marketing is also an example.

7. Costs of Market Segmentation
 Shorter production.
 Higher manufacturing costs.
 Higher R&D costs.
 Higher promotional costs.
 Cannibalization.

8. Criteria for Effective Segmentation
1. Identifiable and Measurable.
2. Accessible
3. Substantial
4. Responsive

9. Performing Market Segmentation
1. Define the Problem.
2. Select a segment basis.
(In advance or Natural Groupings)
3. Choose a set of Descriptors.
4. Select a Sample of Consumers.
5. Collect data on segment descriptors from sample of
consumers.

10. 6. Form Segment based on chosen consumer
descriptors.
7. Establish profiles of segments.
8. Translate result into marketing strategy.

11. Demographic Characteristics and
Market Segmentation
Demography is the study of human population
statistics. Like;
 Age
 Size
 Gender
 Occupation
 Income etc.

12. Assignment no 1
What are the Demographic Characteristics of Pakistani
Market? Explain in detail.