4.1 Targeted Marketing vs. Mass Marketing
Targeted marketing vs. mass marketing is a critical concept for you to understand. Take a few minutes to review this video that demonstrates the strength of target marketing in terms of reaching the right customers with the right message in the right media. If you have a dog, you might find yourself in one of these segments.
https://www.youtube.com/watch?time_continue=25&v=ecGFT-l1zVc
If you have a market that is large and homogenous, then you can be a mass marketer. One example might be salt, basically one product for anyone who wants it for the need to season food, which is a universal need.
Can you think of a mass-marketed product? What is it and why do you think it is mass marketed?
Required: Share your choice of a mass-marketed product with us in the Week 4 Discussion Forum, Topic 1: Mass-Marketed Products. You might want to comment on classmates' posts with your opinion as to whether they have selected a mass-marketed product, and if not, why you think their choice is actually a segmented market.
The topic of segmentation always brings up the highly controversial subject of consumer privacy. Check out this video created by the American Civil Liberties Union in an effort to warn consumers about the information being collected about them.
https://youtu.be/OnuH-yO0BJE
Do you think the video is far-fetched? Or do you think consumers should be alarmed? In your opinion, do the potential benefits of these databases exceed the potential downside?
4.2 How Markets are Segmented
Segmenting markets is difficult and often requires marketing research to find out how consumers think, behave, and basic information such as age, gender, etc. Therefore, defining market segments is aided with the generic segmentation bases, behaviors, demographics, geographics, and psychographics.
Be sure to understand this as it is discussed in the Week 4 readings. Also understand that these are generic categories, not segments themselves. Within each of the generic bases are a number of variables from which marketers can choose which ones are relevant for a usable market segment.
All of a company's marketing mix should focus on the market segment, now called a target market. In other words, the offering should be what the target market wants, where it wants it, how much it wants to pay for it, and how the company communicates with the target market. If done right, we can usually determine the characteristics of a target market by analyzing the advertising.
Your job in this learning activity is to find an ad, print or TV, and tell us who you think is the target market. The hints are in the type of music used, the spokesperson's persona, the approach to the marketing communications message, the types of people used in the ad, the words chosen for the ad, etc. All this should tell you to whom the marketing communications is intended to influence.
Here's a link to the top ads for 2013-2014 as chosen by Ad Week, the industry trade publication.
https://www.adweek.com/news/advertising-branding/worlds-26-best-commercials-2013-14-158533
First thing you'll notice is that most of them are foreign, most of them tell a story, and most of them don't even mention the advertiser until the end. You can choose your print or broadcast ad from one of these. Or, search youtube.com for your favorite commercial.
If you find your own ad to analyze, be sure to embed or link it when you post it to the Discussion Forum. Then identify at least three of the characteristics you think comprise the target market. Make your choices using Table 4.1 from the main text as your framework. But, don't merely say demographic/age. Tell us what age, or psychographic/values. Specifically note the value such as family or thrifty.
Then, take a look at some classmates' posts. Are you seeing similarities that put you in the same market segment, or are there other market segments that seem to be emerging from our course population?
Required: Share your findings in the Week 4 Discussion Forum, Topic 2: Analysis of Market Segments.
Since market research is so expensive, there are a few shortcuts because some consulting firms have done the work already, and they market their findings to companies. One of these is Claritas, which runs a continuous study of consumers like you. In fact, you can participate in the survey by following this link:
https://www.strategicbusinessinsights.com/vals/surveynew.shtml
All data collected in the VALS survey is used to categorize consumers into one of several market segments.
After you take the quiz, it will tell you your primary and secondary "type." You can click on the VALS type to read more about yourself and your consumer behaviors.
It may not be 100 percent accurate for you, but if you took the survey seriously, chances are better than good that it describes you relatively precisely.
Finally, since geography plays a unique role in defining customers, that may be the only variable a company needs for an effective market segment. See how it works at the following link:
https://www.nielsen.com/us/en/solutions/segmentation.html
You can look yourself up by zip code and read about yourself and your neighbors.
4.4 Positioning and Repositioning Offerings
Mature products sometimes need to be repositioned. Finding a new need for an existing product is usually a reason for repositioning. Many years ago, Arm & Hammer baking soda found a new market by repositioning the product for those wanting a clean-smelling refrigerator. The company did a similar repositioning when offering the product as a teeth whitener.
Can you think of an existing product that has been repositioned by finding a new market with a different need than the original product?
Required: Discuss your choice in the Week 4 Discussion Forum under Topic 3: Repositioning. See if you can add some insight into your classmates' posts as well.
To further your understanding on this topic, listen to this audio clip for some career advice from ApurvaGhelani, a senior sales engineer for Air2Web, a company that helps businesses root their brands and conduct transactions with people via their mobile phone.
https://app.wistia.com/embed/medias/416c5bb392/
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