Ch6 social marketing selecting target markets_acu


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Book: Social MarketingPhilip Kotler & Nancy Lee
Summary of Ch 4, for Ahram Canadian University (ACU), Faculty of Mass Com.

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Ch6 social marketing selecting target markets_acu

  1. 1. Selecting Target Markets Dr. Samir Al-Alfy Senior Communication Advisor JHU/CCP April 2011
  2. 2. SELECTING TARGET MARKETS A set of buyers sharing common needs or characteristics that the company decides to serve.1- Segment the Market Smaller groups require unique but similar strategies to be persuaded to change their behavior. Common: needs, wants, motivations, values, behavior, lifestyles, etc.)2- Evaluate Segments3- Selection • Increased effectiveness (Fishing & Bait) • Increased efficiencies: Outcomes relative to outputs • Input for resource allocation • Input for developing strategies
  3. 3. VARIABLES USED TO SEGMENT MARKETSTraditional Variables Behavior Change Healthstyle Variables Transtheoritical Diffusion of Cluster Innovation Systems PRIZM VALS
  4. 4. VARIABLES USED TO SEGMENT MARKETS 1- Best predictor of needs,Traditional Variables wants, barriers, behavior 2- More readily availableDemographic (Socioeconomic): Age, gender, marital status, family size, income, occupation, education, religion, race, and nationality.Geographic: Continents, countries, states, regions, counties, cities, and neighborhoods.Psychographic: Social class, lifestyle, values, personality characteristic.Behavior segmentation: Knowledge, attitude, and behavior (KAP). Occasion, benefit sought, usage level, readiness, attitude Use a combination of variables Use a combination of variables
  5. 5. Stages of Behavior Change Stages of change (transtheoretical) model (Left the bed) ‫ﺴﻠﻭﻙ ﺜﺎﺒﺕ‬ ‫ﺍﻟﻌﻤل‬ (Termination)(Sitting up) ‫ﺍﻻﺴﺘﻌﺩﺍﺩ‬ ‫ﺍﻻﺴﺘﻤﺭﺍﺭﻴﺔ‬(awake but notmoved) ‫ﺍﻟﺘﻔﻜﻴﺭ‬ ‫ﺍﻻﻨﺘﻜﺎﺱ‬ ‫ﻤﺎ ﻗﺒل ﺍﻟﺘﻔﻜﻴﺭ‬(Sound asleep) ‫ﻨﻤﻭﺫﺝ ﻤﺭﺍﺤل ﺍﻟﺘﻐﻴﻴﺭ‬ Prochaska & DiClemente, 1980
  6. 6. Stages of Behavior Change Where is your audience with respect to the desired action? What information or messages do they need at that stage? Maintenance Action Intention Decision- making Comprehension & Risk PerceptionAwareness
  7. 7. VARIABLES USED TO SEGMENT MARKETS Stages of change (Diffusion of Innovation) Adopter Size Adoption Motivation Segments timingInnovator 2.5% First Novelty & be differentEarly adopter 13.5% Second Values from contact with innovatorsEarly majority 34.0% Third Need to imitateLate majority 34.0% Fourth Jump on the bandwagonLaggard 16.0% Last Respect tradition
  8. 8. VARIABLES USED TO SEGMENT MARKETS Healthstyles SegmentationUsed for health-related program planning.Demographic, psychographic, and behavior (KAP) variables
  9. 9. VARIABLES USED TO SEGMENT MARKETSCluster Systems: PRIZM and VALSPRIZM NE:Geodemographic classification system:US neighborhood: 66 distinct social groups (segments), based onshared socioeconomic characteristics of the area. “birds of a feather flock together” “God’s Country” “Red, White & Blues” “Kids & Cul-de-Sacs” “Blue Blood Estates” “……………………..”
  10. 10. VARIABLES USED TO SEGMENT MARKETSCluster Systems: VALS Resources Innovation http://www.strategicbusinessinsights. com/vals/ustypes.shtml
  11. 11. VARIABLES USED TO SEGMENT MARKETSSegmenting Target Audiences Upstream Influencing markets upstream from the individuals – politicians, media figures, community activists, corporations, schools, foundations Influence over target market & environments
  12. 12. VARIABLES USED TO SEGMENT MARKETS Combination of Variables1. Use a combination of variables to segment the market2. One base used as a primary way to group a market (age)3. Each segment is further profiled by using additional relevant variables (education, income, etc.)Use the behavior-related segmentation variables as theprimary base for profiling the market. (Andreasen’s stages of change model)
  13. 13. VARIABLES USED TO SEGMENT MARKETS CRITERIA FOR EVALUATING SEGMENTS Andreasen Factors Andreasen Factors 1. Segment Size 2. Problem Incidence1- Effectiveness Scores 3. Problem Severity 4. Defenselessness 5. Reachability 6. General Responsiveness2- Efficiency Scores 7. Incremental Cost 8. Responsiveness to Marketing Mix 9. Organizational Capabilities
  14. 14. VARIABLES USED TO SEGMENT MARKETS HOW TARGET MARKETS ARE SELECTEDUndifferentiated Marketing (Mass Marketing) Use same strategy for all segments, focusing on what is common rather than on what is different (e.g. drinking water, Seatbelts, flossing teeth, ………)Differentiated Marketing Develop different strategies for different audience. (e.g. breast cancer, physical activity, water safety, ………)Concentrated Marketing Develop the ideal strategy for one or only few key segments. (e.g. folic acid to pregnant, AIDS prevention to drug abusers, ……..)
  15. 15. VARIABLES USED TO SEGMENT MARKETS WHAT APPROACH SHOULD BR CHOSEN?• Greatest need: size, incidence, severity, defenselessness• Most ready for action: ready, willing, able to respond• Easiest to reach: distribution channels, communication• Best match: organizational mission, expertise, resources