[Instructor] Hello and welcome to this week's lecture.
This is part one and we're talking about segmentation,
targeting and positioning.
So how to break
the general
population up
into groups, into segments,
how to target those that are the most
promising customers for you.
And then how to establish your position in the marketplace.
So that's our agenda.
First, talking about segmentation,
then target markets, positioning,
and then at the end a tool
that can help you in your positioning,
which is perceptual mapping.
So why do we do this?
Why do we segment?
Why do we target and why?
What's the importance of positioning?
Why do we segment?
We wouldn't need to segment
if we lived in a one size fits all world.
If we were all identical.
Everybody had the same likes,
the same wants, the same problems, the same preferences.
We wouldn't need to do this.
But the fact is we live in a very heterogeneous world.
Humans are very heterogeneous.
We are not all alike.
We have very different tastes
needs, desires, wants, problems, behaviors.
And therefore,
by breaking everyone up
into groups who are most likely
to want what you have to sell,
you can more effectively target your efforts toward them.
Remember back a few weeks
when I said
the danger, it's a sign of sort of danger
and a failure to do the kind
of work that we'll be doing this week.
If you ask someone who will buy your product
and they say everyone.
So this spells out why it's important
to segment and then target.
So the process of segmentation
involves aggregating prospective customers,
grouping them together,
identifying groups of folks that would have common needs
and to start to identify potential targets
for your marketing efforts.
Doing this this segmentation
and targeting
leads
to effective marketing.
It creates a link
from the customer's needs and wants
and problems to the marketing action that you will take.
And so by effectively segmenting them,
it can lead to much more efficient
and effective marketing efforts on your part.
So you want them,
so a segment should have
common needs.
It must be big enough to be worthwhile.
So if you find a segment of one,
maybe that person will will be really interested,
but it's unlikely
that that person's spending alone can keep your business
or organization afloat
and that there must be a way to reach them,
that a lot of why we do this,
is so that it can uncover clear ways
in which we can reach these folks.
I invite you to watch this video
which will tell you more about segmentation.
So there's four basic dimensions
of variability that we use to segment and those,
and I think we've spoken a little bit
before on these, but now will go into more depth,
geographic, demographics,
psychoback, psychographic and behavioral.
So geographic, where are they?
Geography is, where on earth are they?
Where do they live, where do they work,
where do they recreate?
Where do they shop?
Where are they?
What is their sort of physical location?
And what will be the geographic reach of your business?
Will you have a global reach?
Where folks all over the world
try
to buy your product?
Will you focus really on a very local scope,
just trying to sell to your immediate neighbors
or all the possible steps in between.
Next is demographics.
So we've talked a lot about these,
age,
gender, gender identity, race, religion,
household size, income.
And so you can think about one
or more demographic
groups that would be interested in your product.
So certainly,
UVM would target
recent high school graduates who are around
the age of 18 or so.
That would be an obvious, really important demographic
segment that UVM would use to try to recruit students here.
If you're doing B2B, you can think about the firmographics.
What are the attributes of the businesses?
Its size, its sales, what it sells, how many employees,
the location, how long it's been in business,
and questions like that.
So firmographic is sort of the demographic of a business.
Next, there is psychographic.
So we talked about this too, but it's all the things
that sort of measures what they like and think and do.
Their activities, their interests, their hobbies,
their values.
How do you understand sort of what makes them tick,
what they like to do, what they care about
what they're passionate about.
Those are psychographics.
I like this because I think this really spells out a lot
of the psychographics of Burlington.
And you can do the Burlington Bingo here,
if you see these things,
but you can see that a lot
of these things are psychographic activities,
opinions,
values,
backyard
chickens and hipster beards and flannels
and all kinds of things like that.
So I just thought this was an interesting
sort of snapshot of the psycho group graphics
of Burlington and also amusing.
The last one is behavioral.
And this is behavioral specifically to their purchases,
their behaviors in the marketplace.
Where do they buy, how often,
how much and when, how loyal are they?
Do they stick to one certain brand, one certain store?
And how do they use it?
Are they heavy
users or are they light
users?
So someone who buys like me,
the 50 pound bags of dog food
at Costco
are not the the same as those who go out
and buy smaller bags
of sort of a more generic dog food at a grocery store.
So here is
an example of a market segmentation study.
So this group called the Hartman Group back
long time ago now,
broke
potential
consumers of organic foods into these six segments
and it sort of gives a rich to description of each one.
So these two are
two of the ones that would be worth
targeting.
The true naturals.
You can read about them.
They have very strong
environmental
beliefs.
There's the new green mainstream,
which have these environmental beliefs,
but also
have a lot of sort of barriers
and they won't go the extra mile like a true natural will.
There's the affluent healers, which are higher income,
older folks who really are interested
in the nutritional value and more than the environmental.
So that's, you see, both demographic and psychographic.
So the demographic being older, higher income,
and the psychographic being
that their own health is even more important
than the environmental aspects.
There's the young recyclers who will do,
who care and they'll do what's right, but only if it's easy.
So there won't be a lot of follow through.
So here it's important to make organic food available
and an easy choice.
And then the other two,
are ones that quite frankly are not very likely,
at least in these times to buy organic and they would be
ones that you probably wouldn't target your efforts at.
So here is the end of part one and please watch part two
and don't forget to do the assessment after you're all done.
Thank you.