NATIONAL COLLEGE OF BUSINESS ADMINISTRATION & ECONOMICS
(ALHAMRA UNIVERSITY – MAIN CAMPUS)
Course: Marketing Management
Assignment Title: Open-Book Assignment: Market Segmentation
Student Name: Muhammad Uzair
Registration #: 2253545
Section: 1FBA3
Q1. Define Market Segmentation. (4 marks)
Answer: Market segmentation is the process of dividing a large market into smaller groups of
customers who want the same things, have similar traits, or behave in the same way. Businesses
don't treat all of their customers the same. Instead, they put them into groups so they can come
up with better products and marketing strategies.
Segmentation is used because not all customers want the same things. By learning about each
group, companies can better meet their needs.
Benefits of segmentation:
1. Better marketing: Businesses can make ads that are more relevant to certain groups instead
of wasting money on everyone.
2. Happier Customers: When items and communications meet their needs, customers are more
likely to buy again.
Q2. Explain the Four Main Types of Segmentation. (6 marks)
Answer:
1. Dividing by Demographics:
This groups customers by things like their age, gender, income, education, family size,
and more.
For example, a company that sells diapers for newborns usually targets parents of babies
who are between the ages of 25 and 40.
2. Segmentation based on psychographics:
This is based on how you live, who you are, what you value, what you enjoy doing, and
what you believe.
For instance, a fitness brand targets people who care about their health and enjoy being
active.
3. Geographic Segmentation:
Customers are split into groups based on where they live, such as their country, city,
climate, or region.
For example, a clothing store in a colder city like Murree or Gilgit sells big winter jackets.
4. Behavioral segmentation:
Behavioral segmentation looks at how customers act, such as how often they use a
product, how loyal they are, what perks they want, or when they buy something.
For instance, food delivery apps give people who use them a lot discounts to keep them
coming back.
Q3. Segment a Real Brand’s Market (Brand: Nike). (5 marks)
Answer:
a. Who do they want to reach?
Nike's goals are:
• Age group: Men and women between the ages of 15 and 40.
• Psychographic: People who are active and care about sports and fitness.
• Behavioral: athletes who care about how well they do and people who buy sportswear
regularly.
• Geographic: Cities where people like to play sports and go to the gym.
b. How does Nike's product, price, or promotion show this split?
• Nike makes high-performance athletic shoes for people who care about their health. • Their
prices are high, which is good for people who care about quality and brand image. • Their ads
use athletes and motivational themes to talk directly to fitness-minded customers.
c. For example:
1. Nike's "Just Do It" campaign is aimed at people who are active and have goals
(psychographic).
2. Nike Air Max shoes are made for young people who live in cities and care about how they
look and feel (demographic + geographic).
Q4. Design a New Product and Segment Its Market. (5 marks)
Answer: A new product is the "HydraSmart Bottle," a smart water bottle that uses an app to
keep track of how much water you drink every day.
a. I will use two bases to divide up:
1. Dividing people into groups based on their age and income
2. Psychographic Segmentation (a way of life that is good for you)
a. A description of the group you want to reach:
• Age: 18 to 40
• Lifestyle: People who go to the gym, work in an office, are students, or care about their health
• Location: Big cities like Karachi, Lahore, and Islamabad
• Behavior: People who like smart devices and want to drink more water
c. Why this group of people is a good fit:
This group is a good fit because they: • Buy fitness-related products often • Like smart
technology • Live busy lives and need reminders to drink water • Are willing to pay for new and
useful things.