Goal for today<br />That you can both define and describe market segmentation and consumer profiles.<br />
Market Segmentation<br />Sort of like “heat-seeking missile”.<br />Companies try and divide the market up into sub-groups based on key defining characteristics.<br />This allows them to be more targeted in its marketing efforts.<br />Can you name some market segments that businesses might deal with?<br />
Market Segments<br />Geographical region<br />Age<br />Income level<br />EX: Volkswagen-Audi group.<br />They own a number of brands that are targeted at specific types of consumers.<br />
It’s about consolidation<br />Segmentation is essentially the identification of subsets of buyers within a market who share similar needs and who demonstrate similar buyer behaviour / characteristics<br />The world is made up from billions of buyers with their own sets of needs / wants and behaviour. <br />Segmentation aims to match groups of purchasers with the same set of needs and buyer behaviour. Such a group is known as a 'segment'.<br />
Audi<br />What type of consumer are we targeting?<br />
VW<br />What type of consumer are we targeting?<br />
Seat and Skoda<br />What types of consumers are we targeting?<br />
Niche marketing<br />This type of approach is known as niche marketing (target marketing).<br />Can you think of other businesses who take similar approaches?<br />
The alternative to niche marketing<br />The other option is to look at the market as a whole rather than segmenting. <br />Businesses can generate profits by reducing costs through huge volumes of sales. <br />This is known as mass marketing.<br />
EX: Burger King<br />The menu around the globe is pretty much the same. <br />This saves them money in promotional activity, product development, packaging, etc.<br />In this way they can generate more profit per whopper sold.<br />Minor changes do exist though (dietary needs such as lamb for beef)<br />
Consumer profiles<br />In order to know who to target, businesses try to figure out who consumers are.<br />To do this, they create consumer profiles (detailed breakdowns of the demographics of consumers).<br />A good consumer profile should include<br />Age<br />Gender<br />Income<br />Social group<br />
Consumer profiles<br />Once a business knows who the key consumers are, it can target marketing activity specifically at them. <br />Real-world example:<br />Consider Sony Playstation. What does the consumer profile look like for their products?<br />
Sony’s use of consumer profiles<br />No coincidence that Sony deliberately chooses certain events to sponsor.<br />
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