Advanced Marketing
Birgit Hagen
bhagen@eco.unipv.it
Review of key strategic
marketing concepts
• Segmentation of
– consumer markets
– business markets
• Identifying segments and targets
• Positioning
Identifying market segments
and targets
• Target marketing instead of scattered
marketing efforts
• Requires:
– Identification and profiling of distinct groups of
buyers who differ in their needs and wants
(=market segmentation)
– Selection of one or more market segments to
enter (=market targeting)
– For each segment, establishment and
communication of distinctive benefits of the
company’s market offering (=market
positioning)
Segmenting Consumer markets
Geographic
region, city, density, climate
Demographic
age, family size, family life cycle,
gender, income, occupation, education,
religion, race, nationality
Psycographic
lifestyle, personality, values, social
class
Behavioural
behavioural occasions, needs and
benefits, user status, usage rate,
readiness stage, attitude towards
product, decision roles
Toothpaste segmentation
Benefit
segments
Demographics
Behaviouristics
Psycographics
Economy
(Low price)
Men
Heavy users
High
autonomy,
value
oriented
Medical
(Decay
prevention)
(large)
Families
Heavy users
Hypochondriac,
conservative
Cosmetic
(Bright
teeth)
Teens, young Smokers
adults
High
sociability,
active
Taste
(good
tasting)
Children
High selfinvolvment
hedonistic
Spearmint
lovers
Brands
Premium wine segmentation
– Enthusiast (12 %): skewing female, average income about
76.000 $; 3 % luxury enthusiasts, skew more male with a higher
income
– Image seekers (20 %): skews male with an average age of 35;
use wine as a badget to say who they are, are willing to pay more
to make sure they get the right bottle
– Savvy shoppers (15 %): love to shop a believe they do not have
to spend much for a good bottle of wine; happy to use the bargain
bin
– Traditionalist (16 %): traditional values, like to buy brands
they’ve heard of and from established wineries; average age is
50/68 % female;
– Satisfied sippers (14 %): not knowing much about wine, tend to
buy the same brand; ½ of what they drink is white zinfandel
– Overwhelmed (23 %): potentially attractive market, find
purchasing wine confusing
The Ford Model T
Identifying market segments
and targets: BMW
• The ultimate driving machine – Bayerische
Motorenwerke AG – stands for both
performance and luxury
• At the turn of the century consumer
attitudes change: desire a variety of
design, size, price and style choices;
BMW grows its product line by targeting
specific market segments;
BMW cont’d
• Which resulted in:
– Unique premium-priced cars such as SUVs,
roadsters and less expensive compact cars
such as the 1 series; redesigned its 3,5,7
series making them unique in appearance yet
remaining exceptional in performance
– 7 series: upper conservatives: wealthy
traditional consumers; don’t like sporty cars;
added an influx of electronic components iDrive
BMW cont’d
• X5- upper liberals who achieved success in
the 90s and had gone on to have children
and extracurricular activities (biking, golf,
skiing) – biggers cars for active lifestyles
and growing families – high performance
luxury SUV
• 1 Series and X3 SUV for the target of
“modern mainstream” – also family
focused and active but had previously
avoided BMW because of its premium
cost.
BMW cont’d
• Convertibles and roadsters to target
“post moderns” a high income group that
continues to attract attention with more
showy, flamboyant cars; also BMW 6
series targeted this group.
Volkswagen commercials
• http://www.youtube.com/watch?v=Y
dZMypElBpo
• http://www.youtube.com/watch?v=p
3oEPZ27J90