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

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This is part one.

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And we're talking about segmentation,

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targeting and positioning.

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So how to break the general population up

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into groups, into segments.

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How to target those that
are the most promising

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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, and then at the end,

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a tool that can help
you in your positioning,

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which is perceptual mapping.

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Here is your homework.

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So, I want you to first
identify two segments

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and describe what are the
most important characteristic

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of each one.

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That why should you target them?

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I want you to develop a persona,

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which you'll learn about soon.

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And then last do the
perceptual mapping exercise

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to help spell out your
position in the marketplace.

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And again, all of that
should make a lot more sense

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by the end of the two part lecture.

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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 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,
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, needs, desires,

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wants, problems, behaviors, and therefore,

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by breaking everyone up into groups

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who are most likely 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
when I said one of the danger,

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it's a sign of sort of
danger and a failure

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to do the kind 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 to segment

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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, the
segmentation and targeting,

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leads to effective marketing.

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It creates a link 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 this 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
be really interested,

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but, it's unlikely that
that person's spending alone

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can keep your business
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 of variability

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that we use to segment.

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And I think we've spoken a
little bit before on these,

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but now we'll go into more
depth, geographic, demographics,

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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?

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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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Will folks all over the world
try 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, age, gender,

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gender identity, race, religion,
household size, income.

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And so you can think about
one or more demographic groups

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that would be interested in your product.

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So certainly, UVM would target
recent high school graduates

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who are, you know, around
the age of 18 or so.

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That would be an obvious, really important

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demographic segment that UVM would use

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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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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,

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but it's all the things
that sort of measures

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what they like and think
and do their activities,

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their interests, their
hobbies, their values.

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How do you understand sort
of what makes them tick,

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what they liked 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

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a lot 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 of
these things are psychographic

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activities, opinions, values, backyard,

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chickens, and hipster
beards, and flannels,

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and all kinds of things are like that.

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So I just thought this was an interesting

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sort of a snapshot of the
psychographics of Burlington

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and also amusing.

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The last one is behavioral.

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So, 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, how much and when?

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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 users or
are they light users?

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So, someone who buys like
me, the 50 pound bags

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of dog food at Costco,

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are not the same as those who go out

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and buy smaller bags of sort
of a more generic dog food

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at a grocery store.

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So here is an example of a
market segmentation study.

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So this group called the
Hartman group back longed.

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I am a go now.

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Broke potential consumers of organic foods

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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 two of the ones

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that would be worth are
getting the true naturals.

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You can read about them.

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They have very strong
environmental 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 they 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 like you see both
demographic and psychographic.

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So the demographic being
older, higher income,

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and the psycho graphic
being that their own health

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is even more important than
the environmental aspects.

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There's the young recyclers
who will do, you know, who care

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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,
are ones that quite frankly

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are not very likely, at
least in these times,

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to buy organic.

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And they would be ones that
you probably wouldn't target

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your efforts at.

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So here is the end of part one,

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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.