Mcom 341-7 Targeting, Segmentation
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Transcript of Mcom 341-7 Targeting, Segmentation
Segmentation & Targeting
Class Objectives
Identify the various methods advertisers use to segment and aggregate consumer and business markets
Discuss how target marketing affects an advertising strategy
First things firstA product must have utility for consumers.
The product must meet a need… or a perceived need (want).
Groceries Botox Home Lamborghini
Photo: stjoesfoodprogram.org
Photo: turbocharger-turbochargers.com
Market Segmentation
1. Identify people with shared needs and characteristics
Market Segmentation
2. Aggregate these groups into market segments according to their mutual interest in the product’s utility
1. Identify people with shared needs and characteristics
Result: Targets
Marketing for a product is aimed at a segment of the population, called the target market.
Advertising is aimed at a group reached by the medium, called the target audience.
Photo: turbocharger-turbochargers.com
Photo: en.wikipedia.org
Types of Markets
Two Types
BusinessConsumer
Behavioristic Segmentation
User-Status Variables
Usage-Rate Variables
Purchase Occasion Variables
Benefits-Sought Variables
Segmenting according to purchase behavior.
Tide photo: coupondad.net All photo: thedealdetector.com
Type of User Brand A Competitor
Sole users Always buy Never buy
Semisole users Generally buy Seldom buy
Discount users Buy if discounted Generally buy
Aware nontriers Prefer not to buy Prefer to buy
Trial/rejectors Never buy Always buy
Repertoire users Will buy Will buy
Researchers: Stefan & Tannenholz
User Status Variables
User Status Variables
This Crate and Barrel ad targets sole users and repertoire users
Usage-Rate Variables
Marketers use volume segmentation, measuring consumers’ usage rates of products similar to theirs.
• Light users• Medium users• Heavy users
Usage-Rate Variables
Hardee’s ad marketing the Thickburger targets heavy fast-food users.
Purchase-Occasion Variables
When does the consumer buy or use this product?
Occasions include: • Context of need• Frequency of need• Fads• Seasonality
Purchase-Occasion Variables
Consumers travel for business and vacations.
Benefits-Sought Variables
What are the benefits of the product to the consumer? What is the symbolism of the brand to the consumer?
Photo: footedpajama.com
Comfort
Fashion,Status
Geographic Segmentation
Photo: http://www.eia.doe.gov/emeu/recs/census_map.html
• Region• County size• Climate• City / SMSA size• Density
Geographic Segmentation
Photo: allmightyray.com
Photo: www2.tbo.com
Demographic SegmentationIncludes:• Gender• Age• Ethnicity• Education• Occupation• Income• Family status• Home ownership
Often combined with geo targeting for geodemographic segmentation.
WOMEN 25-49
Senior CitizensMIDDLE CLASS
Hispanic
African Americ
an
Married
College Educated
Teens
Demographic Segmentation
Demographic segmentation: Heavy usage patterns of various age groups
Exhibit 4-4, page 101
Demographic Segmentation
Ford targets middle-class men in their 30’s and 40’s
Ford targets urban African-Americans
E*TRADE Baby:
Time out: http://www.youtube.com/watch?v=x0GsNhLt9Ds
Singing baby: http://www.youtube.com/watch?v=KCs8gIMKBSo
First class: http://www.youtube.com/watch?v=mDm6iKH38C0 Photo: lifeorganizers.com
Demographic Segmentation
Charles Schwab:
Broker’s kids: http://www.youtube.com/watch?v=qj2oqI8w1gA
Bailout: http://www.youtube.com/watch?v=mFM-m31y5HY
Retirement: http://www.youtube.com/watch?v=11w8sNO8J_8
Photo: badvertisements.blogspot.com
Demographic Segmentation
Psychographic Segmentation
• Primary Motivations• Resources
VALS Framework, from Strategic Business Insights, is a well-known psychographic classification system
Psychographic SegmentationAdidas placed ads along the Boston Marathon route to target young people who define themselvesby their athletic achievements
Insert left panel of Adidas ad(p. 180)
(ritual/shock/denial/isolation ad panel)
Position = 2.9” horizontal, 1.5” vertical
Size = 2.8”wide
Resolution = 300 dpi
Psychographic SegmentationiPad: http://www.youtube.com/watch?v=JP8wKtFA4Io
Budweiser commercial: http://www.youtube.com/watch?v=7IY9xjIHugo
Think about: • How do these ads convey emotion?• What do you notice about the background
music?• What does the target consumer appear to value?• How does each ad motivate its target market?
Finalizing the Target
Number Name62 Hometown Retired
50 Kid Country, USA
53 Mobility Blues
32 New Homesteaders
48 Young & Rustic
http://geography.about.com/gi/o.htm?zi=1/XJ&zTi=1&sdn=geography&cdn=education&tm=7&gps=551_120_1017_563&f=20&su=p284.9.336.ip_&tt=2&bt=1&bts=0&zu=http%3A//www.claritas.com/MyBestSegments/Default.jsp%3FID%3D20
Rock Hill 29730
Top Prizm Clusters
Finalizing the TargetLevi’s
Target Product Concept
2. Use the 4Ps of the marketing mix to shape a product concept for the market
1. Select a target market (markets) from the market segments identified
Product Price Place Promotion
B2B Market Segmentation
Complexity:Manufacturers, Resellers,
Brand Partnerships
Organizationalbuying
behavior
Fewer, more-concentrated
buyers
Differencesfrom Consumer
Markets
B2B Market Segmentation
Complexity:Manufacturers, Resellers,
Brand Partnerships
Manufacturer Reseller/Retailer Brand Partnership
Hardees logo: pitchengine.com Coca-Cola logo: premisemarketing.com
Simeus FoodsInternational
The North American Industry Classification System (NAICS) hierarchy and codes are used throughout North America. Census data about industries helps companies target their markets.
B2B Market Segmentation
Impact of Targeting on AdvertisingMessage Media Mix
Kia Optima:http://www.youtube.com/watch?v=T7-q0eK8HL0
Kia Soul: http://www.youtube.com/watch?v=kfJnqbudMzs