- [Narrator] Hello, and welcome to part two of
the lecture on segmentation, targeting and positioning.
So, once you've identified segments,
then you wanna start to think about who to target.
Which ones of those that you have identified,
should you sort of go after?
And the better you choose a segment,
the greater, the chance of success.
Being too broad,
you're going to sort of waste your efforts,
waste money, get your message in front of folks
who really are not interested in what you have.
And too narrow, you send it to too few people
and miss out on those who actually
may be interested in what you have to do.
The key here, I think is to define
and target a segment that you are able to reach them
and you are able to talk to them,
as if you're talking to them alone.
That's like how I think about the goal of
you want it to feel like
the consumer that you're targeting
to think, "Wow, this business organization
really understands me.
It's as if they can read my mind,
they are talking my language
and they are offering me a product
or a vest that's just really a great fit for me.
Like that's kind of the goal that you wanna do here.
So again, here,
sort of the two ends of the scale
with lots of gray matter in between
or gray space in between,
and you can think of these two ends of the pole
of the continuum being undifferentiated
and differentiated sort of mass marketing
versus niche marketing.
So in the first approach,
you sort of go after all segments in the same way.
You want to just sort of have one blanket
and message targeted at all of your segments,
you go after all of them in the same way.
Again, this tends to be a little bit at lower cost
per person that you reach
because you're not really tailoring it for each one.
The downside here is that there's a risk
that it could feel very impersonal,
that it won't get that feeling of,
"Wow, this business really understands me.
They're talking just to me right now."
The other side is a highly tailored,
highly specific marketing mix for each segment
where you're offering different products or services,
sort of promoting those...
Reaching out to each segment
with a carefully tailored marketing mix
and plan in a way that they really feel like
you're talking right to them.
So an obvious example I thought of, is City Market.
So, they would reach out to college students
like yourselves in very different ways
than they would reach out to a middle-aged guy
who has a family like me.
Offering different products,
different promotional things are probably thinking
you like convenience and low costs.
They're not low cost, convenience.
And they're right there, they're right in town.
Offering things that you might want maybe
more easily prepared foods,
beer, things like that.
Whereas me, it might be like more bulk food,
more like healthy food for if I'm healthy conscious,
about what my children eat.
Recipes for kid friendly, healthy meals, things like that.
Two other factors
and one I think we're really working in your favor
is technology and with the internet
and with
how much data that we have on consumers these days,
that we really have the tools now,
to be able to tightly customize products.
And an example and we could do this in class
is the Pandora music streaming.
I've found that in the past,
if I put in the name of a band that I like
and the...
As a baby boomer gen X cusp,
if I put in someone that I like,
like David Bowie or the Beatles,
I'm going to get a certain kind of ad.
Embarrassingly, I often come up with Viagra ads
for myself which obviously that's what they think
someone who likes this kind of music needs.
Whereas if I were to put in a band that's newer,
that you might like,
it comes up with things like cell phone plans
and visa gift cards and things like that.
So, the algorithms there sort of have learned
that people have different musical tastes
and they sort of segment them.
I'm thinking obviously into age segments
and then targeting ads accordingly.
But I think that it makes sense too
thinking back to our old friend,
the commodity differentiated product spectrum,
that a commodity would have more mass marketing.
So, it's just going for the sort of low price
it's everywhere.
And because there's sort of low information there
they're really...
You don't need to tailor it that closely.
Versus if you're thinking about gourmet,
highly differentiated food,
then they're going to do
a much more concentrated niche marketing.
So in the top picture here got milk.
This is called generic advertising milk
is a true commodity that could go almost anywhere
verses if they're trying to sell
a really like gourmet specialized kind of food,
they're probably going to target it more at foodies.
So things like food magazines and things like that.
Now we're going move on to another concept,
which helps to really capture
the essence of a segment that you are targeting.
And that's the idea of a persona.
So a persona is a fictional characterization
of a segment that you really want to target.
It's sort of thinking about...
It's sort of the embodiment of that segment.
And it helps to create a shared understanding.
It sort of puts a face on that targeted segment.
Two obvious examples,
from past years in political advertising
is the idea of the Soccer Mom and NASCAR Dad.
And we'll talk a bit about more about them
when we discuss it in class.
So, here's an example of one that I found on the web.
Rachel is a persona for the small business owner.
And it talks about her job, her demographic,
and sort of what are her needs
and what's the need that this business can fill.
So, I'm gonna have you for your homework,
make up a persona for your business.
And we're going to have an exercise to do that
and think about who would be the persona
for your business.
What's their demographic, geographic, psychographic,
what are their behaviors?
And then what would be a persona for a CDAE major?
The final big concept that I wanna tackle this week
is the idea of positioning.
And positioning is one of the most important concepts
and decisions that you make in marketing.
In some ways it may be the most important.
And a definition of market position
is the way that you want customers
to perceive your product
in comparison with your competitors.
What are you known for?
What are you the go-to for
when they think of your product
or service and think about the others?
So you can think about back to the brand awareness set,
where do you lie?
What is your space?
What are you known for?
And by doing that, it really helps the consumer
to know what they're going to get from you.
And in particular,
it really helps you to define your brand,
which we're gonna do in a few weeks.
So here are some links, some videos
and a website that will tell you more about
the concept of positioning.
And we're gonna do an exercise in class
in the discussion that will also help you
to think about that.
So again, a well thought out position
clearly articulates the value of your product
or service or business.
And it should answer the question,
what can you expect when you buy it?
What should the customer know they are getting
when they buy your product or service?
Again, what do they think of you compared to others?
It should flow from the benefits sought,
so it should fill their need
or their want or solve their problem.
And it should answer,
why should they buy your product?
It's the place of your brand in the marketplace?
And if you do so
you're defining your brand
so that it articulates the value
and the place in the market
with respect to your competitors.
So, here are a few examples of two different products
that are sort of in the same basic category,
but they occupy very different positions in the marketplace.
So, you can think first
the Farmhouse Tap and Grill
and McDonald's are both hamburger restaurants.
But do you expect the same kind of hamburger,
the same kind of experience met each place?
I would say no.
My Little Cupcake and Price Chopper, both sell cupcakes.
Heady Topper and Keystone Light are both beer.
Maserati and Chevrolet are both cars.
So, hopefully this will help you to see
that each of these I think has done a good job
of defining a clear position
that they occupy in the marketplace
based on what the consumer can expect
when they buy their product.
Again, the position is what you want
people to think about you,
and it should match what our good audience
thinks, feels and believes about you.
One tool that can help you to highlight
and discover your position is perceptual mapping.
So, one way that you can do this is to think about,
to make a matrix or a graph of where you are.
So here's one with cars,
that looks like the ends of the X axis arc at off,
but the left I believe is conservative
and the right is sporty.
And you can see the Y axis is classy
and affordable and see so you can map out
where does your product lie
and where do competing products lie
on this sort of graph?
And then that will tell you a lot about
what your position is.
So, you have to think about
what are the most important criteria?
So here for cars, whoever made this thinks
that the sort of classy versus practical axis is one,
and then the sporty versus conservative axis is one.
And then by laying out where you are
and where some of your key competitors are,
you can really clearly articulate.
So, you could say that a Lincoln,
it's very classy and conservative.
And so you can think about,
who's going to be interested in a car like that
and target them accordingly.
Here it's a really obvious one price and quality,
and then you can see for the most part
that there's a fairly straight line appear
that things with a higher price
tend to have a higher quality and vice versa.
So, you can think about maybe McDonald's
and Farmhouse to Tap and Grill hamburgers,
you would expect McDonald's
to be sort of toward the origin in the bottom left
and Farmhouse to be farther up
and farther right compared to that.
Here's one more with sugar and caffeine.
So, I want you to do this exercise for your homework.
So think about two dimensions
that are important for your business,
price and quality or something like that.
And you can think about...
Think back maybe to your SWAT analysis
and strengths and weaknesses
and map out where do you fall
and where does some of your key competitors fall,
and how does this inform your position?
And we'll share them and discuss them in class.
And then for your homework,
draw it out, take a picture, or use PowerPoint.
I don't care how,
I would just like to see that the results of your work.
So, here is homework four.
So, consider your business idea
and use these geo, psycho, demo, behavioral segment tools
to identify two segments
that you think are good targets
and describe them in terms of these geo,
psycho, demo behavioral.
I want you to develop a persona.
So, I want it to actually have a name.
And how would you describe them
and why is this person the face of your business
or the face of one of your segments?
And then do this perceptual mapping exercise.
And
to what extent does your business occupy
a unique untenable position in the marketplace?
Here's a recap.
So, we talked about segmentation, targets, positioning,
and next week we're gonna do market research.
So, this is the end of part two,
the last part for this week.
Please remember to do the assessment before class,
and thank you for your time.