Marketing Management Session 3: Segmentation & Targeting

Marketing Management Reconsidered - Session 3 - Segmentation & Targeting

• Session 3, Segmentation & Targeting focuses on how to implement inclusive and sustainable segmentation and targeting strategies.
• The presenter is Yannick Le Genissel.
• Topics covered include segmentation principles, designing inclusive segmentation, targeting strategies, and consumer profiles for sustainable offerings.

Session & Group Project Progress

• The schedule details sessions and group project progress for a marketing strategy course.
• Session 1 (October 3): Introduction to marketing management in a constrained world
• Session 2 (October 15): Brand management: How to manage a brand sustainably?
• Session 3 (October 17): Segmentation & Targeting: How to implement an inclusive and sustainable segmentation and targeting strategy?
• Session 4 (October 18): Positioning
• Session 5 (October 22): Product Mix
• Session 6 (October 23): Price Mix and so on
• Project and workshop themes, including brand image/identity analysis, building segmentation, and setting up targeting and positioning are addressed.

Segmentation Definition

• Segmentation divides a market into distinct groups.
• Segmentation can be based on product groups or people (customer).
• Targeting is the selection of a specific group(s) from those segments.

Customer Segmentation

• Customer segmentation divides a market into groups of customers with similar ways of thinking and acting.
• Individuals within a segment should be homogeneous (similar to each other) and segments should be heterogeneous from each other (as different as possible from each other).
• There are two approaches for customer segmentation: bottom-up (clustering or typology from statistics-based approach) and top-down (predefined criteria).
• Segmentation using questionnaires can quantify each group.

Type 1 Criteria

• Demographic, geographic, social, and economic factors are type 1 criteria for segmentation.

Age

• Different generations (Boomers, Gen X, Millennials, Gen Z, Alpha) are mentioned.

Gender

• Gender stereotypes should be avoided.
• Defining gender is a key consideration.

Physical Characteristics

• Be mindful of discrimination.
• Focus on inclusivity.

Family Composition

• Different family types (single, divorced, couple, with kids, with teens)
• The presenter emphasizes the relevance of life moments (e.g., newly weds, parents).

Geographic

• Worldwide markets (Europe, North America, Asia) and regional variations, such as specific areas within countries
• Factors like city size, rural vs urban, and climate are discussed.

Incomes

• Economic and income levels as segments.
• Consideration of the "bottom of the pyramid" (low-income segments).

Religious Faiths and Ethnic Groups

• Segment based on religion/ethnicity with caution, as discrimination must be avoided.
• Examples include (but are not limited to) Halal.

Type 2 & 3 Criteria

• Type 2 Criteria includes Personality and Lifestyle, encompassing values, opinions, and behaviors of consumers
• Type 3 Criteria: Behavioral, based on purchase quantity, loyalty status,RFM model, and innovation adoption profile.

Consumption Pattern

• Product usage/purchase situation, whether for business or personal use.
• Level of involvement with the products.
• Examples like those of Cadbury segments are used for illustration.

Situation of Use

• How and when consumers use a product.
• The speaker uses Cadbury's market segmentation as an example.

Type 4 Criteria

• The criteria relates to the needs, wants, and expected benefits of the customers
• The speaker uses toothpaste as an example.
• This criteria is used for the selection based on the expected benefits.

Multi-Criteria Segmentation

• Combining various criteria to create comprehensive segments.
• Using specific criteria and defining weights for each criterion for more accurate assessment.

Customer Segmentation vs Persona

• Personas are detailed representations of target segments.
• Segmentation is broader, while personas are more detailed.

Persona Definition

• Imaginary representatives of identified segments.
• They describe the characteristics, roles, and behaviors of customers.

Targeting Strategies

• Different targeting approaches such as mass market, concentrated, and differentiated are addressed.

SWOT Segmentation Assessment

• SWOT analysis for each segment identifies strengths, weaknesses, opportunities, and threats.

Strength/Attractiveness Matrix

• Attractiveness of a segment, along with company strengths is assessed using a matrix.
• This is done by defining scores on specific criteria, from 1 to 5.
• Determining the importance of each criterion (weighting 1 to 5).

Targeting Strategy Selection

• Using different strategies like undifferentiated, differentiated, concentrated, and personalized to suit different situations.

This quiz covers the concepts discussed in Session 3 of Marketing Management, focusing on segmentation and targeting strategies. Learn about inclusive practices and sustainable approaches to consumer profiling and how these can enhance marketing effectiveness. Presented by Yannick Le Genissel, this session provides essential tools for marketers aiming to cater to diverse consumer needs.