Download Assignment 2: Topic 3 – Market segmentation, targeting and

Rebecca Watson Rock, student number – X00119723
21/10/2014
Introduction to Advertising
Assignment 2: Topic 3 – Market segmentation, targeting and positioning
A market segment is a group of people that share one or more characteristics.
Each market segment is unique and marketing managers decide on various
criteria to create their target market(s). They may approach each segment
differently after fully understanding the needs, lifestyles, demographics and
personality of the target.
(Business dictionary)
The four primary segmentation bases for consumer markets are;
1.
2.
3.
4.
Geographic
Demographic
Behavioural
Psychographic
Section A
TV advert - http://youtu.be/_nXEDZ4Ru2I
The TV advert that I have chosen to discuss is the ‘Guinness- In Pursuit of More’ ad (click
into the above Hyperlink to watch this advert). In my opinion I think this advert was
targeting the Geographic segment and the Demographic segment.
Geographic segmentation involves a business dividing its market based on the location of
the consumer. ‘You can divide your market by geographical areas, such as by city, county,
state, region, country, or international region’ (Education portal). It’s clear that Guinness
have targeted geographic segmentation. In this Guinness advert it’s all about being a part of
something, for example being Irish. The advert is set in Dublin City and it celebrates starting
from a local Dublin ale brewery to shipping porters and stouts as far as Kuala Lumpur. In the
ad it says “Guinness has always been about beer and people” (Guinness, 2014).
Demographic segmentation involves dividing “the market into groups based on variables
such as age, gender, family size, income, occupation, education, religion, race and
nationality” (Riley, Market Segmentation - Demographics, 2012). Guinness used gender
segmentation in this ad by mainly targeting the male population. They have fifteen male
actors within this advert and only one women, this showed a clear divide in the gender
target audience. The advert focused on how the beer was made, showing farming and
technology, which could be considered as manly activities. The advert also focused on
Family as it made a big deal about Guinness going through Irish generations, “Were proud to
Rebecca Watson Rock, student number – X00119723
21/10/2014
say that many of us have entered these gates in the footsteps of our parents and our
grandparents” (Guinness, 2014).
Print advert-
‘Behavioral segmentation divides a population based on their behavior, the way the
population respond to, use or know of a product’ (Marketing91). This type of segmentation
is perfect for products which are niche in nature and are aimed towards the wants and
demands of customers (Marketing91). Behavioral segments can group consumers in terms
of; Occasions, Usage, Loyalty and Benefits Sought (Riley, Market Segmentation- Behavioural
segmentation, 2012).
In the above ‘No 7’ advert, which was in ‘Fabulous’ magazine, the targeted segment is
‘benefits sought’. This approach segments consumers on the basis of specific benefits they
are seeking from the product, such as convenience, or value (Segmentation Study Guide).
This No7 advert says “Clinically proven to be even more effective at reducing the
appearance of lines and wrinkles”. This is a clear statement explaining the benefits of the
product.
Rebecca Watson Rock, student number – X00119723
21/10/2014
Outdoor advert-
The outdoor ad that I have chosen to discuss is the billboard ad that Abercrombie & Fitch
have put up in front of the old Habitat Building on College Green in Dublin City. In my
opinion this ad is targeting the Demographic segmentation and Psychographic
segmentation.
Demographic segmentation involves dividing “the market into groups based on variables
such as age, gender, family size, income, occupation, education, religion, race and
nationality” (Riley, Market Segmentation - Demographics, 2012). Abercrombie & Fitch
targeted this segment by mainly appealing to females by having a four storey billboard of a
shirt-less man on display.
Psychographic segmentation divides consumers based on lifestyle, attitudes, beliefs, values,
personality, buying motives, or extent of product usage (all Business).’It considers a number
of potential influences on buying behavior, including the attitudes expectations and
activities of consumers’ (Riley, Psychographic Segmentation, 2012). Personally I believe that
Abercrombie & Fitch targeted this market segment with this outdoor advert. The attractive
male model in the advert appeals to the consumer by attracting them towards him.
Abercrombie & Fitch showed the perfect image of a male and this attracts people who want
to look like that or live that kind of lifestyle, it’s almost as if it could be achieved by
purchasing their clothing.
Rebecca Watson Rock, student number – X00119723
21/10/2014
Part B
The ad that I am going to discuss within this section is the Guinness TV advert. From
studying target marketing strategies I have learned that there are three general strategies;
Undifferentiated, Differentiated and Concentrated. In this advert Guinness used
concentrated marketing as their target marketing strategy.
Concentrated marketing occurs when a business concentrates its marketing effort
on one segment of the market. The firm will develop a product that caters for the
needs of that particular group. Concentrated marketing can have lower costs than
the other two options. It can be a good option for small or new businesses. The
disadvantage is that it reduces the number of customers that the firm is targeting.
It also means that the firm needs to be sure that they have selected the correct
segment of the market.
(Learn Marketing)
The TV advert ‘Guinness- In Pursuit of More’ is directly aimed at the male gender (Irish men
in particular). The ad is all about how Guinness had been around for generations and how
many Irish men have walked through St. James’s Gates into the Guinness factory. The advert
constantly says “we” throughout the whole ad which refers to Irish men. We can also see
men working in the factory producing the beer and Irish farmers collecting the barley. It’s
clear that Guinness isn’t as concentrated on women as they are men.
Part C
Positioning can be defined by ‘how you differentiate your product or service from that of
your competitors and then determine which market niche to fill’ (entrepreneur).
In the latest Guinness advert that I discussed in part b we can see that Guinness have used a
strategy of emotive storytelling to position their product. This ad brings the viewers inside St
James’s Gate, giving us a raw view of the world behind the craft. Guinness use famous Irish
actor Killian Murphy to tell the story of the heritage of the brand “We’ve travelled to nearly
every corner of the earth, commissioned our own fleet of ships and even built our own
railway. Because we believed in the beer we brewed and we wanted everyone to taste it”
(Guinness, 2014). The advert discusses the craft of Guinness, our Irish ancestry, the
relationship that Guinness has built between beer and people and with Irish farmers.
Personally I found this positioning strategy to be extremely effective as it’s very easy for an
Irish person to relate to (considering it’s all about the Irish culture). I also think that the way
in which Guinness constantly reminded us that it has been around for 250 years was a very
good positioning strategy because it showed how different they are from newer brands.
Rebecca Watson Rock, student number – X00119723
21/10/2014
Bibliography
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