Segmentation is:
“based on the observation of evolution of demand and represents a more precise and rational adaptation of the product and the marketing effort to meet customer or user demands” (Smith 1957)
“the subdividing of a market into homogenous (or similar) subsets of customers, where any subset may conceivably be selected as a target market to be reached with a distinct marketing mix." (Kotler 2000)
We looked at the changes of product variety through from the Victorian times where for example, carbonic soap was used as a multi cleaning product through from washing hair to cleaning washing. The choice we have in supermarkets now is endless; the industries are now acting on the increasing demand of their customer, in providing a basic product evolved in many different ways. In particular we looked at shampoos and toothpastes, being able to identify at least 15 for each. Are all these different types of product needed? Probably not. But in today’s society where everyone is so anxious about being perceived in a positive way, marketers can take advantage of the insecurities shown by their target market, and make their consumers THINK they need their new improved product, and so the cycle goes on. Maybe shampoo for curly hair works no differently to that of shampoo for straight hair, but it is what the marketers make the consumers believe that matters, and this is how new products will continue to be produced year after year.
We looked at the work of Doyle and his theory on STP Marketing. S = Segmentation, T = Targeting and P= Positioning. All 3 of these stages are vital for a product or service to be successful. It is easy to think of the process as a pizza. The pizza will be cut into slices; these represent the different segments of the market. You then choose a slice; this slice is your chosen target segment...the section of the market you will be aiming your product or service at. Finally, you choose the best part of the slice, and this part is the desired position; the area that is the best place to get your product or service out to your market.
We also learnt the importance that segmentation plays in marketing. By choosing your target market, you can match the product or service in a better suited way, therefore matching more closely to the needs of the customer. If this is done well then profit levels will become hugely enhanced. If the product or service is matched well to the customer needs, this could lead to retaining customers through loyalty to that product or service. Finally we looked at how segmenting markets makes it easier to get the message that you want to give out in a clear and understood way. If you did not segment your market and sent out the same message to a variety of different target audiences, the message could be perceived in the wrong way leading to an unwanted result.
After learning about the theory behind segmentation, we then went on to do a practical task. This was to look at a food shopping receipt and try to analyse what kind of a person the consumer was. Laura and I took the longest list so purely from this decided that it was shopping for a family. We had to draw a word person to show as much as we could about the person, and when revealed the true identity, we had almost got it spot on! Just goes to show how much information you can get about someone from such a small amount of information. This is the same kind of basis marketers need to work from. They get their snippet of information about the target audience and build on it from there. For example, if you find out someone has a W1 postcode you can automatically work out what their lifestyle is likely to be.
Below is an advert for the new lynx chocolate, the advert is very clearly aimed at a carefully segmented market; the young male wanting to attract female attention.
1 comment:
Great work but think about including some links to ads that demonstrate clear targeting
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