Segmenting and targeting markets Website Task

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Segmenting and targeting marketsWebsite Task

• Presented By
• Ross Gundry
• Andrew Price
• Yuho Konagai

http//www.usq.edu.au/course/material/mkt1001/summ
ersms/
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What is market segmentation?

• Process of dividing a market into meaningful,
  relatively similar and identifiable segments or
  groups (Summers et al. 2003, p.108).
• market segment
• a sub-group of people or organisations that share
  one or more characteristics that cause them to
  have similar product needs (Summers et al. 2003,
  p.107).

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Why is it Important?

• Market segmentation is important because an
  organisation cant satisfy everyones needs in
  one campaign.
• Different People have different tastes and needs.
• To overcome this, marketing organisations tailor
  campaigns towards certain audiences who will
  respond positively.

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Selecting a Product or Market Category.

• http//www.usq.edu.au/course/material/mkt1001/summ
  ersms/select_product_category.htm
• A marketing organisation selects a product
  category to study.
• e.g. Family cars, sports car, performance car.
• Different vehicles need to be advertised
  differently, as they appeal to different
  audiences.

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Choosing Bases for Product Segmentation

• Geographic
• People in different areas have different needs.
• e.g City people dont need tractors.
  Advertising to them would be pointless.
• Demographic
• People of different ages, gender, income etc have
  different needs
• e.g poor student cant afford overseas trip.
  An older woman does not have the same needs as a
  young man.
• Psychographic
• People with different personalities, lifestyle,
  motives etc have different needs.
• e.g. Single Parents have different needs to a
  gay couple, and different again to a dual income
  family.

http//www.usq.edu.au/course/material/mkt1001/summ
ersms/segmentationbases.htm
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Selecting Segmentation Descriptors

• An organisation then needs to select how to
  segment the market.
• A combination of different bases may be used.
• e.g Alcohol companies market certain types of
  drinks to certain markets. Sweet Ready to
  Drink drinks tend to be marketed at younger
  people, while beers and spirits tend to be aimed
  at a different demographic.
• The Bundy Bear is used to sell an image to
  target audiences. This is different to how
  Premium Lager is marketed.

http//www.usq.edu.au/course/material/mkt1001/summ
ersms/selecting_descriptors.htm
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Profiling and Analysing Segments

• An organisation needs to know
• segment size - how many people are in that
  segment
• expected growth rate of the segment
• how often the product is purchased
• current brand usage and brand loyalty and
• long-term sales and profit potential.

Without this knowledge, the organisation could be
targeting a less profitable audience.
http//www.usq.edu.au/course/material/mkt1001/summ
ersms/develop_profiles.htm
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Selecting Target Markets

• Undifferentiated Marketing - mass market approach
  - one marketing mix for the whole market
• ? Cheap, but unimaginative.
• Multi Segment Marketing- separate marketing mixes
  for each distinct segment to be targeted
• ? Segments are clear, and meaningful. Can be
  profitable.
• Concentrated Marketing- niche marketing - one
  marketing mix tailored to the needs of one or a
  few market segments.
• ? Segments become too defined. Loose mass
  appeal. Can be costly for minor benefits.

http//www.usq.edu.au/course/material/mkt1001/summ
ersms/select_target_markets.htm
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Developing and Maintaining Appropriate Marketing
Mixes

• Taking all this information into account, the
  organisation then needs to market the product to
  this audience.
• P roduct
• P rice
• P romotion
• P lacement

http//www.usq.edu.au/course/material/mkt1001/summ
ersms/developing_marketing
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Possible Dangers

• The main danger is segmenting incorrectly. That
  is, targeting a market that is too small, or
  non-existent.
• Wanting to provide a product or service which
  only satisfies the needs of a small portion of
  the population.
• e.g Breakfast at KFC. Concept failed because
  it didnt offer what customers sought.

Films catering to the wrong audience. Preview
may seem like an action film, and entice action
movie fans, but really be a comedy or drama.
Comedy or Drama fans would not go to see a movie
they thought to be an action film.
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Conclusion

• Market segmentation allows organisations to
  target certain groups of people, and meet their
  needs most efficiently.
• It can be very profitable and beneficial if done
  correctly.