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[Instructor] Hello and welcome
to this week's lecture.

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This is part one and we're
talking about segmentation,

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targeting and positioning.

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So how to break

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the general

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population up

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into groups, into segments,

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how to target those that are the most

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promising customers for you.

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And then how to establish your
position in the marketplace.

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So that's our agenda.

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First, talking about segmentation,

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then target markets, positioning,

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and then at the end a tool

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that can help you in your positioning,

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which is perceptual mapping.

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So why do we do this?

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Why do we segment?

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Why do we target and why?

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What's the importance of positioning?

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Why do we segment?

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We wouldn't need to segment

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if we lived in a one size fits all world.

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If we were all identical.

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Everybody had the same likes,

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the same wants, the same
problems, the same preferences.

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We wouldn't need to do this.

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But the fact is we live in
a very heterogeneous world.

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Humans are very heterogeneous.

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We are not all alike.

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We have very different tastes

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needs, desires, wants,
problems, behaviors.

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And therefore,

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by breaking everyone up

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into groups who are most likely

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to want what you have to sell,

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you can more effectively target
your efforts toward them.

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Remember back a few weeks

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when I said

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the danger, it's a sign of sort of danger

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and a failure to do the kind

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of work that we'll be doing this week.

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If you ask someone who
will buy your product

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and they say everyone.

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So this spells out why it's important

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to segment and then target.

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So the process of segmentation

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involves aggregating
prospective customers,

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grouping them together,

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identifying groups of folks
that would have common needs

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and to start to identify potential targets

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for your marketing efforts.

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Doing this this segmentation

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and targeting

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leads

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to effective marketing.

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It creates a link

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from the customer's needs and wants

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and problems to the marketing
action that you will take.

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And so by effectively segmenting them,

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it can lead to much more efficient

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and effective marketing
efforts on your part.

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So you want them,

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so a segment should have

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common needs.

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It must be big enough to be worthwhile.

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So if you find a segment of one,

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maybe that person will
will be really interested,

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but it's unlikely

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that that person's spending
alone can keep your business

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or organization afloat

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and that there must be
a way to reach them,

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that a lot of why we do this,

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is so that it can uncover clear ways

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in which we can reach these folks.

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I invite you to watch this video

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which will tell you
more about segmentation.

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So there's four basic dimensions

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of variability that we
use to segment and those,

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and I think we've spoken a little bit

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before on these, but now
will go into more depth,

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geographic, demographics,

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psychoback, psychographic and behavioral.

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So geographic, where are they?

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Geography is, where on earth are they?

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Where do they live, where do they work,

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where do they recreate?

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Where do they shop?

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Where are they?

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What is their sort of physical location?

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And what will be the geographic
reach of your business?

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Will you have a global reach?

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Where folks all over the world

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try

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to buy your product?

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Will you focus really
on a very local scope,

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just trying to sell to
your immediate neighbors

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or all the possible steps in between.

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Next is demographics.

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So we've talked a lot about these,

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age,

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gender, gender identity, race, religion,

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household size, income.

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And so you can think about one

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or more demographic

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groups that would be
interested in your product.

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So certainly,

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UVM would target

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recent high school
graduates who are around

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the age of 18 or so.

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That would be an obvious,
really important demographic

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segment that UVM would use to
try to recruit students here.

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If you're doing B2B, you can
think about the firmographics.

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What are the attributes of the businesses?

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Its size, its sales, what it
sells, how many employees,

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the location, how long
it's been in business,

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and questions like that.

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So firmographic is sort of
the demographic of a business.

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Next, there is psychographic.

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So we talked about this
too, but it's all the things

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that sort of measures what
they like and think and do.

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Their activities, their
interests, their hobbies,

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their values.

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How do you understand sort
of what makes them tick,

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what they like to do, what they care about

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what they're passionate about.

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Those are psychographics.

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I like this because I think
this really spells out a lot

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of the psychographics of Burlington.

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And you can do the Burlington Bingo here,

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if you see these things,

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but you can see that a lot

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of these things are
psychographic activities,

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opinions,

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values,

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backyard

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chickens and hipster beards and flannels

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and all kinds of things like that.

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So I just thought this was an interesting

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sort of snapshot of the
psycho group graphics

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of Burlington and also amusing.

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The last one is behavioral.

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And this is behavioral
specifically to their purchases,

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their behaviors in the marketplace.

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Where do they buy, how often,

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how much and when, how loyal are they?

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Do they stick to one certain
brand, one certain store?

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And how do they use it?

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Are they heavy

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users or are they light

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users?

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So someone who buys like me,

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the 50 pound bags of dog food

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at Costco

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are not the the same as those who go out

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and buy smaller bags

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of sort of a more generic
dog food at a grocery store.

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So here is

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an example of a market segmentation study.

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So this group called
the Hartman Group back

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long time ago now,

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broke

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potential

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consumers of organic foods
into these six segments

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and it sort of gives a rich
to description of each one.

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So these two are

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two of the ones that would be worth

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targeting.

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The true naturals.

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You can read about them.

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They have very strong

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environmental

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beliefs.

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There's the new green mainstream,

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which have these environmental beliefs,

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but also

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have a lot of sort of barriers

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and they won't go the extra
mile like a true natural will.

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There's the affluent healers,
which are higher income,

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older folks who really are interested

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in the nutritional value and
more than the environmental.

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So that's, you see, both
demographic and psychographic.

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So the demographic being
older, higher income,

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and the psychographic being

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that their own health
is even more important

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than the environmental aspects.

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There's the young recyclers who will do,

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who care and they'll do what's
right, but only if it's easy.

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So there won't be a lot of follow through.

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So here it's important to
make organic food available

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and an easy choice.

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And then the other two,

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are ones that quite frankly
are not very likely,

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at least in these times to
buy organic and they would be

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ones that you probably wouldn't
target your efforts at.

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So here is the end of part
one and please watch part two

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and don't forget to do the
assessment after you're all done.

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Thank you.