Market Segmentation and Targeting

Name : Nur Khairunnisa Binti Murnisham (2010454022): Norhaslina binti Mohd Nor (2010839944):Nur Syahadah binti Mat Daud (2010619076)

Group : HM222/B

Semester : 1

Subject :MKT420 – Principles and Practices in Marketing

Lecturer : Associate Professor Hamidah Junid

Date of Submission : 30 September 2010

Content

No. Content Page

1. Acknowledgement 1

2. Introduction 2-3

3. Market targeting applied in selected shopping complexes 4-6

4. Market segmentation of products sold 7-18

5.Products offerings, pricing and in-store promotions in attracting the

different market segment19-21

6. Conclusion 22

Acknowledgement

We would like to show our gratitude to our lecturer, Associate Professor Hamidah Junid, whose encourages us, guides us and makes us understand how to complete the assignment.

We also want to thanks the shops owners and workers whose have given us the permission for us to observe their shops for our assignment.

We are also grateful to our friends whose supports us and helps us in numerous ways from the initial level to the final level of this assignment. This assignment would not be possible without their assistance.

Not to forget, our family whose are always supporting us and giving us inspiration to continue moving in our life.

INTRODUCTION We had visited Shah Alam Convention Centre, Plaza Alam Central and PKNS shopping

complex and observe the shops, restaurants and stores that offering various kind of products and

services to fulfill the needs and wants of the Shah Alam population.

We are observing the market targeting that applied in each shopping complex. Market

targeting is the process of evaluating each segment’s attractiveness and selecting one or more of

the market segments to enter. There are four coverage/alternatives of market targeting. They are

undifferentiated marketing, concentrated marketing, multi-segment /differentiated targeting and

micro-marketing.

Concentrated targeting involves organization its marketing efforts towards a single market

through one marketing. Concentration marketing has several advantages that are it allows firms

to specialize that has an opportunity to analyze the characteristic and needs of a distinct customer

group. It can direct all its efforts towards satisfying that group’s needs.

In multi-segment / differentiated targeting, the firms direct its marketing efforts at two or

more segments by developing a marketing mix for each selected segment and it has its own

advantages. they are a marketing firm’s policy can usually increase its in a total market by

focusing on more than one segment because the firm’s marketing mixes are being aimed at mare

people. Besides that, a firm with excess production capacity may find this policy advantageous

because the sales of products to additional segments may absorb excess capacity.

Marketers tailor their products and marketing programs to suit the needs and wants of

specific individual and local group in multi-marketing. Local marketing involves tailoring brands

and promotions to the needs and wants of local customer group, cities, neighbourhood and

specific stores. Individual marketing is tailoring products and marketing programs to the needs

and preferences is individual customers.

Then we are selecting two shops from each of the complex and highlight the bases used in

market segmentation of product sold. Market segmentation can be defined as dividing a market

into distinct groups of buyers who might require separate products or marketing mixes. We are

also comparing the three complexes shops products offering , pricing and in-store promotion to

attract the different market segment.

Hopefully, we can reach the target that required by our lecturer.

3

Question 1

The market targeting applied in each shopping complex to attract the different groups of customers in the Klang – Shah Alam area.

Shah Alam City Centre

Shah Alam City Centre is a shopping complex which targets people with high income as most the shops are famous for their high quality products.

Most shops in Shah Alam City Centre (SACC) apply multi-segment targeting. For example, MPH Bookstore sells different type of books for different market segments. They have novels for teenagers and adults, story books for children. They also have academic books for students and person who seeks for information. Different types of magazines for different interests.

Another shop that applies multi-segment marketing is Vincci, a shoes shop. Vincci has various designs of shoes which cater the needs of teenagers also adults. Those various designs are also provided from specialise events to daily use. The designs also fill in the different interests of the customers.

There are also shops that apply concentrated targeting although it looks like all shops are using multi-segment targeting. Example of shop that use concentrated targeting is Big Apple, a cafe which popular for their donuts. Their main product is only donuts which suitable for children, teenagers and adults. Big Apple is considered as concentrated targeting although they have different flavours of donuts. This is because all the donuts have the same price and quality.

Den Wahab Boutique is one of the shops in SACC that apply micro-marketing targeting. It is a boutique that only provides Baju Melayu and its accessories. The products provided in the shop suit adults men who wear Baju Melayu for any casual and formal events or even for daily use. Thus, the shop focuses on Malay men as their market segment.

Plaza Alam Central

Plaza Alam Central is one of Klang Valley’s favourite shopping centres because of the variety products offers.

The majority of shops in Plaza Alam Central use multi-segment targeting. For example, Al-Ikhsan that sells various types of sport products. They have different types of shoes with different prices for different interest. They also have variety design of sport t-shirt for various market segment. They do not focus on single gender as their market segment.

Cyber Optic is another example of shop that uses multi-segment targeting. They have various kinds of spectacles for different market segment. They also have specialised package for students. The products sold are from high end brand to the moderate brand. They also cater the needs of children who wear spectacles.

There are also shops that applying micro-marketing targeting such as First Lady. First Lady is a boutique that only caters the needs and desires of ladies. The products sold are focusing on traditional attire for ladies such as baju kurung and kebaya. Most of the product provided suitable for people who seek for attire for social event and functions.

PKNS Shopping Complex

PKNS Shopping Complex is a shopping complex that located beside the Taman Tasik Shah Alam. It’s one of the oldest shopping complex exist in Shah Alam.

The shops in PKNS Shopping Complex are mostly applying multi-segment targeting. One of shops is Gedung Harian. They have lots of products of different types to cater the needs and want of their customer. They have babies’ product, clothes for ladies, shoes, stationeries and etc. for different types of customer.

Jedan Collection is a boutique that using micro-marketing as their market targeting. The products provided are contemporary baju kurung and kebaya. Obviously shows that they cater the desires of ladies only. They do not produce large amount for a design on clothes as they only target the specific people.

Question 2

• Select two shops from each of the complex and highlight the bases used in market segmentation of products sold.

Shah Alam City Centre

MPH BOOKSTORE.

MPH Bookstore The bases uses in market segmentation are:• Geographic

• MPH Bookstore easily found in any town area including Shah Alam. They provide books for entertainment such as novels, comics and magazine to suit the desire of the teenagers that stay in Shah Alam. They also cater the need of university students in Shah Alam with reference books.

• Demographic • Age: The books provided suits all ages. They have books for

children who still schooling. Referent book for university student and political book for older people.

• Gender: Most of the books suit any gender. However, there are book provided specifically for certain gender such as magazine.

• Psychographic • Lifestyle: MPH Bookstore provides books for different

attitudes and interest. For example, teenager prefers to buy books that can entertain them such as novel.

• Social Class: Most of the books provided suit the taste of people with high social class.

• Behavioural• MPH bookstore provides books that have benefits to the

customer. For example, they provide motivation books for people who seek for it.

AL-AMIN KIDS.

AL-AMIN KIDS.

Al-Amin Kids The bases uses in market segmentation are: Geographic

Al-Amin Kids which is a boutique specialise for Muslims children. They focus in the geographical needs of Muslims people who are the majority in Shah Alam.

Demographic Age: Al- Amin Kids only caters the needs and wants of

children. There is no product provided for adults. Gender: The product are focusing for both gender, girl and

boy Ethnic: The product are segmented in order to fulfil Islamic

apparel especially for the Muslims. Psychographic Personality: Muslims people are really concern about their

entire look and take things important especially in their apparel restrict their belief. Muslims from wearing sexy attire and more toward moderation thus with Al-Amin Kids product, it will shows that the users are Muslims kid. The attire gives image to the kids that they are Muslims.

Lifestyle: Lifestyle is about the people’s attitudes, interests and opinions. Islam hold that their people must follow certain rules. In order to fulfil Islam wants, Al Amin offers product that are suitable for those who are muslim and suit their ways of life.

Behavioral Occasion: This product are suitable to wear in any other time,

place and purposes since it’s fulfil the Islamic’s guideline. Benefit sought: Al Amin has creates product that give

benefits to the muslims kid thus the producer has design a simple apparel for them since it’s target customer is kid. Al Amin also offer different types of attire such as swimsuits, pyjamas, T shirts, shoes and etc that goes same with Islam culture. We can find all sort of attire in Al Amin’s outlet that give benefit to the parent in saving their time.

PEACE COLLECTION.

PEACE COLLECTION.

Peace Collection The bases uses in market segmentation are:• Geographic

• Peace Collection is situated in Plaza Alam Central which is built at the centre of high population of people especially students. They need the collection that offers baju kurung as it is needed by them for casual attire in lecture or universities

• Demographic• Age and life cycle: The collection is design to cater the

need of teenagers and adults. This shop does not offer cloth for kids.

• Gender: The clothing that are offered are focusing for female customer since its only sell variety of baju kurung and scarf.

• Ethnic: The design of baju kurung is suitable for any ethnic that prefer baju kurung as their apparel since most of the buyers are students and working women with different ethnicity.

• Psychographic• Personality: Clothing that are offered in this shop will

determine the habits, attitudes and traits of the buyers. If the Malays wear baju kurung, it will shows that the user are still considering the traditional attire. But if the Chinese or Indians wear it, it shows that they are more patriotic and thought to be nationalistic.

• Behavioral• Occasion: Baju kurung is the national attire in Malaysia.

So, baju kurung is considered suitable for all types of events especially for formal purposes.

• Usage-rate: Most of the customer are former users that will usually go to the shop to get the latest design of baju kurung.

PLAZA ALAM CENTRAL

SRI ALAM BOOK CENTRE

Sri Alam Book Centre The bases uses in market segmentation are:• Geographic

• This bookstore caters for all areas but pay more attention to geographical needs of the majority Malay in Shah Alam by providing lots of Malay novels.

• Demographic• Age: It refers to the fact that consumer wants and

capasities can change and these reflect the stage of family developments. For example, this book store has provided many kind of book which is suitatble for children, teenagers and man and woman.

• Gender: Consumer, male and female may differ in the types of goods they consume especially in clothing. It has been practiced by many marketers especially in such product service categories as-Vogue, Wanita n Nona Magazines are meant for women and Pancing and Top Gear Magazines are meant for men.

Psychographic• Lifestyle: Lifestyle comprise of people's attitudes

according to the way they spend their time. For example, people who are working in Plaza Alam Central and love to read newspaper will buy the newspaper from this bookstore.

Behavioral• Most of the reader of magazines will regularly buy the

magazine every month.

PKNS SHOPPING COMPLEX.

KEDAI BUKU MARWILIS

KEDAI BUKU MARWILIS.

Kedai Buku Marwilis The bases uses in market segmentation are: Geographic

Marwilis bookstore provides various types of books but they offers more of religions books to caters geographical preferences of Muslim people in Shah Alam.

Demographic Age: This marketer supply books for all range of age but

most of the books provided suit adults wants, demand and desire.

Gender: The books provided in this bookstore mostly suit the both gender still there are certain books that focus on one gender such as ‘My Rides’ which suitable for men who love cars.

Ethnic: Most of the books provided are written in Malay language. It shows that they cater for Malays.

Psychographic Personality: The bookstore provides books for different

attitudes and habits. For example, a novel buyer is thought to be romantic.

Lifestyle: Most of the books provided caters the desire of people who search for religion books and this desire are existed depending on their lifestyle.

Behavioural Occasion: As there are many choices, people may get the

idea to buy the book at that time and buy it. Benefit sought: Books is filled with useful facts and

information. It depends on the customer what kind of fact and information they need.

CITRA MAJU COLLECTION

Citra Maju Collection The bases uses in market segmentation are: Geographic

PKNS Shopping complex located at Shah Alam, a city filled with Malays. Thus, Citra Maju Collection caters the needs and wants of Malay people in Shah Alam by providing traditional attire for ladies and men.

Demographic Age: Most of the products in this shop are cater for adults

but some of it suits the desire of teenagers. Gender: This boutique caters the needs for both genders,

men and ladies as they provide attire for both genders. Ethnic: Most of the clothes are specialize for Malays

although some of it can be wear by other races such as blouses for Indians and Chinese.

Psychographic Personality: As there are lots of formal attire in this

boutique, the person who will buy their product are people who have high self-esteem.

Lifestyle: The customers of this boutique are middle-aged people with stable job and income as the fashion presented of most products suitable for working environment and formal.

Behavioural Occasion: Customers whose attracted to the fashion and

style of the products provided will probably get the idea of buying the product at that time and directly buy it.

Benefit sought: The consumers that buy product from this boutique may though that the product they buy have benefits for them such as a formal attire that can be wear for formal occasion and casual events.

Question 3

Compare the three different complexes shops’ products offerings, pricing and in-store promotions to attract the different market segment.

Shah Alam City Centre (SACC)

Product Offerings SACC Mall offers various kind of products such as fabric, shoes, clothes, health product, and accessories. Almost all products provided are came from brands that are famous for their quality. Examples of shop that provide fabric is Gulatis Silk House. Vincci, Bata and Primavera are shops that produce shoes. Most of the shops cater the needs and wants of geographic segmentation, demographic segmentation, psychographic segmentation and behavioural segmentation. As an example, Vincci offers different kind of shoes with various designs to cater all market segmentations.

Pricing Most products in SACC Mall are more expensive that the other two shopping complexes around it. It is not a favourite shopping complex for students and people with low income. It is a choice for people with high income and searching for product which suits their lifestyle.

In-store promotions Most shops in SACC Mall promotes their new arrival products by placing them in front of the shops such as Vincci. It attracts the behavioral segmentation consumers. There also shops which give discount such as Primavera that gives discount 20% for the second item.

Plaza Alam Central

Product Offerings Plaza Alam Central famous products are technologies and gadgets such as laptops and phones. It becomes a choice for people who seek for technology-based products. However, they still provide other products such as shoes, clothes, fabric, and accessories. For example, Nagoya offers fabric as their main product. Eastwear offers clothing for girls and Hot Market offers accessories as their product. Most of the products are caters for moderate social class people as the products are produce in large scale and available in other areas. The products provided are also mostly suits teenagers and adults. There are less products offer for children.

Pricing The pricing are mostly moderate. It suits people with moderate income and students. Most prices of the products are affordable and reasonable. For example the phones in the 3rd floor are cheaper than usual shops in other places.

In-store Promotions Shops in Plaza Alam Central are mostly used discount for their in-store promotion. As an example, Nano Nano, a shoes shop give RM 5 less for the second item the consumer buys. It attract people who feel it worthy.

PKNS Shopping Complex

Product offerings PKNS shopping complex offers variety of clothes and accessories. It’s a place which is famous for traditional attire for special event or even daily use. Still, there are shops that provide different types of clothes. Most of the shops cater the needs and wants of ladies instead of men thus it attract women consumers. For examples, Jedan Collection Boutiques which offers only traditional attire for ladies. PKNS Shopping Complex also offers fast food restaurant despite the mushrooming of boutiques in the shopping complex. For example, Kentucky Fried Chicken (KFC) and Mc’ Donald. It attract teenagers and kids who love fast food.

Pricing The prices of products in PKNS are varies depending on the shops different from the two shopping complexes beside it. For example, Jedan Collection products are more expensive than other boutique as they do not produce product in large scale. Bata, as an example has moderate prices for their products.

In-store promotion Most shops use giving discount as their in-store promotion similar with the two other shopping complex. For example, XES Collection giving 50% discount for the second item bought by the customers. It attract the attention of people who demand for the shoes.

CONCLUSIONFrom all the observation and research, we can identified the market targeting that was

applied in each shopping complex. We also had selected two shops from each of the complex

and had highlight the bases used in market segmentation of products sold based on the bases of

segmenting consumer markets. They are geographic segmentation, demographic

segmentation,psychograpic segmentation and behavioral segmentation. Lastly, we also can

manage to compare the three different complexes shops products offerings, pricing, and in-store

promotions. Finally, we manage to collect and compile this information once.