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OUTLINEIntroductionBrief HistoryMissionGoalsObjectivesStructureGovernanceFunctionsMembershipInstitutions of World BankRole of World Bank in developing CountriesResources of World BankConclusionReferences

IntroductionAn international organization dedicated to providing financing, advice and research to developing nations to aid their economic advancement.

Brief HistoryThe World Bank Group (WBG) was established in 1944 to rebuild post-World War II Europe under theInternational Bank for Reconstruction and Development(IBRD) in Breton Wood Conference.The World Bank officially began operations in June 1946.Beginning in the mid-1950s, it played a major role in financing investments in infrastructural projects in developing countries, including roads, hydroelectric dams, water and sewage facilities, maritime ports, and airports.Since its inception, the World Bank has lent and given grants and credits worth $400 billion.TheInternational Bank for Reconstruction and Development(IBRD), established in 1945

ContTheInternational Finance Corporation(IFC), established in 1956TheInternational Development Association(IDA), established in 1960theInternational Centre for Settlement of Investment Disputes(ICSID)TheMultilateral Investment Guarantee Agency(MIGA), established in 1988.

MissionThe World Bank Groups mission is to reduce poverty and encourage economic growth and thereby contributing to the achievement of the Millennium Development Goals. Through its five institutions, the World Bank Group works in more than 100 developing economies, providing loans, grants, policy advice, and technical assistance to improve living standards and eliminate poverty.

GoalsEradicate extreme poverty and hungerAchieve universal primary education Promote gender equality and empower womenReduce child mortality Improve maternal healthCombat HIV/AIDS, malaria and other diseasesEnsure environmental sustainabilityDevelop a global partnership for development

ObjectivesTo assist in the reconstruction and development of territories of members by facilitating the investment of capital for productive purpose.To promote private investment by means of guarantee or participation in loans and other investments made by private investors.When private capital is not available on reasonable terms, to supplement private investment by providing on suitable conditions finance for productive purpose out of its own capital funds raised by it and its other resources.To promote the long-range balanced growth of international trade and the maintenance of equilibrium in balances of payments by encouraging international investment for the development of the productive resources of members, thereby assisting in raising productivity, the standard of living, and conditions of labor in their territories.

Cont.To arrange the loans made or guaranteed by it in relation to international loans through other channels so that the more useful and urgent projects, large and small alike, will be dealt with first.To conduct its operations with due regard to the effect of international investment on business conditions in the territories of members and in the immediate post war years, to assist in bringing about a smooth transition from a war time to peace time economy.

Structure of WB

GovernanceIt is directed by board of governors composed of one representative from each member country, and the governors direct the IBRD based on weighted voting rights that are determined by each country's agreed annual contributions to the World Bank.The United States is the largest contributor and has the most weighted voting powerTwenty-four executive directors oversee the daily operations of the World Bank, including five permanent spots given to the United States, Japan, Great Britain, Germany, and France.Twenty-four executive directors oversee the daily operations of the World Bank, including five permanent spots given to the United States, Japan, Great Britain, Germany, and France.

Cont..In total, the World Bank has more than 10,000 employees, spread out over 100 offices around the world and headquartered in Washington, D.C.

Functions of World BankGranting reconstruction loans to war devastated countries. Granting developmental loans to underdeveloped countries. Providing loans to governments for agriculture, irrigation, power, transport, water supply, educations, health, etc Providing loans to private concerns for specified projects. Promoting foreign investment by guaranteeing loans provided by other organizations. Providing technical, economic and monetary advice to member countries for specific projects Encouraging industrial development of underdeveloped countries by promoting economic reforms.

Institutions of World BankHiroshi Naka is the current Vice President of World Bank while Dr. Jim Yong Kim is the president.

A family of five international organizations that make leveraged loans to poor countries:

International Bank for Reconstruction and Development (IBRD)International Development Association (IDA)International Finance Corporation (IFC)Multilateral Investment Guarantee Agency (MIGA)International Centre for Settlement of Investment Disputes (ICSID)

International Bank for Reconstruction and Development (IBRD)

IBRD offers loans, guarantees, and analytical and advisory services to middle-income countries and creditworthy poorer countries.It provides its clients with access to capital on favorable terms in larger volumes, with longer maturities and in a more sustainable manner than the market. IBRD raises most of its funding by selling bonds on the international capital markets.

International Development Association (IDA)

IDA provides grants and loans with 40 year maturity and no interest to the poorest countries.IDA credits are granted to developing countries with a GDP per capita of less than $1,135, and which do not or only to a limited extend have access to commercial lending and IBRD loans.In the fiscal year of 2011 IDA made commitments amounting to $16.3 billion for 228 new operations.

International Finance Corporation (IFC)

IFC facilitates private investment in regions and sectors not otherwise favored by private investors. IFC is the largest single publicly funded source of financing of investments in the private sector in developing countries. It invests in and provides loans to private enterprises.IFC invests in projects which are considered commercially sustainable, but cannot obtain financing or technical assistance from other sources.

Multilateral Investment Guarantee Agency (MIGA)

MIGA supports foreign investment in the developing countries by insuring against non-commercial risks, such as political unrest, currency constraints etc.Through emission of guarantees, counseling and legal assistance, MIGA helps developing countries to attract and retain private investment.International Centre for Settlement of Investment Disputes (ICSID)

ICSID is an international organ for settlement of disputes arising in connection with foreign investments in the member states of the Bank.It intermediates in investment disputes between a government and a private foreign investor.

Membership of World BankCurrently IBRD has 188 Members Countries which is the Primary part of World BankTo become a member, however, a country must first join theInternational Monetary Fund(IMF). The cost of a subscription to the World Bank is a factor of the quota paid to the IMF.There is an obligatory subscription fee, is equivalent to 88.29% of the quota that a country has to pay to the IMF.A country is obligated to buy 195 World Bank shares (US$120,635 per share, reflecting a capital increase made in 1988).0.60% must be paid in cash in U.S. dollars while 5.40% can be paid in a country's local currency, in U.S. dollars, or in non-negotiable non-interest bearing notes.

Cont..The 195 shares are Callable capital act as a reserve in World Bank .A country can subscribe a further 250 shares, which do not require payment at the time of membership but are left as "callable capital.The president of the World Bank comes from the largest shareholder, which is the United States, and members are represented by a Board of GovernorsThe five largest shareholders - the U.S., U.K., France, Germany and Japan - each have an individual ED, and the additional 19 EDs represent the rest of the member states as groups of constituencies.China, Russia and Saudi Arabia have opted to be single country constituencies, which mean that they each have one representative within the 19 EDs.

Resources of World BankIBRD ResourcesIDA Resources

IBRD ResourcesIBRD issues bonds in international capital markets and provides loans, guarantees, and other risk management products, as well as technical assistance for economic reform projects and programs to middle-income countries and creditworthy low-income countries.In fiscal 2014, it raised USDeq 51 billion by issuing bonds in 22 currencies.IBRD has AAA credit RatingIBRDs equity comprises primarily paid-in capital and reserves. Subscribed capital is expected to increase by $87.0 billion, of which $5.1 billion will be paid in over a five-year period. As of June 30, 2014, the cumulative increase in subscribed capital totaled $42.6 billion. Related paid-in amounts in connection with the capital increase were $2.5 billion.

Cont..Of fiscal 2013 allocable net income, the Board of Executive Directors approved the addition of $147 million to the general reserve and recommended to the Board of Governors the transfer of $621 million to IDA and the allocation of $200 million to surplus.One summary measure of IBRDs risk profile is the ratio of equity to loans, which is closely managed in line with its financial and risk outlook. This ratio stood at 25.7 percent as of June 30, 2014.As one of the pioneers of the green bond market and one of the largest issuers of green bonds, IBRD has raised USDeq over $6.3 billion in 66 green bond transactions denominated in 17 currencies since its first green bond was issued in 2008.


IDA ResourcesIDA is financed largely by contributions from partner governments. Additional financing comes from transfers from IBRDs net income, grants from the International Finance Corporation (IFC), and borrowers repayments of earlier IDA credits.Every three years, partner governments and representatives of borrower countries meet to agree on IDAs strategic direction, priorities, and financing for the subsequent three-year implementation period.During the IDA16 Replenishment amounted to 33.8 billion in Special Drawing Rights (SDR) (equivalent to $50.8 billion). Of this amount, SDR 31.7 billion (equivalent to $47.6 billion) was made available, including unqualified partner contributions of SDR 16.7 billion (equivalent to $25.1 billion) from 46 countries and contributions to the Multilateral Debt Relief Initiative (MDRI) of SDR 2.2 billion (equivalent to $3.3 billion).

ContIDA16 funding also included credit reflows of SDR 8.9 billion (equivalent to $13.4 billion); fully paid contributions from IBRD and IFC, including associated investment income, of SDR 1.8 billion (equivalent to $2.7 billion); and balances carried forward from prior replenishments of SDR 2.0 billion (equivalent to $3.0 billion). IDA16 special themes included crisis response, gender, climate change, and fragile and conflict-affected situationsThe process for the IDA17 Replenishment (IDA17), which will cover fiscal years 201517, was completed in December 2013. The record envelope of SDR 34.6 billion (equivalent to $52.1 billion) represented an increase over IDA16 of 5.3 percent in SDR terms (5.7 percent in U.S. dollar terms), as agreed upon at the final IDA16 pledging session.

Cont.Forty-seven partners, three of which are new contributing partners, pledged SDR 17.3 billion (equivalent to $26.1 billion) in grants, of which SDR 0.6 billion (equivalent to $0.9 billion) is the grant element from concessional partner loan contributions.Contributions from World Bank Group resources, through transfers from IBRD and IFC, including associated investment income, are planned at SDR 2.1 billion (equivalent to $3.2 billion); such transfers are approved annually by the IBRDs Board of Governors and the IFCs Board of Directors, based on evaluations of the institutions annual results and financial capacities.


sustaining high and broad based growth, and improving competitivenessimproving governanceimproving lives and protecting the vulnerable

Significance of the topic Role of World Bank towards Developing economics: A case study for PakistanThe significance of the topic is because Pakistan is a Developing EconomyThere are several development projects which are financially supported by world bankActive projects 47Closed projects 275Dropped projects 32Projects in Pipeline 7

7 Projects in Pipeline and commitment Amounts in U.S. million $ for Pakistan

Sindh Global Partnership for Education Project 66.0

PK Sindh Public Sector Management Reform Project 50.0

PK-Sindh Barrages Improvement Phase I Project 160.0PK: Sindh Agricultural Growth Project 76.4

National Immunization Support Project 50.0

Global Partnership for Education - Balochistan Education Project 34.0

Enhanced Nutrition for Mothers and Children 36.24

Dasu Hydropower Stage I Project 588.4IDA Partial Credit Guarantee for Dasu Hydropower Phase-I Project 460.0Power Sector Reform: Development Policy Credit 600.0PK Fiscally Sustainable and Inclusive Growth DPC 400.0MDTF KP Emergency Roads Recovery Project 9.0MDTF KP Emergency Roads Recovery Project 9.1Pakistan: Punjab Public Management Reform Program 50.0Competitive Industries Project for Khyber Pakhtunkhwa 9.0Punjab Health Sector Reform Project 100.0Pakistan: Second Sindh Education Sector Project 400.0

47 Active Projects and commitment Amounts in U.S. million $ for Pakistan year 2013-14

CriticismParticipation with IMFEnvironmental and Social Concerns Over Burden of DebtAn Agency of US and Collation powers

ConclusionIt is not surprising that there is a clash of opinion over how aid is given. Indeed, those that offer assistance are going to want to have a say in how the loans are used and what kind of economic policies are fostered in a country's developmental process. Many developing and poor nations, however, are stuck in an enormous of debt and impoverishment, no matter how much assistance they receive. Given this, we may need to remember that the process of aid is also a developing state, in which both the giver and the receiver should be helping each other reach a poverty-free world. ConclusionSegmentation is a tool for a company to identify its potential customers among heterogeneous group of peopleHere we select the homogeneous group of people in order to target themSegmentation can be a powerful tool toward increasing company sale and increase of customers .At the same time it can be a costly act if the company marketing management is failed to manage it.

Imad Ali Khan (09)Central BankCentral Bank:

Central Bank is the reserve bank of a country which has the authority of regulating commercial banks which are registered with central bank.It also regulate money supply and in the economy and responsible of holding foreign reserves.

Central bank is responsible for issuing interest rate policy to be followed by the commercial banks and to keep certain amount of money with the central bank for reserve requirement.Central bank also regulates and monitors the foreign trade.HistoryHistory:Before the world war 1st there were only few countries which had their own central banks.After the war, the number of central banks has increased and now there is not a single country in the world which does not have its own central. There were many considerations regarding the establishment of a central bank. After the 1st War, there was complete confusion in currency and exchange markets. The central bank of Pakistan named State Bank of Pakistan was established in July 1, 1948. It is the main monetary authority in our country. According to the State Bank of Pakistan Act 1956, the SBP is charged with regulating the monetary and credit system of Pakistan.

FunctionsFunctions of SBP:Like any other Central Bank, State Bank of Pakistan have its roles and functions to perform.

Primary Functions:Including Issue of Notes.Regulation and Supervision of the Financial System.Bankers Bank.Lender of the Last Resort.Banker to Government.Conduct of Monetary Policy.The Secondary Functions:Functions like Management of Public Debt.Management of Foreign Exchange. EtcAdvising the Government on Policy Matters.Maintaining Close Relationships with International Financial Institutions

Instruments of Central BankDirect Instruments:Direct instruments are those directives which are given by the central bank to control the quantity or price (interest rate) of money deposited with commercial banks (and sometimes other financial institutions) and credit provided by them. Examples of Direct Instruments are:Interest Rate ControlsCredit CeilingsDirected LendingStatutory Liquidity RequirementsReserve Requirements:Reserve requirements are the percentage of commercial banks liabilities (or some sub-set thereof) which they are required to hold as reserves at the central bank.Cash Reserve Requirement (CRR):Under this requirement, banks are required to keep a weekly average balance of 7% of their total demand liabilities with the SBP, subject to daily minimum balance of 6% of total demand liabilities.Statutory Liquidity Ratio:Commercial banks are required to keep some fraction of their assets in the form of cash, Treasury Bills (T-Bills) or other approved securities. This fraction is called Statutory Liquidity Ratio.

Instruments2. Indirect Instruments:SBP uses targeting monetary aggregates for its monetary management function, So Indirect instruments are used for controlling price or volume of the supply of its own liabilities.Examples of Indirect instruments are

1.T-Bill Auctions:

2.Open Market Operations (OMOs):

3. Discounting Facility (3-Day Repo):

4. Exchange Rate Management:Salman Khan (06)

Monetary PolicyWhat is Monetary Policy?? It is the process by which the central bank or monetary authority of a country regulates (i) the supply of money (ii) availability of money and (iii) cost of money or rate of interest in order to attain a set of objectives oriented towards the growth and stability of the economyMonetary policy Monetary policy is one of the tools used to control the supply and availability of money, to influence the overall level of economic activity in line with its political objectives. Usually this goal is "macroeconomic stability" - low unemployment, low inflation, economic growth, and a balance of external payments. Monetary policy is usually administered by a Government appointed "Central Bank.

What is Monetary Policy??It is concerned with the changing the supply of money stock and rate of interest for the purpose of stabilizing the economy by influencing the level of aggregate demand. At times of recession monetary policy involves the adoption of some monetary tools which tends to increase the money supply and lower interest rate so as to stimulate aggregate demand in the economy. At the time of inflation monetary policy seeks to contract aggregate spending by tightening the money supply or raising the rate of return.

Monetary policy providesa) an overview of economyb) specifies measures that SBP intends to take to influence suchkey factors likemoney supply.interest rates.inflationc) lays down norms for financial institutions like banks, financial companies etc. relating to CRR, capital adequacy

Monetary policy & InflationWhen inflationary pressures build up: raise the short-term interest rate (the policy rate)which squeezes consumption and investment.

Umair Khan (08)Monetary Policy InstrumentsOpen Market OperationsBank rateCash Reserve RatioStatutory Liquidity Ratio

Open Market Operations OMOs are the means of implementing monetary policy by which a central bank controls the nations money supply by buying and selling government securities, or other financial instrumentsWhat is the outcome on account of OMO? When the SBP buys bonds from the market and infuses liquidity, the consequences are:It tends to soften the interest ratesIt enables corporate to borrow at favorable interest ratesIt may tend to increase inflationConsequently If the SBP were to sell bonds instead and suck in liquidity, the effect would exactly be the opposite!!

Bank rate Rate at which Central Bank lends money to commercial Banks

The bank rate signals the central bank's long-term outlook on interest rates. If the bank rate moves up, long-term interest rates also tend to move up, and vice-versa.

Any increase in Bank rate results in an increase in interest rate charged by Commercial banks which in turn leads to low level of investment and low inflation

Cash Reserve RatioIt refers to the cash which banks have to maintain with SBP as certain percentage of their demand and time liabilitiesAn increase in CRR reduces the cash with commercial banks which results in low supply of currency in the market, higher interest rate and low inflationStatutory Liquidity RatioIt is the percentage of total deposits commercial banks have to invest in government bonds and other approved securities. SBP in November cut the SLR for banks by one percentage point and it now stands at 24% of their total demand and time deposit liabilities Objectives of SLRTo restrict expansion of Bank creditTo augment banks investment in government securitiesTo ensure solvency of banksWhat is Money Supply?Money supply is one of the important indicator of macroeconomic environment

This refers to the total volume of money circulating in the economy at a point in time.

Money supply in an economy determines liquidity conditions in the market, which in turn impacts interest rate structure and hence the cost of capital to the firms.

What cause increase in money supply?? SBP has the power to print notes, they can hence release more money into the economy.

However it is only partly true. Such a process cannot be sustained as more notes for the same quantity of physical goods in the economy will only bring down the value of the currency and hence will not benefit anyone.

After all increase in money supply should be done with an objective to benefit the economy as a whole by protecting the value of the currency. So, a government has to exercise restraint in printing notes.Salman Khan (06)Factors affecting Money supply Bank credit

Deficit financing

Foreign exchange reserves

Government Expenditure

Why Is Money Supply Important?

An increase in the supply of money works both through interest rates, which spurs INVESTMENT, and through putting more money in the hands of consumers, making them feel wealthier, and thus stimulating spending. Business firms respond to increased sales by ordering more raw materials and increasing production. The spread of business activity increases the demand for labor and raises the demand for capital goods. In a buoyant economy stock market prices rise and firms issue equity and debt. If the money supply continues to expand, prices begin to rise, especially if output growth reaches capacity limitsCauses of InflationInflation due to Monetary expansion (Monetary inflation)Inflation due to rise in real aggregate demand (Real inflation)Inflation due to contraction in Aggregate Supply

Objectives of Monetary Policy

To ensure the economic stability at full employment or potential level of output. To achieve price stability by controlling inflation and deflation. To promote and encourage economic growth in the economyRole of Monetary policyProblem: Recession and unemployment Expansionary monetary policyMeasures: Central bank buys securities through open market operation Reduces cash reserves ratio Lowers the bank rate Leads toMoney supply increases Investment increasesAggregate demand increasesAggregate output increases by amultiple of the increase in investment Tauqeer (11) Thank you

ISLM Model Aggregate Demand and Supply, Monetary and Fiscal PolicyBy: Muhammad Owais KhanGroup Members

By: Muhammad Owais KhanISLM MODEL ISLM Curve;By: Muhammad Owais Khan

ISLM MODEL Aggregate Demand;

Y = C + I + G + NXBy: Muhammad Owais Khan

ISLM MODEL Aggregate Demand;

C = a + (mpc x Y )By: Muhammad Owais KhanISLM MODEL C = a + (mpc x Y )

By: Muhammad Owais KhanTABLE 1Consumption function : Schedule of Consumer Expenditure C when mpc = 0.5 and a = 200 ($ billion)Point in Figure 1Disposable Income YD (1)Change in Disposable Income YD (2)Change in Consumer Expenditure C (0.5 x YD) (3)Consumer Expenditure C (4)E0--200 (= a)F400400200400G800400200600H1,200400200800ISLM MODEL Consumer ExpenditureC = a + (mpc x Y )By: Muhammad Owais Khan74ISLM MODEL Planned Investment SpendingBy: Muhammad Owais KhanISLM MODEL Equilibrium and the Keynesian Cross DiagramBy: Muhammad Owais KhanISLM MODEL By: Muhammad Owais KhanISLM MODEL Government RoleBy: Muhammad Owais KhanISLM MODEL Role of International TradeBy: Muhammad Owais KhanISLM MODEL Equilibrium in Goods Market, the IS Curve

Interest Rate

IS I/SBy: Muhammad Owais KhanISLM MODEL Interest Rate & Planned Investment Spending

Interest Rate

I IBy: Muhammad Owais KhanISLM MODEL Interest Rate & Net Exports

Interest Rate

NX NXBy: Muhammad Owais KhanISLM MODEL IS Curve Derivation

By: Muhammad Owais Khan

ISLM MODEL Shifts in IS Curve

By: Muhammad Owais KhanAn increase in Shift the IS CurveReasonExpected Future OutputUp and To the RightConsumption rises, savings falls, interest rate risesWealthUp and To the RightGovernment PurchaseUp and To the RightExpected Future MPCUp and To the RightInvestment increases, interest rate risesTaxNo ChangeIf the consumers think that in future they will get an equivalent amount of tax-cutDown and to the LeftIf the consumers reduce consumption because of the taxISLM MODEL Equilibrium in Money Market, the LM Curve

Interest Rate

LM YBy: Muhammad Owais KhanISLM MODEL LM Curve Derivation

By: Muhammad Owais Khan

ISLM MODEL ISLM in Relation with aggregate output and Interest Rate

By: Muhammad Owais Khan



5/30/201589Business Buying Behavior process What is business buying processBusiness buying process is the process where business buyers determine which products and services are needed to purchase and then find, evaluate, and choose among alternative brands.

5/30/201590Business buyer behavior refers to the buying behavior of the organizations that buy goods and services for use in production of other products and services that are sold, rented, or supplied to others. Also included are retailing and wholesaling firms that acquire goods to resell or rent to others for profit.

Business Buyer Behavior6-9The Buying Organization

Model of Business Buyer BehaviorMarketing andOther Stimuli

Buyers Response

ProductPricePlacePromotionEconomicTechnologicalPoliticalCulturalInterpersonal and Individual InfluencesOrganizational InfluencesProduct or Service ChoiceSupplier ChoiceOrder QuantitiesDelivery Terms and TimesService TermsPaymentThe Buying Center

Buying DecisionProcess5/30/201592A Model of Business Buyer BehaviorThis CTR corresponds to Figure 6-1 on p. 173 and the material on pp. 172-173. A Model of Business Buyer BehaviorThe Environment. The business buyer operates in a competitive environment consisting of two categories: Marketing Stimuli. Marketer controlled stimuli consist of the product, place, price, and promotion. Other Stimuli. As with consumer markets, other stimuli consist of the forces in the economic, technological, political, cultural, and competitive environments. However, group membership in the business organization and participation in the business buying process affects how these environmental forces influence decision making.The Buying Organization. The buying organization is influenced by the overall organization -- its corporate culture and values, traditions, and procedures and regulations. The buying center and the business buying decision process also differs from consumer buying influences and is discussed on a following CTR.Buyer Responses. Buyer responses in business buying situations often consist of more alternatives than those available to consumers. Supplier choice, order quantities, delivery terms, service options, and payment terms are often more negotiable than they are to the consumer.

Consumer BehaviorMarket Segmentation94MARKET SEGMENTATIONBy-Kashif Hussain (27)Aisha Gul (25)Shayan Khan (24)Naeem Abbas (03)Aizaz Ali (15)ContentsWhat is Market Segmentation?Why segmentation? What are the requirements of Segmentation?Benefits & Limitations of SegmentationSegmenting Consumer Markets - Geographic Segmentation - Demographic Segmentation - Psychographic Segmentation - Behavioural Segmentation

Market Segmentation Market Segmentation is the sub-dividing of customers into homogenous sub-set of customers where any sub-set may conceivably selected as market target to be reached with distinct Marketing Mix Philip KotlerThe process of dividing a potential market into distinct subsets of consumers and selecting one or more segments as a target market to be reached with a distinct marketing mix.Market Segmentation is the process of splitting customers, or potential customers, in a market into different groups, or segments, within which customers share a similar level of interest in the same or comparable set of needs satisfied by a distinct marketing proposition.Segmentation is essentially the identification of subsets of buyers within a market that share similar needs and demonstrate similar buyer behaviour. The world is made up of billions of buyers with their own sets of needs and behaviour. Segmentation aims to match groups of purchasers with the same set of needs and buyer behaviour. Such a group is known as a 'segment'.

Requirements of Market Segments

In addition to having different needs, for segments to be practical they should be evaluated against the following criteria:Identifiable: the differentiating attributes of the segments must be measurable so that they can be identified.Accessible: the segments must be reachable through communication and distribution channels. Measurable: It has to be possible to determine the values of the variables used for segmentation with justifiable efforts. This is important especially for demographic and geographic variables. For an organization with direct sales (without intermediaries), the own customer database could deliver valuable information on buying behaviour (frequency, volume, product groups, mode of payment etc.).Substantial: the segments should be sufficiently large to justify the resources required to target them.Unique needs: to justify separate offerings, the segments must respond differently to the different marketing mixes.Durable: the segments should be relatively stable to minimize the cost of frequent changes.

Process of Market SegmentationIdentify the wants and needs of the customers which are not satisfied in a market.Identifying the characteristics that distinguish segments (age, gender, likes and dislikes).Identify the size of the segments and estimate demand for the product (Sales).

Benefits and LimitationsBenefits:The Organisation gets to know its customers better.Provides guidelines for resource allocation.It helps focus the strategy of the organisation.

Limitations:Targeting multiple segments increases marketing costs.Segmentation can lead to proliferation of products.Narrowly segmenting a market can hamper the development of broad-brand equity.

Why Segmentation?To develop marketing activitiesIncrease marketing effectiveness Generate greater customer satisfaction Create savings To identify strategic opportunities and nichesAllocation of marketing budgetAdjustment of product to the market needTo estimate the level of sales in the marketTo overcome competition effectivelyTo develop effective marketing programmesTo contribute towards achieving company goals

Bases for Segmentation in Consumer Markets

Geographic SegmentationWhen a business divides a market into different geographical units, it is called geographical segmentation. For example, some biscuit producing companies sell high quality biscuits in the urban areas of Pakistan and low quality biscuits in the rural areas.Geographic Segmentation The following are some examples of geographic variables often used in segmentation.Region: by continent, country, state, or even neighbourhood. E.g. New England, Middle Atlantic, and othercensus regions

Size of metropolitan area: segmented according to size of population. Under 25,000; 25,001-100,000; 100,001-500,000; 500,001-1,000,000; etc.

Population density: often classified as urban, suburban, or rural.Climate: according to weather patterns common to certain geographic regions. Hot, cold, sunny, rainy etc.

Geographic Segmentation(Example)Nestle Mineral Water Company, in Pakistan decided to divide the Karachi Market (Capital City of Sind Province) into segments on the basis of Geography , and Geographic Segmentation was done. Karachi Market was divided into Rural, Urban and Sub-Urban Areas. Individuals needs and wants of clean drinking water were identified in Urban Areas, Rural Areas and Sub Urban Areas. Individuals living in those areas wanted clean drinking water plants in their local areas. According to the needs and wants of the consumers living in Rural Areas, Urban Areas and Sub-urban areas, clean drinking water plants (Mini-size) were established in the locales (Streets) etc.

Demographic SegmentationWhen a business divides a market on the basis of variables such as age, gender, income etc., it is called demographic segmentation. In Pakistan, high income consumers are offered Mach 3 Turbo by Gillette and low income consumers are offered Blue Two Plus.Example for Income

Cont. Age :Consumer needs and wants change with age. The marketing mix may therefore need to be adapted depending on which age segment or segments are being targeted.Gender : Dividing a market into different groups based on sex, has long been common for many products including cosmetics, clothing and magazines. In the 1960's car companies such as Toyota began to realise the purchasing power of women, creating marketing campaigns, and then cars, specifically targeted at the female market. Many suggest that the range of interior and exterior colours schemes, and emphasis placed on safety factors by car manufacturers today, is due to in no little part to their desire to market cars to women, as well as men.

Example of Age and Gender Segmentation

Life-cycle stage: Dividing a market into different groups based on which stage in the life-cycle, presented in the table below, reflects the fact that people change the goods and services they want and need over their lifetime.

Life-cycle stagesBachelor Stageyoung, single people not living at home Newly Married Couplesyoung, no childrenFull Nest Iyoungest child under six Full Nest IIyoungest child six or overFull Nest IIIolder married couples with dependent childrenEmpty Nest Iolder married couples, no children living with themEmpty Nest IIolder married couples, retired, no children living at homeSolitary Survivor Iin labour forceSolitary Survivor IIretiredPsychographic SegmentationPsychographic segmentation is dividing your market based upon consumer personality traits, values, attitudes, interests and lifestyles. Segmentation will allow you to better develop and market your products because there will be a more precise match between the product and each segment's needs and wants.Cont..When a business divides a market on the basis of variables such as social class, lifestyle and personality characteristics of the consumers, it is called psychological segmentation. In Pakistan, people belonging to lower classes send their children to low quality schools whereas people belonging to upper and middle classes send their children to O and A-Level and to High school.AIO Inventories A lifestyle MeasurementAIO (activities, interests, opinion) studies envisage a wide variety of variables and measures the major dimensions shown ActivitiesInterests Opinions DemographicsWork Family Themselves Age Hobbies Home Social Education Social events Job Politics Income Vacation Community Business Occupation Entertainment Recreation Economics Family size Club member Fashion Education Geography Community Food Products City size Shopping Media Future Lifecycle Sports Achievements Culture Dwelling VALS System Classification:

The VALS theory and database were first applied to markets in 1978. VALS provides a dynamic framework of values and lifestyles; which helps to explain why people act as they do as social groups and as consumers. VALS, unlike some other approaches, waves together: Demographics, 2. Attitudes, 3. Activities, 4. Consumption patterns, 5. Brand preferences. 6. Media graphics.The VALS study leads to the identification of four major groups:The need drivenThe outer directedThe inner directedThe integrated

Female Lifestyle Types Cathy the contented housewifeCathy epitomises simplicity. She is devoted to her family and faithfully serves them as mother housewife and cook. She enjoys a relaxed pace and avoids anything which might disturb her equilibrium.

. Candice-the chic subarbaniteCandice is an urban woman. She is well educated and genteel. Socializing is an important part of her life. She is a doer, interested in sports and the outdoors, politics and current affairs. Her life is hectic and lived at a fast clip. She is a voracious reader and there are few magazines she does not read.

Eleanor-the elegant socialite: Eleanor is a woman with style. She lives in the city because that is where she want to be. She likes the socio-economic aspects of the city in terms of her career and leisure time activities. She is fashion conscious and dresses well. She is financially secure and hence not a careful shopper. She shops for status and style and not for price. She is a cosmopolitan woman who has travelled abroad and wants to.

Mildred-the militant mother Mildred is a woman who got married young and had children before she was ready to raise a family. Now she is unhappy. She is frustrated and vents her frustration by rebelling against the system. Television provides an ideal medium for her to live out her fantasies

Thelma-the old fashioned traditionalist: Thelma is a lady who has lived a good life. She has been a devoted wife, a doting mother and a conscientious housewife. Even now, when most of her children have left home, her life is centred around the kitchen. She lacks higher education and has little appreciation for the arts or cultural activities. Her spare time is spent watching TV.

Similarly the suggested male lifestyle types are :

Ben-the self made businessman. Scott-the successful professional. Dale-the devoted family man Fred-the frustrated factory worker Herman the retiring homebody.

Experiencers (12%)

Theyre the young enthusiastic, impulsive people who seek variety and excitement. They spend a comparatively high proportion of income on fashion, entertainment, and socializing.

Thinkers (11%)Theyre mature, satisfied, and reflective people motivated by ideals and who value order, knowledge, and responsibility. They seek durability, functionality, and value in products. Here were considering Mont-Blanc

Achievers (13%)

Theyre successful, goal oriented people who focus on career and family. They favour premium products that demonstrate success to their peers. In this segment we can consider most of the premium timeless luxury watches, such as Rolex, TAG Heuer, and Omega. Neil Armstrong gave Omega speed master the ultimate endorsement when he wore it on his historic moon walk in 1969.

Innovators (8 %)Theyre usually successful, sophisticated, active, take charge people with a high self esteem. Purchases often reflect cultivated tastes for relatively upscale, niche oriented products and services. Here were considering the niche market of upscale segmentation by technology adaptation.

Believers (16%)Theyre conservative, conventional, and traditional people with concrete beliefs. They prefer familiar, Pakistani made products and are loyal to established brands.

Strivers (13%)

Theyre trendy fun loving people who are resource constrained. They favour stylish products that emulate the purchases of those with greater material wealth. They favour stylish products that emulate the purchases of those with greater material wealth

124Makers (13%)Theyre practical, down to earth, self sufficient people who like to work with their hands. They seek Pakistani made products with a practical or functional purpose.

Survivors (14%)Theyre elderly, passive people concerned about change and loyal to their favourite brands.While to the consumers it's a beacon of faith and trust, competitors look upon them as an example of marketing brilliance.

Cont.Each Group discussed have different psychological, lifestyle and consumer characteristics which can be seen in detail on the following link: http://www.d.umn.edu/~rvaidyan/mktg4731/vals2tbl.htm

Behavioral Segmentation

When a business divides a market on the basis of variables such as knowledge, uses and responses of consumers, it is called behavioral segmentation. For example, in Pakistan, the catering business sees huge business in the winter months because of an increase in the number of marriages taking place.Usage

Customers can be segmented on the basis of usage status- heavy users, light users & non-users of a product category. The profiling of heavy users allows this group to receive most marketing attention (particularly promotion efforts) on the assumption that brand loyalty among these people will pay heavy dividends.User status

Every product has its nonusers, ex-users, potential users, first-time users and regular users. A company cannot always rely on the regular users, it has to attract the other types as well. The key too attracting potential users, or possibly, even non-users, is understanding the reasons due to which they are not using your product.AttitudeAttitude is defined as a learned tendency to respond towards something. Peoples response towards a product may range from Enthusiastic, Positive, Indifferent, Negative, Hostile .

OccasionsDividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchases, or use the purchased item.Such As Eid, Birthday etc

Brand Loyalty Market can be segmented according to consumer loyalty.

Consumers can be loyal toBrandsStoresCompanies

Benefit SoughtDividing the market into groups according to the different benefits that consumers seek from the product.Procter &Gamble has identified different detergent segments.

ORGANIZATION STRUCTUREPROJEC MANAGMENT1394/26/2015ABDUL WALI KHAN UNIVERSTY MARDANORGANIZATION STRUCTUREGroup members4/26/2015AWKUM140objectivesWhat is organizationWhat is structureWhat is organization structure6 mian key of organization structureChain of commandSpan of controlCentralzation SpeacializationformalizationDepartmentalizationConclution4/26/2015awkum1414/26/2015awkum142

ORGANIZATION A system of consciously coordinated activities of two or more persons. By Barnard, C. I. (1938)A Body of individuals working under a defined system of rules, assignments procedures, and relationships designed to achieve identifiable objectives and goals. By Greenwald, H. P. (2008)Work consists of patterned human behavior and the equipment consists of the human beings. Katz, D., & Kahn, R. L. (1978)


STRUCTURE A chart that shows the structure of the organization including the title of each managers position and, by means of connecting lines, who is accountable to whom and who has authority for each area. Division of labor and patterns of coordination, communication, workflow, and formal power that direct organizational activities.


Organization structureOrganizational structure is a system used to define a hierarchy within an organization. It identifies each job, its function and where it reports to within the organization. This structure is developed to establish how an organization operates and assists an organization in obtaining its goals to allow for future growth. The structure is illustrated using an organizational chart4/26/2015awkum145

4/26/2015awkum146Why orgnization structureOrganizational structure provides guidance to all employees by laying out the official reporting relationships that govern the workflow of the company. A formal outline of a company's structure makes it easier to add new positions in the company, as well, providing a flexible and ready means for growth. Organizational structure improves operational efficiency by providing clarity to employees at all levels of a company. By paying mind to the organizational structure4/26/20151474/26/2015148The 6 Building Blocks of Organizational Structure

So, how do you decide which type of organizational structure is the best fit for your company, division, or team? Before we can answer that, we first need to understand how an organizational structure is built -- what are the different building blocks we can arrange? What are the different levers we can pull?


1) Chain of CommandOne of the most basic elements of an organizational structure, chain of command is exactly what it sounds like: an unbroken line of authority that extends from the top of the organization (e.g. a CEO) all the way down to the bottom. Chain of command clarifies who reports to whom within the organization4/26/2015awkum1504/26/2015awkum151

2) Span of ControlSpan of control refers to the number of subordinates a superior can effectively manage. The higher the ratio of subordinates to superiors, the wider the span of control4/26/20151524/26/2015awkum153

4/26/20151543) CentralizationWho makes the decisions in an organization? If decision-making power is concentrated at a single point, the organizational structure is centralized. If decision-making power is spread out, the structure is decentralized.While a decentralized structure promotes a more democratic decision-making process, it can also slow down the decision-making process, making it harder for organizations to operate efficiently.


4) Specialization

Also known as division of labor, specialization is the degree to which activities or tasks in an organization are broken down and divided into individual jobs.High specialization can be beneficial for an organization, as it allows employees to become masters in specific areas, increasing their productivity as a result.However, low specialization allows for more flexibility, as employees can more easily tackle a broader array of tasks (as opposed to being specialized for a single task).



Similar to specialization, formalization deals with the how jobs are structured within an organization. The key differentiator here is that formalization also takes into account the degree to which an employees tasks and activities are governed by rules, procedures, and other mechanisms. A formal organizational structure seeks to separate the individual from the role or position, as the role or position stays the same regardless of whos holding it.An informal organization, on the other hand, places more value on the individual. It allows for the evolution of a role or position based on an individuals preferences, skill set, etc., and places less importance on what team or department that individual is part of.4/26/2015awkum1604/26/2015awkun161

6) Formalization

Departmentalization refers to the process of grouping jobs together in order to coordinate common activities and tasks.If an organization has rigid departmentalization, each department or team is highly autonomous, and there is little (or no) interaction between different teams. In contrast, loose departmentalization entails that teams have more freedom to interact and collaborate.4/26/2015awkum1624/26/2015awkum163

conclusionBehind every great company, division, or team is a great organizational structure -- a structure tailored to a company's, division's, or team's goals, and one that helps employees understand how they fit into the bigger picture.In the world of organizational structures, the options you have to choose from include things like chain of command (long or short?), span of control (wide or narrow?), and centralization (centralized or decentralized decision-making?),