Ch 4. Segmentation, Target Marketing and Positioning

Content marketing
The strategy of establishing thought leadership in the form of bylines, blogs, commenting opportunities, videos, shareable social images, infographics–> way to differentiate brand
MArket fragmentation
The creation of many consumer groups due to diversity of distinct nneeds and wants in modern society
-must balance efficiency of mass marketing and offering each individual what they want
—>ex. BK Have it your way
Target marketing strategy
Dividing the total market into segments on the basis of customer characteristics,s electing one or more segments and developing producs to meet the needs of those specific segments
STEP 1: SEGMENTATION
The process of dividing a larger market into smaller partsbased on one or more meaningful shared characteristics
Segmentation variables
Dimensions that divide the total market into fairly homogeneous groups, each with differnet needs and preferences
-DEMOGRAPHIC
PSYCHOGRAPHIC
-BEHAVIORAL
Generation y
The group of consumers born between 1979 and 1994–> echo boomers who do not like to be sold to
Bottom of the pyramid (BOP)
Global segment which is the collective name for the group of over 4 billion consumers throughout the world who live on less that &2 a day
–> must be sensitive to their conditions
–>ID segments is not intented by markets as a form of stereotyping
Segments by DEMOGRAPHICS
-AGE
-Gender
-Family Lifecycle
-Income and Social status
Ethnicity
-Place of residence
Demographics
Stats that measure observable aspects of a popluation including size, age, gender, ethinic group, income, education, occupation and family structure
Generational Marketing
Marketing to memebers of age generation who tend to share the same outlook and prorities
–>children influence fam
–> teens want feel good products
Millenials of Generation 2
The group of consumers born after 1994
-less likely to affiliate themselces with religion, political party, etc
Generation x
Group of consumers born between 1965 and 1978
-slackers or busters
-cynical attitude towards marketing–> value oriented, entreprenuerial
Baby boomers
Segment of poeple born between 1946 adn 1964
-they never age and want youthful image/ mature customers with liesure time and good health
GENDER
metrosexual
Metrosexual
A straight urban males who is keenly interested in fashion, home design and gourmet cooking/ personal care
-well educated urban dwelleers
Family Life Cysle
As families ages and move into diff life cycles, diff product categories ascend and decsend in importance–> cultural changes
Income and Social Status
-Distribution of wealth determines which segments have the greatest buying power–> less restrained and more liekly to purchase
-Social class segmens= lower, middle, upper
-Some buy according to which image they want to portray
Ethnicity
National orgin is a strong indicator fro specific TV shows, food, appareal, and activities
**Hispanic is the largest minort who have BRAND LOYATY, young, connected to Nat orgin, bigger fam and relationship builers
-Hispanis is a misnomer-diff history politics and culture
**Aferican Americans
-12%of pop, a lot of Hip Hop connection
**Asian Americans=fastest growing-casinos
Cultural Diversity
A management practice that activitely seeks to include people at different stages, ethic groups, races and religions in an organizations employees, customers, suppliers and dist channel partners
-bring diff backgrounds/ experiences
Place of Residence
-Geographic seg
Geographic segmentation
An approach in which marketers tailor their offerings to specific geographic areas because peoples preferneces often vary depending on where they live
Geographic Information systems (GIS)
A system that combines a geographic map with digitally stored data about the consumers in a particular geographic area
Geodemography
A segment technique that combines geography with demographics
–> people near one another share same tasres
PRIZM-large database that assesses teh US pop
ex. Young digerati=tech savy/ fashionable/ uban
Kids and Cul-de-sacs= upper middle class suburban with kids
shotguns and pick ups- hunting-rifles mtorcycles
Geotargeting
Determining the geographic location of the website visitors and delivering differenet content to that visitor based on his or her location
Mircomarketing
The ability to ID and target many smal geographic degments that sometimes aim aat individucals
-One-to-one marketing
SEGMENT BY PHYSCHOGRAPHICS
-VALS
-Gamers
Psychographics
The use of Pschological, sociological and anthropological factors to construct segments
-shared interests, opinions, AIOS,
VALS (values and lifestyles)
a PSYCHOLOGIC system that divides the entire US population into 8 segments–> what drives them pyschologicaly
-ideals
-achievement
-Self expression
*groups can be replicated reliably and is validated
Ideals
Guideed by kowledge and principle- thinkers and believers
Achievement
Demonstrate success to peers- achievers and strivers
Self Expression
SOcial or physical actvi, vaiety, risk- experience
Gamer Segment
A consumer segment that combines a psychographic/lifestyle component with a heavy dose of generationla marketing
-gamification
Badge
A milestone or reward earned for progressing through a video game
SEGMENT BY BEHAVIOR
-80/20
Usage rate
-long tail
Behavioral segmentation
A technique that divides consumers on the basis of how they act toward, feel about or use a good or service
-users vs nonusers, heavy vs light, moderate
80/20 rule
A marketing rule of thumb that 20% of purchasers account for 80% of products sales
-focus on smaller number of people who are really into a product
Usage rate
A measurement that reflects the quantity purchased or frequency of use amongst consumers of a particular product or service
-loyalty programs
Long Tail
A new approach to segmentation based on the idea that companies can make money by selling small amount of items that only a few people want, provided tha they sell different items
-ITunes store
-Even little sales ass up to big profits
Usage Occasions
An indicator used in behavioral seg based on when consumers use their product the most
SEGMENT B2B MARKETS
-ORG DEMORGAPHICS
Organizational Demographics
Size of firms, number of facilities, domestic or multinational, purchasing policy, type of business, production tech used
-North American Industry Classification
Targeting
Marketers evaluate the attractiveness of each segment and decide which of these Groups they will inivest resources in and try to turn them into customers
Target market
The segment(s) on which an org focuses it smarketing plan and toward which it directs its marketing efforts
3 STEPS OF TARGETING
1.Evaluate market segments
2. Develop Segment Profiles
3. Choose targeting strategy
Evaluating maret segments
Are members similar to eachother in their product needs and wants diff from other segments?
Can marketers measure the same segments?
Is the segment large enough to be profitable now and into the future?
Can communications reach the segment?
-can marketers adequately serve the nees of the segment?
Segment Profile
A description of the “typical consumer” in a segment

-include demogrpahics, lifestyle info, descrip of wha they freq buy

Undifferentiated marketing strategy
Appealing to a broad spectrum of people
-ECONOMOMIES OF SCLAE= cheaper to develop one product or ad campaign that to choose or create seperate messages for each
Differentiate targeting strategy
Developing one or ore products to reach several distict customer groups and making sure these offerings are kept seperate in the market place
– can also connect one prodcut with diff segments by communicating it differently to appeal to those segments
Concentrated marketing strategy
Focusing a firms efforts on offering on or mroe products to a sinle segment
Cusotmized marketing strategy
An approach that tailors specific producs and the messages about them to individual customers
-smaller amounts of clients
Mass Customization
An approach that modifies a basic good or service
POsitioning
Develoing a marketing strategy to influence how a particular market segment percieves a good or service to the competition
-make sure “cool” poeple use your prodcut to observe them doing so
STEPS IN POSITIONING
-Analyze comps positioning