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IBM-SegmentationTargeting.pdf

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SEGMENT

TARGET

Marketing Strategy

4-2

F I G U R E

Review: The IMC Planning Process

Customers/Consumers The IMC Planning Process

• Current customers

• Former customers

• Potential new customers

• Competitors’ customers

• Who buys? Who uses?

How & Why?

4-4

• Identify major competitors.

• Identify communication strategies and

tactics of each competitor.

Sources of information

• Primary research

• Secondary data

Competition

The IMC Planning Process

• Company communications

• Industry communications

• Competitor communications

Communications The IMC Planning Process

Target Markets

• Selection of target markets

• Market segmentation approaches

• Product positioning strategies

Criteria for Effective Targeting

Identifiable Sizeable

Stable Accessible

Congruent with the company’s objectives

and resources

• Demographics • www.census.gov

• Psychographics

• Generations

• Geographic

• Geodemographics

• Benefits

• Usage

F I G U R E

Methods of Segmenting Consumer Markets

http://www.census.gov/

Psychographic Segmentation

• Describe consumers

• AIO measures

• Activities

• Interests

• Opinions

• Combined with demographic profiles

VALS Psychographic Segmentation

• Innovators – successful, sophisticated – upscale products

• Thinkers – educated, conservative, practical – durability, value

• Achievers – goal-oriented, conservative, career, and family

• Experiencers – young, enthusiastic, impulsive, fashion, social

• Believers – conservative, conventional, traditional

• Strivers – trendy, fun-loving, peers important

• Makers – self-sufficient, respect authority, not materialistic

• Survivors – safety, security, focus on needs, price

Take the VALS Survey to find out your classification:

http://www.strategicbusinessinsights.com/vals/presurvey.shtml

What Is Shown or Stated in This Ad That Is

Designed to Attract Consumers to This New

Product?

Chapter Fourteen

Slide

Segment by Adoption Group

Post-Millennials / Generation Z: 1996 (?) to Present…..

4-13

Characteristics of Generation Segments

Name of Segment Year of Birth Characteristics

Millennials 1978-2002 Spend money on clothes, automobiles, college,

televisions, and stereos. Ninety percent live at home or

in a dorm or rent an apartment.

Generation X 1965-1977 Focus on family and children. Spend on food, housing,

transportation, and personal services.

Younger

Boomers

1954-1964 Focus on home and family. Spend on home mortgage,

pets, toys, playground equipment, and large recreational

items.

Older Boomers 1952-1953 Spend on upgrading homes, ensuring education and

independence of their children, and luxury items, such

as boats.

Seniors Up to 1951 Most have fixed incomes. Spend heavily on health care

and related medical items.

Source: Author-created from Dana-Nicoleta Lascu and Kenneth E. Clow, Marketing Principles (Cincinnati,

OH: Textbook Media Press, 2012).

1978-1995

4-14

Characteristics of

Generation Gen Z

Do you agree?

4-15

COMPARISON

1978-1995 1996-Present

“Post-Millennials”

Do you agree?

Geodemographic Segmentation

• PRIZM segmentation

system

• 62 market segments

• Identifies segments

present in each USA zip

code

• Combines

• Demographic census data

• Geographic information

• Psychographic information

Zip code lookup: http://www.claritas.com/MyBestSegments

/Default.jsp?ID=20

http://www.claritas.com/MyBestSegments/Default.jsp?ID=20

Benefit Segmentation

• Winners

• Dieters

• Self-improvers

Based on benefits

sought

Example:

Fitness Industry

4-18

Consumer-Centric

Assignments

Calendar (see syllabus!)

IBM4212

Marketing

Problems

Shaded days (Weds) are online only.

FINAL = MONDAY, 12/9/19 11:00AM-12:50PM

NOTE THE DAY/TIME OF THE FINAL EXAM. DO NOT SCHEDULE TRAVEL THAT CONFLICTS. TAKING THE FINAL ON THE DESIGNATED DAY/TIME IS MANDATORY.

Group Project

Form Groups of 3 or 4.

No groups with more than 4.

◼ Analyze a brand with a challenge and develop a marketing plan to

address its issues in order to engineer a brand turnaround in the US market

(no global).

◼ Choose from one of these troubled brands (have 2 backups) or suggest

one (1 max per industry will be allowed).

Group Project: Brand Savers

STRATEGIC MARKETING PLAN

IBM4212

Marketing

Problems

1. Leapfrog learning toys (focus on 1 line or 1 specific product)

2. Sanka decaffeinated coffee or Folgers coffee

3. Search Engines: Yahoo!, Ask.com, DuckDuckGo, Lycos, Bing

4. Liquor brands: Wild Turkey bourbon whiskey or Old Crow whiskey

5. Restaurants: Quiznos, Bennigans, Ruby Tuesdays, Long John Silver’s, Red Robin, Outback Steakhouse, Fuddrucker’s

6. Candy: Milky Way candy bar, 3 Musketeers Candy Bar, Tootsie Rolls, or other (approval required)

7. Beer (1 of the following): Point Beer (from Steven’s Point, WI) or Old Milwaukee Beer, Stroh’s, Old Style, or Schlitz or Hamm’s Beer

(now owned by SAB MillerCoors)

8. Soft/energy drinks: RC Cola, Squirt soda, Full Throttle or AMP Energy drinks, or other (with approval)

9. Frozen Dinners: Hungry Man or Banquet (you must focus only on complete frozen dinners, not other products with brand names!)

10. Drakkar Noir men’s cologne

11. Discount Retailers: Sears or K-Mart or Talbot’s

12. Clothing Retailers: Aeropostale, QuikSilver, American Eagle Outfitters or Abercrombie & Fitch, Diesel, Claire’s

13. Vehicles: Harley Davidson, Fisker, Scion

14. CoverGirl, Clairol

15. Duncan Hines cake mixes

16. Fruit of the Loom, Jockey, or Maidenform underwear (focus on men or women, not both)

17. Gillette razor blades (men’s only)

18. Yoplait yogurt

19. Oscar Mayer hot dogs

Group Project: Brand Savers (Topics)

STRENGTHS WEAKNESSES

THREATSOPPORTUNITIES

SWOT

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