Download Beer Segments

Levels of Market Segmentation
Mass Market
Segment
Niche
1:1
Segment
Segment
Depending on an organization’s size
and resources, different segmentation
strategies may be employed at the same
time.
Copyright © 2007 Pearson Education Canada
6-1
Mass Marketing
“One basic marketing strategy appealing to a
broad range of consumers, not addressing any
distinct characteristics among the consumers.”
Wal-Mart
Copyright © 2007 Pearson Education Canada
6-2
Market Segmentation
“Dividing a large market (mass market) into smaller
homogeneous markets (segments) based on common
needs and / or similar lifestyles.”
Copyright © 2007 Pearson Education Canada
6-3
Niche Marketing
Marketing to subgroups within a segment where
there is less competition.
Beer Segments
Premium Beers
Mainstream Beers
Value Beers
Sleeman’s directs all resources at
the premium niche. They grew
when beer drinkers shifted from
mainstream beers to craft beers.
Copyright © 2007 Pearson Education Canada
6-4
Direct (1:1) Segmentation
“Unique marketing programs are designed to meet
the needs and preferences of individual customers.”
 Database management techniques
 Mass customization
 Customer relationship management
 Direct communications
Copyright © 2007 Pearson Education Canada
6-5
Selecting Targets
Segmentation involves three essential steps:
1. Identifying market segments
2. Selecting segments with the greatest
potential
$ $ $
3. Positioning product to appeal to target.
Copyright © 2007 Pearson Education Canada
6-6
Identifying Target Markets
Targets are identified based on certain characteristics.
Demographic
Psychographic
Geographic
Behaviour Response
What emerges is a
target market profile; a
portrait of the ideal
consumer.
Copyright © 2007 Pearson Education Canada
6-7
Demographic Segmentation
Characteristics
Age
Gender
Income
Occupation
Education
Marital Status
Household Formation
Ethnic Background
Marketers monitor
demographic trends and
adjust marketing
strategies appropriately.
Copyright © 2007 Pearson Education Canada
6-8
Age Segments
 Canada’s population is
aging
 Generation Y to become a
powerful buying group
 Retaining older customers
while attracting new
customers is a challenge
Youth
Generation Y
Generation X
Baby Boomers
Greys
Copyright © 2007 Pearson Education Canada
6-9
Gender Targeting
1. Influence of women in decision-making is underestimated
by many organizations.
2. Men are reinventing themselves (personal care).
3. Gender stereotyping should be avoided. Need to
communicate more intelligently.
4. Changing roles leads to “unisex” targeting.
Copyright © 2007 Pearson Education Canada
6-10
Ethnic Targeting
1. 13.4% of population are visible
minorities (43% in Toronto).
2. Accessible market niches in Toronto,
Montreal and Vancouver.
3. Ethnic-inspired products and
communications have an impact.
Copyright © 2007 Pearson Education Canada
6-11
Geographic Segmentation
Distinct geographic regions present challenges
for marketers.
• Language
• Culture
• Urban
• Suburban
• Rural
• Geodemographics
Regional opportunities must
be assessed (costs versus
benefits). Unique needs may
necessitate micromarketing
strategies.
Copyright © 2007 Pearson Education Canada
6-12
Psychographic Segmentation
“Identifying a target based on the activities, interests,
and opinions (the lifestyle) of consumers.”
When lifestyle considerations are
included demographic segments
are quite different.
Axe deodorant was launched solely on the basis of
psychographic profiling of young males.
Copyright © 2007 Pearson Education Canada
6-13
Behaviour Response Segmentation
Behavioural influences are considered along with
other segmentation variables.
 Occasion for use
 Benefits Sought
 Usage Rate
 Loyalty Response
Copyright © 2007 Pearson Education Canada
6-14
Market Segmentation Strategies
Market
Differentiation
Operate in many segments, with
many products with unique
marketing strategies.
Niche
Marketing
All resources aimed at a distinct
segment.
QTG Canada (Quaker Tropicana Gatorade) is a differentiator; TSN
(The Sports Network) is a nicher.
Copyright © 2007 Pearson Education Canada
6-15
Market Segmentation Strategies
Market
Integration
A company expands from a
segment to embrace other
similar segments
The battle for customers today is very intense.
Integrators don’t stand still; they respond to new needs.
• Wal-Mart adds groceries
• Loblaw and other supermarkets add pharmacies
Copyright © 2007 Pearson Education Canada
6-16
Positioning
“The place a brand occupies in the customer’s
mind in relation to competing products.”
Positioning involves a 2-Step Process:
1. Develop and market a product that meets
needs.
2. Create appropriate appeals to differentiate the
product in the customer’s mind.
Copyright © 2007 Pearson Education Canada
6-17
Positioning Strategies
1. Head-on
2. Brand Leadership
3. Product Differentiation
4. Innovation
5. Lifestyle
Copyright © 2007 Pearson Education Canada
6-18
Repositioning
“Changing the place
a product occupies
in the consumer’s
mind.”
Repositioning is due to:
1. The activity of a direct
competitor.
2. The preferences of a target
market change.
Cadillac reinvented itself. It’s no longer grandpa’s car!
Copyright © 2007 Pearson Education Canada
6-19