Set up: Polleverywhere Videos Targets on board Activity: The Pen Game if you all tried to sell a pen – there would be 50 sold, so you would have a cap of 50 but have to share market place. If you differentiate / segment then you don't have share, but rather overlap and convince the buyer they need both.
Who will want your product? How many are there? Where will I find them? How do I motivate them to purchase?
STUDENT VOLUNTEERS: If I throw these elastics at the board how many hit the target? If I aim five, one at a time, how many hit the target? That’s why determining a good clear target for your business / product / campaign is really important. Costs less, get’s better results, more predictable.
Tell the student grass cutting business story Differentiate / position / target That’s a segment.
Get students to right them down on sheet of paper. Ask for some of them – put them in columns for proper segmentation without titles. Forbes article – read and discuss: http://www.forbes.com/sites/kashmirhill/2012/02/16/how-target-figured-out-a-teen-girl-was-pregnant-before-her-father-did/ What lists / segments? How did it help the business? Example of existing customer segmentation, but what you’re going to be doing is forecasting a target market.
What are the geographic segments of this class? Look up your community and tell us the household / business / farm counts.
So what are the demographics of this class? Find the demographics of your community.
( Includes culture, sub-culture, social class, peer group, reference individuals) How? -Memberships-Subscriptions-Online affiliations-Referral
( Includes lifestyle, habits, attitudes, beliefs, values) Difficult to define but produce the best lists that lead to successful ad campaigns Read through these (handout) Go to tool and type in your postal code – read your segment – discuss with another person its accuracy
Grouping consumer based on past actions (ie:-5W’s of purchases that we’ll learn after break) Show & Tell Who has cash in pocket? Who has bank card? Who has a loyalty card? When you buy a sub do you always buy a drink too?
Naics, sic’s Look up your parents NAIC’s code So now that you have a NAIC’s code how would you use it? Combo of NAIC’s and geographic segmentation most common.
Brainstorm This is why demographics aren’t the only answer to great target marketing
Lab ACTIVITY: Use Target coming to town as example. (team) NAICS (find offices so they can target them with business product offer) http://www.naics.com/search.htm Canada Post (look up postal codes, number of houses to determine size of potential market) http://www.canadapost.ca/cpc2/addrm/hh/pending/indexp/cpALL-e.asp Priszm (look up surrounding neighbourhoods to determine what products to promote for store opening) http://environicsanalytics.ca/prizmc2_cluster_lookup.aspx City of Kingston (look up income levels and number of kids to determine pricing and products and parking spots) http://www.cityofkingston.ca/cityhall/neighbourhoods/data.asp
Congo video – once you’ve segmented you need to understand your target’s consumer behaviour
The study of consumer behaviour helps marketing organizations understand "why" people buy the products they do. From a competitive viewpoint, access to information about consumer buying motivation is crucial to developing persuasive message strategies—to know what buttons to press when communicating with customers.
Information Search – in groups discuss the steps to 1. what you had to eat this morning 2. the most expensive thing you’ve ever bought Routine Decision - Does not involve much money, takes limited time and has low risk. (toothpaste) Limited Decision - Involves more expensive purchases, takes more time, and has moderate risk. Complex Decision - Requires considerable time, effort and money, a proper evaluation of alternatives, and involves high risk. (car)
Evaluation of Alternatives - assessment is made based on factors such as price, quality, style, service or any other attribute judged to be important
Post-Purchase Evaluation cognitive dissonance: individual's unsettled state of mind that results from an action taken by an individual. Its presence suggests a lack of confidence in the decision
polleverywhere – factors / influences in your decision to come to Shad = Reference Groups (important to understand those in marcom messaging)
Psychological Influences Maslow's hierarchy of needs and theory of motivation influences marketing strategy (See Figure 4.4 in the textbook). physiological needs, safety needs, social needs, esteem needs and self–actualization needs
What level is this ad directed at? Belonging / social / physcological
Attitudes and Perceptions affect consumer behaviour so if you can determine what they are you can target them more effectively Selective Exposure – Noticing information of interest. Selective Retention – Remembering only what we want to remember. Video – follow the directions
SERVILE means turning your brand into a lifestyle servant focused on catering to the needs, desires and whims of your customers, wherever and whenever they are. - think IKEA moving weekend campaign
trendwatching.com 1. keep it simple 2. explain it 3. don't ask for commitment – think one night stand
Slidedeck shad valley - segmentation
Presented by Lindsey Fair
Why do we need to determine
the target market?
Who will want
How many are
Where will I find
How do I
How does “everyone” (MASS) become a
smaller piece of the pie?
What lists are
What are the ways a 16 year old
female could be segmented?
ACTIVITY: Target is coming to KTown
1. Find doctor’s offices that they
can target with a business
2. Look up number of houses in
the immediate area to
determine number of flyers they
need to print for a direct mail
3. Determine the interests and
lifestyle characteristics of the
surrounding neighbourhoods to
determine what products to
promote for store opening.