1
00:00:02,880 --> 00:00:04,920
[Lecturer] Hello and welcome to part two

2
00:00:04,920 --> 00:00:09,920
of the lecture on Segmentation,
targeting and positioning.

3
00:00:16,320 --> 00:00:20,430
So once you've identified
segments then you wanna start

4
00:00:20,430 --> 00:00:24,330
to think about who to
target, which ones of those

5
00:00:24,330 --> 00:00:28,680
that you have identified
should you sort of go after.

6
00:00:28,680 --> 00:00:31,740
And the better you choose a segment

7
00:00:31,740 --> 00:00:33,993
the greater the chance of success.

8
00:00:35,730 --> 00:00:40,730
Being too broad, you're going
to sort of waste your efforts,

9
00:00:41,430 --> 00:00:44,999
waste money get your message in front

10
00:00:44,999 --> 00:00:48,668
of folks who really are not
interested in what you have

11
00:00:48,668 --> 00:00:53,668
and too narrow you send
it to too few people

12
00:00:55,560 --> 00:01:00,090
and miss out on those who
actually may be interested

13
00:01:00,090 --> 00:01:01,653
in what you have to do.

14
00:01:03,390 --> 00:01:08,130
The key here I think is to define

15
00:01:08,130 --> 00:01:11,940
and target a segment that
you are able to reach them

16
00:01:11,940 --> 00:01:13,913
and you are able to talk to them

17
00:01:13,913 --> 00:01:18,150
as if you're talking to them alone.

18
00:01:18,150 --> 00:01:22,470
That's like how I think
about the goal of you want it

19
00:01:22,470 --> 00:01:27,470
to feel like the consumer that
you're targeting to think,

20
00:01:28,590 --> 00:01:33,590
wow, this business organization
really understands me.

21
00:01:33,990 --> 00:01:38,130
It's as if they can read
my mind, they are talking

22
00:01:38,130 --> 00:01:43,130
my language and they are
offering me a product

23
00:01:44,515 --> 00:01:49,515
or that's just really a great fit for me.

24
00:01:50,490 --> 00:01:53,913
Like that's kind of the
goal that you wanna do here.

25
00:01:59,100 --> 00:02:04,100
So again, here are sort of the two ends

26
00:02:04,140 --> 00:02:08,220
of the scale with lots
of gray matter in between

27
00:02:08,220 --> 00:02:09,993
or gray space in between.

28
00:02:11,520 --> 00:02:14,190
And you can think of
these two ends of the poll

29
00:02:14,190 --> 00:02:18,450
of the continuum being undifferentiated

30
00:02:18,450 --> 00:02:22,440
and differentiated sort of mass marketing

31
00:02:22,440 --> 00:02:24,033
versus niche marketing.

32
00:02:27,300 --> 00:02:30,150
So in the first approach you sort of go

33
00:02:30,150 --> 00:02:34,320
after all segments in the same way.

34
00:02:34,320 --> 00:02:37,920
You want to just sort of have one blanket

35
00:02:37,920 --> 00:02:42,543
and message targeted at
all of your segments.

36
00:02:43,620 --> 00:02:47,490
You go after all of them
in the same way again

37
00:02:47,490 --> 00:02:49,600
that this tends to be a little bit

38
00:02:50,731 --> 00:02:53,520
at lower cost per person that you reach

39
00:02:53,520 --> 00:02:58,338
because you're not really
tailoring it for each one.

40
00:02:58,338 --> 00:03:01,650
The downside here is that there's a risk

41
00:03:01,650 --> 00:03:05,160
that it could feel very impersonal

42
00:03:05,160 --> 00:03:07,740
that it won't get that feeling of, wow

43
00:03:07,740 --> 00:03:10,470
this business really understands me.

44
00:03:10,470 --> 00:03:13,383
They're talking just to me right now.

45
00:03:19,380 --> 00:03:22,950
The other side is a highly tailored,

46
00:03:22,950 --> 00:03:26,880
highly specific marketing mix

47
00:03:26,880 --> 00:03:31,800
for each segment where you are
offering different products

48
00:03:31,800 --> 00:03:36,367
or services, sort of
promoting those, reaching out

49
00:03:38,010 --> 00:03:42,240
to each segment with a
carefully tailored marketing mix

50
00:03:42,240 --> 00:03:45,960
and plan in a way that they really feel

51
00:03:45,960 --> 00:03:48,810
like you're talking right to them.

52
00:03:48,810 --> 00:03:53,810
So an obvious example I
thought of is City Market.

53
00:03:54,773 --> 00:03:59,773
So they would reach
out to college students

54
00:04:01,408 --> 00:04:06,408
like yourselves in very different
ways than they would reach

55
00:04:06,870 --> 00:04:11,870
out to a middle-aged guy
who has a family like me,

56
00:04:13,445 --> 00:04:18,445
offering different products,
different promotional things.

57
00:04:19,620 --> 00:04:24,480
They're probably thinking
you like convenience

58
00:04:24,480 --> 00:04:29,480
and low cost or not low cost convenience.

59
00:04:29,610 --> 00:04:32,553
And they're right there,
they're right in town,

60
00:04:34,050 --> 00:04:37,046
offering things that you might want

61
00:04:37,046 --> 00:04:42,046
maybe more easily prepared
foods, beer things like that.

62
00:04:46,200 --> 00:04:50,040
Whereas me, it might
be like more bulk food,

63
00:04:50,040 --> 00:04:55,040
more like healthy food for
if I'm health conscious

64
00:04:55,440 --> 00:05:00,440
about what my children eat,
recipes for kid-friendly,

65
00:05:02,970 --> 00:05:04,803
healthy meals, things like that.

66
00:05:10,200 --> 00:05:14,370
Two other factors and one
I think really working

67
00:05:14,370 --> 00:05:19,370
in your favor is technology
and with the internet

68
00:05:20,640 --> 00:05:25,640
and with how much data that we
have on consumers these days

69
00:05:28,650 --> 00:05:33,186
that we really have the
tools now to be able

70
00:05:33,186 --> 00:05:38,186
to tightly customize products.

71
00:05:38,580 --> 00:05:41,520
And an example and we
could do this in class

72
00:05:41,520 --> 00:05:45,630
is the Pandora music streaming.

73
00:05:45,630 --> 00:05:50,630
I found that in the past,
if I put in the name

74
00:05:50,910 --> 00:05:55,910
of a band that I like and
as a baby boomer, gen X cusp

75
00:05:59,160 --> 00:06:03,000
if I put in someone that
I like, like David Bowie

76
00:06:03,000 --> 00:06:07,431
or the Beatles, I'm going
to get a certain kind of ad.

77
00:06:07,431 --> 00:06:12,431
Embarrassingly, I often come
up with Viagra ads for myself,

78
00:06:14,340 --> 00:06:17,670
which obviously that's what they think

79
00:06:17,670 --> 00:06:22,650
someone who likes this
kind of music needs.

80
00:06:22,650 --> 00:06:27,000
Whereas if I were to put
in a band that's newer

81
00:06:27,000 --> 00:06:30,840
that you might like,
it comes up with things

82
00:06:30,840 --> 00:06:35,727
like cellphone plans and visa gift cards

83
00:06:37,620 --> 00:06:38,910
and things a little like that.

84
00:06:38,910 --> 00:06:42,780
So, the algorithms there
sort of have learned

85
00:06:42,780 --> 00:06:46,500
that people of different
musical tastes and they sort

86
00:06:46,500 --> 00:06:51,430
of segment them I'm thinking
obviously into age segments

87
00:06:52,320 --> 00:06:55,953
and then targeting ads accordingly.

88
00:06:59,730 --> 00:07:03,270
And I think that it makes
sense too thinking back

89
00:07:03,270 --> 00:07:05,010
to our old friend

90
00:07:05,010 --> 00:07:10,010
the commodity differentiated
product spectrum

91
00:07:10,290 --> 00:07:15,290
that a commodity would
have more mass marketing.

92
00:07:17,790 --> 00:07:22,773
So it's just going further
the sort of low price,

93
00:07:23,700 --> 00:07:28,700
it's everywhere and because
there's sort of low information

94
00:07:29,520 --> 00:07:34,520
there you don't need to
tailor it that closely.

95
00:07:36,420 --> 00:07:39,930
Versus if you're thinking about gourmet,

96
00:07:39,930 --> 00:07:44,930
highly differentiated food,
then they're going to do

97
00:07:47,640 --> 00:07:52,287
a much more concentrated niche marketing.

98
00:07:53,370 --> 00:07:57,480
So in the top picture here, got milk

99
00:07:57,480 --> 00:08:01,740
this is called generic advertising.

100
00:08:01,740 --> 00:08:06,740
Milk is a true commodity
that could go almost anywhere

101
00:08:07,890 --> 00:08:10,620
versus if they're trying to sell a really

102
00:08:10,620 --> 00:08:14,760
like gourmet specialized kind of food

103
00:08:14,760 --> 00:08:17,910
they're probably going to
target it more at foodies.

104
00:08:17,910 --> 00:08:22,503
So at things like food
magazines and things like that.

105
00:08:28,680 --> 00:08:33,680
Now we're going to move on to
another concept which helps

106
00:08:34,380 --> 00:08:39,380
to really capture the essence of a segment

107
00:08:39,960 --> 00:08:41,730
that you are targeting.

108
00:08:41,730 --> 00:08:44,430
And that's the idea of a persona.

109
00:08:44,430 --> 00:08:48,757
So a persona is a
fictional characterization

110
00:08:48,757 --> 00:08:53,757
of a segment that you
really want to target.

111
00:08:53,850 --> 00:08:57,480
It's sort of thinking about,
it's sort of the embodiment

112
00:08:57,480 --> 00:09:01,080
of that segment and it helps to create

113
00:09:01,080 --> 00:09:02,790
a shared understanding.

114
00:09:02,790 --> 00:09:06,903
It sort of puts a face
on that targeted segment.

115
00:09:08,070 --> 00:09:13,070
Two obvious examples from past years

116
00:09:13,500 --> 00:09:17,910
in political advertising is
the idea of the soccer mom

117
00:09:17,910 --> 00:09:19,620
and NASCAR dad.

118
00:09:19,620 --> 00:09:21,330
And we'll talk a bit about more

119
00:09:21,330 --> 00:09:24,033
about them when we discuss it in class.

120
00:09:29,730 --> 00:09:33,363
So here's an example of one
that I found on the web.

121
00:09:34,350 --> 00:09:39,350
Rachel is a persona for
this small business owner

122
00:09:43,920 --> 00:09:48,920
and it talks about her
job, her demographic

123
00:09:49,351 --> 00:09:51,930
and sort of what are her needs

124
00:09:51,930 --> 00:09:55,650
and what's the need that
this business can fill.

125
00:09:55,650 --> 00:09:58,410
So I'm gonna have you for your homework

126
00:09:58,410 --> 00:10:02,850
make up a persona for your business

127
00:10:02,850 --> 00:10:07,350
and we're going to have
an exercise to do that.

128
00:10:07,350 --> 00:10:12,350
And think about who would be
the persona for your business

129
00:10:12,990 --> 00:10:16,380
what's their demographic,
geographic, psychographic

130
00:10:16,380 --> 00:10:18,450
what are their behaviors?

131
00:10:18,450 --> 00:10:21,993
And then what would be a
persona for a CDAE major?

132
00:10:29,790 --> 00:10:34,195
The final big concept that
I wanna tackle this week

133
00:10:34,195 --> 00:10:37,470
is the idea of positioning.

134
00:10:37,470 --> 00:10:42,470
And positioning is one of
the most important concepts

135
00:10:42,474 --> 00:10:45,900
and decisions that you make in marketing.

136
00:10:45,900 --> 00:10:48,303
In some ways it may be the most important.

137
00:10:49,890 --> 00:10:54,890
And a definition of
market position is the way

138
00:10:57,060 --> 00:11:01,489
that you want customers
to perceive your product

139
00:11:01,489 --> 00:11:05,460
in comparison with your competitors.

140
00:11:05,460 --> 00:11:07,020
What are you known for?

141
00:11:07,020 --> 00:11:09,810
What are you the go-to for when they think

142
00:11:09,810 --> 00:11:13,140
of your product or service?

143
00:11:13,140 --> 00:11:15,090
And think about the others.

144
00:11:15,090 --> 00:11:18,270
So you can think about back
to the brand awareness set,

145
00:11:18,270 --> 00:11:19,710
where do you lie?

146
00:11:19,710 --> 00:11:23,190
What is your space?
What are you known for?

147
00:11:23,190 --> 00:11:28,190
And by doing that, it
really helps the consumer

148
00:11:28,260 --> 00:11:32,040
to know what they're
going to get from you.

149
00:11:32,040 --> 00:11:36,406
And in particular, it really
helps you to define your brand,

150
00:11:36,406 --> 00:11:39,663
which we're gonna do in a few weeks.

151
00:11:44,760 --> 00:11:48,150
So here are some links, some videos

152
00:11:48,150 --> 00:11:51,720
and a website that will tell you more

153
00:11:51,720 --> 00:11:55,650
about the concept of positioning.

154
00:11:55,650 --> 00:12:00,650
And we're gonna do an exercise
in class in the discussion

155
00:12:01,470 --> 00:12:03,963
that will also help you
to think about that.

156
00:12:05,747 --> 00:12:10,747
So again, a well thought out
position clearly articulates

157
00:12:11,370 --> 00:12:15,930
the value of your product
or service or business.

158
00:12:15,930 --> 00:12:20,640
And it should answer the question

159
00:12:20,640 --> 00:12:23,670
what can you expect when you buy it?

160
00:12:23,670 --> 00:12:27,330
What should the customer
know they are getting

161
00:12:27,330 --> 00:12:31,173
when they buy your product or service?

162
00:12:36,630 --> 00:12:40,983
Again, what do they think
of you compared to others?

163
00:12:42,180 --> 00:12:44,940
It should flow from the benefit sought.

164
00:12:44,940 --> 00:12:49,590
So it should fill their need or their want

165
00:12:49,590 --> 00:12:52,230
or solve their problem.

166
00:12:52,230 --> 00:12:56,920
And it should answer why
should they buy your product?

167
00:13:02,490 --> 00:13:07,380
It's the place of your
brand in the marketplace

168
00:13:07,380 --> 00:13:12,380
and you do so you're
defining your brand so that

169
00:13:12,720 --> 00:13:16,620
it articulates the value
and the place in the market

170
00:13:16,620 --> 00:13:19,533
with respect to your competitors.

171
00:13:27,060 --> 00:13:32,060
So here are a few examples
of two different products

172
00:13:35,460 --> 00:13:39,150
that are sort of in the
same basic category,

173
00:13:39,150 --> 00:13:44,150
but that occupy very different
positions in the marketplace.

174
00:13:45,990 --> 00:13:49,830
So you can think first the
Farmhouse Tap and Grill

175
00:13:49,830 --> 00:13:54,513
and McDonald's are both
hamburger restaurants,

176
00:13:55,530 --> 00:13:58,560
but do you expect the
same kind of hamburger,

177
00:13:58,560 --> 00:14:02,850
the same kind of
experience met each place?

178
00:14:02,850 --> 00:14:04,620
I would say no.

179
00:14:04,620 --> 00:14:09,070
My little Cupcake and Price
Chopper both sell cupcakes

180
00:14:12,000 --> 00:14:15,723
Heady Topper and Keystone
Light are both beer.

181
00:14:17,070 --> 00:14:21,300
Maserati and Chevrolet are both cars.

182
00:14:21,300 --> 00:14:25,057
So hopefully this will
help you to see that each

183
00:14:27,990 --> 00:14:32,160
of these I think has done
a good job of defining

184
00:14:32,160 --> 00:14:37,160
a clear position that they
occupy in the marketplace based

185
00:14:39,720 --> 00:14:44,720
on what the consumer can expect
when they buy their product.

186
00:14:52,110 --> 00:14:55,950
Again, the position is what
you want people to think

187
00:14:55,950 --> 00:15:00,950
about you and it should match
what our good audience thinks,

188
00:15:02,400 --> 00:15:04,983
feels and believes about you.

189
00:15:11,490 --> 00:15:15,633
One tool that can help you to highlight

190
00:15:17,856 --> 00:15:22,856
and discover your position
is perceptual mapping.

191
00:15:23,550 --> 00:15:27,421
So one way that you can
do this is to think about

192
00:15:27,421 --> 00:15:32,421
to make a matrix or a
graph of where you are.

193
00:15:34,230 --> 00:15:36,573
So here's one with cars.

194
00:15:37,657 --> 00:15:42,657
Looks like the ends of
the X-axis are cut off,

195
00:15:43,530 --> 00:15:46,530
but the left I believe is conservative

196
00:15:46,530 --> 00:15:49,260
and the right is sporty.

197
00:15:49,260 --> 00:15:54,260
And you can see the Y-axis
is classy and affordable.

198
00:15:55,545 --> 00:16:00,545
So you can map out where
does your product lie

199
00:16:00,600 --> 00:16:05,600
and where do competing products
lie on this sort of graph.

200
00:16:05,850 --> 00:16:08,670
And then that will tell you a lot

201
00:16:08,670 --> 00:16:12,120
about what your position is.

202
00:16:12,120 --> 00:16:13,590
So you have to think about

203
00:16:13,590 --> 00:16:16,110
what are the most important criteria.

204
00:16:16,110 --> 00:16:19,860
So here for cars, whoever made this thinks

205
00:16:19,860 --> 00:16:24,860
that the sort of classy
versus practical axis is one

206
00:16:25,403 --> 00:16:30,403
and then the sporty versus
conservative axis is one.

207
00:16:31,530 --> 00:16:34,950
And then by laying out where you are

208
00:16:34,950 --> 00:16:37,770
and where some of your key competitors are

209
00:16:37,770 --> 00:16:40,560
you can really clearly articulate.

210
00:16:40,560 --> 00:16:44,957
So you could say that a Lincoln

211
00:16:46,410 --> 00:16:50,250
it's very classy and conservative.

212
00:16:50,250 --> 00:16:54,120
And so you can think about
who's going to be interested

213
00:16:54,120 --> 00:16:58,803
in a car like that and
target them accordingly.

214
00:17:02,610 --> 00:17:07,173
Here's a really obvious
one, price and quality.

215
00:17:08,250 --> 00:17:12,840
And you can see for the
most part that there's

216
00:17:12,840 --> 00:17:17,190
a fairly straight line appear that things

217
00:17:17,190 --> 00:17:21,120
with a higher price tend
to have a higher quality

218
00:17:21,120 --> 00:17:22,770
and vice versa.

219
00:17:22,770 --> 00:17:27,690
So you can think about maybe McDonald's

220
00:17:27,690 --> 00:17:32,690
and Farmhouse Tap and Grill hamburgers.

221
00:17:33,630 --> 00:17:38,630
You would expect McDonald's to
be sort of toward the origin

222
00:17:38,940 --> 00:17:43,401
in the bottom left and
Farmhouse to be farther

223
00:17:43,401 --> 00:17:47,013
up and farther right compared to that.

224
00:17:51,450 --> 00:17:56,373
Here's one more with sugar and caffeine.

225
00:18:06,900 --> 00:18:10,173
So I want you to do this
exercise for your homework.

226
00:18:11,700 --> 00:18:14,880
So think about two
dimensions that are important

227
00:18:14,880 --> 00:18:19,880
for your business price and
quality or something like that.

228
00:18:19,920 --> 00:18:22,500
And you can think about, think back maybe

229
00:18:22,500 --> 00:18:26,970
to your SWOT analysis and
strengths and weaknesses

230
00:18:26,970 --> 00:18:29,212
and map out where do you fall

231
00:18:29,212 --> 00:18:33,300
and where does some of
your key competitors fall

232
00:18:33,300 --> 00:18:37,443
and how does this inform your position?

233
00:18:38,490 --> 00:18:41,940
And we'll share them and
discuss them in class.

234
00:18:41,940 --> 00:18:45,540
And then for your homework, draw it out.

235
00:18:45,540 --> 00:18:47,730
Take a picture, use PowerPoint.

236
00:18:47,730 --> 00:18:51,690
I don't care how I would just
like to see that the results

237
00:18:51,690 --> 00:18:52,593
of your work.

238
00:18:55,110 --> 00:18:56,250
Here's a recap.

239
00:18:56,250 --> 00:19:01,250
So we talked about segmentation,
targets, positioning

240
00:19:01,530 --> 00:19:04,503
and next week we're
gonna do market research.