[Lecturer] 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 that's just really a great fit for me.
Like that's kind of the goal that you wanna do here.
So again, here are 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 poll
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
that 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 are 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.
They're probably thinking you like convenience
and low cost or 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 health conscious
about what my children eat, recipes for kid-friendly,
healthy meals, things like that.
Two other factors and one I think 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 found that in the past, if I put in the name
of a band that I like and 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 cellphone plans and visa gift cards
and things a little like that.
So, the algorithms there sort of have learned
that people of different musical tastes and they sort
of segment them I'm thinking obviously into age segments
and then targeting ads accordingly.
And 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 further the sort of low price,
it's everywhere and because there's sort of low information
there 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
versus 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 at things like food magazines and things like that.
Now we're going to 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 this 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 benefit 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 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 that 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.
Looks like the ends of the X-axis are cut off,
but the left I believe is conservative
and the right is sporty.
And you can see the Y-axis is classy and affordable.
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's a really obvious one, price and quality.
And 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 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 SWOT 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, use PowerPoint.
I don't care how I would just like to see that the results
of your work.
Here's a recap.
So we talked about segmentation, targets, positioning
and next week we're gonna do market research.