lecture 3 - segmentation, targeting and positioning

Question 1

the birth of segmentation

Answer 1

“Today’s advertising and promotion tends to emphasize appeals to selective rather than primary buying motives and to point out the distinctive or differentiating features of the advertiser’s product or service offer”
“In some cases, however, the marketer may determine that it is better to accept divergent demand as a market characteristic and to adjust product lines and marketing strategy accordingly. This implies ability to merchandise to a heterogeneous market by emphasizing the precision with which a firm’s products can satisfy the requirements of one or more distinguishable market segments. The strategy of product differentiation here gives way to marketing programs based upon measurement and definition of market differences”.
(Smith 1956)

Question 2

what are the benefits of marketing segmentation?

Answer 2

• customer tailored messages - address unique needs, wants and characteristics
• attract quality leads - make sure your message reaches the right people
• enables better control - track, measure and control specialised ads and campaigns
• effective marketing strategy - select the most effective strategies for each segment
• differentiate from competition - show how your products and services are different from your competition

Question 3

what are the types of market segmentation?

Answer 3

psychographic - why
behavioural - how
demographic - who
geographic - where
transactional - what

Question 4

how can a market buy segmented geographically?

Answer 4

country
city
density
language
climate
area
population

Question 5

how can a market buy segmented demographically?

Answer 5

age
gender
income
education
social status
family
life stage
occupation

Question 6

how can a market buy segmented psychographically?

Answer 6

lifestyle
AIO: Activity, interest, opinion
Concerns
Personality
Values
Attitudes

Question 7

how can a market buy segmented behaviourally?

Answer 7

benefits sought
purchase
usage
intent
occasion
buyer stage
user status
life cycle stage
engagement

Question 8

what is generational and life stage segmentation?

Answer 8

generational and life stage segmentation both expand on aspects of the demographic approach

identifying customers by generation or family life allows for broad but distinct approaches

recently we see the increase in representation of alternative family structure to the traditional structure: same gender parents, single parents, divorce

Question 9

how is demographic segmentation (the who) used?

Answer 9

• gender
• ethnicity
• income
• level of education
• religion
• profession/role in a company
  demographic segmentation might target potential customers based on their income, so your marketing budget isn’t wasted directing your messaging at people who likely can’t afford your product.

Question 10

how is psychographic segmentation (the why) used?

Answer 10

• personality traits
• hobbies
• life goals
• values
• beliefs
• lifestyles

Question 11

what are the different types of people and their values and attitudes and lifestyles?

Answer 11

innovators - value independence, taste and character

thinkers - value knowledge and creativity

achievers - value achievements and functionality

experiencers - value moods, emotions and inner expressions in life

believers - value communities, social bonds and sharing

strivers - value motivation, inspiration and abilities

makers - value family bonds and personal values

survivors - value simplicity and ‘fit-for-purpose’

Question 12

what is geographic segmentation (the where)?

Answer 12

geographic segmentation is a marketing strategy used to target products or services at people who live in, or shop at, a particular location. It works on the principle that people in that location have similar needs wants and cultural considerations. By understanding what people in that area require, brands can target more relevant marketing messages and suitable products to customers who are then aware and more likely to buy.

Question 13

what is behavioural segmentation (the how)?

Answer 13

As with psychographic segmentation, it requires little data to be truly effective - but much of this can be gathered via your website itself. Here we group customers with regards to their:
- spending habits
- purchasing habits
- browsing habits
- interactions with the brand
- loyalty to brand
- previous product reviews
- number of sessions to website
- number of pages visited
- time spent on site
- URLs visited
- page types visited
- shopping cart value
- campaign history
- referral source
- inactivity and more

Question 14

how are fans classified?

Answer 14

opportunists - driven by personal benefit, personal rewards, make political and social contacts

aesthete - driven by entertainment motives, opportunity to live the experience of attending the event, achieving personal satisfaction

supporters - they are fans of the sport team, driven by the opportunity to support their team and favourite athletes

interactive - enjoy social interaction, enjoy happenings during the event, total experience is important, want to be involved with the event

Question 15

what is undifferentiated or mass targeting?

Answer 15

with this strategy, the marketing team views the market as one group using a single marketing strategy. While this approach might have been appealing in the initial days of marketing when Ford introduced his model-T, a limited number of businesses now view it as a feasible strategy.

Question 16

what is concentrated or niche targeting?

Answer 16

This approach combines mass and segmentation marketing by focusing on a particular market niche on which marketing efforts are targeted. It is primarily used by small firms which have identified a narrower sub-target of a larger segment that is not served by larger firms. This strategy often allows the former to benefit, as focusing on one segment enables them to compete effectively against larger firms.

Question 17

what is differentiated or multi-segment targeting?

Answer 17

this strategy is used by marketers to target multiple markets using a unique marketing strategy for each. Multi-segment targeting mainly offers benefits to large consumer product firms that offer multiple products (e.g. soccer shows and baseball shoes) within a wider product category (e.g. footwear

Question 18

what is customised or micro-marketing?

Answer 18

the newest target marketing approach, catalysed by the internet, is generally used to attract targeted customers with individualised marketing programs. For micro-marketing segmentation to be effective, the marketer must, to some degree, allow customers to “build-their-own” products. As more companies learn to utilise the internet, micro-marketing is expected to flourish.

Question 19

what is an audience persona?

Answer 19

Audience personas act as an avatar you can refer to when making all business decisions, on and offline from social media.

It is made up based on combined psychographic and behavioural segmentation to help define what represents our follower/consumer in as much detail as possible.

It is no longer enough to segment and target your audience based on basic information such as gender, age and location (which traditional marketing uses heavily)

Question 20

how is segmentation used in social media marketing?

Answer 20

• facebook allows businesses to target their messages to users based on data such as user demographics, interests and geographical location
• other platforms including Twitter, LinkedIn and Instagram have followed suit
• Paid targeting is effective because it enables companies to get a specific message in front of a specific audience.

Question 21

what is paid targeting options?

Answer 21

paid targeting enables companies to be seen by social media users who already active users and more likely to engage your offer and campaign.
As a result, companies can increase their reach, expand their audience size, and achieve more quality conversions.
Almost all social media networks allow us to create targeted paid campaigns.

Question 22

how does facebook allow you to target?

Answer 22

They allow you to filter by gender, relationship status, age, location, interests and more. Simply create your post and select the target audience of your choice

Question 23

how does LinkedIn allow you to target?

Answer 23

Allows you to target by industry, company size, function and more. This is a great feature for B2B companies that are seeking to attract more visitors.

Question 24

what is geo-targeting?

Answer 24

Geo-targeting, otherwise known as local PPC, refers to the practice of delivering different content or advertisements to consumers based on their geographic locations. In paid search campaigns, geo-targeting is often used to advertise to local prospects.

Question 25

What is geo-fencing?

Answer 25

A geo-fence is a virtual perimeter for a real-world geographic area. A geo-fence could be dynamically generated - as in a radius around a point location, or a geo-fence can be a predefined set of boundaries

Question 26

How can brands position?

Answer 26

Brand name
URL
Logo and symbol
Character
Slogan
Jingle
Packaging