Marketing Strategy
Rock1027
CustomersSegmentationandTargetMarketing.pdf
MARKETING STRATEGY Session 7 WITH DR. BRENT SMITH
Content
u Ch 5. Customers, Segmentation, and Target Marketing
u Illustrations: Customer Journey
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Customers, Segmentation, and Target Marketing
u Question: According to your text, consumers have a higher likelihood of experiencing dissatisfaction or cognitive dissonance under any of the conditions below. Why is that? Can you describe a personal experience or observation that relates to this?
u Dollar value of the purchase increases
u Opportunity costs of rejected alternatives are high
u Purchase decision is emotionally involving
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Customers, Segmentation, and Target Marketing
u Question: Marketers really care about whether their brands exist within a consumer’s awareness set. In particular, they want to know if their brand is part of the evoked set, inert set, or inept set. Why?
a) evoked set / consideration set: person would readily consume brand
b) inert set: person is indifferent towards brand, and may accept if (a) is not available
c) inept set: person would avoid brand out of dislike, disdain, et cetera
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Customers, Segmentation, and Target Marketing
u Question: Many consumers and consumer advocates are critical of individualized segmentation approaches due to personal privacy concerns. They argue that technology has made it far too easy to track buyer behavior and personal information.
Marketers counter that individualized segmentation can lead to privacy abuses, but that the benefits to both consumers and marketers far outweigh the risks.
Where do you stand on this issue? Are this benefits v. risks acceptable?
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Customers, Segmentation, and Target Marketing
u Common Segmentation Variables
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Category Variable Examples
Behavioral Benefits sought Quality, value, taste
Product usage Heavy, medium, and light users
Occasions or situations Emergencies, birthdays, graduation
Demographic Gender Male, female, other
Occupation Blue collar, white collar, retiree
Education High school, (some) college, graduate
Psychographic Personality Outgoing, shy, compulsive
Lifestyle Workaholic, couch potato
Motives Safety, relaxation, convenience
Geographic City/county size < 50,000, 50,0001–100,000, > 1,000,000
Population density Urban, suburban, rural
Customers, Segmentation, and Target Marketing
u Basic Strategies for Target Market Selection
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Customers, Segmentation, and Target Marketing
Target markets (re: gazelles) should be:
1. Identifiable + Measurable Consumers are primarily age / education / user category who prefer psychographics / benefits sought.
2. Substantial They represent x% of the market, which is $x large and growing by x%.
3. Accessible They gather product information via methods / media and purchase at venues on intervals / schedule.
4. Responsive (Ability + Will to buy) Their average income is $x per year.
5. Viable + Sustainable They spend $x per item / visit / et cetera
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Customers, Segmentation, and Target Marketing
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Mainstream
Early Market Late Market
Customers, Segmentation, and Target Marketing
u Segmentation factors :
u Timing Re: Gazelle
u Solutions demanded Re: Solutions > Products
u Desired relationship Ex: Transactional, product, company,…
u Desired benefits Ex: cool factor, strictly utility,…
u Diffusion of (Innovation) Adoption
u Innovators (2.5%)
u Early Adopters (13.5%)
u Early Majority (34.0%)
u Late Majority (34.0%)
u Laggards (16%)
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Customers, Segmentation, and Target Marketing
u Maslow’s hierarchy of needs / motivations u Ex 1: Macklemore – Wings / NIKE (Link)
URL: https://www.youtube.com/watch?v=ZcCEuQP2SeQ
Excerpted lyrics:
I was so cool, I knew that I couldn't crease ‘em My friends couldn't afford 'em, Four stripes, some Adidas On the court I wasn't the best, but my kicks were like the pros Yo, I stick out my tongue so everyone could see that logo
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Customers, Segmentation, and Target Marketing
u Examples of past and present approaches to engaging market segments: u Making and marketing women’s sportswear: ”Pink it. Shrink it.”
u Serving vegetarians: lettuce; tofu
u International promotion of films: darker-skinned actors / heroes cannot draw moviegoers
u Food portions for babies, toddlers, and diet conscious adults: less volume => fewer calories
u Broga (bro + yoga): it is okay / good for guys to exercise without free weights, cables, and cardio u Ex: https://www.booyafitness.com/broga (Note how messages are articulated.)
u SEPHORA: framing consumer’s situational problems and offerings solutions u Ex: https://www.youtube.com/user/sephora | https://youtu.be/st6GTcO6Ln4 (Note messaging styles.)
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Customers, Segmentation, and Target Marketing
u Involvement relates to how interested or invested a consumer might be in a product and its performance. Generally, we can look at involvement as:
u high involvement vs. low involvement
u enduring involvement vs. situational involvement
u Question: How can we relate the following items to the above varieties of involvement? How might age or other factors influence involvement? u health care for one’s self, one’s pet, or one’s parent (e.g., medical, eye, dental)
u automotive vehicle u mattress for sleeping
u financial services (e.g., investments, retirement) u footwear for fitness or sport
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Customer Journey
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Customer Journey
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Customer Journey
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