- [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.
Here is your homework.
So, I want you to first identify two segments
and describe what are the most important characteristic
of each one.
That why should you target them?
I want you to develop a persona,
which you'll learn about soon.
And then last do the perceptual mapping exercise
to help spell out your position in the marketplace.
And again, all of that should make a lot more sense
by the end of the two part lecture.
So why do we do this?
Why do we segment?
Why do we target and 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 one of 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, the 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 this common needs.
It must be big enough to be worthwhile.
So if you find a segment of one,
maybe that person 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 I think we've spoken a little bit before on these,
but now we'll go into more depth, geographic, demographics,
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?
Will 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, you know, 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,
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 liked 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 are like that.
So I just thought this was an interesting
sort of a snapshot of the psychographics of Burlington
and also amusing.
The last one is behavioral.
So, 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 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 longed.
I am a go 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 are getting 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 they 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 like you see both demographic and psychographic.
So the demographic being older, higher income,
and the psycho graphic being that their own health
is even more important than the environmental aspects.
There's the young recyclers who will do, you know, 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.