Transcript Appealing to diverse interests is a marketing challenge.

Mass Marketing
“One basic marketing strategy appealing to a
broad range of consumers, not addressing any
distinct characteristics among the consumers.”
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
6-1
Market Segmentation
“Dividing of a large market (mass market) into
smaller homogeneous markets (segments)
based on common needs and / or similar
lifestyles.”
Unique marketing strategies are
implemented for unique segments.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
6-2
Segmentation Variables
Demographic
Customer
Profile
Target
Market
Psychographic
Geographic
Behaviour Response
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
6-3
Key Demographic Trends
 Aging Population

Changing Household Formations

Ethnic Diversity

Concentration of Wealth
Appealing to diverse interests is a marketing
challenge.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
6-4
Age Segments
Youth or Generation Y
Generation X
Baby Boomers
Grey
At what segment should marketing
strategy be directed?
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
6-5
Gender Targeting
1. Changing roles call for “unisex” targeting.
2. Influence of women in decision-making is
underestimated by many organizations.
3. Reinventing males in personal care
marketing is a recent trend.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
6-6
Psychographic Segmentation
“Dividing a market based on lifestyles of
consumers.”
Activities
 Interests
 Opinions

Demographic segments can
be quite different when
psychographic factors are
considered.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
6-7
Goldfarb’s Psychographic
Classifications
Traditionalists
• Day to Day Watchers
• Old-Fashioned Puritans
• Responsible Survivors
25%
18%
12%
Non-Traditionalists
• Joiner Activists
• Bold Achievers
• Self-Indulgents
16%
15%
14%
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
6-8
Geographic Segmentation
Distinct geographic regions present challenges
for marketers.
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Language
Culture
Urban
Suburban
Rural
Geodemographics
Unique regional needs and
situations result in micromarketing strategies.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
6-9
Geodemographics
Isolating dwelling areas (e.g., areas within a
city) according to geography and
demographics.
People cluster with
their lifestyle peers.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
6-10
Behaviour Response
Segmentation
Behavioural influences that are considered
along with other segmentation variables.
 Occasion for Use
 Benefits Sought
 Usage Rate
 Loyalty Response
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
6-11
Categories of Brand Loyalty
Brand Loyal
Consistently buys same
brand for a reason.
Inertia Driven
Loyalty based on habit.
Brand Promiscuous
Mobile brand switchers.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
6-12
Segmentation Strategies
Market
Differentiation
Niche
Marketing
Many segments, products, and
marketing strategies (mixes).
All resources aimed at a
distinct segment.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
6-13
Niche Basics
Niche segments are often very small. Success
is based on finding opportunities that do not
require economies of scale.

Identify niche

Exploit niche

Expand niche

Defend niche
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
6-14
Segmentation Strategies
Market
Integration
Expand from single segment
to embrace similar segments.
Relationship
Marketing
Individual and interactive
customer contact.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
6-15
Relationship Marketing
Information
Database
Internet
Communications
E-Commerce
• 53% of Canadians use
the Internet regularly.
• Searching for information
about goods online is
common.
• Consumers are multi-
channeling.
Internet-based marketing must be integrated
with traditional marketing.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
6-16
Segmentation Continuum
Market
Integration
Mass
Marketing
Niche
Marketing
Market
Differentiation
Relationship
Marketing
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
6-17
Positioning
2-Step Positioning Strategy
“The place a brand
occupies in the
customer’s mind
in relation to
competing products.”
1. Develop and market a
product to meet needs.
2. Create appropriate
appeals to differentiate
the product in the
customer’s mind.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
6-18
Positioning Strategies
1. Head-on
2. Brand Leadership
3. Product Differentiation
4. Technical Innovation
5. Lifestyle
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
6-19
Repositioning
Repositioning is necessary
due to:
“Changing the place
a product occupies
in the customer’s
mind.”
1. The activity of a direct
competitor
2. The preferences of a
target market change.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
6-20