WEBVTT 1 00:00:02.370 --> 00:00:05.100 Hello and welcome to the video lecture 2 00:00:05.100 --> 00:00:09.663 on segmenting, targeting, and positioning, Part 1. 3 00:00:12.360 --> 00:00:14.790 So in these two parts, we're gonna talk 4 00:00:14.790 --> 00:00:18.240 about those things, how to segment, 5 00:00:18.240 --> 00:00:22.500 how to pick a target market, the idea of positioning, 6 00:00:22.500 --> 00:00:24.510 and the tool of perceptual mapping 7 00:00:24.510 --> 00:00:27.573 which can help you with your positioning. 8 00:00:29.880 --> 00:00:31.230 So why segment? 9 00:00:31.230 --> 00:00:34.450 Why should we break customers 10 00:00:36.600 --> 00:00:37.433 into groups? 11 00:00:37.433 --> 00:00:41.550 So segmentation, again, is breaking 12 00:00:41.550 --> 00:00:46.290 sort of everyone out there into groups 13 00:00:46.290 --> 00:00:50.307 which share like attributes 14 00:00:51.510 --> 00:00:52.803 in certain ways. 15 00:00:54.240 --> 00:00:55.500 Why do we do it? 16 00:00:55.500 --> 00:00:59.253 Because we don't live in a one-size-fits-all world. 17 00:01:00.270 --> 00:01:04.410 Not everyone likes the same kinds of food, the same kind 18 00:01:04.410 --> 00:01:07.500 of film, the same kind of art, the same kind of clothes, 19 00:01:07.500 --> 00:01:11.313 the same kind of cars, the same kinds of electronics. 20 00:01:12.930 --> 00:01:15.960 We humans are very heterogeneous 21 00:01:15.960 --> 00:01:18.543 in what we like, what we want, what we need. 22 00:01:21.570 --> 00:01:24.180 And again, different consumers 23 00:01:24.180 --> 00:01:29.010 have different tastes, needs, desires, behaviors, 24 00:01:29.010 --> 00:01:32.430 how we buy, where we buy, when we buy. 25 00:01:32.430 --> 00:01:37.410 There's a lot of variety there. 26 00:01:37.410 --> 00:01:41.040 And by segmenting we can think about 27 00:01:41.040 --> 00:01:45.210 who is most likely to buy our thing, to buy our product, 28 00:01:45.210 --> 00:01:48.210 to buy our service, to support our organization. 29 00:01:48.210 --> 00:01:51.040 And we're gonna think about how do we find them 30 00:01:52.260 --> 00:01:57.260 and get our message and get into their brand awareness set 31 00:01:57.360 --> 00:01:59.823 so that they will support us. 32 00:02:01.950 --> 00:02:06.300 Remember way back a few videos ago 33 00:02:06.300 --> 00:02:07.890 that I talked about, 34 00:02:07.890 --> 00:02:12.540 if you ask somebody, "Who will buy your product," 35 00:02:12.540 --> 00:02:16.470 and they say, "Everyone," 36 00:02:16.470 --> 00:02:18.690 that's not actually a good thing. 37 00:02:18.690 --> 00:02:22.533 That's a danger sign that they haven't done this exercise. 38 00:02:23.430 --> 00:02:27.600 And important to create segments of folks 39 00:02:27.600 --> 00:02:31.380 that are likely to buy or not likely to buy, 40 00:02:31.380 --> 00:02:33.813 and then target those who are likely. 41 00:02:36.000 --> 00:02:41.000 So there's four main types that we're gonna talk about: 42 00:02:41.400 --> 00:02:45.210 demographic, psychographic, behavioral, and geographic. 43 00:02:45.210 --> 00:02:49.200 And we're basically going to aggregate folks 44 00:02:49.200 --> 00:02:54.200 by common needs, common behaviors, 45 00:02:54.840 --> 00:02:59.130 common attributes, and sort of focus in then 46 00:02:59.130 --> 00:03:03.450 on those that would be good likely targets 47 00:03:03.450 --> 00:03:04.623 for what we have. 48 00:03:06.990 --> 00:03:10.560 The idea being that we wanna create a link 49 00:03:10.560 --> 00:03:15.560 from the need to the marketing action, 50 00:03:15.810 --> 00:03:20.460 and by having clearly defined segments, 51 00:03:20.460 --> 00:03:22.440 it makes our marketing efforts 52 00:03:22.440 --> 00:03:25.143 much more efficient and effective. 53 00:03:29.370 --> 00:03:33.213 The idea being that they should have similar needs, 54 00:03:34.457 --> 00:03:37.440 that they should sort of resemble each other 55 00:03:37.440 --> 00:03:41.670 in certain ways related to the need 56 00:03:41.670 --> 00:03:44.700 or want for your product or service, 57 00:03:44.700 --> 00:03:49.140 and they must be big enough to be worthwhile. 58 00:03:49.140 --> 00:03:53.010 So if you have a segment of one, that might be great, 59 00:03:53.010 --> 00:03:56.400 but that's only one individual, 60 00:03:56.400 --> 00:03:59.880 and to spend a whole lot of money and time and effort 61 00:03:59.880 --> 00:04:03.600 to just reach one is, again, probably not efficient. 62 00:04:03.600 --> 00:04:05.500 And there must be a way to reach them. 63 00:04:07.980 --> 00:04:12.780 So here are four ways that we can think about segmentation: 64 00:04:12.780 --> 00:04:16.290 geographic, demographic, psychographic, and behavioral. 65 00:04:16.290 --> 00:04:17.740 And I'll go through each one. 66 00:04:19.740 --> 00:04:24.240 So geographic, where geo 67 00:04:24.240 --> 00:04:28.488 means the Earth, and graphic is (indistinct), 68 00:04:28.488 --> 00:04:31.323 so measuring their location. 69 00:04:32.220 --> 00:04:33.360 Where do they live? 70 00:04:33.360 --> 00:04:35.730 Where do they work? Where do they recreate? 71 00:04:35.730 --> 00:04:38.130 Where do they shop? Where in space are there? 72 00:04:38.130 --> 00:04:42.270 And how big of a geographic reach do you want? 73 00:04:42.270 --> 00:04:45.120 Do you wanna sell locally? Do you wanna sell globally? 74 00:04:45.120 --> 00:04:50.120 Or sort of how large or small of a geographic reach 75 00:04:51.600 --> 00:04:52.433 do you have? 76 00:04:52.433 --> 00:04:55.680 How likely is it that folks far away, say, 77 00:04:55.680 --> 00:04:57.873 are gonna want what you have? 78 00:05:00.870 --> 00:05:05.430 Demographic is measuring 79 00:05:05.430 --> 00:05:07.200 human attributes. 80 00:05:07.200 --> 00:05:11.190 So when we think about consumers, again, 81 00:05:11.190 --> 00:05:15.003 things like age, race, religion, ethnicity, 82 00:05:15.840 --> 00:05:19.410 things like that, you can have one or more of them, 83 00:05:19.410 --> 00:05:23.820 like those of a certain gender and race, 84 00:05:23.820 --> 00:05:26.760 or those of a certain age and income, 85 00:05:26.760 --> 00:05:30.000 or any combination. 86 00:05:30.000 --> 00:05:33.720 And when we think about firmographics, 87 00:05:33.720 --> 00:05:37.360 for those of you in B2B space, that would be 88 00:05:38.550 --> 00:05:42.510 the attributes of a firm, like its size, its revenue, 89 00:05:42.510 --> 00:05:45.753 how long it's been in business, and things like that. 90 00:05:48.840 --> 00:05:53.403 Psychographic is how they think, what they like, 91 00:05:54.510 --> 00:05:56.880 their activities, their opinions, 92 00:05:56.880 --> 00:05:59.460 their interests, their values. 93 00:05:59.460 --> 00:06:02.130 We can think about what are some common psychographics 94 00:06:02.130 --> 00:06:07.130 of UVM's students? 95 00:06:07.800 --> 00:06:11.490 What are some things that a lot of students like to do? 96 00:06:11.490 --> 00:06:13.290 What are some of the activities? 97 00:06:13.290 --> 00:06:15.720 When are the interests or some of the habits? 98 00:06:15.720 --> 00:06:20.490 What are the hobbies? What values do these folks hold? 99 00:06:20.490 --> 00:06:24.270 And to what extent and how is that a match 100 00:06:24.270 --> 00:06:26.070 for what you will wanna sell? 101 00:06:26.070 --> 00:06:31.070 Or who out there has the activities, the opinions, 102 00:06:31.080 --> 00:06:34.983 the habits, the values that match what you have? 103 00:06:37.560 --> 00:06:39.603 I just thought that this is funny. 104 00:06:40.620 --> 00:06:44.190 This is Burlington Bingo, and I think it has a lot to do. 105 00:06:44.190 --> 00:06:48.030 It says a lot about the psychographics 106 00:06:48.030 --> 00:06:50.623 of our fair city, Burlington. 107 00:06:55.740 --> 00:06:58.270 Behavioral is specifically 108 00:07:01.200 --> 00:07:05.460 regarding the way that they buy, 109 00:07:05.460 --> 00:07:07.590 their purchase behaviors. 110 00:07:07.590 --> 00:07:11.580 Where do they buy, how often, how much, and when? 111 00:07:11.580 --> 00:07:15.690 Do they buy large amounts just infrequently? 112 00:07:15.690 --> 00:07:19.983 Do they buy small amounts daily? 113 00:07:20.850 --> 00:07:22.470 Are they loyal? 114 00:07:22.470 --> 00:07:25.240 Do they use it a lot, or do they just use it 115 00:07:27.900 --> 00:07:30.360 a little bit? 116 00:07:30.360 --> 00:07:35.013 How do they purchase, and how do they use the product? 117 00:07:42.510 --> 00:07:44.763 These are an interesting set of segments. 118 00:07:45.690 --> 00:07:49.200 This is a bit old, but I think it's still, it's a lot, 119 00:07:49.200 --> 00:07:53.640 that there was a report that came out of who buys organic, 120 00:07:53.640 --> 00:07:58.050 and it broke it up into these six segments 121 00:07:58.050 --> 00:08:02.400 with these top four being ones that will probably buy, 122 00:08:02.400 --> 00:08:06.463 and the bottom two, the overwhelmed and the unconcerned, 123 00:08:07.470 --> 00:08:11.640 being ones that probably just, at least at this time, 124 00:08:11.640 --> 00:08:15.210 weren't worth the effort to try to reach 125 00:08:15.210 --> 00:08:18.450 because they just lack the demographic 126 00:08:18.450 --> 00:08:22.863 and psychographics to want to buy organic food. 127 00:08:50.760 --> 00:08:54.210 The affluent folks, so those that are really interested 128 00:08:54.210 --> 00:08:56.190 in the nutrition and health. 129 00:08:56.190 --> 00:09:00.940 And then the young recyclers that wanna do the right thing 130 00:09:02.434 --> 00:09:05.673 but, again, sort of face the barriers. 131 00:09:10.200 --> 00:09:13.533 And that is the end of Part 1. Thank you.