market segmentation & positioning

Segmenting by Psychographics
• Psychographics: The use of psychological, sociological and anthropological factors to construct market segments. • AIOs: Psychographics segments consumers in terms of shared activities, interests, and opinions.
Indiscriminate snackers
15 Good tasting, satisfied hunger
Economical snackers
18 Low price, best value for money
% Snackers Value / benefits sought Demographics
Behavioural/demographic segments
How do the conventional segmenting variables apply?
• They can also be part of the target audience measure
Sophisticated Urban lifestyle 25 to 34 years old
3 Key Benefits of Segmenting a Market
Costs Less to Sell to Existing Customers
Key Benefits
Some Customers Are More Profitable
Knowing Who’s in Your Segment Can Lead You to Others in the Same Group
Primary Target Audience Existing “light” category 25 to 34 year old drinkers who are sophisticated individuals that lead an urban lifestyle
Current “light” category drinkers
For
Ballantyne, Luxton, Powell (2004) Introduction to Marketing: A value exchange approach ed Gabbott, Pearson:381
Steps in the Target Marketing Process
• Cannot communicate 1to1 with all • Segmentation aggregates the audience & creates growth opportunities by showing:
– how to compete better in more places in the market – how to ‘cut’ the market a different way to identify brand relationship opportunities
Market ntation and Positioning
Overview
The Marketing Communication Matrix
Mass Market Segmented/Mass Individual Customisation
2-way communication
An interactive approach (listening & learning including informal dialogue initiated by planned messages) Integrated mix of planned messages & interactive communication eg F2F,database, viral, WOM
22 Nutritious, no artificial ingredients, natural Better educated, have younger children Self assured, controlled
Younger / older females, lower socio economic High anxiety, isolated
Teens
Larger families, better educated Self assured, price oriented
Psychographics
Outdoor types, influential, adventurou s Light
Conventional mass marketing
Planned persuasive messages aimed at brand loyalty Eg positioning via advertising
To
Planned persuasive messages on augmented offerings for targeted markets eg loyalty programs
For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/IrwinBrands
Benefit Based Snack Food Segments
Nutritional snackers, Weight watchers
Segmenting Business-to-Business Markets
• By organizational demographics • By production technology used • By whether customer is a user/nonuser of product • By Australian Classification System (ASIC)
• Identify smaller segments who are most likely to consider your brand (segmentation) and target them with specifically designed MC messages
Rationale for segmentation
Segmenting by Geography
• Geodemography: combines geography with demographics • Geocoding: Customizes Web advertising so people who log on in different places see ad banners for local businesses
Segmenting by Behavior
• Segments consumers based on how they act toward, feel about, or use a product • 80/20 rule: 20 percent of purchasers account for 80 percent of a product’s sales • Heavy, medium, and light users and nonusers of a product • Usage occasions
§
Segmentable database
• Fusion of behaviour, relationship, demographic, psychographic & benefits data • IMC activities designed to initiate, maintain & increase loyalty (maybe switching) • True IMC
Segmenting by Demographics Gender
• Many products appeal to one sex or the other • Metrosexual: a man who is heterosexual, sensitive, educated, and an urban dweller in touch with his feminine side
Segmenting Consumer Markets
• Segmentation variables can slice up the market
– Demographic, psychological, and behavioral differences
Segmenting by Demographics Age: Generational Marketing
• Segmentation is about ……
The 7 Steps of Segmenting (Fig. 7-2)
Segmenting Current Customers
Segment size. § Spending patterns. § Relationship maintenance costs. Questions asked: § Are they high or low volume customers? § How long ago did they purchase (recency)? § How frequently do they purchase (frequency)? § How much do they spend (monetary)?
Why Globalised Targeting is not Typically Undertaken Targeting “everyone” is: