TARGET MARKET
TARGETING EVERYONE = TARGETING NO ONE
“I WOULD CUT ANYONE’S
HAIR…” (and who would doubt it...)
…BUT THAT’S NOT THE POINT
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THE TENDENCY &
OUR MISTAKE
• TO ARGUE THAT YOU WILL GET
YOUR MARKETING MESSAGES OUT
TO EVERYONE
• THE REALITY IS THAT THERE IS NOT
ENOUGH MONEY OR TIME
• WHEN YOU TARGET EVERYONE, YOU
TARGET NO ONE
3
TARGET MARKET DEFINED
GETTING
IT RIGHT
4
IT’S SIMPLER
THAN YOU
THINK…
5
EASILY IDENTIFIED TARGETS
• FAMILIES
• SENIORS
• FEMALES/MALES
• HIGH/LOW
INCOME PEOPLE
• CITY DWELLERS
• APARTMENT
DWELLERS
•HOME OWNERS
•CHILDREN
•18-34 MALES
•18-49 FEMALES
•COMMERCIAL
OPERATIONS
•INDUSTRIAL
OPERATIONS
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WHO REGULARLY TARGETS
•
CUSTOMS/AIRPORT SECURITY OFFICERS (female shoppers, racial profiling)
•
POLICE WITH SPEED TRAPS (roads from highways, transition zones, road to
highways, bottom of hills, flat roads)
•
STUDENTS WHEN THEY STUDY (particular topics based on need to know; acting
on professor’s hints/emphasiss)
•
TELEVISION PRODUCERS (varies by show)
•
SPORTS TEAMS (Bulldogs = families; Leafs = ????)
•
COCA COLA (selected campaigns go after particular segments)
•
BEER COMPANIES (18-35, male, sports lover)
•
SATURDAY NIGHT LIVE (urban, 25-50, $)
•
JERRY SPRINGER (lower income, female)
•
SOAP OPERAS (house wife, Caucasian)
•
CRIMINALS (seniors, individual walking alone, empty homes during day time,
particular cars, particular parking lots)
•
YOU: (cleaning your car, cleaning yourself up, studying, networking)
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HOW MUCH MARKET DOES A COMPANY
NEED TO BE SUCCESSFUL?
• APPLE’s iPhone IS HOPEFUL TO ATTRACT 1%
SHARE – 10,000,000 CELL PHONES
• McDONALD’s SELLS FOOD TO ONLY 1% OF
THE WORLD’S POPULATION
• WALMART IS $¼ TRILLION IN SALES AND
SELLS LARGELY IN THE U.S. AND CANADA
• THE MAPLE LEAFS DRAW 17,000 PER GAME
(17K/3M PEOPLE = %)AND ARE VERY
SUCCESSFUL
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MARKET SEGMENTS
CARVING UP AN OVERALL MARKET INTO TARGETABLE CHUNKS BASED ON
SOME CRITERIA SUCH AS:







DEMOGRAPHICS (AGE, INCOME, EDUCATION, GENDER)
PSYCHOGRAPHICS (ATTITUDES, INTERESTS, OPINIONS (AIO’s))
TECHNOGRAPHCS (MOUSE POTATO, GEEK) – www.forresterresearch.com
BENEFITS (WHITE TEETH, HIGH SPEED)
USEAGE (HEAVY vs. LIGHT VS. RECREATIONAL VS. SERIOUS)
LIFESTYLE (ACTIVE, JET SETTING)
CONSUMER/INDUSTRIAL/COMMERCIAL/GOVERNMENT/MILITARY
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Marketing Strategies for
Entrepreneurial Ventures
SEGMENTATION AREAS
1. Geographic – Region and/or area
2. Demographic – Age, gender, family size
3. Psychographic – Social class, life style
4. Behavioral – Benefits to user’s status
Target Market
If you choose to segment your market, you
can select from several different
variables including:
 Geographic - (region, city or
metropolitan area, population density,
and climate);
 Demographic – (age, gender, family size,
family life cycle, income level,
occupation, education level, religion,
race, and nationality)
Target Market
 Psychographic (social class, lifestyle,
attitudes toward various societal
situations, and personality); and
 Behavioral (occasion for product or
service use, benefits or problems solved,
user status, use rate, loyalty status,
readiness to purchase, and attitude
toward the product or service)
Marketing Strategies for
Entrepreneurial Ventures
TARGET MARKET SELECTION STRATEGIES
1. Single segment concentration – specialize in one
segment
2. Selective specialization – several attractive
segments
3. Product specialization – make one product to
sell in several segments
4. Market specialization – serves many needs in
selected segment.
5. Full market coverage – serve all customers.
$300M AIO: “I AM PATRIOTIC”
• AN ‘AIO’ QUESTION BURIED IN A 200
ITEM ON-LINE SURVEY TO MOLSON
BEER DRINKERS RESULTED IN THE
VERY SUCCESSFUL ($300M) “I AM
CANADIAN CAMPAIGN”
• WAS FOUND BY ACCIDENT
THROUGH DATA MINING
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VALUE SEGMENT IDENTIFIED
BY LAKEPORT BREWERY
15
SEGMENTATION CHART
FOR RUNNING SHOES
16
NAME THE MOST OBVIOUS
TARGET FOR THESE PRODUCTS
• MAZDA MIATA
• CADILLAC ESCALADE
• MP3 PLAYERS
• ROLEX WATCHES
• HAIRCUTS
• MEDICAL WIGS
• LETTERMAN/LENO/O’BRIAN
• 60 MINUTES/THE VIEW/OPRAH/SPRINGER
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INFORMATION SOURCES
•
DATABASES SUCH AS:




Inform New Hamilton (Human Services) http://www.inform.city.hamilton.on.ca/
Hamilton Business Directory http://www.hamiltonbusinessdirectory.ca
PIC Hamilton http://www.pichamilton.net
Go Steeltown - Members Business Directory http://www.gosteeltown.com/business_directory/index.html
 Halton Business Directory http://www.region.halton.on.ca/business/hbd/




Statistics Canada http://www.statcan.ca/start.html
Strategis Company Directories
http://www.strategis.gc.ca/sc_coinf/engdoc/homepage.html?categories=e_com
INFO-GO Services http://www.pace.gov.on.ca/english/
Economic Development Related Information and Reports http://www.hamilton.ca
Community and Census Data http://www.on.hrdcdrhc.gc.ca/hamilton/english/lmi/lfpro/census/index.html
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TOONEY TUESDAY AT KFC
• POINT OF DEPARTURE IS THAT EARLY IN THE WEEK
IS DEAD FOR FOOD SERVICE OPERATORS
• NEED A PROMOTION FOR IMPROVING SALES
• TARGET FOR TUESDAYS: ?????
• 4Ps FOR TOONEY TUESDAY: ?????
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RESULT:
• # CUSTOMERS UP 60% ON TUESDAYS
• PEOPLE COME IN LOOKING TO SPEND $2.30
PER PERSON INCLUDING TAX
• LEAVE SPENDING $7.11 (+ TAX) PER PERSON
(AVERAGE CHECK UP MORE THAN 300%) BY
CROSS SELLING, SUPER SIZING, SEEING
OTHER OFFERINGS, “GET ONE PIECE MORE
FOR JUST A $1”, ETC.)
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TARGET
CHARACTERISTIC
SPECIFIC MEASURE
#
IN CENSUS
TRACT OR CMA
AGE
18-49, 65+
GENDER
MALES
FAMILY STATUS
MARRIED, SINGLE, SEPARATED
#CHILDREN
MARRIED, 2 KIDS IN HOME
HOME OWNER
SINGLE FAMILY DWELLING
APARTMENT DWELLER
OBVIOUS
LOCALE/LOCATION
BURLINGTON, SELECTED
HAMILTON, ANCASTER,
FLAMBOROUGH
FAMILY STATUS
SINGLE, MARRIED, DIVORCED;
HOW MANY MARRIAGES IN LAST
YEAR
GOVERNMENT AGENCY
WHERE LOCATED; HOW MANY
SQUARE FEET;
COMMERCIAL
# BUSINESSES FITTING
CRITERIA
CHARITABLE GROUPS
# CHARITIES IN A GIVEN LOCALE
The
Final
Product:
what it
looks
like
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YOU’RE NOT GREEDY…YOU
JUST WANT YOUR FAIR
MARKET SHARE OF THE PIE
YOU ARE
HERE
TODAY’S MESSAGE:
TARGET SOMEONE,
NOT EVERYONE!!!!!!
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