Hogeschool van Amsterdam Interactieve Media Any colour you like as long as it’s black -...
-
Upload
jett-ashford -
Category
Documents
-
view
222 -
download
3
Transcript of Hogeschool van Amsterdam Interactieve Media Any colour you like as long as it’s black -...
Hogeschool van Amsterdam Interactieve Media
Any colour you like as long as it’s black - segmentation: the basis of marketingMarketing Hoorcollege blok 2 week 2
Hogeschool van Amsterdam Interactieve Media
Or:
Why I am not in the same target group as Brad Pitt & Johnny Depp (at least) when it comes to cars
Hogeschool van Amsterdam Interactieve Media
Learning goals
By the end of the colleges and reading you should: Know the three elements of marketing core strategy:
segmentation, targeting & positioning (STP) Understand how STP helps organizations deal with one of
the main trends in western and some developing markets today
Be in a position to develop a marketing segmentation, choose a target group and create a positioning for an offer
* You should have also read chapters 9 & 10 in the last blok
Hogeschool van Amsterdam Interactieve Media
Agenda
A quick recap
The aims of blok 2
If you’re not segmenting, then you’re not marketing
Segmentation
Summary
Hogeschool van Amsterdam Interactieve Media
Previously on…
Hogeschool van Amsterdam Interactieve Media
We argued that marketing is about creating mutually beneficial exchange
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.
QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.
Exchange is the process where you willingly give something of value to another, in return for
getting something of value to you
QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.
Hogeschool van Amsterdam Interactieve Media
And that marketing is a process that creates offers to customers
Hogeschool van Amsterdam Interactieve Media
Our aim in blok 2 is to
Take you through the process of creating a marketing offer With the exception of promotion - which will be covered in
blok 3 or 4
Give you some tools (in addition to the UCD tools) you can use to do this
Help you understand why this process is even more important in today’s marketing environment
Hogeschool van Amsterdam Interactieve Media
If you’re not segmenting, then you’re not marketing
Hogeschool van Amsterdam Interactieve Media
Any colour you like, as long as it’s black
The Model T Ford is regarded as the first car to be built on using a production line
Henry Ford wanted to produce quickly
Black paint dried more quickly so the only colour you could have was black
Soon Ford lost share to companies that offered other colours
Hogeschool van Amsterdam Interactieve Media
No cup holders please we’re German
In the 1990’s cup holders became popular in the USA
German companies such as BMW and Mercedes didn’t see them as necessary (cars were about engineering not cup holders!)
Their market share fell in the USA
Hogeschool van Amsterdam Interactieve Media
The mobile phone is just a device
Early mobile phones were seen as just devices to make calls
The idea of a mobile phone as a fashion accessory was at first not accepted by many companies
Nokia did understand this and were the first company to offer different designs and colours
Nokia gained huge market shares
Hogeschool van Amsterdam Interactieve Media
The lessons of these stories
1. The customer really is king
2. One offer never appeals to everyone
3. Offers to everyone will be beaten by offers to targeted groups
4. Marketing is becoming more complex (and more exciting - no honestly it is…)
Hogeschool van Amsterdam Interactieve Media
Markets are becoming more fragmented
In the developed economies at least the idea of mass marketing is essentially dead One product for a large market does not work anymore
Consumers are becoming more sophisticated (verfijnd) and choosy They have better access to information They have more choice They are overloaded with marketing messages They are more cynical
This is especially true in our “always on” world
Hogeschool van Amsterdam Interactieve Media
Result: the old model is broken
Hogeschool van Amsterdam Interactieve Media
What’s wrong?
The problem is that there are too many “me too” offers on the market today These are products (and price, place, promotion) that try to
reach the same broad market segment with basically the same offer
Hogeschool van Amsterdam Interactieve Media
What’s the solution?
One solution suggested by Seth Godin in his book Purple Cow is to:
Make remarkable products
that appeal to a smaller better
defined segment
Hogeschool van Amsterdam Interactieve Media
So how do we do this?
Hogeschool van Amsterdam Interactieve Media
The start of the answer is…
Better market segmentation
Since this allows you to Target the right segment to approach Which means you can position your offer more effectively Which leads to better marketing mixes Which leads to your customers choosing your offer And telling their friends
Hogeschool van Amsterdam Interactieve Media
Segmentation
Not everyone will love you, but some might if you know who they are
Hogeschool van Amsterdam Interactieve Media
Segmentation
A market segment is just a group of potential customers with the same needs and wants
Marketers use different factors that might reveal needs and wants to make segments
For example age and gender are very popular
Hogeschool van Amsterdam Interactieve Media
But this isn’t good enough…Remember this?
Based on age & gender we are in the same target group!
Yeah right!
But how can we tell us apart?
Hogeschool van Amsterdam Interactieve Media
Well marketers tend use segmentation variables…
Hogeschool van Amsterdam Interactieve Media
Task:What would allow you to separate Brad, Johnny & Charlie?
As I go through each of the segmentation variables use the sheet I have given you to work out which might separate Brad, Johnny and me if you were company wanting to develop a car
Hogeschool van Amsterdam Interactieve Media
Geographic variables
Region Continent, groups of
countries such as Benelux, country, areas with a country such as the Randstad, area within a city such as Amsterdam Noord
Country size
City size
Population density
Climate
Hogeschool van Amsterdam Interactieve Media
Demographic variables
Age
Gender
Family size
Family life-cycle
Life stage
Income
Occupation
Educational level
Religion
Race
Nationality
Hogeschool van Amsterdam Interactieve Media
Psychographic variables
Social class Lower, working, middle,
upper
Lifestyle Interests, hobbies, beliefs,
attitudes
Personality Ambitious, introvert,
extrovert, social
Hogeschool van Amsterdam Interactieve Media
Behavioural variables
Purchase occasion
Benefits desired
User status
Usage rate
Loyalty
Readiness stage
Attitude to the product, brand or company
Hogeschool van Amsterdam Interactieve Media
Multivariable segmentation
For most products one variable is not enough, it will tell you little about the target group So organizations tend use multivariable segmentation
This is simply combining segmentation bases: Simple multivariable segmentation uses two or more bases from
one category E.g. Age and gender from demographic variables
Advanced multivariable segmentation uses two or more bases from two or more categories
E.g. Lifestyle, age, family life cycle and attitude to the product Multistage segmentation uses different variables at different times
E.g. Region, then lifestyle and age
In general multivariable segmentation leads to better customer insights
Hogeschool van Amsterdam Interactieve Media
What makes a good market segmentation?
A good market segmentation is one that is: Measurable - you know how many members it has and you
can track their purchases Accessible - you can contact them and make your offer Sustainable - you can make a profit by serving them Actionable - you are able develop offers that are attractive
to the segment
In addition a good segmentation allows you to understand the customer from their point of view so that you can make offers that will meet their needs better than your competitors
Hogeschool van Amsterdam Interactieve Media
Summary
The aim of marketing is to create mutually beneficial exchange by creating offers that are more attractive to customers that alternatives
But the consumer is becoming more choosy about what they consider beneficial In the Internet age this is even easier
As a result offers aimed at “everyone” will be beaten by more targeted offers
To survive in this environment we must become better at segmenting the potential market into meaningful groups that can be approached profitably If you’re not segmenting, then you’re not marketing
Hogeschool van Amsterdam Interactieve Media
Brad, Johnny & Charlie:My answer