Segmentation-Coraggio

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1. Understanding customers 2. Agenda 3. Necker cube 4. Necker Cube exercise 5.Necker Cube answer 6. Necker Cube answer 7. RTA 'Pinkie' campaign 8. Blank 9. Segmentation Checklist 10. Blank 11. Why bother? 12. If you get it right... 13. What's different 14. 1+1=11 15. Brain 16. Fusing functional and emotional benefits 17. Consumer work should only be helping us 18. Segmentation 19. Benefits of market segmentation 20. Targeting and spillage 21. Bullseye 22. Secondary 23. Demographics Old Skool 24. Adoption of innovation model 25. Some common segmentation 26. Methodologies and models 27. Beating the jargon 28. Research 29. Henry ford 30. Steve Jobs - Think different 31. Steve jobs 32. Research strategies 33. Modular questionnaire 34. Insights 35. Bill Bernbach 36. Discussing insights 37. But first ... 38. OK but why? 39. Insight vs. Innovation 40. Insight vs. Innovation 41. Deeper understanding 42. Relevant and persuasive message 43. Understand their needs 44. Insights gleaned 45. Further insights 46. Why are insights important 47. Definition of insights 48. Simply put 49. Appendix 50. Baby boomers 51. Generation X 52. Generation Y 53. Generation Net 54. Generation Net cont... 55. Generation C 56. Recognising your customers 57. Recognising your customers cont...

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  • The RTA’s graphic advertising campaigns seemed to be working for all but one group: young males. \n 90% of fatalities in P-plate crashes are male. \n P-platers represent just 7% of licence -holders but accounted for one third of speeding infringements 30km/h and 41% of 45km/h and above. \n INSIGHT:\n It emerged that young male drivers were speeding in an attempt to impress their audience - passengers, other mates, girls and the wider community. \n \n The campaign needed to empower passengers to undermine the speeding driver’s masculinity by making speeding “uncool”. Being considered “uncool” was a much more real and immediate concern than death for these drivers - “you may not die but everybody will think you’re an idiot”. \n \n Passengers, rather than the driver, became the audience for ‘pinkie’ - a first in RTA communication campaigns.\n \n RESULTS:\n The most salient youth speeding campaign ever\n The campaign reached over 97% of its target audience, making one of the “biggest global media impacts in Australia communications history”. \n Passengers embraced the ‘pinkie’ gesture.\n Prompted a crucial behaviour shift in young drivers - ‘Pinkie’ decreased the incidence of speeding behaviour and helped save over 50 young males from speed-related deaths.\n
  • Brief: Help Obama win the presidency\nTargeted Florida\nInsight: The key to win Florida was through elderly Jewish voters\nThe problem: Elderly Jews were the target of anti-obama messaging\nSolution: Target the one audience they would listen to... their grandchildren and that’s how the great Schlep was created. It was an online grassroots movement that connected these two generations. By having grandchildren call, visit and email their grandparents in Florida. To educate them about Obama. They set up a website, created one of the most viewed videos of the election and within days it was covered by all the major TV networks and newspapers, as well as tens of thousands of blogs.\n\nResult: There were 342 MILLION media impressions. Within weeks their talking points were read 1.2 million times, over 25,000 people signed up for The Great Schlep.\nObama got the highest elderly Jewish vote in over 30 years. 320, 000 Jews in Florida voted for Obama. Obama won Florida by 170,000 votes.\n\n\n\n
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  • It’s why people are camping out overnight for the ipad \n6 months to dine at Tetsuya’s \n25 years to become a member of the MCG\n
  • It’s why people are camping out overnight for the ipad \n6 months to dine at Tetsuya’s \n25 years to become a member of the MCG\n
  • If brands live in brains, then it’s brains not marketing text books that should tell us how to create great brands \n
  • Rational and emotional coming together. \nEmotional decisions, rational justifications. Limbic brain - no language. Neo Cortex - doesn’t drive behaviour\n
  • Is half a brain half the processing power\nOf course not, if brands live in brains more than text book\nCombo of rational and emotional (is one that only has rational)\n
  • The strongest brand identities have both functional and emotional benefits.\n A study showed that 47 TV commercials that included an emotional benefit had a higher score than 121 TV commercials with only a functional benefit\n Money can’t buy you happiness, but brands can buy you a sense of belonging.\n
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  • Often it’s helpful to have a bullseye. Often in mass media it’s impossible to ONLY target a certain group. \n However; unless you’re specific it is possible to miss your ideal customers by being too general. \n A bullseye model helps you target a niche, identify a secondary audience and therefore apply a “non-alienation” test to to your communications. IE: we must talk to A, but must not alienate B\n
  • Often it’s helpful to have a bullseye. Often in mass media it’s impossible to ONLY target a certain group. \n However; unless you’re specific it is possible to miss your ideal customers by being too general. \n A bullseye model helps you target a niche, identify a secondary audience and therefore apply a “non-alienation” test to to your communications. IE: we must talk to A, but must not alienate B\n
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  • \nThe traditional marketing chasm occurs between ‘early adopters’ and ‘early majority’ and normally requires successful mass marketing to transition across.\n\nThe consumer adoption of any new product generally follows a bell curve of distribution and adoption. For a market launch a new product an understanding of the above is critical to be able to identify the differences in the segments and plan the rollout overtime.\n
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  • Include photo of Bill Bernbach.\n\n
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  • Segmentation-Coraggio

    1. 1. UNDERSTANDING CUSTOMERSCustomer Insights and SegmentationCoraggio C29:30 - 12:30 Friday 12th Aug, 2011
    2. 2. AGENDA 9:30 - 9:50 Stimulation Keynote 9:50 - 11:00 Working session (Qualitative and Quantitative focus) 11:00 - 11:30 Break  11:30 - 12:30 Stump the Strategist session. Your chewiest marketing challenge solved live in 9 minutes.   Link to me on LinkedIn (Ashton Bishop) and you can download this presentation
    3. 3. NECKER CUBE Can you make the ball move from being in front of the cube, to inside the cube?
    4. 4. NECKER CUBE Can you make the ball move from being in front of the cube, to inside the cube?
    5. 5. NECKER CUBE Can you make the ball move from being in front of the cube, to inside the cube?
    6. 6. NECKER CUBE Can you make the ball move from being in front of the cube, to inside the cube?
    7. 7. RTA ‘PINKIE’ CAMPAIGN: AN INSIGHTS CASE STUDY Source: (2009) “Roads and TrafficAuthority: Speeding. No one thinks big of you”, 2009 Australian Effie Awards.
    8. 8. Segmenta t ion Check Be target lis t e d - media money bo Only as us x eful as it is usable Don’t was te money on rese archFocus on w hat make s the differSegmenta ence tion. Resea rch. Insigh ts
    9. 9. Why bother with all this brand business anyway?
    10. 10. Why bother with all this brand business anyway? Because if you get it right people will love you for it!
    11. 11. We’re hardwired to notice only what’s different
    12. 12. FUSING FUNCTIONAL AND EMOTIONAL BENEFITS + =47 TV commercials that had an emotional benefit scored higher than 121 TV commercials with only a functional benefit
    13. 13. CONSUMER WORK SHOULD ONLYBE HELPING USMake sure we’re speaking tothe right people - quantitativeTalk to them in the rightway - qualitative
    14. 14. SEGMENTATION
    15. 15. KEY BENEFITS OFMARKET SEGMENTATION Focus marketing efforts where they have the best chance of success Build on the success of other companies products Increase profitability through increased customer loyalty and higher prices Increase the efficiency of money spent for marketing activities Find growth opportunities
    16. 16. TARGETING AND SPILLAGE The ‘alienation’ test
    17. 17. TARGETING AND SPILLAGE The ‘alienation’ test A: bullseye
    18. 18. TARGETING AND SPILLAGE The ‘alienation’ test A: bullseye B: secondary
    19. 19. DEMOGRAPHICS - OLD SKOOL Baby Boomers Generation X (1946-1960) (1961-1980) Generation Y Generation Net (1981-2001) (1995-...)http://www.dhss.mo.gov/LPHA/New2008MCHI/GenerationalDifferences_Worksheet_GalenHoff.pdf
    20. 20. ADOPTION OF INNOVATION MODEL Rogers Adoption Innovation Curve find a nicer version
    21. 21. SOME COMMON SEGMENTATION Methodologies and Models Mosaic Geo-tribes Nielsen - Panorama Roy Morgan segments - Asteroid
    22. 22. SOME COMMON SEGMENTATION Methodologies and Models emogr aphics Geo g D rap es Age hy tit ud ender So At G cio -ec Edu on s ca om ur We tio n ic vio Ca alth ha reeBe etc r . Mosaic Geo-tribes Nielsen - Panorama Roy Morgan segments - Asteroid
    23. 23. BEATING THE JARGONWe’ll be looking at oursegmentation tool today
    24. 24. RESEARCH
    25. 25. “If I had asked people what they wanted, I would’ve built a faster horse” - Henry Ford
    26. 26. “You can’t just ask customers whatthey want and then try to give that to them. By the time you get it built, they’ll want something new.”
    27. 27. “There’s an old Wayne Gretzky quote that I love. ‘I skate towhere the puck is going to be, not where it has been.” Andwe’ve always tried to do that at Apple. Since the very, verybeginning. And we always will.”
    28. 28. RESEARCH STRATEGIES Trends - experts, technological changesContext Culture - pop culture, style, fashion Cross-Industry - influences from parallel industries, developments etc. Depth (insight) - Qualitative analysis - groups,Consumer interviews, observations, ethnography Breadth (quantitative) - online, omnibus, Roy Morgan data
    29. 29. MODULAR QUESTIONNAIRE Research can be a relationship builder Always start with those closest to your brand Download from my LinkedIn profile
    30. 30. INSIGHTS
    31. 31. “Most marketers use research like adrunk uses a lamp post, for support rather than illumination.” - Bill Bernbach
    32. 32. DISCUSSING INSIGHTS
    33. 33. DISCUSSING INSIGHTSbut first, who’d like to see a picture of my testicles?
    34. 34. Yes, the unthinkable! OK, but WHY do that?
    35. 35. INSIGHT VS. INFORMATION Insights are a perspective on Information isinformation that means primarily data thatyou will never look at the comes from information the same observations way again
    36. 36. INSIGHT VS INFORMATION
    37. 37. INSIGHT VS INFORMATIONInsights give a deeper understanding, getting you closer to theresult you are after. In marketing terms:
    38. 38. INSIGHT VS INFORMATIONInsights give a deeper understanding, getting you closer to theresult you are after. In marketing terms: Usually... to deliver the most relevant and persuasive message to your customers
    39. 39. INSIGHT VS INFORMATIONInsights give a deeper understanding, getting you closer to theresult you are after. In marketing terms: Usually... to deliver the most relevant and persuasive message to your customers or simply... to better understand their needs, behaviours and motivations
    40. 40. INSIGHTS GLEANED? You’ll probably never forget an insight: • Remarkable examples You know where my commitment lies: • To powerfully educate vs. offend
    41. 41. INSIGHTS GLEANED? You’ll probably never forget an insight: • Remarkable examples You know where my commitment lies: • To powerfully educate vs. offendA doctor would probably have gleaned a whole different level of insight, which is an insight within itself
    42. 42. WHY ARE INSIGHTS IMPORTANT? Insights are fuel for thinkingE.g:In the singles division of a knock-out tennis tournament there are 111entrants. The organiser wants to calculate the minimum number ofmatches that must be played. What is this number?
    43. 43. DEFINITION OF INSIGHTS Total Matches 111 55 56 28 28 14 14 7 7 3 4 2 1 win
    44. 44. Simply...There must be 110 eventual losers and one winner.Since each loser can only lose one match there must be 110 matches.
    45. 45. APPENDIX
    46. 46. Baby Boomers Generation X BABY BOOMERS Generation Y Generation Net Born 1946-1960, after World War II Grew up during the 1950’s, 60’s and 70’s Entered the workforce when unemployment was high - late 60’s to early 80’s They remember starting at the bottom and working their way up They are today’s ageing workforceThrough the Ages, Business Review Week, Dr Roslyn Sayers 2008
    47. 47. GENERATION X Baby Boomers Generation X Generation Generation Y Net Born 1961-1980 Grew up during the 1970’s and 80’s, entering the workforce in the 80’s and 90’s Were influenced by increase in number of divorces, single-parent and dual income situations Generally well-educated with majority having had a tertiary education Highly influenced by the 90’s technology boom with the increasing popularity of the PC and Internet. Stay loyal to themselves only and have a tendency to change jobs frequently, with many involved in starting their own businesses Today they are faced with the demands of managing work and family commitmentsThrough the Ages, Business Review Week, Dr Roslyn Sayers 2008
    48. 48. GENERATION Y Baby Boomers Generation X Generation Generation Y Net Born in 1981-2001 Grew up during the 1980’s and 90’s and entered the workforce from the 90’s up to the current day Are generally either working or studying at school or university Influenced by technology and are highly impatient, expecting everything to be instantaneous Are characterised for holding several jobs at one time and consider holding a job for more than 2 years to be a long time Generation Y is aware of globalisation and is concerned with global issues such as climate change and sustainabilityThrough the Ages, Business Review Week, Dr Roslyn Sayers 2008
    49. 49. NERATION NET Baby Boomers Generation X Generation Generation Y Net Born 1995 and beyond Are growing up in the 1990’s and 2000’s Will enter the workforce from around 2010-2020 Have grown up with technology such as mobile phones, internet They expect everything to be instantaneous They generally have an extremely short concentration span
    50. 50. GENERATIONNET Baby Boomers Generation X Generation Generation Y Net Before they turn 25 the Net Generation will have: Spent 10,000 hours gaming Sent 200,000 emails and Instant Messages
    51. 51. GENERATION C The GENERATION C phenomenon captures the an avalanche of consumer generated content that is building on the Web, adding tera-peta bytes of new text, images, audio and video on an ongoing basis. The two main drivers fuelling this trend? (1) The creative urges each consumer undeniably possesses. Were all artists, but until now we neither had the guts nor the means to go all out. (2) The manufacturers of content-creating tools, who relentlessly push us to unleash that creativity, using -- of course -- their ever cheaper, ever more powerful gadgets and gizmos. Instead of asking consumers to watch, to listen, to play, to passively consume, the race is on to get them to create, to produce, and to participate. More than just age based segmentation, a behavioural segmentation like Generation C is sometimes useful. Also look to the Technographic profiling available on the Forrester research site to see how your audience might be using technology.http://www.trendwatching.com/trends/GENERATION_C.htm
    52. 52. 05: REC OGNISING YOUR CUSTOMERSWHY YOU NEED IT OUR EXAMPLE:AND HOW TO USE IT DIMENSION PRIMARYOne of the biggest mistakes that businessesmake is trying to speak to too many people. Naming them Ambitious Owner/Operators.The tighter you define your customeraudience the more relevant you can be They own their own business and have big plans for the future. Describing themto that audience, with both your selling They need their marketing skills to match their ambition.messages and your advertising spend workingtogether. Demographics 70% male, 30% female 30 - 50 y/o. Ambitious, hard working, looking to “make it”.It means more efficient and effective Take pride in their business. See the potential powermarketing; and getting higher value from each What do they think? of marketing. Desire commercial gain. It’s time for a stepcustomer. change! Investing in business growth. Spending (or willing to spend) What do they do? on marketing and communication each year.COMMENTARY They want confidence that there will be a return on theirDon’t worry if this one audience does not What’s important to them investment. In the past some of them have been burned bycover all your customers. Advertising spillage when buying? products or services that don’t leave them with clear actions.means if you target a tighter audience your They look for credibility, experience and practical advice.message will still ‘spill’ over to the otherpeople who might buy from you. However, Chamber of Commerce meetings, CEO networks eg. The Where to find them? Executive Connection. They know other business owners, soif you fail to recognise your best customers referrals are important.and start off too broad you might missyour best prospects completely. How few do you really Given the recycle rate and business growth cycle, we need www.surveymonkey.com need to grow? How many about 30 new clients per year. This complements our existingIf you define your audience too broadly, itwill not help you prioritise the things you of them are there? base of customers. RESOURCES & www.mediasmart.com.au/go/ audience-targetingneed to do to contact them. Conversely, if How often do they buy? Maximum of once per year, but often once every couple of REFERENCES www.whatismarketfind.com.auyou define them too narrowly there might years for Coached Marketing Workshops. Ongoing project How much do they spend? www.abs.gov.au work (campaigns) 2-3 times per year.be too few people to allow you to achieve yourbusiness goals. 12
    53. 53. DIMENSION DESCRIPTION PRIMARY SECONDARY A handle that helps you identify and talk about them Naming them eg. young aspirational females. Think about their age, gender, wealth, education level Describing them and where they live. What are their attitudes and beliefs? This might be in What do they think? relation to your product, the category you’re in or just to life in general. What activities do they undertake? This might be their What do they do? typical job, their routines or hobbies and general recreational activities. What sorts of things do they look for when purchasing? What’s important to them when buying? How important is price and quality, and what other factors do they look at? If you wanted to talk to them how would you find them? Where to find them? Where and when might they be open to information about your product, service or category? Given your growth objectives for the next year, how few customers do you really need to talk to? It’s hard to convince people to buy, so you want to focus on the How few do you really need to grow? people you really need for growth and talk to them many times. It’s generally a trade-off between numbers of people contacted vs. number of times contacted per person. What’s more important? Are they heavy users? How often do they buy? How much Whats their customer life-time value? do they spend? How many years will they be shopping in your category? Other discriminators:01 YOUR MISSION 02 WHERE TO STEP UP 03 COMPETITIVE ENVIRONMENT 04 CUSTOMER INTERROGATION 05 RECOGNISING YOUR CUSTOMERS 06 VALUE STATEMENTS

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