Segmentation Laura Connor, Tony Hanson, Ryan Loder, Suyi Ma.

SegmentationLaura Connor, Tony Hanson, Ryan Loder, Suyi Ma

Agenda• Social influences

• Major kinds of segmentation

• Requirements of a segment

• Key steps of segmenting

Social influenceWhen emotions, opinions or behaviors are affected by others

Types of social influence• Kelman’s varieties

Compliance

Identification

Internalization

• Conformity

• Minority

• Self-fulfilling

• Reactance

• Obedience

• Persuasion

https://en.wikipedia.org/wiki/Social_influence

Kelman’s varieties1958 - Herbert Kelman identified three broad varieties of social influence:

• Compliance

• Identification

• Internalization

https://en.wikipedia.org/wiki/Social_influence

The point:

instigate action

cause change

When influence causes change• Positive vision

• Fear

• Pain

• Ultimatums

• Goal alignment

• Care

• Knowledge and ability

• Rewards

http://www.peterstark.com/influences-people-change/

When influence does not cause change• Vision

• Being unaware

• They don’t see the benefit

• It’s not their goal

• Short-term rewards

http://www.peterstark.com/influences-people-change/

Influence• We are being constantly influenced

• Minds are moved by forces we cannot always see

• The scarcity of original thought

Major kinds of segmentation • Group potential buyers into Segments by:

Demographics (Age, income, education, income etc.)

Geographic ( Climate, region, city size etc.) NortheastMid-Atlantic North-CentralSouthwestNorthwest

Socio-culturalCulture and SubcultureSocial ClassReligion

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?• Phone calls

• Texting

• Camera

• Social Media

• Emails

• E-book

• YouTube viewer

• Games

• Music

• Web browser

• Weather

• Voice dictation

• Personal assistant

• Alarm clock, stopwatch, timer

• Calculator

• Calendar

• Note taker

• Photo album

• GPS navigation

• Flashlight

• Dictionary

• Compass

• Voice Recorder

• Magnifying glass and mirror

• Language translator

• Retail store finder

Phone Activity • Phone Calls Texting

Web Browsing Emails

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:

• Substantiality: the segments should be sufficiently large to justify the resources required to target them. A very small segment may not serve commercial exploitation.

• Identifiably: The differentiating attributes of the segments must be measurable so that they can be identified.

• Reachability: The segments must be reachable through communication and distribution channels.

Requirements of a Segment (Cont....)

• Responsiveness: Unless segment responds to a marketing mix differently, no separate treatment is needed.

• Unique needs: To justify separate offerings, the segments must respond differently to the different marketing mixes.

• Durable: The segments should be relatively stable to minimize the cost of frequent changes.

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.


The Five Key Steps in Segmenting and Targeting Markets 1. Group potential buyers into segments 2. Group products sold into categories


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


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



Develop a market-product grid and estimate size of markets

To determine business growth strategies


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 4. Select target markets


Key Steps of Segmenting & Targeting Markets• 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 objectivesCost

Key Steps of Segmenting & Targeting Markets• Select target markets

Perceptual Maps How do customers see their vehicle


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 4. Select target markets 5. Take marketing actions to reach target markets


Key Steps of Segmenting & Targeting Markets• Take marketing actions to reach target markets

TAKE ACTION TO REACH YOUR TARGET MARKET !!

Questions?

Segmentation Laura Connor, Tony Hanson, Ryan Loder, Suyi Ma.

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