Introduction to Advertising Assignment 2: Topic 3-Market segmentation, targeting and positioning. Róisín Ryan 20/10/2014 Assignment 2: Topic 3 - Market segmentation, Targeting and Positioning. A. Market segmentation involves dividing the market into segments. Segmentation is important when devising advertising campaigns to ensure that the advertisements hit the right target audiences. Dividing the market into segments means that the companies advertising can concentrate on their main target market. It will be more profitable to serve one market effectively that trying to serve them all. (P, Medcalf., 2014) Segmentation is based around the belief that humans often behave like tribes. Humans often follow the crowd and so can be clustered around common, identifiable traits. By customising a particular brands' offer to meet those traits, suppliers can gain a competitive advantage. Customers will always go with the brand that meets their needs and requirements. Therefore the company can save costs by prioritising the most attractive segments (Young, 2011) Segmentation is a vital element in understanding the intended customers' expectations. A company won't succeed in providing excellent service without it. (Young, 2011) All ads try to target different segments. The primary segmentation methods for consumer markets are; Geographic, Demographic, Behavioural and Psychographic. In order for segmentation to be effective it must be measurable, accessible, substantial, differentiable and actionable. It is important that everyone in the company agrees on the chosen segmentation method to ensure a smooth running, co-operative business. Everyone will need to be aware of the new segments and the implications for the activity. All stakeholders must agree on what the criteria for a successful segmentation should be. (Young, 2011) My first advertisement is from VIP magazine. It is an ad for L'Oreal Elnett hairspray, featuring Cheryl Cole as the main picture. . In my opinion this ad was targeting women that are interested in their appearance and how their hair looks. I also think that L'Oreal were very clever by featuring Cheryl Cole in the ad. A lot of women look up to Cheryl Cole as they see her as a very beautiful woman and admire her. If people see Cheryl Cole on the advertisement they may be more influenced to buy it. I think that this ad is segmented by psychographics, behavioural and the benefits sought by consumers. Psychographics includes grouping people in relation to their hobbies, beliefs, personalities, interests and values. (Young, 2011)I think that L'Oreal successfully segmented this product using psychographics because women that are interested in their appearance, fashion and beauty would be attracted to this product. Cheryl Cole is also known as a fashion and beauty icon and so this product would be of interest to those who are fans of hers. Behavioural involves how people behave in a way which affects how the product is used. People that are interested in high profile celebrities or are interested in beauty and vanity would be attracted to this ad. Benefits sought by the product are also a segmentation method used in this ad. Women want their hair to sit perfectly with this hairspray. The ad implies that it will do this as it says"5 decades of legendary hold". My second ad is a TV advertisement for "Innocent smoothies for kids". In my opinion the ad is segmented by Demographics and behavioural. The ad is segmented into demographics because it is aiming the smoothies towards kids as there is a child in the advert. The ad states in it that the smoothies are for children. It is segmented into behavioural because the ad suggests how difficult it can be to get children to eat fruit. A lot of parents will be able to relate to this and so will be attracted to the ad. Parents will be able to see how these smoothies could benefit their children by giving them a smoothie in their lunch box or including them as a snack. http://youtu.be/Pmc5jKvYwwM My third ad was an outdoor ad for Kit Kat. From my research of outdoor ads I found this the most interesting and eye catching. Kit Kat advertises with the slogan "Have a break, have a Kit Kat", on a bench designed as the Kit Kat bar. I thought this was very clever and unique. There were various designs of the bench around the world including the UK. This was an excellent was to promote the bar as it invites people to sit down and "Have a break, have a Kit Kat." http://creativecriminals.com/post/creative-bench-advertisements I think this ad is segmented using Geographics and behavioural. Geographics involves the location of a person. People that see these ads are outside, maybe for a walk in the park with children. Seeing these benches would instantly catch your eye and without you even realising might entice you to sit down and consider buying a Kit Kat. These benches were in the UK. I think this ad was segmented depending on peoples' behaviour as they would be positioned outside in the park where people may consider sitting down and having a snack. B. Targeting means selecting a customer segment at which to aim the marketing mix. The four main target marketing strategies are undifferentiated marketing, differentiated marketing, concentrated marketing and micromarketing. (P, Medcalf., 2014) In my opinion the ad for Innocent Smoothies for kids uses a concentrated marketing targeting approach. The ad clearly states that the smoothies are for children. The marketer has chosen to serve only one segment. This is a danger in recessionary times as the company may become over-reliant on one segment. (P, Medcalf., 2014) In my opinion this could be a risk for the company as older people may feel "silly" drinking the smoothies. C. Positioning is establishing a unique image for the product which will stick in consumers' minds. It is based on benefits, features, style, value, uniqueness, sophistication etc. (P, Medcalf., 2014) There are different positioning strategies such as; Product features, benefit positioning, usage occasion, type of user, competitive positioning etc. In my opinion the Innocent smoothie's ad used product features as their positioning strategy. Product features emphasises the features of the product itself to appeal to consumers. (P, Medcalf., 2014) (Rindert Dalstra, 2009) This ad emphasises how important it is for children to get their 5 a day and states how the smoothies are a great alternative for those who won't eat fruit. Bibliography P, Medcalf., 2014. Market segmentation, targeting, positioning.. Dublin: s.n. Rindert Dalstra, 2009. creativecriminals.com. [Online] Available at: http://creativecriminals.com/post/creative-bench-advertisements [Accessed 20 October 2014]. Young, L., 2011. How to use segmentation effectively. Dublin: Laurie Young. youtube, 2014. You tube. [Online] Available at: http://youtu.be/Pmc5jKvYwwM [Accessed 20 october 2014].