Segmentation & Targeting<br />
Class Objectives<br />Identify the various methods advertisers use to segment and aggregate consumer and business markets<...
First things first<br />A product must have utility for consumers.<br />The product must meet a need… or a perceived need ...
Market Segmentation<br />1.  Identify people with     shared needs and       characteristics<br />
Market Segmentation<br />1.  Identify people with     shared needs and       characteristics<br />2.  Aggregate these     ...
Result: Targets<br />Marketing for a product is aimed at a segment of the population, called the target market.<br />Adver...
Types of Markets<br />Two Types<br />Business<br />Consumer<br />
BehavioristicSegmentation<br />Segmenting according to purchase behavior.<br />User-Status Variables<br />Usage-Rate Varia...
User Status Variables<br />Researchers: <br />Stefan & Tannenholz<br />Tide photo:  coupondad.net	All photo:  thedealdetec...
User Status Variables<br />This Crate and Barrel ad targets sole users and repertoire users<br />
Usage-Rate Variables<br />Marketers use volume segmentation, measuring consumers’ usage rates of products similar to their...
Medium users
Heavy users</li></li></ul><li>Usage-Rate Variables<br />Hardee’sad marketing the Thickburger targets heavy fast-food users...
Purchase-Occasion Variables<br />When does the consumer buy or use this product?<br />Occasions include: <br /><ul><li>Con...
Frequency of need
Fads
Seasonality</li></li></ul><li>Purchase-Occasion Variables<br />Consumers travel for business and vacations.<br />
Benefits-Sought Variables<br />What are the benefits of the product to the consumer?  What is the symbolism of the brand t...
Geographic Segmentation<br /><ul><li>Region
County size
Climate
City / SMSA size
Density</li></ul>Photo:  http://www.eia.doe.gov/emeu/recs/census_map.html<br />
Geographic Segmentation<br />Photo:  allmightyray.com<br />Photo:  www2.tbo.com<br />
Demographic Segmentation<br />Includes:<br /><ul><li>Gender
Age
Ethnicity
Education
Occupation
Income
Family status
Home ownership</li></ul>Often combined with geo targeting for geodemographic segmentation.<br />Senior Citizens<br />Marri...
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Mcom 341-7 Targeting, Segmentation

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Mcom 341-7 Targeting, Segmentation

  1. 1. Segmentation & Targeting<br />
  2. 2. Class Objectives<br />Identify the various methods advertisers use to segment and aggregate consumer and business markets<br />Discuss how target marketing affects an advertising strategy<br />
  3. 3. First things first<br />A product must have utility for consumers.<br />The product must meet a need… or a perceived need (want).<br /> Groceries  Botox<br /> Home  Lamborghini<br />Photo: stjoesfoodprogram.org<br />Photo: turbocharger-turbochargers.com<br />
  4. 4. Market Segmentation<br />1. Identify people with shared needs and characteristics<br />
  5. 5. Market Segmentation<br />1. Identify people with shared needs and characteristics<br />2. Aggregate these groups into market segments according to their mutual interest in the product’s utility<br />
  6. 6. Result: Targets<br />Marketing for a product is aimed at a segment of the population, called the target market.<br />Advertising is aimed at a group reached by the medium, called the target audience.<br />Photo: en.wikipedia.org<br />Photo: turbocharger-turbochargers.com<br />
  7. 7. Types of Markets<br />Two Types<br />Business<br />Consumer<br />
  8. 8. BehavioristicSegmentation<br />Segmenting according to purchase behavior.<br />User-Status Variables<br />Usage-Rate Variables<br />Purchase Occasion Variables<br />Benefits-Sought Variables<br />
  9. 9. User Status Variables<br />Researchers: <br />Stefan & Tannenholz<br />Tide photo: coupondad.net All photo: thedealdetector.com<br />
  10. 10. User Status Variables<br />This Crate and Barrel ad targets sole users and repertoire users<br />
  11. 11. Usage-Rate Variables<br />Marketers use volume segmentation, measuring consumers’ usage rates of products similar to theirs.<br /><ul><li>Light users
  12. 12. Medium users
  13. 13. Heavy users</li></li></ul><li>Usage-Rate Variables<br />Hardee’sad marketing the Thickburger targets heavy fast-food users.<br />
  14. 14. Purchase-Occasion Variables<br />When does the consumer buy or use this product?<br />Occasions include: <br /><ul><li>Context of need
  15. 15. Frequency of need
  16. 16. Fads
  17. 17. Seasonality</li></li></ul><li>Purchase-Occasion Variables<br />Consumers travel for business and vacations.<br />
  18. 18. Benefits-Sought Variables<br />What are the benefits of the product to the consumer? What is the symbolism of the brand to the consumer?<br />Comfort<br />Fashion,<br />Status<br />Photo: footedpajama.com<br />
  19. 19. Geographic Segmentation<br /><ul><li>Region
  20. 20. County size
  21. 21. Climate
  22. 22. City / SMSA size
  23. 23. Density</li></ul>Photo: http://www.eia.doe.gov/emeu/recs/census_map.html<br />
  24. 24. Geographic Segmentation<br />Photo: allmightyray.com<br />Photo: www2.tbo.com<br />
  25. 25. Demographic Segmentation<br />Includes:<br /><ul><li>Gender
  26. 26. Age
  27. 27. Ethnicity
  28. 28. Education
  29. 29. Occupation
  30. 30. Income
  31. 31. Family status
  32. 32. Home ownership</li></ul>Often combined with geo targeting for geodemographic segmentation.<br />Senior Citizens<br />Married<br />Middle <br />class<br />African <br />American<br />College <br />Educated<br />Women <br />25-49<br />Hispanic<br />Teens<br />
  33. 33. Demographic Segmentation<br />Demographic segmentation: Heavy usage patterns of various age groups<br />Exhibit 4-4, page 101<br />
  34. 34. Demographic Segmentation<br />Ford targets urban African-Americans<br />Ford targets middle-class men in their 30’s and 40’s<br />
  35. 35. Demographic Segmentation<br />E*TRADE Baby: <br />Time out: <br />http://www.youtube.com/watch?v=x0GsNhLt9Ds<br />Singing baby: http://www.youtube.com/watch?v=KCs8gIMKBSo<br />First class: <br />http://www.youtube.com/watch?v=mDm6iKH38C0<br />Photo: lifeorganizers.com<br />
  36. 36. Demographic Segmentation<br />Charles Schwab:<br />Broker’s kids: <br />http://www.youtube.com/watch?v=qj2oqI8w1gA<br />Bailout: <br />http://www.youtube.com/watch?v=mFM-m31y5HY<br />Retirement: <br />http://www.youtube.com/watch?v=11w8sNO8J_8<br />Photo: badvertisements.blogspot.com<br />
  37. 37. Psychographic Segmentation<br />VALS Framework, from Strategic Business Insights, is a well-known psychographic classification system<br /><ul><li>Primary Motivations
  38. 38. Resources</li></li></ul><li>Psychographic Segmentation<br />Adidas placed ads along the Boston Marathon route to target young people who define themselves<br />by their athletic achievements<br />Insert left panel of Adidas ad(p. 180)<br />(ritual/shock/denial/isolation ad panel)<br />Position = 2.9” horizontal, 1.5” vertical<br />Size = 2.8”wide <br />Resolution = 300 dpi<br />
  39. 39. Psychographic Segmentation<br />iPad: <br />http://www.youtube.com/watch?v=JP8wKtFA4Io<br />Budweiser commercial: <br />http://www.youtube.com/watch?v=7IY9xjIHugo<br />Think about: <br /><ul><li> How do these ads convey emotion?
  40. 40. What do you notice about the background music?
  41. 41. What does the target consumer appear to value?
  42. 42. How does each ad motivate its target market?</li></li></ul><li>Finalizing the Target<br />Top Prizm Clusters<br />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<br />Rock Hill 29730<br />
  43. 43. Finalizing the Target<br />Levi’s<br />
  44. 44. Target  Product Concept<br />Product<br />Price<br />Place<br />Promotion<br />1. Select a target market (markets) from the market segments identified<br />2. Use the 4Ps of the marketing mix to shape a product concept for the market<br />
  45. 45. Fewer, more-concentratedbuyers<br />Organizationalbuyingbehavior<br />Complexity:Manufacturers, Resellers,Brand Partnerships<br />B2B Market Segmentation<br />Differencesfrom ConsumerMarkets<br />
  46. 46. B2B Market Segmentation<br />Complexity:Manufacturers, Resellers,Brand Partnerships<br />Reseller/Retailer<br />Manufacturer<br />Brand Partnership<br />Simeus Foods<br />International<br />Hardees logo: pitchengine.com Coca-Cola logo: premisemarketing.com<br />
  47. 47. The North American Industry Classification System (NAICS) hierarchy and codes are used throughout North America. Census data about industries helps companies target their markets. <br />B2B Market Segmentation<br />
  48. 48. Impact of Targeting on Advertising<br />Message<br />Media Mix<br />Kia Optima:<br />http://www.youtube.com/watch?v=T7-q0eK8HL0<br />Kia Soul: http://www.youtube.com/watch?v=kfJnqbudMzs<br />
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