Week 2: Segmentation, Targeting, Positioning and Brand Building Discussion Market Segmentation (graded) What is market segmentation and why is it important? What characteristics do we use to describe segments, and what criteria do we use to assess the attractiveness of a segment? Responses Response Segmenting People & Products Author Dr. Sowma Date/Time 8/27/2012 3:06:58 PM Class, let’s carry the idea of branding one step further. Clearly, when a celebrity becomes a brand, he or she has a certain following. How does a celebrity’s particular followers serve as an example of market segmentation? What about products? How can we segment them? Let’s use cars for example. What segments exist in the automobile market? RE: Segmenting Omer Mennan Guler People & Products 9/15/2012 1:33:54 PM Celebrities’ followers are really a good example as a server of market segmentation. For example, let’s take Justin Bieber. So his followers are mostly teenage girls who are between ages of 12-16. People who are in their middle ages absolutely don’t follow Justin Bieber. So in his concert if you want to advertise your anti-aging pills it is not going to work, no one will give attention to your product. But if you advertise a new clothing style which is for boys and girls between ages of 12-18, so you will be reaching the exact segment you want to reach. RE: Segmenting Omer Mennan Guler 9/15/2012 1:39:05 PM People & Products In nowadays, the most trending segment in automobile market is Hybrid cars. The car producers are trying to create a segment for Hybrid cars. I think the most successful company doing that is Toyota. They have the biggest percent of share in Hybrid car market. RE: Segmenting Darryl Abbott People & Products 9/12/2012 11:05:46 PM Celebrity branding has the power to entertain and inspire the consumer. Its inherent benefits are that it can be leveraged across multiple channel experiences (and potentially services), cuts through advertising clutter, creates a brand narrative and allows for channelspecific optimization. Ultimately, celebrity endorsement is always worth investing in if you have the right person. It's an expensive but easy option for companies, but it should be treated like a marriage with added creature comforts that make the partnership invaluable. http://adage.com/article/cmo-strategy/marketing-celebrityendorsements-push-product/146023/ RE: Segmenting Seena Rose People & Products 9/11/2012 7:03:55 PM Modified:9/11/2012 7:18 PM Celebrity follower's can be segmented by age and gender for example. Justin Bieber has a huge fan base of girls that are under 18 years of age. He is only 18 years old himself. My husband, son, and I went to Busch Gardens a few weeks ago. Victoria Justice was playing a free concert there as part of the summer concert series. People were standing in line over 5 hours waiting to get in to find a seat in the theater. Almost all the people in line had young daughters with them. Her followers are similar to Justin Biebers. They are girls under the age of 18. She has a Nickelodeon show which is aimed towards the younger audience. Unfortunately, the concert at Busch Gardens was canceled at the last minute due to a bad thunder storm that had developed. There were a lot of young girls crying as they were leaving the park. Parents were sad because, the stood in line for hours for nothing:( Marital status might come into play as well for celebrity followers. Single people might be more prone to follow handsome/beautiful, single celebrities. They like the fantasy of maybe marrying them someday. Once the celebrity or the follower gets married it kills the dream and may end the following. In the automobile market personality, income, age, household size, occupation, and region will all determine the type of automobile the consumer will favor. RE: Segmenting Dr. Sowma People & Products 9/12/2012 10:24:37 AM Now you're on the trolly Seena. RE: Segmenting Freddy De La Cruz People & Products 9/11/2012 9:39:15 PM Well stated guys, it is certain how celebrity's can become a brand that help promote business and fame. We see how they are used to make us attracted to any product they sponsor. From clothes, to shoes, etc. It is just crazy that most of the time, they do not even use this product that they sponsor unless it is athletes. For example how some soccer players that are sponsored by nike only use nike cleats, clothing etc. Of course they are getting paid to do this, then again they are making those reach a goal use their products because they believe it will help improve their game like how it may does for an athlete. Now we do see how they use celebrities, depending on the market they want to reach. Therefor increasing their market and profits. Overall, great post classmates and good example Seena! RE: Segmenting Jennifer Morris People & Products 9/11/2012 11:20:04 PM http://www.forbes.com/sites/worldviews/2012/05/18/5-personal-brandinglessons-learned-from-forbes-celebrity-100-women/ This was a GREAT article from Forbes magazine that describes 6 branding lessons learned from Forbes celebrities. 1. Master your craft. 2. Be known for something 3. Leverage what you have. 4. Transform the personal into business - The Kardashians are a prime example since they took their reality show and used it to launch their boutique D-A-S-H which is now found in Miami, SoHo, and Calabasas. 5. If it doesn't match your personal brand, don't do it - Taylor Swift was offered a movie but she turned it down because she felt it didn't match her public persona. 6. The use of social networks to keep your business brand personal Celebrities interact with people on social forums which engages them and keeps them interested in the celebrity and their products. RE: Segmenting Edith Cazares People & Products 9/12/2012 12:31:37 AM Celebrities do then to carry some sort of segmentation with them. For instance, a couple of months ago I went to see one of my favorite all this singer in concert, Kelly Clarkson. I noticed that almost everyone in the arena was mainly women between the age 18 to 30. I was shock to see that not many men attended the concert. As a matter of fact, all of my friends and including myself have boyfriends and none of us had our boyfriends with us! This just shows how some celebrities some how do have a particular group of followers. I think that automobiles are segmented by different groups such as gender, age, household size, income, occupation, and even personality. These are all segmentation's that exist and are considered in the automobile market. You are not gonna attract the same kind of customers that you would get for a Chevrolet Corvette and a Honda Oddssey. Both of these automobiles are different and attract a different type of consumer. RE: Segmenting Steven Crellin People & Products 9/9/2012 12:13:16 PM I always find it interesting when a celebrity "officially" starts becoming a branded endorsement of a line or product. Most specifically, when they do it without being an "official" endorser of the line. What I mean is Paris Hilton. When she was at the peak of her fame, she became a symbol for what was "hot" at the moment. I know that more than a few times, I saw her pictures in my wife's US magazine with little lines pointing to her clothes. They said the brand and the price so you could find them and look just like her. I know that a lot of these things are free and they are given to celebrity people like this for this EXACT thing, free publicity and people who want to look like her. The other side is when celebrities get paid to be on an ad campaign and are now "official" spokespersons for that line. Tiger a woods for Nike, Leonardo DiCaprio for TAG Huer and so forth. Those examples really don't get me that interested because I know that most of these people make MORE from these endorsements than the do from the actual thing they do. Tiger Woods is the best example of this maybe ever. His winnings were less than 3% of his income at one point. His endorsements were worth billions. THAT is an expensive brand. RE: Segmenting Roger Dubreuil People & Products 9/11/2012 6:47:11 AM Tiger Woods is a great example. Between Nike, Gillette, and his own video game line, he was making a lot of money simply by endorsing these brands. Naturally, people who liked Tiger Woods would gravitate towards these products, or at least that is the goal. He has his own line of golf equipment and accessories, and I know die hard fans would run out to get new models and products that his line came out with. Having a celebrity back a product or line of products helps get the word out there that this product is used by this celebrity, so followers of this celebrity might be enticed to try it as well, simply based on the liking the celebrity that is behind it. RE: Segmenting Dr. Sowma People & Products 9/11/2012 1:16:26 PM All great points Roger, but who was segmented/targeted and why? RE: Segmenting Keisha Serna People & Products 9/11/2012 3:15:31 PM I believe that celebrity endorsements are a great way to get your product or service recognized. More so I think they pick the celebrity base on the market segmentation. When picking an endorser companies should think of whom they want to attract and who is most likely to portray that image. When Steven and Roger used the example of Tiger Woods, he matches the type of segment that his brand wants to reach. Most likely there segment characteristics where male and female ages 30-65, wealthier income of 50,000+, any race, suburban regions. These characteristics will help target college students, club members for golf, fans, and demographics of the suburban area shopping centers. In the automobile industry there are great examples of different segments. The minivan will use advertisements to attract big family’s and more room, the trucks may advertise more power and work load the car can handle appealing to men who work, sports cars advertisements so luxury and speed appealing to a younger generation that are wealthy. These are just a few ideas but I feel each type of car wants to appeal to their own type of consumer. When advertising for these vehicles marketers need to show emotion and why they appeal to whom they do. I like when some car company’s go out of the box and try to pull a new segment into their mix by advertising differently. What comes to mind when thinking of this the Hamsters driving the KIA SOULS? To me those cars would looks like an older person’s car or a computer geek, but there advertisements make them appeal to a younger generation by using the Hamster, playing the techno music and adding the break dancing. RE: Segmenting Dr. Sowma People & Products 9/12/2012 10:42:52 AM Great answer Keisha, although there are probably a few more segments. RE: Segmenting Roger Dubreuil People & Products 9/14/2012 8:01:05 AM I agree Keisha. Market segments for Tiger Woods products could also include retirees, as most of the retired people I know, like my in-laws, love to golf. Golf isn't a cheap sport so I agree that a segment would also be the middle and upper class, As far as cars go, hybrids are a newer line of automobiles that are made for a very specific segment of consumers. Usually environmentally conscious people are viewed to be hybrid drivers, but not always. I see more and more younger people and older people, both sides of the spectrum, driving hybrid vehicles. Now that the cost of hybrids is somewhat reasonable, I think the market is expanding more. I completely agree with that hamster/Kia commercial, they try to make their "geeky" product look more trendy and "cool." RE: Segmenting Andrew March People & Products 9/10/2012 11:31:03 AM Modified:9/10/2012 11:43 AM I think it really does make sense for a name brand to attach themselves to a celebrity, athlete etc.. because by the celebrity wearing the name brand of clothing etc. that will put into the mind of consumers that if the celebrity is part of this brand, than the product must be really that efficient. Nike has done a tremendous job of doing this by linking up with athletes such as Lebron James, Michael Jordan and so on. Cell phone companies like to do the same thing as well by attaching celebrities to their cell phone company, having the celebrity explaining why they chose Verizon for instance. I feel and think that if the celebrity attached to the brand excels really well in their sport it will make the name brand that much better. RE: Segmenting Edward Purvis People & Products 9/11/2012 5:37:43 PM I remember when Tom Bosley, he played the father on Happy Days, became the brand identity of SMH. It is a company where you can become a member and purchase a variety of products as wholesale cost so you can sell them at retail prices to make a profit. I think his followers had to consist of people like me who grew up watching him on the show. he was always presented as a good father and husband and had great morals. So when people see him on TV promoting this business I'm sure everyone thought it had to be legit because of his former character he played on TV years ago. RE: Segmenting Kelly O`Connor People & 9/10/2012 7:38:07 AM Products I haven't yet done the readings so I am hoping that I am correct in my assumptions....If not I will learn from it =) As far as product segmentation in the automobile market, there is many. There are compact cars, energy efficient hybrid cars, sports cars, minivans, muscle cars, luxury cars, crossovers and almost cross overs (Kia Soul), SUV's, Light Duty Trucks, Heavy Duty trucks, specialty trucks such as boom trucks, emergency vehicles and box trucks, Econoline vans, conversion vans, etc. Now each of these types of vehicles all fall into different classes such as low cost, luxury, high cost, gas guzzlers, touring editions, work/professional vehicles and what not. There is pretty much something out there for everyone. As far as compact, Ford built a campaign around the Ford Fiesta. For a crossover, they is a Mercury Moreno. As far as SUV's there are Tahoe’s and Yukon’s. With trucks there are Light Duty Silverados and F150’s, with Heavy Duty Trucks there is the Dodge Rams and F250-350 versions. As far as booms there is the GMC Rockford style body’s with Altech booms. Each person will have a different reason for purchasing a vehicle and in today’s market place, and there really is no shortage of choices. All of the automobile companies are in competition with each other and they are all trying to make a name in each market segment. RE: Segmenting Edward Purvis People & Products 9/11/2012 5:45:42 PM In the automobile industry, cars are segmented based on the lifestyles of consumers. A lot of consumers are more concerned with fuel efficient cars due to the high price of gasoline. In the automobile industry cars are segmented by letters, such as the A segment which consist of "the smallest models on the market, The A-Segment cars are city cars or called kei cars in places like Japan. The only model in this category sold in the United States is the Smart ForTwo. If you have a picture in your mind what the Smart car looks like, then you understand the segment. The article below talks about the other segments in the auto industry. http://www.autotrends.org/2010/05/30/vehicle-segmentation-whatdoes-it-mean/ RE: Segmenting Valerie Chambers People & Products 9/13/2012 9:04:10 PM I don't know much about cars just when to fill the tank as well as when the check engine light comes on it needs to be fixed. As for the lettering or initials SUV stands for Sport Utility Vehicle and that's it too. I know how to fill up the take, check the fluids, tire pressure, and how to make sure I don't hit anybody, I am a firm believer that people who drive shouldn't use a cell phone in any way shape or form. RE: Segmenting Dr. Sowma People & Products 9/14/2012 10:38:52 AM What about segmentation? RE: Segmenting Valerie Chambers People & Products 9/16/2012 10:09:15 PM The people who usually buy the SUV are those with children or more than the that with which the cargo itself wouldn't fit into the trunks of most cars. So I would be one of those people considering I would need to take several trips back and forth to a new home and the old home if I was to ever move, unless I borrowed a trailer or a moving truck. Which I actually don't think that I would ever do. There is also the different groups of people who just plain want to get a SUV. RE: Segmenting Freddy De La Cruz People & Products 9/12/2012 1:03:29 PM Kelly this is a great example in which the segmenting is well explained showing all of the different aspects oh how things are segmented. The car industry is one that really shows all of the different segmentations that allows them to find different customers depending on their demographics. Another industry where we can see this is the clothing industry in where they offer a different form of segmentation. Like the quality of clothes that will show which the different market they will reach as well as if it will be for men, women, or children clothing line. No I wonder if there are any business that do not have any segmenting in products or people. I believe every business has to go through this aspect in order to continue and be successful. Overall, great post Kelly RE: Segmenting Kelly O`Connor People & Products 9/13/2012 6:21:00 AM Your example of the clothing industry is an awesome one. There are so many different types of people in this world and all have different tastes and styles. For example, there is people deemed...big and tall, or overweight/husky, petite, thin, "regular" (whatever that is...), older, younger, baby, toddler, junior, teen, miss, work clothes, sports apparel. There are stores for just lingerie, stores for just shoes, accessories, etc. For formalwear there are specialty dress and tuxedo shops. The clothing industry is vast with segmentation. Lane Bryant and Big & Tall male can help both the “bigger” female and the male respectively. There is 579 and Forever 21 for the petite and small framed. Further, there is Modell’s, Sports Authority, Dicks, etc. for sports apparel. There are stores tailored for just the child, Justice and Carters Kids. There are sections of department stores that usually have something for (almost) everyone such as Kohl’s, Macy’s, JC Penney’s and the like. These stores are called department stores for a reason: the stores are all sectioned out in departments that will hopefully make it easier for a person to decide where they "belong". Other businesses can benefit from clothing stores. Ever hear of a dry cleaner service or appliances and accessories such as a washing machine and dryer and detergent?! Lol. Some of the fabrics that are purchased by consumers in any and all categories may be more fragile and have further care instructions which may force the purchaser to go to the dry cleaners to not ruin their find. Or it may force the consumer to have to buy a different brand of detergent (Wool lite, Tide, Wisk, etc.) to take care of their clothes. But in order to wash their own clothes (unless they live in a complex that offers washer and dryer services) they will need the washer and dryer. Now both the washer and dryer and detergents can be further segmented (depending on the product we are talking about) by prices, name reputation, consumer habit and use, consumer reports, past performances of LKQ products, maintenance, Energy Savings, etc. I could go on and on about the different bands of washer and dryers and detergent…but I won’t! I will be on the post forever then! You had an awesome post too Freddy! Thanks for getting my greay matter going =) RE: Segmenting Dr. Sowma People & Products 9/13/2012 10:57:30 AM Kelly and Freddy, great conversation! RE: Segmenting Freddy De La Cruz People & Products 9/16/2012 6:07:13 PM Therefor, it is for the best of a business to have either segmented or a segmented target in orde to attract a larger range of customers. I believe it is a great option for a business to do so because not everyone is likes the same thing. We all have different tastes but we may also need other options to adjust our needs. Imagine if our clothes were all made of just cotton, we would have pants only made of cotton which not many of us would like. That is why I believe to those that want to start a business, it is best to have a segmented market or product. RE: Segmenting Daniel Kuhfal People & Products 9/10/2012 11:24:08 AM Well according to quick MBA a market segmentation is http://www.quickmba.com/marketing/market-segmentation/ The division of a market into different homogeneous groups of consumers is known as market segmentation. Rather than offer the same marketing mix to vastly different customers, market segmentation makes it possible for firms to tailor the marketing mix for specific target markets, thus better satisfying customer needs. Not all elements of the marketing mix are necessarily changed from one segment to the next. For example, in some cases only the promotional campaigns would differ. A market segment should be: measurable accessible by communication and distribution channels different in its response to a marketing mix durable (not changing too quickly) substantial enough to be profitable A market can be segmented by various bases, and industrial markets are segmented somewhat differently from consumer markets, as described below. Consumer Market Segmentation A basis for segmentation is a factor that varies among groups within a market, but that is consistent within groups. One can identify four primary bases on which to segment a consumer market: Geographic segmentation is based on regional variables such as region, climate, population density, and population growth rate. Demographic segmentation is based on variables such as age, gender, ethnicity, education, occupation, income, and family status. Psychographic segmentation is based on variables such as values, attitudes, and lifestyle. Behavioral segmentation is based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and benefits sought. The optimal bases on which to segment the market depend on the particular situation and are determined by marketing research, market trends, and managerial judgment. Business Market Segmentation While many of the consumer market segmentation bases can be applied to businesses and organizations, the different nature of business markets often leads to segmentation on the following bases: Geographic segmentation - based on regional variables such as customer concentration, regional industrial growth rate, and international macroeconomic factors. Customer type - based on factors such as the size of the organization, its industry, position in the value chain, etc. Buyer behavior - based on factors such as loyalty to suppliers, usage patterns, and order size. Profiling the Segments The identified market segments are summarized by profiles, often given a descriptive name. From these profiles, the attractiveness of each segment can be evaluated and a target market segment selected. what all that says to me is how the market is broken up so you can get a more exact picture of who buys what, that way your company can specialize and concern a part of the market. As to your car questions the auto industry could be segmented into the, luxuries, fuel efficient, green friendly, high speed, safety, and etc. Basically its the cutting up of the auto industry so the company can make a car for each type of customer. RE: Segmenting Anne Zimmerman People & Products 9/10/2012 2:13:07 PM This is a very nice description "in a nutshell" Daniel! Thanks for sharing! Living in the colder region of the country, I would point out that climate is a segmentation for the automobile market. For example, I would bet that convertibles and little two-seater sports cars sell more in the warmer half of the US than the cold half. When I was a kid in Upstate New York, my dad had a convertible and it was cold sitting in the backseat in the wintertime but a blast in the summer! Same with his Mazda RX7 - it was great in the summer but was put away all winter. Another segmentation that is important to automobile makers is women. Just 20 years ago, I went to a Chevy dealer to purchase a pick up truck that my husband saw on the lot. Since purchasing a vehicle is his least favorite thing to do, I said I'd go buy it. I went to the dealership, test drove the 4-door crew cab beast, and said I'd like to buy it. The salesman said I should go home and talk to my husband about it. Today, that would never fly. It didn't go over well with me back then! Women have just as much purchasing power as men and the car industry has recognized that. Today, cars are marketed directly to women. In fact, I'm sure that they have segmented the segment of women!! Young women vs. older, high income vs. lower income. Mom's (mini-vans) vs. business women (BMW). We've come a long way, baby! (stealing that from the tobacco industry) RE: Segmenting Dr. Sowma People & Products 9/10/2012 5:32:53 PM Modified:9/10/2012 5:34 PM It is a good bit of information but Class, we usually want to post 80% of our own thoughts for every 20% of cited text. A quick read of the class announcement on thread grading is a big help. RE: Segmenting Steven Crellin People & Products 9/10/2012 11:33:48 AM Using cars as an example is great because I think there are clear segments in the automobile market. In my opinion, ther car segments are as follows; Luxury Sports Cars Affordable Trucks Family These could be way off, but if you are looking for a car, you are more than likely clearly in one of these segments. If you want a BMW, you know you are in the luxury group. If you are looking for a truck, you are not going to look at many other places because they have a unique appeal. If you have a tight budget and you know you can only afford $20K for a car, you are going to look into affordable cars. The descriptions go on. These segments are very easy to identify because each one is different in every part that makes them unique. RE: Segmenting Gerald Charles People & Products 9/10/2012 6:42:32 PM Steven, I agree with especially since we are targetting cars. I think the number one segment that consumers are looking for and I think it's in affortable and milleage. Due to gas prices, most consumers are more concerned with gas millage for their new car. I myself have a Ford expedition but ever since gas went up, I purchased a Kia because of the gas milleage per gallon. RE: Segmenting Victoria Minos People & Products 9/11/2012 12:37:43 PM Steve, I also agree with you that every car make draws different segment markets. Everyone has their own unique style and different income levels. I personally own a mini-van "soccer mom" only because I find these vehicles to be most convenient when it comes to hauling four kids along with sports gear and groceries not to mention friends needing rides as well. I know they are not the most attractive or "cool" vehicles to drive around but when it comes to convenience and for my particular lifestyle it is definitely a go for my family and I. RE: Segmenting Dr. Sowma People & Products 9/11/2012 1:18:26 PM Modified:9/11/2012 1:18 PM Usually by now, someone actually brings up exactly how it's done in the real marketing world for the auto market (i.e. A, B, C, etc...), any takers? RE: Segmenting Steven Crellin People & Products 9/11/2012 1:39:51 PM So I have just searched for far to long to find the "real" answer you are asking for. I found noting with "A, B, C" answers, just the definitions of Market Segmentation. So I dont have any idea what you are looking for here. I did find this; "The are many ways that a segment can be considered. For example, the auto market could be segmented by: driver age, engine size, model type, cost, and so on. However the more general bases include: by geography - such as where in the world was the product bought. by psychographics - such as lifestyle or beliefs. by socio-cultural factors - such as class. by demography - such as age, sex, and so on. A company will evaluate each segment based upon potential business success. Opportunities will depend upon factors such as: the potential growth of the segment the state of competitive rivalry within the segment how much profit the segment will deliver how big the segment is how the segment fits with the current direction of the company and its vision." Based on your reply and the level of difficulty I am finding in getting anything done in this class, I assume this is not only incorrect, but it is not what you were looking for at all. It was a shot though. -http://www.marketingteacher.com/lessonstore/lesson-segmentation.html# RE: Segmenting Dr. Sowma People & Products 9/12/2012 10:53:40 AM Steven, almost half my 2 classes got A's last term, so please try to not be so defeatist, you gave it a good try. Class, for those that were curious, this is a common segmentation model. A Segment - These are the smallest car models (city cars) Think Smart Car B Segment - Small car models: Nissan Versa, Honda Fit, Mini Cooper, Ford Fiesta C Segment - Compact models: Dodge Caliber, Chevy Cruze, Ford Focus, Toyota Corolla, Honda Civic, VW Rabbit D Segment - Mid-size models (best sellers): Ford Fusion, Toyota Camry, Honda Accord, Hyundai Sonata, Nissan Maxima, also includes some crossover models E & F Segments - Full size cars: E segment would have BMW series r while the F segment would have the BMW 7 series, just a larger luxury car S Segment - Sports cars M Segment - Mini Vans J Segment - Large SUVs Pickup trucks have no segment letter attached Electric cars and hybrids can belong to more than one segment. Most of us have been in more than one segment and many will be a part of several in their lifetime. Keegan, M. (2010, May 30). Vehicle segmentation…what does it mean. Retrieved September 12, 2012, from Autotrends Web site: http://www.autotrends.org/2010/05/30/vehiclesegmentation-what-does-it-mean/ RE: Segmenting Kelly O`Connor People & Products 9/13/2012 8:04:53 AM Hey Dr. Sowma, Thank you for your breakdown and the attached link. I find it interesting that Pickup trucks have no segment letter attached but seem to be classified in the Light Duty Category which includes Midsize/Small/Large SUV’s, luxury SUV’s and minivans. I have been searching the text and the internet for further information and may be completely missing information on this. I did however find an awesome website that shows an overview of vehicles manufacturers, vehicle classes and increase or decrease in sales. Retrieved on September 13, 2012 from The Wall Street Journal, Auto Sales, September 4, 2012 http://online.wsj.com/mdc/public/page/2_3022autosales.html I live in a very rural area, where I am not kidding you, 3 out of every 5 cars is a Pickup truck ranging from light duty to heavy duty. The winter gets bad where I am so many people are in need for 4 wheel drives. Once I moved up to where I am, I bought a Chevy S10 4x4 pickup. When I got married we bought a Chevy Silverado 1500 Pickup and recently, within the last 2 ½ years, I have purchased a Ford F150 4x4 pick up (it is my baby!!!) Light Duty trucks including the Pickup do make up a large part of increased sales in many of the main automobile manufacturers, i.e. Ford, General Motors, Toyota, etc. and have been further increasing their numbers in 2012. So, my main question is: Why is there not specific category for Pickup trucks? Why is it subcategorized in Light Duty Trucks (with the all of the SUV’s including luxury SUV)? This is the information that I cannot find! My pick up is not a SPORTS UTILITY VEHCILE. It is a TRUCK. I actually tow things, haul things, and have dents that I am proud of from some redneck, blue collar work. At no time is this used for “sport”. It is far different than a Land Rover, a Jeep Liberty/Grand Cherokee, Tahoe and a Dodge Caravan minivan; and I cannot understand how and why this could be classified this way. Sorry for ranting but it irks me when I cannot find a clear concise answer and a stupid question is one not asked right?! =) (Side note: Before all of the pickups, I had a 1986 Delta 88 Brougham Edition car---which was more like a boat. This vehicle would have encompasses the E & F Segment category of Full size cars. I then had a Plymouth Neon that would have been in the C Segment category of Compact models. So far I am up to 3 categories in my life.) RE: Segmenting Dr. Sowma People & Products 9/13/2012 11:02:52 AM Kelly, many times those sometimes mismatched classifications, such a an SUV instead of a truck, usually comes down to other factors such as gas mileage, taxes vs. luxury taxes, meeting or avoiding certain safety requirements, manufacturer obligations and so on. So, if you see a big titlebased mismatch, it's you first clue that other, many times nonmarketing factors, may be in play. RE: Segmenting Andrew March People & Products 9/11/2012 11:31:11 AM Yes I have to agree that a lot of things are broken down into segments especially automobiles, but not only are automobiles broken into segments but so would things at shopping malls etc.. I feel and think that different neighborhoods are broken up into different market segments, for instance if an individual goes into a low income area there will usually be fast food chains, dollar stores etc. because the area perceives the kind of things that individuals will be able to afford and not afford. In high class or wealthy areas pricing of goods and services are usually escalated because of the type of clientele that is living in the surrounding area. RE: Segmenting Robin Heffernan People & Products 9/10/2012 10:07:37 PM Steven, I agree with you on the segmentations you came up with on automobiles. I would also add to the list going green with Hybrids and rechargeables. There are several benefits of Hybrids- Economically and Environmentally. Benefist of Hybrids on the overall econonomy saving fuel nationally and also on the personal level on the amount one would purchase on gas. I did a group assignment in a past class where I found it interesting that on some Hybrids you do save money over time on the gas/price of car and some you actually don't. RE: Segmenting Edward Purvis People & Products 9/11/2012 5:48:16 PM I also think there is the concern for fuel efficient cars as well. With the increase in price for gas, more consumers are looking for vehicles that give them more miles for their money. RE: Segmenting Justin DeMoulin People & 9/10/2012 1:56:52 PM Products One example that comes to mind for both segmentation and celebrity following is Mike Rowe's position as a national spokesman for Ford trucks. Mike Rowe is the person we came to know from his job as host of "Dirty Jobs" on The Discovery Channel. Mike Rowe attracts a specific market with his already known characterization as a the working man or the tradesman. This helps him to attract customer's to Ford trucks because he is someone who breaks down and analyzes the details of a job, which he brings to Ford by breaking down and analyzing the care and craftsmanship of Ford trucks in Ford commercials. This helps him to attract the 'working man' or 'tradesman' market segment to the Ford company. http://dsc.discovery.com/fansites/dirtyjobs/bio/bio.html RE: Segmenting Dr. Sowma People & Products 9/11/2012 1:21:20 PM Justin, good example and follow through with it. RE: Segmenting Renee Anderson People & Products 9/10/2012 9:32:22 PM Normally, market segments are classified in certain groups by the characteristics. These characteristics can range from demographics, psychographics, geographic area, behavorial activities a more. So when talking about celebrities, each celebrity has a different fan group or followers that they target. That is when the products start flowing in from different companies wanting the celebrity to wear their products. The celebrities are able to market their products either by wearing their products or by being in their ads. Personally, using a celebrity can be risky if you were to use them to market your products. Their actions can dictate your products. Like if they were to do something bad, their followers may use that against your company and not buy the product. Examples for market segmentation is that of Ellen D. for Covergirl or Justin Beiber and all of his products that are geared towards little girls. RE: Segmenting Edward Purvis People & Products 9/13/2012 6:23:17 PM I also think it is risky using celebrities to market a product. Here are some advantages in using a celebrity to endorse products: A celebrity can enhance brand equity (Till, 1998) Consumers’ attitude toward a brand can be changed or affected by celebrity (Till, 1998). Celebrity can contribute, freshen and add a new dimension for a brand (Till, 1998). Culture road block can be manipulated by using celebrity with worldwide reputation (Kaikati, 1987). Celebrity is able to build brand credibility in a short period of time (Abbot et al., 2001). Furthermore, Mullikin and Petty (2006) state that “appearing of celebrity in advertising can built some independent credibility to the advertisement”. Here are some disadvantages Consumers’ skepticism; consumers might not believe that the endorsers really consume the product that they endorse (Hsu and McDonald, 2002). Consumers give less credibility to celebrities who endorse many products (Tripp et al., 1994). On the one hand, single endorser for one product might be seen as boredom. On the other hand, consumers might get confused by using multiple celebrity endorsement (Hsu and McDonal, 2002). Louie and Obermiller (2002) state that “celebrities who are blamed for negative events (e.g. accidents) can have detrimental effects on the products they endorse”. http://issuesinimc.wikispaces.com/Advantages+and+Disadvantages+from+using+celebrity +endorsement RE: Segmenting Dr. Sowma People & Products 9/14/2012 10:42:38 AM Modified:9/14/2012 10:44 AM Edward and Class, as has been noted a few times now, soley cutting and pasting text without any content of one's own is considered to be a low quality post. Moreover, you must cite every reference you use. While I of course like the content and have in fact read these works and suggest everyone look at them, I hope to see us all follow the rules on posting. RE: Segmenting Seena Rose People & Products 9/13/2012 7:18:16 PM Modified:9/13/2012 7:27 PM Edward, All the well known diet plans advertised on television have celebrities who are hired to promote them for a year or more at a time. Jessica Simpson was just endorsed for Weight Watchers and before her it was Jennifer Hudson. Nutrisystem's spokesperson is Marie Osmond and Janet Jackson. Jenny Craig's is Mariah Carey. I think the diet plans have been successful using celebrities as role models. The celebrities are losing weight and these businesses keep endorsing new celebrities every year. If it wasn't working I think they would try a different marketing approach. I do think the businesses are segmenting towards female viewers considering the majority of spokespeople for the plans are female themselves. RE: Segmenting Jennifer Kachikian People & Products 9/13/2012 11:55:42 PM Modified:9/14/2012 12:04 AM Seena, I totally agree with you, when you state "diet plans have been successful using celebrities as role models". Then I think to myself, "These celebs have tons of money; would they 1. get surgery to look thinner OR 2. follow through and go with their Jenny Craig diet plan... or Nutrisystem?" It would totally be known as 'false advertisement', if these celebs did the surgery-route. That's the fear of purchasing a product, "Just because they are a celeb, will this really work??" RE: Segmenting Herbert Martin People & Products 9/10/2012 9:58:09 PM Modified:9/10/2012 9:59 PM According to our text,"Market segmentation is “dividing up a market into distinct groups that (1) have common needs and (2) will respond similarly to a marketing action.(Belch)Belch, George and Belch, Michael. When a celebrity becomes a brand, he or she has a certain following. How does a celebrity’s particular followers serve as an example of market segmentation? Due too their likes and dislikes of what the celebrity is promoting. People are attracted to certain celebrities based on their following by their peer groups so they are able to fit in. For example, I am an avid Bass fisherman. Kevin Vandamme is one of the celebrity fisherman that I follow regarding the types of baits and lures he uses. Marketing action, are the commercials and television shows displaying the products he uses and tutorials given on how too attract and catch fish. The group of fisherman consists of people from young children too sixty-five and older. RE: Segmenting Jennifer Morris People & Products 9/11/2012 2:27:22 AM Segments that exist in the automobile market are: Small cars - For example, the Ford Focus that is targeted towards young people Family cars - Such as vans, SUVs, etc that can accomodate families Off Road cars - Jeep Luxury cars - Jaguar, BMW, Mercedes, etc Expensive Sports cars - Ferrari, Porsche When a celebrity develops a brand it becomes a 'signature' item. I worked in at a cosmetic retailer in an upscale mall and we carried a variety of items from wet 'n' wild (cheap) cosmetics to 'signature' makeup like Mac. We also featured makeup branded by Jessica Simpson and perfumes from celebrities like Jennifer Lopez, Paris Hilton, and Brittany Spears. Products that have celebrity branding get special attention because they already have a following. Jennifer Lopez is known for her singing abilities and acting talents. She took that and built an empire in clothing, accessories, perfumes, etc. RE: Segmenting Sean Peotter People & Products 9/11/2012 5:09:11 AM Fans of celebrities are usually segmented by Demographics, with age and sex being the most common factors for this. Sometimes a celebrity's fans are segmented by Geography also/instead, the most common being by country. The automotive market has several segments: 1. Geographic - convertibles in sunny areas, 4x4 in hilly/mountainous areas, etc. 2. Demographic - economical cars for 20ish, family cars for 30ish, sporty cars for 40ish (midlife crisis), etc. 3. Psychographic - 4x4s for adventurous people, mini vans and station wagons for family oriented people., etc. Segmentation, Targeting, Positioning and Victoria Minos Brand Building 9/10/2012 2:00:58 PM Market Segmentation is important because without it the business will not find the correct target audience. While there may be theoretically 'ideal' market segments, in reality every organization engaged in a market will develop different ways of imagining market segments, and create product diversity strategies to exploit these segments. The market segmentation and corresponding product differentiation strategy can give a firm a temporary commercial advantage. The primary purpose of assessing the overall attractiveness is to gauge whether or not a generic market potential exists for any prospective entrant to the market. The company first needs to assess whether a segment has characteristics that makes it attractive. Managers typically use a combination of the following criteria to evaluate overall attractiveness of a segment. These criteria are: 1. Size/sales Potential: sales (unit and dollar) 2. Growth Potential: sales (unit and dollar), number of customers, potential of increasing depth of relationships 3. Profitability: revenue and cost 4. Needs: primary demand, magnitude of unsatisfied needs 5. Competition: strengths and weaknesses of competitors in the segment http://www.google.com/url?sa=t&rct=j&q=what%20criteria%20do%20we%20use%20to% 20assess%20the%20attractiveness%20of%20a%20segment%3F&source=web&cd=2&cad =rja&ved=0CCUQFjAB&url=http%3A%2F%2Fro.uow.edu.au%2Fcgi%2Fviewcontent.cg i%3Farticle%3D1557%26context%3Dcommpapers&ei=gEZOULTAerx0gHMzoDwCg&usg=AFQjCNGtUSimSP9Z0Gngo1DB1F_k2-4L4g Target Practice Dr. Sowma 9/11/2012 1:44:50 PM I want to add some extra thoughts. While many of you did a great job with targeting your markets for your assignment with some using incredible levels of detail, just as many stated the "everyone is a consumer", or all men or all women or all young people, etc... Is that really true??? I'm not pointing anyone in particular out, but want to stress that in real life that many of us would likely get fired if we said something like that in a meeting, boardroom, or interview. The reality is that we can always find ways to segment and target markets even for the most ubiquitous/common products. So, to help you all with your projects, let’s really think about this. Even if you can justify everyone or most everyone as an end consumer, there are always more detailed factors that govern consumer behavior and thus allows us to always precisely segment and then specifically target individual group(s). Think about it; who buy's, who doesn't buy, when do we buy, who has the most input/influence, are there groups that we can rule out, who can afford it or is willing to pay for it, who can we reach via what media most efficiently, who uses it the most or makes the greatest purchases from our market, and so on? Let's use some real examples and see if we can jog and add to your thoughts for your own course project work; Class, what about flat screen TV's or satellite/cable, what about 2-liters of pop, what about clothing, or what about your own examples? How might we transition from superficially saying "everyone" to identifying specific target markets? In short, pick an "everyone" product, select your specific target markets, and tell us why? RE: Target Sean Peotter Practice 9/13/2012 3:27:28 AM I've chosen the 2-liter of soda. Segments: 1. Families - I chose this segment because a 2-liter is something that is designed to be shared. It is too big for one person, but once it is open it's shelf life drops quickly. So we see that it is meant to be used shortly after being opened, the most likely candidate for a group to share a product like this is a family. 2. Small Event Coordinators - By small event coordinators I am referring to people who plan things like church picnics, parties for the winning little league team, etc. I chose this segment because of the implied nature of sharing, as discussed in the family segment. RE: Target Dr. Sowma Practice 9/13/2012 11:04:57 AM Sean or Class, is this it? Any other segments? RE: Target Edward Purvis Practice 9/13/2012 6:38:06 PM Flat Screen TVs. Segments Gamers. A lot of the youth play video games as a hobby or sports. Flat screen TVs are the way to go with gamers because they are light and they can be in size range of 19'' to 80'' TVs to view more graphics and have good quality viewing while playing games. Hospitality Industry. This industry now has nothing but flat screen TVs in all places of lodging, and hotels. When customers want to stay at hotels they want to watch shows, or play movies on the latest flat screen TVs. Men ages 34-50. When we men get to a certain age we want to have things that people can talk about such as cars, houses, and the latest electronic gadets and flat screen TVs are at the top of the list especially the larger size TVs. RE: Target Kelly O`Connor Practice 9/14/2012 6:20:31 AM Hey Edward, great post! I just wanted to add that some other segments could be: families and (younger) married couples or those living together and those that love watching professional sports on TV. For some that are newly married and/or living together, they need to buy new appliances and entertainment systems for their residences. Usually at this point, there is not always a baby to take care of or an overabundance of bills so there may be more disposable income. I also mention families because there are many people with children and some parents stay home during the day and the TV is the main form of entertainment. Also, now with many flat screens, there are Wi-Fi capabilities and internet connections so one can download a movie and project it right on the screen. This can also be used as an education tool for children by uploading learning programs from the internet also. Because of this, parents may be more apt to buy it. Also, a flat screen can actually take up less space and as long as it is installed properly on a wall mount, can prove to be safer than a big ol' boxy TV that weights 20lbs. A child could try to pull, tug or climb on the TV or grab the wirings and hurt themselves. Further, the parents will be most likely utilizing this TV too, maybe not when the kids are around so it is a form of entertainment for them too. They can order a movie from Net Flix and without leaving their home, settle down to watch the latest flick. As far as the sports fan, this could be a major target market. For example, I am a woman, age 32, “professional” who loves her 50” Flat Screen Panasonic Plasma. It is one of my favorite things in the world…next to my truck. And let me tell you, there are many women out there like me. I love it because I love sports. I watch the NHL (Oct-June), MLB (April –October), NFL (August- February), NASCAR (FebruaryNovember). Pretty much, I have something on all year and I love having a big TV to watch it all on with awesome high definition, audio and graphics. Again, not trying to take away from your post, just accentuating ;) RE: Target Darryl Abbott Practice 9/14/2012 6:49:36 PM Market segmentation is the process of dividing a total market into market groups consisting of people who have relatively similar product needs which can be a cluster of needs. I think celebrities definitely help expand marketing segmentations for instance, Beyonce and her Loreal endorsement, when you see her on the box of Loreal, you already think beauty and quality, because of her own personal reputation , therefore making the consumer want to idolize her and then purchase the product. Another example would be Michael Jordan and his brand of sneakers and active wear, when you think Michael Jordan, you think active, sports, running. And of course he has maintained a good reputation. RE: Target Sean Peotter Practice 9/15/2012 11:34:05 PM Other possible segments for the 2-liter of soda: 3. Delivery based restaurants - Places like Domino's pizza, Pizza Hut, etc. Since people often order from these places in groups it makes sense to offer 2-liters as drink options. 4. Hardcore gamers - Gamers tend to drink a lot of caffeine while playing video games, and hardcore gamers play for long periods. With 2liters they don't have to get up as often to get a drink. RE: Target Kelly O`Connor Practice 9/13/2012 8:37:05 AM Modified:9/13/2012 8:39 AM This may be a ridiculous answer but an EVERYONE product could be Ice cream. Doesn't (almost) everybody love ice cream? This product can target children, teens, adults and seniors. It is a non-discriminating food that is eaten by people of all ages, races, ethnicities, religious beliefs and so forth. However there is a lot of segmentation that can go on here. Let’s run through some of the markets and products that could be segmented: The child/teen market: Products available: Popsicle, ice cream bars, ice cream cookie sandwiches, ice cream cakes and specialty cakes ordered with their favorite character. TV advertisements during the day, coupon promotions could be offered for discount on price, advertise in movies (product placesment) Advertisments (and opening brick and mortar buildings in locations with heavy child/teen traffic such as a mall or marketplace. The adult Market: Products available: low cal, low sugar, non-fat ice creams, Pints/Quarts and Gallons of ice cream. Also included are any other products in the children/teen category. The adult that purchases ice cream may remember it fondly from their childhood and still enjoy it as a treat. Or at the other end, the adult is now a parent and taking their children to buy ice cream. They are the ones with the money and will be making the purchasing decisions. The Seniors Market: Products available-all of the above: again, all comes back to childhood memories and tastes that have been acquired. Product offerings could fall under child/teen and adult markets. Also, may have grandchildren and have ice cream on hand only for them as an easy quick treat. Now out of these three markets, I would primarily target to the Adult market. I would do this because they are the ones with the purchasing power (income). They may be parents and will influence the types of frozen treats they give their children. The way in which advertising could be done is to show commercials on TV during two parts of the day. One time slot should be during “daytime” TV where there is more likely a chance for a stay at home mom or dad and their child to see the commercial. Further, the company should show a commercial at night, during Primetime 8pm-11pm, where the adult is more apt to see it and maybe the child/teen. Further, ads could be placed in Parenting Magazines to show the “amazingly” great differences in the company’s ice cream product. The reasons why I would not advise turning a whole marketing campaign towards the child/teen is because, once again, they are not in control of purchase decisions. As far as the senior, unfortunately, our body’s breakdown over time and health ailments may occur that make it unable for some to enjoy in ice cream (diabetes, lactose intolerance, etc.) Seniors may not be able to fully enjoy what the company is offering and may not feel it necessary to purchase the product. When a product is usually purchased for kids’ consumption it is usually the parents and the child who will dictate what their kid [the kid] likes to the grandparent. It all comes down to marketing to the adult/parent because they will be the main decision makers. However, the company, if it plans its advertising strategy correctly, can cross promote to the child/teen with a little additional expense, again by showing commercials during different time slots and advertising on social media. RE: Target Daniel Kuhfal Practice 9/11/2012 2:42:00 PM I pick for my "everyone" product soda. it is true that everyone drinks soda but we all know some people drink more that others, with the growing concern for health older people don't want sugary drinks (bad for teeth and diabetes) or to give them to their small children. So the market would have to be a group that not only is young enough to not care about health but old enough to be able to obtain it for them selves, the age group would be around 12 to I say 20 or 28 depending on the local market. Also the products have always been keyed for the younger generation, good examples are the Michal Jackson (http://www.youtube.com/watch?v=po0jY4WvCIc) and Britney Spears (http://www.youtube.com/watch?v=uRu9HO_tIpw) commercials. So taking advantage of a positive belief about a product type is just good business even if it sometimes selects your target market. RE: Target Jennifer Morris Practice 9/11/2012 10:55:30 PM Modified:9/11/2012 11:00 PM To expand on the soda topic, I have seen ads deliberately intended for women. Diet Coke for example appeals more to women than men. Coke Zero is targeted more towards men, still has that same Coke taste but with ZERO calories. Alcoholic beverages are for everyone, but back when Zima was popular it was targeted more for women as a 'chick' beverage. It was considered an 'alcopop'. Even frozen foods have specific targeted audiences. Lean Cuisines are targeted more towards women. Their commercials are always women trying to eat healthy and conscious of calorie intake. https://www.youtube.com/watch?v=6B0-FA7RM78 Then you have a frozen food meal like Hungry Man - it is specifically targeted towards men. Just watching the commercial as a woman I'm already thinking, 'hmm, not for me'. https://www.youtube.com/watch?v=VApLCYntRFw I think no matter what the product is, there is ALWAYS an intended audience. Sometimes it may not seem like it, but it is. I would say that the products that push to 'EVERYONE' are infomercial type products. The products that do the best for infomercials are ones that appeal to a broad audience. (i.e. sham wow) This was an interesting site for target markets for infomercials... http://www.infomercialdrtv.com/ RE: Target Anne Zimmerman Practice 9/12/2012 8:50:41 AM We go to trade shows where the attendees are mainly from the Human Resources department of a business. But, we do not want to talk to just anyone from the HR dept. We prefer to seek out the decision makers from the Fortune 500 companies. They are usually the CLO (Chef Learning Officer) or VP. Those folks would be the Bull's Eye of our target. So,in this example, we are starting out with a national organization like the Society of Human Resource Management - maybe 100,000 members. Narrowing it down to the 13,000 members who will attend the national conference. Then, narrowing it down further by seeking out the decision makers in the crowd, and then narrowing it down further by asking what company they are from. This could mean there are 25 people out of an original pool of 100,000 that we want to seek out at the trade show. This does not mean that we don't want to talk to the others that are at the conference. We have developed messages and offerings for them as well. But the sweet spot, the bulls eye of our target is pretty small and could take some work to find. We receive a list of everyone who is coming to the trade show about 5 weeks before the event. We target those people we would like to see in our booth and send them a pre-show mailer that invites them to our booth. We try to sweeten the offer with a free book, or meet a celebrity or win a Kindle Fire. . . We also advertise in their industry magazine and the event's publications. We usually have a topic or theme that we develop to show that we understand the issues the CLO's and VP's. That will be the common thread - the IMC towards the audience. The booth looks like the pre-show mailer and the ads. This is to help the attendee recognize us and start to identify with us. RE: Target Jennifer Kachikian Practice 9/12/2012 12:26:14 AM An "EVERYONE" target product would have to be my iPhone. and my vehicle. Cell phone target market are between the ages of 14-70, I am assuming. Cell phones with games and music download applications is a plus,. In addition, I purchased this phone with Internet usage, modem tethering, video and voice recording and GPS navigation. Regarding my car, not everyone owns a vehicle (they rely on their bicycles or public transportation or simply walking), but I have to use my car, no matter what. It gets me, from point A to point B. I bought the luxury car, because it was at a reasonable price. Plus, it was one of my dream cars. I couldn't pass the offer. RE: Target Dr. Sowma Practice 9/12/2012 11:01:26 AM Jennifer, we're asking you to find the true segments for an "everybody" products??? Not just list one. So Jennifer & Class, how could we break down the cell phone market into targeted groups? I'll give you an example of what I mean; Jennifer noted 14-70, which is superficially true, but many senior citizens got their cell phones from their children, who carry an extra line on their own phone plans. How else might we segment cell phone targets? RE: Target Jennifer Kachikian Practice 9/12/2012 11:58:07 AM You can break down the cell phone market into targeted groups by someone's age, cell phone carrier, the brand of cell phone that each user uses, breaking it down by their data plan, family plans, text'ers vs people who only use a phone to actually talk. For example, my Boyfriends' parents both have iPhones, because that was the best deal that they were offered by AT&T. Also, his father loves gadgets. When I observe him playing on his phone, he resembles a teenager doing the same exact thing. RE: Target Andrew March Practice 9/12/2012 12:28:31 PM I really do feel that the I-phone really does cater to ages from 14-70 because the I-phone is designed in such a way where the phone is very user friendly and easy to, in other words the phone is simpler and is very easy to figure what and how to execute things on the phone, Android operating on the other hand is a good operating system as well, but still isn't as easy and user friendly like the i-phone is. I feel and think the i-phone is a good phone that targets a very wide range of ages and I think this is one of the many reasons why the i-phone sells the way it does. RE: Target Justin DeMoulin Practice 9/12/2012 1:28:05 PM There are other factors that can help narrow down cell phone targets, especially if you are looking specifically at the iPhone. There are a lot of people out there (myself included) who do not use Apple products at all. Apple is quick to get on the market, but there are those of us who prefer to wait until company's like Motorola and Samsung release their versions of the products with improved capabilities. Apple's target market for the iPhone may then be Apple users. When it comes to cell phones in general, different age groups will have different reasons for making their purchase. Here is an excerpt that I found which stresses this very point: "Senior citizens, teenagers and parents buy cell phones, but they buy them for different reasons. Teenagers buy them so they can chat with their friends all the time. Parents buy them for their teens in order to keep track of them (the teens, not the cell phones). My 90-year-old grandfather bought one for emergency use only. Each one of those reasons is a different benefit. The ad that appeals to parents knowing where their teenagers are is certainly NOT going to work for teenagers, and neither of those ads will be terribly persuasive to my grandfather." http://www.businessknowhow.com/marketing/targetmarket.htm Different types of cell phones will also be targeted towards different users, depending on their features. Larger screens and keypads with less features will likely be geared towards the elderly who may use the phones for emergency services only. Smaller phones with plenty of games may be geared towards the 12-16 year old audiences. Phones that link easily to working computer terminals may be geared towards the working professional, maybe ages 28-50. RE: Target Jennifer Morris Practice 9/13/2012 3:04:21 AM Teenagers and young adults are looking for cell phones that make interacting on social media fun and easy. They are looking for exciting apps and ways to accessorize their phones. Adults between the ages of say 2545 are looking for phones that are compatible with work. They want to access files, emails, contacts, flight itineraries, etc. Senior citizens are looking for a simple functioning phone with easy access to medical assistance. RE: Target Daniel Kuhfal Practice 9/13/2012 9:57:18 AM My family is a great example of all thous groups, me and my sisters generation the young adults have cell phones not only for living reasons but social ones as well. My Mother and Father both have work cells basically phones they needed for their jobs they are the older adults; my Father runs his own business so his phone not only gives his customers a ability to be contacted and vice verse but helps him run things, where my Mom works in a doctors office so I can't get into to many details since she doesn't talk about it but she needs all types of apps and contacts for obvious reasons. Lastly my Grandpa is a senior so my Dad got him a cell phone for emergency so he can contact help if he needs it. RE: Target Herbert Martin Practice 9/14/2012 7:19:45 PM Daniel, good example. When a person thinks about it there is a segmented market within our own family. I like your illustration regarding the cell phone usage within your own family. That is how it is within my family structure. Since my son has left home to attend college his phone has become more of a need for all his communication, due to him experiencing what it's like having to pay for everything now. As you have pointed out, I find it interesting how the usage of a cell phone at different age levels. It depends on the persons needs. RE: Target Dr. Sowma Practice 9/13/2012 11:19:14 AM Daniel, this is exactly what I'm talking about; if you spend just a little time actually thinking about, any "everyone" market can easily be seen as separate/distinct groups. The next step is then to decide which of the groups makes the most sense to market to. RE: Target Dr. Sowma Practice 9/13/2012 11:13:57 AM Ok Andrew, but given my opening post, then I really do feel that you're FIRED! If there are no targets, who do we market to, how do we spend our ad budget effectively, etc... As I noted in the beginning, everyone may use something, but it doesn't mean that they're all targeted. RE: Target Victoria Minos Practice 9/13/2012 10:47:51 PM A company will evaluate each segment based upon potential business success. Opportunities will depend upon factors such as: the potential growth of the segment the state of competitive rivalry within the segment how much profit the segment will deliver how big the segment is how the segment fits with the current direction of the company and its vision. RE: Target Edward Purvis Practice 9/13/2012 6:43:43 PM Cell phones can be segmented in to international markets where there is a demand for different features that may accommodate one's culture. Other ways to segment the cell phone targets is by students, the general public, professionals and service organizations and companies that need to be in constant communication with their employees. . RE: Target Anne Zimmerman Practice 9/15/2012 3:38:37 PM For one segment, the mobil phone is just a phone, to another it is tool for all aspects of their lives. For the first segment (just a phone): people who cannot afford a "smart" phone and it's data plan people who are afraid of technology people who don't understand the value of Apps like social media, games, maps and Safari How can they be marketed to? simple device - if you know how to dial a phone, you can use this cell phone For the second segment (smart phone): people who are tech savvey and embrace technology people who need information at their fingertips (mini-computer in your pocket) people who need to be connected at all times (medical personnel, business people out in the field, etc) How Can they be marketed to? Latest technology - faster, more connected, GPS, SMS, email, social media "There's an App for that" - anything you need, the phone can give it to you RE: Target Darryl Abbott Practice 9/16/2012 3:22:35 PM A good example of market segmentation is used at my gym which is Gold's gym, what they do is during the daytime hours they have many different programs for stay at home moms, senior citizens, etc. Within the facility, they offer lucrative kids entertainment programs to entertain the kids while there parents workout. Also for the senior citizens, they offer free swimming and dancing classes on certain days. Prices are definitely higher in the evenings when there is a bigger demand and therefore a much more needed use of the facility. RE: Target Gerald Charles Practice 9/12/2012 6:44:17 PM An "Everyone" target product would have to me the Flat Screen TV because if you look at society right now, most houses have flat screen tv's. The Big thing is, will it be LCD or Plasma. There's a big controversy about which one is better and I personally have both and they both seem fine to me or no preference. The answer to all of this is, which cable company you have and do you ahve HDTV which displays a better picture. For most men, Flat screen TV's meens, is it big enough for my tv room especially for footbal. RE: Target Ryan Hahn Practice 9/14/2012 2:48:21 PM From your example Professor of flat screen TV's, some sub groups for flat screens are sport fans, gamer's, and casual television watchers. A sports fan will prefer a plasma TV over LED or LCD because plasma TV's have a higher refresh rate and when watching the big game has a more natural look. When I play video games I prefer on an LED with a high refresh rate because the colors are brighter and easier for me to see if I am about to get shot in the face! RE: Target Roger Dubreuil Practice 9/16/2012 8:35:20 AM Flat screen TV's and satellite/cable share similar target markets. They of course can be used by everyone, but the target market should be narrowed down to be more specific. I would think a solid target market for both would be 20-55 year old males, as this group has the interest in buying and cares about how big the TV is or how many channels they are getting from their provider. I have worked for a cable company before, and the biggest objection in sales I would hear would be "I need to talk to my husband first." Middle and upper class would also be good targets for these products as they can afford them and feel that the investment is worth it. RE: Target Seena Rose Practice 9/16/2012 5:49:18 PM I'm going to pick gum. This is considered an everyone product but, reality is it's not. I think this product is targeted for people who fly on planes to keep their ears from popping, consumers who want to suppress there appetite, freshen there breath, or blow bubbles, and children who may just want to see what color gumball there going to get from the machine. I would say the target age is 6-60. Gum is inexpensive and fits most class brackets. It's not suited for young children who may swallow the gum and senior citizen who may be losing teeth or have dentures which, would make it hard to chew. RE: Target Renee Anderson Practice 9/16/2012 2:24:02 PM An "everyone" product that I would choose are lightbulbs. Everyone needs them but to specifyHome-owners (home renters as well) Businesses Lightbulbs are important. People use them for lamps, ceiling lights and so forth. Homeowners and business are my targets because those places are where most of the light bulbs go to. It lights up their businesses so that people can see what they are wanting to buy, and homeowners need it to see as well. Segmenting people and products Claudia Escobar 9/11/2012 1:53:13 PM Market segmentation is the process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment. To identify segments, marketers examine consumer's interest, tastes, preferences and socioeconomic characteristics in order to determine their patterns of consumption and how they will respond to varios marketing strategies. The primary information marketers seek is why consumers purchase specific products or services but not others. Managers typically use a combination of the following criteria to evaluate overall attractiveness of a segment. These criteria are: Size/sales potential : (unit & dollar) Growth Potential: sales, (unit & dollar), number of customers, potential of increasing depth of relationships. Profitability: revenue and cost. Needs: primary demand, magnitude of unsatisfied needs. Competition: strenghts and weaknesses of competitors in the segment. Market Segmentation Roselyn Herrera 9/11/2012 4:06:45 PM Market segmentation is vital for any business that wants to maintain a good, positive relationship with its customers. Segmentation basically involves a company breaking down potential target markets into distinct groups. This may be based on age, location, household income and even gender. Few companies are big enough to supply the needs of an entire market; most must breakdown the total demand into segments and choose those that the company is best equipped to handle. Four basic factors that affect market segmentation are (1) clear identification of the segment, (2) measurability of its effective size, (3) its accessibility through promotional efforts, and (4) its appropriateness to the policies and resources of the company. The four basic market segmentation-strategies are based on (a) behavioral (b) demographic, (c) psychographic, and (d) geographical differences. http://www.businessdictionary.com/definition/marketsegmentation.html#ixzz26CXyyUZ0 What is market segmentation Joe Bartolotta 9/11/2012 7:40:16 PM Market segmentation is the process of dividing the market into smaller groups that have common wants and needs that may be satisfied by a particular marketing mix. This builds on the idea that everyone is not equally likely to buy everything. Segmentation bases may include lifestyle, age or income. There is no ‘right’ way to segment a given market. The ethical side of segmentation Dr. Sowma 9/12/2012 11:12:17 AM Class, given that your learning right and wrong is just as important to me as you learning details and nomenclature, I want to give you some ethical food for thought while we talk about marketing in practice. As marketers, we are sometimes accused of stereotyping people versus segmenting target markets. Is this really what we’re doing when we’re talking about segmenting? Are we just crudely stereotyping people? Is there a difference? OR From another angle, have some marketers/companies wrongfully excluded or included specific target markets in practice? RE: The ethical side of Stephanie Phillips segmentation 9/16/2012 6:04:09 PM I do believe there is a fine line between segmenting and stereotyping people. However if you have all your facts straight and are able to have a diverse group that fit your criteria I feel you should be safe from Stereotyping. I found this on youtube and felt it was a great way to show how some people use Stereotyping in there advertising. http://youtu.be/k60xir2aBI0 RE: The ethical side of Renee Anderson segmentation 9/15/2012 9:14:19 PM Yes I think that there is stereotyping is involved, however it is on the borderline of ethics. We, as marketers, do not mean to stereotype a target market. Yes there is a difference between stereotyping and segmenting. With stereotyping comes a negative attitude towards it and has an assumption with that persons background. With segmenting, you are just including everyone and who would best fit your product. RE: The ethical side of Edith Cazares segmentation 9/14/2012 11:20:54 PM I think that stereotyping occur while segmenting without the intention of doing so. By this I mean that marketers don't stereotype to harm people but, it is used to benefit the marketers. Segmenting is sorting out targeted consumers by there geographic, demographic, personalities, and their economic status. For example, you are not going to market a Lamborghini is not going to be marketed to women but most likely to men. So, they might advertise it with a beautiful sexy model. Trying to focus on luxury and beauty not just reliable and economical. RE: The ethical side of Daniel Kuhfal segmentation 9/12/2012 12:21:04 PM Unfortunately a side effect of segmenting is that you can create stereotypes however if your carefuller and put the work in you can avoid that. it isn't some crude stereotype were you just think the worst of people and assign things, their isn't research involved and no though put into it. When you segment a product you look into who wants the product and to a certain level why; so you pick a group and try to reach them like a gaming company you segment into gaming groups. you need to segment it to know what group you want RPG's, Action, Kids, ETC. So as long as you put the work in and use actual research you can get segmentation instead of stereotypes. in short Segmentation is based on research were Stereotyping is based on ignorance. RE: The ethical side Edward Purvis of segmentation 9/13/2012 6:51:59 PM I have to agree to a certain point. I mean if you do research and see that only a small percentage of African Americans drink malt liquor and advertise to that market as if all African Americans drink malt liquor then that would be stereotyping as well. Research that gives you the facts and you market according to those facts and are successful I can understand that. RE: The ethical side of Jennifer Morris segmentation 9/13/2012 2:57:20 AM I think an example of unethical market exclusion would be selective marketing to 'plus' size markets. However, many people would say that profits and ethics don't mix, but they have shown to be quite lucrative. 20% of US clothing sold is now plus sized. Another example of market exclusion is how the pharmaceutical industry's decision to exclude developing countries from AIDS medications. RE: The ethical side Dr. Sowma 9/13/2012 11:24:30 AM of segmentation Jennifer, I'm not getting what you're saying about plus sizes and how it relates to unethical segmentation? Who's being unethically segmented and how are they being slighted? RE: The ethical side of Victoria Minos segmentation 9/13/2012 9:46:42 AM I believe sometimes there is some type of stereotyping when it comes to market segmentation. Marketers need to analyze every appropriate market and determine what type of people buy what type of products. For example hummus was once targeted towards the Middle Eastern and Turkish market now of course it is accepted in every market and not just the ethnic markets as it once was. The proper channels of advertisement and media has made people notice the benefits of healthy eating as in hummus. RE: The ethical side Gerald Charles of segmentation 9/13/2012 7:02:28 PM Stereotyping exist in most of markerters out because they do focus on certain audience. Of course they cannot say they are or even attempt to market sterotyping base on certain gender but they are. If you look at most of designers and they make clothes for certain body style, they market the clothes for everyone but if you try to look for a big size plus person, you won't find it. Market Segmentation Stephanie Phillips 9/12/2012 8:50:56 PM Market segmentation is the process of dividing a market into distinct groups that have common needs and will respond similarly to a marketing action. (Belch 768) Belch, George and Belch, Michael. Advertising and Promotion: An Integrated Marketing Communications Perspective, 9th Edition. McGraw-Hill Learning Solutions, 2012. Our text also mentions that you can go too far in the segmentation process. The more you do it the fewer consumers you have in each segment. The customer characteristics are; Geographic, Demographic, Socioeconomic, and Psychographic. If the target segment is easily reached using certain marketing tools this might make the segment attractive to the marketer. Not all Target Markets are reached by the same outlet. Market Segmentation Ryan Hahn 9/12/2012 9:20:54 PM Market Segmentation is used to reach sub-groups in markets. For example, if I were to sell a guitar to the musician market, I may want to create the guitar for a specific subgroup such as "metal heads" . Guitar Manufacturers do this all of the time for their markets. The guitar company Schecter, has various models of their Omen Guitar to reach various groups of people. Some are meant to attract children who are starting and use solid bright colors for the guitars. Other are made for older generations and metal heads. This way they are able to attract an entire market without having to do any major changes to their guitars. RE: Market Segmentation Robin Heffernan 9/13/2012 11:24:47 AM Ryan, I agree with your statement "market segmentation is used to reach sub-groups in markets." As you used guitars as an example, I feel that it is not stereotyping to create variations of a product and advertise the product to appeal to the tastes and identities of sub groups. Some people want to identify with their product and want the product to be personal and show themselves through the product they purchase. And going back to an "everyone product" it may be important in an ad campaign to not make it so narrowly segmented but to try to have a campaign that can incorporate the usefulness of the product to many segments. I feel I see a lot of this. Marlet Segmentation Valerie Chambers 9/12/2012 10:11:46 PM According to http://www.adaptiveconsultancy.com/strategy/whymarket-segmentation-is-important, Market segmentation is "a process in which customers are divided or ‘segmented’ into separate groups based on shared likes, dislikes and needs. Your business can then target its products or services to each particular group of customers in order to maxiimiz(s)e sales. It is important to learn as much as you can about your customers in order to achieve the best match between their needs and your products or services. Use the 4 P’s – price, product, place and promotion to help with this match." It also says that the "Purpose of segmentation The aim is to avoid a ‘scattergun approach’ to marketing by targeting your messages at specific groups of customers. This means different messages for different groups. Customers like to receive information that is relevant to them and their needs which is the reason for carrying out market segmentation. But it is also helps you to determine whether they are high, medium or low value customers. High value customers buy expensive items on a regular basis whereas low value customers make the odd purchase now and again. Medium value customers are in between these two. check the website out for more information. Uniting the divided Dr. Sowma 9/13/2012 11:28:10 AM In many cases we’re trying to appeal to more than one specific market segment and quite often, they have different tastes, beliefs, norms, and so on. Sometimes we’ll make multiple ads for different media/targets, but in many cases this isn’t feasible or affordable. Accordingly, how might we make a single ad (you choose the medium) that will appeal to multiple distinct target markets? Any good real-life examples in practice? RE: Uniting Stephanie Phillips the divided 9/15/2012 10:55:28 PM I would have to say that your best bet to reach many different target markets is to use the word of mouth communication. Unlike personal or face-to-face communications, mass communications do not offer the marketer an opportunity to explain or clarify the message to make it more effective. I know that I have received most of my business by personal communication with the potential clients. Being able express my passion for photography and showing my work directly has been a great source of medium for me. RE: Uniting Ryan Hahn the divided 9/15/2012 6:54:57 PM Apple used to have an Apple campaign that was showing the difference between being Apple and being PC. They used the Hollywood actor Justin Long to present the ads. Basically they tried showing how they thought Apple was better than PC, for example how PC's get viruses and Apples supposedly do not. The advertisement reached out to everyone because in this day and age most people are familiar and use computers. RE: Uniting Edward Purvis the divided 9/15/2012 9:03:23 PM When I think about it, it would have to be something like one of Micheal Jackson's music videos. The one where people's faces change in and out to people of every ethnic group know. I looking to do something like that with my t-shirts. The statement I want to make is that "Sean Mayor Does Not Discrimnate". We want to cater to big and tall, petite, gay and lesbian, all ethnic groups as well as subcultures. RE: Uniting Edith Cazares the divided 9/16/2012 9:56:24 PM In order to create and ad that is more versatile to different consumers and not just one segment you need to keep it more on the simple side and let the product sell itself. For instance, the new release of the Iphone 5 isn't really targeting one group. Its all about the product and the benefits of the product. If you can sell the benefits of your product you will be able to a variety of people and not limit yourself to one targeted group. RE: Uniting Herbert Martin the 9/13/2012 8:34:06 PM divided Dr. Sowma and class, I recently bought a new car for my wife's up coming birthday. I It is a new Cadillac Crossover. During the time period we were their I noticed many differen customer segments entering the dealership and purchasing the vehicle. Segments: Retired Couples seeking a car luxury car,that sits up off the ground and is a safe, reliable, and easy to get in and out of. A vehicle for all seasons, especially here in the Northwest. Segment: Young Military Couple with children. Seeking a stylish SUV with all the bells and whistle such as, Bose stereo system, electric start,navigation system... Segment: Men and Women who are turning fifty( my wife who is absolutely gorgeous for her age) feeling this is the type of vehicle for their age, it represents their life style, it's stylish sleek, sporting, has everything a luxury car has to offer, for an SUV. RE: Uniting Dr. Sowma the divided 9/14/2012 10:53:43 AM You got a lucky wife Herb :) RE: Uniting Daniel Kuhfal the divided 9/14/2012 10:48:53 AM Doesn't what you sell also effect the range of your markets, like everyone eats so if your doing a food chain that gives you a large range but a particular food like say burgers can't target the vegetarian market. So the question that should be asked is who does your product target once you have that you can figure out how to target as many as possible. Good tools to use to get a huge appeal is star power, popular cultural actions, or if you want to go negative because you have no morals fear. RE: Uniting Jennifer Kachikian the divided 9/13/2012 6:29:46 PM Regarding making a single ad that will appeal to a distinct target market, have a popular celebrity posing/modeling with that product. For example, Sofia Vergara is one of the new faces for Cover Girl campaigns, the makeup line. Nobody knew of her, until she appeared on Modern Family, aired on prime time. Overnight, she was an instant hit. She is also a face for the Pepsi commercials. So, since she is using Cover Girl or drinking Pepsi, others will purchase Cover Girl products (Young and Older women), and will purchase Pepsi (both men and women). What the men think, "That beautiful woman is drinking pepsi..........so I will do the same thing." Or women probaly think, "Her lips, her skin is absolutely perfect. It's because of Cover Girl. Now, I am going to buy Cover Girl lipstick and foundation". RE: Uniting Claudia Escobar the divided 9/13/2012 1:52:19 PM Modified:9/13/2012 1:52 PM I think McDonald's is a good example. McDonald's target market is very wide because it includes a variety of market segments like family with children because is a fun place to go, McDonald's also cater to the fast moving people who are mostly working class or students, children with attractive toys with their kids meal. McDonald's is a very successful company targeting around the world even in China and Russia. It targets different ethnic groups around the world. One single ad is directed to its whole target market. RE: Uniting Roselyn Herrera the divided 9/14/2012 6:30:00 PM Claudia I great with you McDonald does a great job at targeting thier market around the world. McDonald’s target audience is made up of children and their parents. The children influences their parent’s purchasing decision. Therefore, McDonald’s advertising message is directed toward the children, as well as their parents. They also do a great job around the world. By having items on their meun that the counrites or culture like. RE: Uniting Joshua Newsome the divided 9/14/2012 10:25:26 PM McDonalds is great at catering to their segmented markets around the world. Customers in China get served food that is traditional to their Chinese culture. McDonalds treats all of the countries they serve by paying attention to their special needs. RE: Uniting Edward Purvis the divided 9/15/2012 9:05:23 PM I think most of the fast food resturants market to a large segmented targets. Now they are targetting customers who are concerned for their health as well as the family. RE: Uniting Joshua Newsome the divided 9/15/2012 11:53:33 PM They are definitely targeting a more healthy audience. I think this is mainly because of the damage that has already been done by fast food restaurants. By making a healthier menu available, the consumer has a choice and the fast food establishment cannot be blamed for the choices the consumer makes. RE: Uniting Keisha Serna the divided 9/13/2012 3:13:48 PM I've had to rack my brain for a little while to think of this question and most of my thoughts run around food. So I would have to say Kroger ads appeal to multiple target markets. Though this may be a national business they still are a major food chain in the U.S. so they will appeal to many different kinds of consumers. There target market segments are, families, single parents, college students, teens, working class, men and women ages 13-100. There ads range from saving money, get together, family dinners, pharmacy, automobile gas, and convenience of locations. Kroger’s ads can get straight to the point and appeal to those who get hungry! Most Kroger’s too are one stop shops where you can get everything you need done at one store. Personally too me there are a little bit more prices than most stores on like household items but I do shop there for food. To try to think a little outside the box, I noticed when coming into my town from the highway there are many billboard ads about our new hospital. Each one has a different saying but they all appeal to why you should choose Springfield Regional Medical Center. To me this is a single ad that appeals to multiple target markets, though some people from this town use a family doctor, this is the only place to go if something goes seriously wrong. RE: Uniting Dr. Sowma the divided 9/14/2012 10:52:44 AM Interesting example Keisha. The ad itself may not segment but what about the variety of listed products themselves? RE: Uniting Edward Purvis the divided 9/15/2012 9:09:54 PM I intend to have my t-shirt brand "Sean Mayor" segmented to many markets. Im looking to target gays and lesbians by producing certain mixture of colors and images that will reflect their lifestyle. RE: Uniting Keisha Serna the divided 9/15/2012 10:34:16 AM Dr. Sowma the variety of different products that Kroger’s has to offer does each have their own segment. Kroger’s is just the retailer that sells these products but get product (with many different varieties) always appeals to a different people. I think one of the biggest segments these types of store find themselves worrying about is the savers and couponers. This type of segment may not care about quality or brand loyalty they were just worried about what is on sale and what is the cheapest. For me in the store I'm a fan of the deli meats, luchables, breads, and meats this is because I am a single mother with two mouths to feed but I don’t always look for the cheapest. But they don’t target me by their prices on home products, here there prices drive me to another place to get these items cheaper and still keep the brand.... such as a dollar store. Kroger also does 4 dollar generics on prescription drugs which bring people into Kroger's pharmacy, this kind of ad can be a single ad that attracts too many target market. This single ad uses multiple products in order to hit segments that have babies, segments with large families, women, and brand loyal consumers. This ad doesn’t show Kroger products but it does give you deals on trusted products and also show the necessities of life. Such as tampons, toothpaste, and body wash.