The concept of segmentation and targeting

The concept of segmentation and targeting

1. A market segment is a homogeneous group of customers with similar needs, wants, values and buying behavior.

Segmentation bases :

• Geographic : World region or country, u.s. region, state, city, Neighborhood, city or metro size, density, climate.
• Demographic : Gender, age, race, marital status, household side, occupatoin, income, education, religion.
• Social-cultural : culture (e.g., north american versus asian culture), subcultures, social class, psychographics (lifestyle, values, attitudes, personality, opinions, interests, hobbies).
• Benefits Desired :
• Behavioral :

1. Target marketing involves selecting certain segments for enphasis.

Target customers ➔ potential buyers whose needs the company aims to fulfill with its offerings.

A good segment :

• Measurable
• Substantial
• Accessible
• Differentiable
• Actionnable

Selection criteria :

• Segment attractiveness
• Company capabilities
• Company vision
• Competitors

A company might choose primary and secondary targets

Undifferentiated (mass) marketing ➔ Differentiated (segmente) marketing ➔ Concentrated (niche) marketig ➔ Micromarketing (local or individual marketing).

How to choose ?

Consider : Company’s ressources, product life-cycle stage, communication

Marketing research

How do marketers collect infomation about their customer base ?

Marketing research – process of gathering and interpreting data for use in developing and implementing the firm’s marketing plans.

Primary data – originated by a researcher for the specific purpose of addressing the problem at hand.

Secondary data - have already been collected for purpose other than the problem at hand. Can be located quickly and inexpensively.

Explorating research – Research conducted to gain ideas and insights to better define the problem confronting a manager

Does not lead to a conclusive answer

Descriptive research – research in which the major objective is describing someting : characteristics of a group, relationships between variables

Buzz – Comments discussing the brand on social media and other internet communities.

1. Unforced communication
2. Constructive criticism and positive remarks
3. Customers feel that they’re been heard
4. Cheap and large sample
5. Co-creation

Why do consumers participate ?

1. Feelings of worth and value
2. Bonds of association with other users
3. Peer-generated esteem for expertise
4. Promotions / monetary rewards

Session replay – Ability to replay a visitors journey on a website which can include mouse mouvemebt, clicks, form entry and page scrolling.

Casual research – Research in which the major emphasis is on dermining  cause-and-effect relationships, experiment.

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