Segmentation & Targeting
• Market Segmentation is to divide a market
into smaller groups with distinct needs,
characteristics, or behaviours that might
require separate marketing strategies or
mixes.
• Market Targeting is the process of
evaluating each market segment’s
attractiveness and selecting one or more
segments to enter/serve
Kotler and Armstrong (2009)
Inclusion
Segment with the need
Target of marketing
Program
Frustrated or
somewhat satisfied
consumers
Frustrated, distracted
or irritated consumers
Highly satisfied consumers
Audience reached by
marketing program
Star (1989), “Marketing and its Discontents,”
Harvard Business Review, 67(6), pp. 148-154
Exclusion
Prices in disadvantaged
areas for both durables
and nondurables are
higher than in nondisadvantaged areas.
Andreasen (1976), “The Differing Nature of Consumerism in the Ghetto ,” Journal of
Consumer Affairs, 10(2), pp. 179-190; Andreason (1975), The Disadvantaged
Consumer, New York: Free Press
Brand
A brand is a “name, term, sign, symbol,
or design, or a combination of them,
intended to identify the goods and
services of one seller or group of
sellers and to differentiate them from
those of competition.
--American Marketing Associations (1992)
www.marketingpower.com
Cultural Icon
“Some brands succeed because they
forge a deep connection with the
culture……….. The strategic focus is on
what the brand stands for, not how the
brand performs.”
--Douglas B. Holt
Holt (2003), “what Becomes An Icon
Most,” Harvard Business Review
83(3), pp. 43-49
Consumer Culture
“Brand reinvented itself as a culture
sponge, soaking up and morphing to its
surroundings….The products that will
flourish in the future will be the ones
presented not as “commodities” but as
concepts: The brand as experience, as
lifestyle.”
--Naomi Klein
Klein (1999), “No Logo,”
HarperCollins
Consumer Culture
“Collectively, firms’ branding efforts shape
consumer desires and actions…The
concept “consumer culture” refers to the
dominant mode of consumption that is
structured by the collective actions of firms
in their marketing activities.”
--Douglas B. Holt
Holt (2002), “Why do Brand Cause Trouble? A Dialectical
Theory of Consumer Culture and Branding,” Journal of
Consumer Research, 29(1), pp. 70-90
Consumer Culture
“Brands build on the immaterial labour of
consumers: their ability to create an ethical
surplus (a social bond, a shared
experience, a common identity) through
productive communications. This labour is
generally free in the sense that it is both
unpaid and more or less autonomous.”
--Adam Arvidsson
Arvidsson (2005), “Brands: A Critical
Perspective,” Journal of Consumer
Culture 5(2), pp. 235-258
Consumer Culture
“…with a rigorous understanding of the
potential audience, placing the activity
within a relevant cultural context, and by
carefully nurturing each area, it is possible
for brands to ascend to a religious level in
the lives of their consumers.”
--Graeme Douglas
Douglas (2007), “I believe in a
brand new religion,” Campaign
(UK), 11/23/2007, pp.18-23
Savvy Consumers
“No doubt about it, today’s consumers are
marketing literate….Consumers are like
roaches, we (marketers) spray them with
marketing and for a time it works. Then
inevitably they develop an immunity, a
resistance.”
--Stephen Brown
Brown (2004), “O customer,
where art thou?, Business
Horizons, 47(4), pp. 61-70
Ethical Issues in Advertising
Deception – the message
Manipulation – the approach
Exaggeration – the effect
Deception
• Against
– Advertising is dishonest
when message is not
directly to/about the
products
Brenkert (2008)
e.g. Calfee and Ringold (1994), “The 70% Majority: Enduring Consumer
Beliefs about Advertising,” Journal of Public Policy and Marketing, 13(2), pp.
228-238