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- [Narrator] Hello, and
welcome to part two of

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the lecture on segmentation,
targeting and positioning.

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So, once you've identified segments,

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then you wanna start to
think about who to target.

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Which ones of those that
you have identified,

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should you sort of go after?

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And the better you choose a segment,

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the greater, the chance of success.

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Being too broad,

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you're going to sort
of waste your efforts,

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waste money, get your
message in front of folks

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who really are not
interested in what you have.

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And too narrow, you send
it to too few people

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and miss out on those who actually

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may be interested in what you have to do.

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The key here, I think is to define

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and target a segment that
you are able to reach them

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and you are able to talk to them,

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as if you're talking to them alone.

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That's like how I think about the goal of

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you want it to feel like

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the consumer that you're targeting

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to think, "Wow, this business organization

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really understands me.

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It's as if they can read my mind,

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they are talking my language

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and they are offering me a product

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or a vest that's just
really a great fit for me.

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Like that's kind of the
goal that you wanna do here.

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So again, here,

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sort of the two ends of the scale

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with lots of gray matter in between

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or gray space in between,

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and you can think of
these two ends of the pole

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of the continuum being undifferentiated

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and differentiated sort of mass marketing

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versus niche marketing.

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So in the first approach,

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you sort of go after all
segments in the same way.

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You want to just sort of have one blanket

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and message targeted at
all of your segments,

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you go after all of them in the same way.

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Again, this tends to be a
little bit at lower cost

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per person that you reach

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because you're not really
tailoring it for each one.

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The downside here is that there's a risk

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that it could feel very impersonal,

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that it won't get that feeling of,

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"Wow, this business really understands me.

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They're talking just to me right now."

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The other side is a highly tailored,

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highly specific marketing
mix for each segment

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where you're offering
different products or services,

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sort of promoting those...

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Reaching out to each segment

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with a carefully tailored marketing mix

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and plan in a way that
they really feel like

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you're talking right to them.

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So an obvious example I
thought of, is City Market.

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So, they would reach
out to college students

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like yourselves in very different ways

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than they would reach
out to a middle-aged guy

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who has a family like me.

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Offering different products,

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different promotional
things are probably thinking

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you like convenience and low costs.

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They're not low cost, convenience.

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And they're right there,
they're right in town.

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Offering things that you might want maybe

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more easily prepared foods,

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beer, things like that.

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Whereas me, it might
be like more bulk food,

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more like healthy food for
if I'm healthy conscious,

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about what my children eat.

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Recipes for kid friendly,
healthy meals, things like that.

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Two other factors

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and one I think we're
really working in your favor

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is technology and with the internet

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and with

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how much data that we have
on consumers these days,

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that we really have the tools now,

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to be able to tightly customize products.

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And an example and we
could do this in class

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is the Pandora music streaming.

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I've found that in the past,

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if I put in the name of a band that I like

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and the...

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As a baby boomer gen X cusp,

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if I put in someone that I like,

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like David Bowie or the Beatles,

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I'm going to get a certain kind of ad.

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Embarrassingly, I often
come up with Viagra ads

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for myself which obviously
that's what they think

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someone who likes this
kind of music needs.

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Whereas if I were to put
in a band that's newer,

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that you might like,

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it comes up with things
like cell phone plans

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and visa gift cards and things like that.

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So, the algorithms there
sort of have learned

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that people have different musical tastes

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and they sort of segment them.

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I'm thinking obviously into age segments

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and then targeting ads accordingly.

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But I think that it makes sense too

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thinking back to our old friend,

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the commodity differentiated
product spectrum,

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that a commodity would
have more mass marketing.

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So, it's just going for
the sort of low price

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it's everywhere.

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And because there's sort
of low information there

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they're really...

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You don't need to tailor it that closely.

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Versus if you're thinking about gourmet,

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highly differentiated food,

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then they're going to do

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a much more concentrated niche marketing.

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So in the top picture here got milk.

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This is called generic advertising milk

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is a true commodity that
could go almost anywhere

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verses if they're trying to sell

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a really like gourmet
specialized kind of food,

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they're probably going to
target it more at foodies.

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So things like food magazines
and things like that.

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Now we're going move
on to another concept,

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which helps to really capture

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the essence of a segment
that you are targeting.

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And that's the idea of a persona.

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So a persona is a
fictional characterization

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of a segment that you
really want to target.

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It's sort of thinking about...

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It's sort of the
embodiment of that segment.

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And it helps to create
a shared understanding.

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It sort of puts a face
on that targeted segment.

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Two obvious examples,

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from past years in political advertising

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is the idea of the Soccer
Mom and NASCAR Dad.

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And we'll talk a bit about more about them

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when we discuss it in class.

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So, here's an example of
one that I found on the web.

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Rachel is a persona for
the small business owner.

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And it talks about her
job, her demographic,

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and sort of what are her needs

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and what's the need that
this business can fill.

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So, I'm gonna have you for your homework,

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make up a persona for your business.

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And we're going to have
an exercise to do that

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and think about who would be the persona

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for your business.

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What's their demographic,
geographic, psychographic,

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what are their behaviors?

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And then what would be a
persona for a CDAE major?

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The final big concept that
I wanna tackle this week

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is the idea of positioning.

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And positioning is one of
the most important concepts

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and decisions that you make in marketing.

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In some ways it may be the most important.

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And a definition of market position

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is the way that you want customers

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to perceive your product

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in comparison with your competitors.

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What are you known for?

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What are you the go-to for

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when they think of your product

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or service and think about the others?

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So you can think about back
to the brand awareness set,

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where do you lie?

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What is your space?

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What are you known for?

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And by doing that, it
really helps the consumer

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to know what they're
going to get from you.

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And in particular,

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it really helps you to define your brand,

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which we're gonna do in a few weeks.

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So here are some links, some videos

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and a website that will
tell you more about

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the concept of positioning.

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And we're gonna do an exercise in class

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in the discussion that will also help you

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to think about that.

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So again, a well thought out position

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clearly articulates the
value of your product

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or service or business.

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And it should answer the question,

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what can you expect when you buy it?

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What should the customer
know they are getting

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when they buy your product or service?

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Again, what do they think
of you compared to others?

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It should flow from the benefits sought,

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so it should fill their need

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or their want or solve their problem.

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And it should answer,

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why should they buy your product?

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It's the place of your
brand in the marketplace?

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And if you do so

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you're defining your brand

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so that it articulates the value

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and the place in the market

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with respect to your competitors.

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So, here are a few examples
of two different products

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that are sort of in the
same basic category,

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but they occupy very different
positions in the marketplace.

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So, you can think first

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the Farmhouse Tap and Grill

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and McDonald's are both
hamburger restaurants.

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But do you expect the
same kind of hamburger,

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the same kind of
experience met each place?

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I would say no.

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My Little Cupcake and Price
Chopper, both sell cupcakes.

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Heady Topper and Keystone
Light are both beer.

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Maserati and Chevrolet are both cars.

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So, hopefully this will help you to see

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that each of these I
think has done a good job

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of defining a clear position

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that they occupy in the marketplace

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based on what the consumer can expect

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when they buy their product.

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Again, the position is what you want

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people to think about you,

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and it should match what our good audience

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thinks, feels and believes about you.

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One tool that can help you to highlight

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and discover your position
is perceptual mapping.

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So, one way that you can
do this is to think about,

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to make a matrix or a
graph of where you are.

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So here's one with cars,

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that looks like the ends
of the X axis arc at off,

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but the left I believe is conservative

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and the right is sporty.

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And you can see the Y axis is classy

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and affordable and see so you can map out

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where does your product lie

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and where do competing products lie

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on this sort of graph?

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And then that will tell you a lot about

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what your position is.

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So, you have to think about

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what are the most important criteria?

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So here for cars, whoever made this thinks

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that the sort of classy
versus practical axis is one,

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and then the sporty versus
conservative axis is one.

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And then by laying out where you are

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and where some of your
key competitors are,

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you can really clearly articulate.

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So, you could say that a Lincoln,

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it's very classy and conservative.

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And so you can think about,

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who's going to be interested
in a car like that

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and target them accordingly.

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Here it's a really obvious
one price and quality,

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and then you can see for the most part

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that there's a fairly straight line appear

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that things with a higher price

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tend to have a higher
quality and vice versa.

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So, you can think about maybe McDonald's

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and Farmhouse to Tap and Grill hamburgers,

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you would expect McDonald's

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to be sort of toward the
origin in the bottom left

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and Farmhouse to be farther up

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and farther right compared to that.

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Here's one more with sugar and caffeine.

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So, I want you to do this
exercise for your homework.

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So think about two dimensions

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that are important for your business,

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price and quality or something like that.

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And you can think about...

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Think back maybe to your SWAT analysis

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and strengths and weaknesses

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and map out where do you fall

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and where does some of
your key competitors fall,

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and how does this inform your position?

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And we'll share them and
discuss them in class.

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And then for your homework,

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draw it out, take a
picture, or use PowerPoint.

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I don't care how,

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I would just like to see that
the results of your work.

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So, here is homework four.

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So, consider your business idea

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and use these geo, psycho,
demo, behavioral segment tools

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to identify two segments

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that you think are good targets

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and describe them in terms of these geo,

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psycho, demo behavioral.

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I want you to develop a persona.

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So, I want it to actually have a name.

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And how would you describe them

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and why is this person
the face of your business

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or the face of one of your segments?

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And then do this perceptual
mapping exercise.

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And

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to what extent does your business occupy

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a unique untenable position
in the marketplace?

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Here's a recap.

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So, we talked about segmentation,
targets, positioning,

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and next week we're
gonna do market research.

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So, this is the end of part two,

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the last part for this week.

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Please remember to do the
assessment before class,

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and thank you for your time.