Customers

Our fundamental building blocks of marketing strategy include segmentation, 0:00 targeting, positioning, and differentiation. 0:06 Segmentation involves dividing the total market and that means all 0:12 of the actual or potential people who could be our customers in to 0:17 smaller segments or smaller groups. Right, so segmentation merely 0:22 involves taking all of the people out there and dividing them into groups. Children, 0:27 teenagers, young adults, you know, and 0:33 people right close to retiring. Right or segment the market by people 0:39 who live in rural areas versus people who live in 0:44 urban areas. So all we're doing in segmentation is dividing 0:49 all of the people in the market up into smaller groups. Now then targetting 0:54 is our next step and that's going to involve deciding which segments to enter 0:59 or which segments to serve. Alright, so if you divide the market up into 1:05 you know children, teenagers, and adults. And you decide alright well I only wanna 1:09 sell my product and services to teenagers. Right. That's targeting. 1:15 Next we have differentiation and differentiation refers to how you as 1:21 a marketer are going to make your product or service different in a good way. 1:26 Right. You want your product or service to stand out from the ones offered by your competitors. 1:31 Right. You wanna make sure that your offering, creates some sort of superior value 1:36 and that's what we call differentiation. You make it different in a good way. 1:42 Lastly we have positioning, which involves positioning the market offering 1:47 in the minds of your target customers. Essentially this is all about, 1:53 how do you want your customers to think about your product or your brand. 1:59 Do you want them to think about you as the super cool and trendy brand. 2:04 Or do you want your customers to think of you as the traditional, tried and true or 2:09 conservative brand. So positioning is all about how customers 2:14 think about your product or service or brand. Now 2:19 I wanna go into a little bit more detail on market segmentation right now because 2:25 in these fundamental building blocks of marketing strategy, our first step 2:30 is always market segmentation. So let's go into this in a bit more detail. 2:35 We have four key consumer variables. Geographic 2:40 variables, demographic variables, psychographic variables and behavioral 2:46 variables. And I have a little asterisks next to geographic because often 2:51 times textbooks will lump this into demographic variables and so sometimes 2:57 you don't see it separated and sometimes you do. Now within 3:02 these, you know, I mentioned earlier geographically you can segment the market 3:07 into people who live in an urban, big city, versus people who live in a rural area. 3:12 Or you can segment the market in people who live in a particular state 3:18 or a particular region or a particular country or even a particular 3:23 continent. Alright, so geographically you can create very large segments. 3:29 North America versus South America. Or you can create very small segments. 3:34 Right, divide people based on geographically, where they live, right, which neighborhood they 3:39 live in. Now in terms of demographic factors probably 3:45 the main ways that you will segment the market with demographic factors are going to be based 3:49 on age and gender, right. So which age group you fall into 3:54 and what your gender identity is. Psychographic 4:01 factors include those factors that relate to personality characteristics or lifestyle. 4:05 Right so you can segment people based on what types of hobbies they like to engage 4:12 in or what types of activities they engage in or whether they 4:17 are super extroverted versus introverted and things like that. 4:22 So anything related to lifestyle and personality that's gonna fall 4:28 under psycho-graphic. And lastly we can segment the market using 4:32 behavioral variables and these refer to how people behave with respect 4:38 to your market offering. Are they really loyal to your brand and 4:43 your market offering or are they not loyal at all. You can segment people into loyal and not 4:48 loyal. Or you can segment people into heavy users, medium 4:54 users or light users of your product or service. So 4:59 anyway that you can divide people up based on how they behave with respect to your market 5:04 offering, that's using behavioral segmentation.