Transcript Segmentation

Segmentation
Laura Connor, Tony Hanson, Ryan Loder, Suyi Ma
Agenda
•
Social influences
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Major kinds of segmentation
•
Requirements of a segment
•
Key steps of segmenting
Agenda
•
Social influences
•
Major kinds of segmentation
•
Requirements of a segment
•
Key steps of segmenting
Social influence
When
emotions,
opinions or
behaviors are
affected by
others
Types of social influence
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Kelman’s varieties
 Compliance
 Identification
 Internalization
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Conformity
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Minority
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Self-fulfilling
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Reactance
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Obedience
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Persuasion
https://en.wikipedia.org/wiki/Social_influence
Kelman’s varieties
1958 - Herbert Kelman identified three broad varieties of
social influence:
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Compliance
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Identification
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Internalization
https://en.wikipedia.org/wiki/Social_influence
The point:
instigate action
cause change
When influence causes change
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Positive vision
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Fear
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Pain
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Ultimatums
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Goal alignment
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Care
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Knowledge and ability
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Rewards
http://www.peterstark.com/influences-people-change/
When influence does not cause
change
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Vision
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Being unaware
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They don’t see the benefit
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It’s not their goal
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Short-term rewards
http://www.peterstark.com/influences-people-change/
Influence
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We are being constantly influenced
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Minds are moved by forces we cannot always see
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The scarcity of original thought
Agenda
•
Social influences
•
Major kinds of segmentation
•
Requirements of a segment
•
Key steps of segmenting
Major kinds of segmentation
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Group potential buyers into Segments by :

Demographics (Age, income, education, income etc.)
 Geographic ( Climate, region, city size etc.)
 Northeast
 Mid-Atlantic
 North-Central
 Southwest
 Northwest
 Socio-cultural
 Culture and Subculture
 Social Class
 Religion
Major kinds of segmentation
•
Group potential buyers into Segments by:
 Psychographic
 Lifestyles
 Attitudes
 Personality
 Behavioral
 Usage Rates or Frequency
 Product Features
 Loyal
 Benefits Sought
 Benefits customers are seeking when they purchase a product.
What do you value most about a
phone?
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Phone calls
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Voice dictation
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Compass
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Texting
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Personal assistant
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Voice Recorder
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Camera
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Magnifying glass and
mirror
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Social Media
Alarm clock, stopwatch,
timer
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Calculator
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Language translator
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Calendar
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Retail store finder
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Note taker
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Photo album
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GPS navigation
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Flashlight
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Dictionary
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•
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Emails
E-book
YouTube viewer
Games
Music
Web browser
Weather
Phone Activity
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Phone Calls
Texting
Web Browsing
Emails
Agenda
•
Social influences
•
Major kinds of segmentation
•
Requirements of a segment
•
Key steps of segmenting
Three Reason to Segment Market
• Segmentation
enables the identification of groups of
customers with similar needs, and the analysis of the
buying behavior of these groups.
• Segmentation
provides information for the specific
matching of the design of marketing mixes with the
characteristics of the segment.
• Segmentation
helps marketers satisfy customers wants
and needs while meeting the organization’s objectives.
Requirements of a Segment
In addition to having different needs, for segments to be practical they
should be evaluated against the following criteria:
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Substantiality: the segments should be sufficiently large to justify
the resources required to target them. A very small segment may not
serve commercial exploitation.
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Identifiably: The differentiating attributes of the segments must be
measurable so that they can be identified.
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Reachability: The segments must be reachable through
communication and distribution channels.
Requirements of a Segment (Cont....)
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Responsiveness: Unless segment responds to a marketing
mix differently, no separate treatment is needed.
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Unique needs: To justify separate offerings, the segments
must respond differently to the different marketing
mixes.
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Durable: The segments should be relatively stable to
minimize the cost of frequent changes.
Agenda
•
Social influences
•
Major kinds of segmentation
•
Requirements of a segment
•
Key steps of segmenting
Key Steps of Segmenting & Targeting Markets
The Five Key Steps in Segmenting and Targeting Markets
1. Group potential buyers into segments
Link Needs To Actions
Key Steps of Segmenting & Targeting Markets
•
Group potential buyers into Segments by :

Demographics (Age, income, education, income etc.)
 Geographic ( Climate, region, city size etc.)
 Northeast
 Mid-Atlantic
 North-Central
 Southwest
 Northwest
 Socio-cultural
 Culture and Subculture
 Social Class
 Religion
Key Steps of Segmenting & Targeting Markets
•
Group potential buyers into Segments by:
 Psychographic
 Lifestyles
 Attitudes
 Personality
 Behavioral
 Usage Rates or Frequency
 Product Features
 Loyal
 Benefits Sought
 Benefits customers are seeking when they purchase a product.
Key Steps of Segmenting & Targeting Markets
The Five Key Steps in Segmenting and Targeting Markets
1. Group potential buyers into segments
2. Group products sold into categories
Link Needs To Actions
Key Steps of Segmenting & Targeting Markets

Group products sold into categories
 Target Marketing
 What it is they are buying and who is doing the buying.
 Strategy into what market segment to enter.
 Marketing Positioning
 Unique Product that your target customers values
Key Steps of Segmenting & Targeting Markets
The Five Key Steps in Segmenting and Targeting Markets
1. Group potential buyers into segments
2. Group products sold into categories
3. Develop a market-product grid and estimate size of markets
Link Needs To Actions
Key Steps of Segmenting & Targeting Markets

Develop a market-product grid and estimate size of markets

To determine business growth strategies
Key Steps of Segmenting & Targeting Markets
The Five Key Steps in Segmenting and Targeting Markets
1.
2.
3.
4.
Group potential buyers into segments
Group products sold into categories
Develop a market-product grid and estimate size of markets
Select target markets
Link Needs To Actions
Key Steps of Segmenting & Targeting Markets
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Select target markets

Two types of criteria

Those that divide a market into segments

Those that pick the segment
 How does a company choose a target market
 Competitive position (low cost, differentiation etc.)
 Opportunities within this segment
Meet its goals and objectives
Cost
Key Steps of Segmenting & Targeting Markets
•
Select target markets
 Perceptual Maps
 How do customers see their vehicle
Key Steps of Segmenting & Targeting Markets
The Five Key Steps in Segmenting and Targeting Markets
1.
2.
3.
4.
5.
Group potential Buyers into segments
Group products sold into categories
Develop a market-product grid and estimate size of markets
Select target markets
Take marketing actions to reach target markets
Link Needs To Actions
Key Steps of Segmenting & Targeting Markets
•
Take marketing actions to reach target markets
TAKE ACTION TO REACH YOUR TARGET MARKET !!
Questions?