Download Marketing research – analyzing the data

Target Marketing and
Customer Relationship
Management
MARKETING 360
Brian Gillespie
Target Marketing
Dividing the total market into multiple segments based
on consumer characteristics, selecting specific
segments, and developing products or services to
meet the needs of the specific segments


Why Segment?

Fragmentation: Different groups have different needs and wants

Allows marketers to establish appropriate marketing mix for a
given segment
Target Marketing Today


http://www.cb.wsu.edu/~bgillespie/mktg360/targetmarketing.html
http://www.nytimes.com/2011/06/02/business/media/02adco.html?_r=3
&pagewanted=2&seid=auto&smid=tw-nytimes
Steps in Target Marketing

Segmentation
 Dividing
larger markets into smaller pieces based on
meaningful shared characteristics

Targeting
 Evaluation
of segments and determination of which to
pursue

Positioning
 Designing
a product or service to meet the segment’s
needs and develop a marketing mix for the targeted
market
Segmentation

Markets can be segmented by demographics
 Age
 Size
 Gender
 Education

And usage
 Cell
phones
 Cigarette papers
Successful Segmentation

Sustainable


Identifiable and Measurable


If not, it can not be determined whether it’s sustainable
Accessible


Large enough to justify its own marketing mix
Must be able to reach the segment with the marketing mix
Responsive

The segment needs to respond differently than other segments

If not, there is no need to develop a unique marketing mix
Generational Marketing

Marketing to members of a generation who tend to
share the same outlook and priorities
 The
greatest generation
 Baby boomers
 Generation X
 Millenials (Generation Y)
Generational Marketing
If born in teens in
this
this
decade
decade
Young adult
(settling
down) in this
decade
Now how People are predisposed to ….
old are
A) drive what?, B) eat what? C) do what for
they?
exercise/leisure? D) dating whom? E) read
what, how? F) watch what? G) current
lifecycle happenings
1930’s
1940’s
1950’s
70-80
It wasn’t all good, but we survived
1940’s
1950’s
1960’s
60-70
Elvis Lives! Retired!!
1950’s
1960’s
1970’s
50-60
Golden Years?
1960’s
1970’s
1980’s
40-50
Parents of graduates
1970’s
1980’s
1990’s
30-40
Married with children (or not)
1980’s
1990’s
2000’s
20-30
College, grads, entering the workforce,
marriage
1990’s
2000’s
2010’s
10-20
Tweens, teens, college, texters
2000’s
2010’s
2020’s
0-10
Kids, tweens (3000 texts/month)
Gender Segmentation


Women

Take care of 75% of family finances

80% consumer purchases, 65% of new cars, 51% electronics

Variety of companies stereotypically masculine are now
directing marketing efforts toward women
Men

Companies that used to target women are now targeting
men
Geographic Segmentation


Geodemography

Combination of geographic and demographic information

Looking for clusters of similar people
Geocoding

Tailoring web advertising according to logon zip code
PRIZM Segment Descriptions

66 predefined segments created by Nielsen
Claritas
 Based
on income
 Geographic location
 Purchase habits
 www.mybestsegments.com
Psychographics

Uses psychological, sociological and anthropological
factors to develop segments

Personality

Motives

Lifestyles
Benefit and Usage Segmentation

Benefit Segmentation


Segment by benefit people seek
Usage-Rate Segmentation

Former, potential, first time, low, medium and high users

80/20 principle
 20%
of customers make up 80% of demand
 Loyalty
programs
Targeting
Evaluate market segment


Develop segment profile

Create the “typical” customer


Once identified, decide if the segment is a viable target
Choose targeting strategy

Undifferentiated (appeal to masses)

Differentiated (different strokes for different folks)

Concentrated (go after just one segment)

One-to-One marketing

Tailored to individuals and creating long-term relationships
Positioning

Evaluate (direct and indirect) competition

Create a product or service with a competitive advantage

Attribute

Price/quality

Use or application

Product user

Product class

Competitor

Emotion
Positioning
Develop marketing mix to appeal to target segment

4 Ps


Measure response and adapt the strategy if needed

May need to reposition the product or service

Repositioning may involve bringing an old brand back to
life

Retro brand
Customer Relationship Marketing

Management strategy that utilizes information systems to
capture and analyze every interaction with customers in order
to enable better customer care


web, store, kiosk, affiliate, sponsored event, etc.
Marketers compile customer data, categorize customers and
treat each category differently

Create different marketing campaigns for each category
Segmented Products

What type of segmentation is it?
 Gender
segmentation
 Generational segmentation
 Geographical segmentation
 Physiographic segmentation
 Benefit and usage segmentation
 Etc…

Which segment are they trying to reach?
 Baby
boomers
 Females
 Etc…