Segmentation Across
Cultures(?)
 PEPSI IN TAIWAN
“Come alive with Pepsi Generation”
means “Pepsi will bring your ancestors back from dead”
 KFC IN CHINA
“Finger lickin’ good” means “eat your fingers off”
 GM IN SOUTH AMERICA
Chevy Nova means “it won’t go”
 SCHWEPPES IN ITALY
“Tonic water” translated to “Toilet water”
 COLGATE IN FRANCE
“Cue” brand toothpaste -- “Cue” is a notorious porno mag
Chapter 5: Segmentation
STP Marketing
1) Segment - identify variables, develop
profiles
2) Target - evaluate attractiveness of
each segment, select targets
3) Position - select how want consumers
to perceive product
Market Segmentation (“S”)
Identifying groups of people with similar
needs and characteristics
Aggregating these groups into larger
segments according to their mutual
interests in the product
Effective Segmentation:
1) Measurability - can you measure
segment?
2) Accessibility - can segment be
reached?
3) Profitability - what’s the segment’s
potential?
Types of Segmentation
Geographic
Regions
Population size
Climate
Retail trading area
Types of Segmentation
Demographic
Age
Gender
Family size/life cycle
Income
Occupation
Education
Race
Geodemographics -- PRIZM
http://www.claritasexpress.com
Demographic Trends
1) Changing families
later marriage
fewer kids
higher divorce
working spouses
aging parents
2)
3)
4)
5)
Nonfamily households
Geographic shifts
Higher education
Ethnic population
Emerging Markets
People of Color
Buying power has doubled in last decade
Nearly 1 in 3 claims ethnic identity
Companies struggling to understand and
develop multiethnic awareness and
advertising know-how
Types of Segmentation
Psychographic:
VALS
Personality
“GeoVALS”
 http://www.sric-bi.com/VALS/geovals.shtml
 Exhibit 5-4
 See Page
155
VALS 2 Typology
Abundant resources
Actualizers
Principle
oriented
Status
oriented
Action
oriented
Fulfilled
Achievers
Experiencers
Believers
Strivers
Makers
Strugglers
Slide 26
Minimal resources
Types of Segmentation
Behavioristic
Purchase occasion
Benefits sought
User status
Usage rate
Target Marketing (“T)
Decide which segments offer the most
potential (profit!)
Design products and marketing activities
toward target.
Product Positioning
“It’s not what you do to the product, but
what you do to the mind!”
http://www.adcritic.com/conte
nt/ikea-boredtodeath.html
Positioning
1) Find a difference -- USP:
a.
b.
c.
d.
e.
f.
g.
Important
Distinctive
Superior
Communicable
Preemptive
Affordable
Profitable
Positioning Cont’d
 2) Pick a benefit:
One, two, or three?
 3) Choose a positioning approach:
a.
b.
c.
d.
e.
f.
g.
h.
Product attribute
Price/quality
Use or application
Product user
Product class
Competition
Status
Cultural symbols
Ch. 6: Research and
Information Gathering
Advertising Research
Advertising
Strategy
Research
Creative
Concept
Research
Pretesting
Postesting
How much do we know?
Informal
Formal
Advertising Research
Advertising
Strategy
Research
Situation Analysis
 What
are industry trends?
Are they changing?
 What
is the competitive environment?
 Who
are the category leaders?
 Who
is our competition?
 Who
do we want to compete with?
 How
are others positioned? How are we positioned?
 Identify
others’ advertising strategies?
Advertising Research
Advertising
Strategy
Research
Situation Analysis
Target Audience Analysis

General Consumer Trends
 What changes can be seen in consumer lifestyles?

Product Specific Analyses
 What are the characteristics of the consumers?
 How do we examine these groups?
 What are the opportunities within each segment?
Advertising Research
Advertising
Strategy
Research
Situation Analysis
Target Audience Analysis
Media Research

Competitive media

Where can we get our message seen?

What media should be used?
Advertising Research
Advertising
Strategy
Research

S

W eaknesses
trengths

O
pportunities

T
hreats
Secondary Research
Collected for another purpose
by someone else
Primary Research
Collected for a specific purpose
by person with problem
Advertising Research
Advertising
Strategy
Research
Creative
Concept
Research
Pretesting
Postesting
Understanding how the consumer interacts with
the product
Brand Positioning
Communication Testing

determine the strengths and weaknesses from the
consumer’s perspective
Advertising Research
Advertising
Strategy
Research
Creative
Concept
Research
Pretesting
Postesting
Copy Testing

Making sure the ad is received as intended
Advertising Research
Advertising
Strategy
Research
Creative
Concept
Research
Pretesting
Posttesting
Campaign Tracking
Assesses the impact of the current strategy

To what extent did we achieve our objectives?

What was the extent of attitude change in the
target audience?

What extent did our message reach the desired
levels of exposure?
Primary Research
Qualitative Research
understanding how consumers feel from their
perspective.
Quantitative Research
quantifying (putting into numbers) the
variables under investigation.
Qualitative
vs. Quantitative
Focus Groups
& Interviews
Why? How? Explain
Surveys &
Experiments
What? Describe
Subjective
Objective
Flexible
Controlled
Few
Many
Qualitative Research Methods
Focus Groups
Projective Techniques
In-depth Interviews
Quantitative Research Methods
Observation
Surveys
Experiments
Validity Versus Reliability
Validity

The degree to which we are measuring what we think
we are measuring
Reliability

The degree to which a measurement can be repeated
How to be a Consumer
Detective:
1) Watch first, ask questions later!
Learn from the experts -- detective movies
Put yourself in a situation where you never
have to ask a question.
Watch for the little things
How do you know when two people are in love?
How can you tell if someone likes/dislikes your
food?
Consumer Detective
Training:
2) Little clues reveal big insights!
A major university observed student paths
before putting in sidewalks
National children’s museum found out which
exhibits were most popular by looking at
fingerprints
Cellular phone company used list of people
with vanity plates for direct marketing
Market researchers hang out in malls, salons,
record stores, concerts to watch how teens
Detective Exercise:
1) Get on public transportation or go to
public place and deduce what the person next
to you does for a living.
2) Go to a restaurant you’ve never been to
before and discern who they are trying to
attract.
3) Go to a mall and figure out what it is in a
store that makes customers feel comfortable.
Are there any stores that turn customers off?
4) Go to someone’s house and deduce what
their interests are and their lifestyle. You can
http://www.adcritic.com/conte
nt/bmw-bond-villaintraining.html
Building Relationships –
Chapter 7
“Customers, not products, are the
lifeblood of the business.”
Relationship Marketing
Creating, maintaining, and enhancing
long-term relationships with customers
and other stakeholders that result in
exchanges of information and other things
of mutual value.
STAKEHOLDERS:
Employees, stockholders, financial
community, press, etc.
Why?
1) Cost of lost customers
2) Cost of acquiring new customers
3) Value of loyal customers
Relationships  Communication
 Customers and organizations must communicate with
each other to be successful.
 IMC!
IMC DEFINED:
Process of building and reinforcing
mutually profitable relationships with
employees, customers and other
stakeholders by developing and
coordinating a strategic communications
program that enables them to have a
constructive encounter with the
company/brand through a variety of
media and other contacts. WHEW!
In other words:
SYNERGY!
The whole > sum of all parts.
Recognize the many ways customers
come in to contact with brand.
 Exhibit 7The 5Integration
Triangle
Say
Planned
messages
Confirm
Do
Unplanned
messages
Product,
Service
messages
Slide 43
It’s not just about ads:
Sponsorship –
brand name on a piece of entertainment
With no involvement
Product Placement –
plugging products into movie/TV show
Eat a snickers on Survivor
Gap store in Minority Report ($25 mill!)
Not just about ads (cont’d)
Branded Content
Creating an entertainment product to reflect
a brand’s image
Brand isn’t center of production
Company now involved in production
Nike’s Road to Paris documentary
Musical, Ball, on broadway
BMW movies on line.
Start with Basics: Plan
the Ad Campaign
Know what advertising can/can’t do!
Advertising is only a PART of marketing
Marketingsales
Advertising  communicates
“Marketing SELLS, advertising TELLS”
Ad objectives must be:
1) communication oriented
2) time bounded
3) targeted
Advertising Objectives
Specify where the advertiser wants to be with respect to:
Action
5 customers
Desire
25
Conviction
50
Comprehension
80
Specific, quantitative, realistic
goals to be achieved in a
specified period of time
Awareness
100 people
The Ad strategy blends
elements of Creative mix:
1)
2)
3)
4)
the
the
the
the
target audience
product concept Kim-Lord grid
media
message
Kim-Lord Grid
High
College •
• Video camera
•
Motor oil
•
Laundry detergent
•
Skin lotion
Greeting card •
• Pizza
•
Paper towels
Slide 50
• Car
• Shampoo
Low
Cognitive involvement (Think)
Effective involvement (feel)
Low
High
• Bread
What’s it gonna cost?
IRS, bean counters  current expense
Actually investment in FUTURE sales
Advertising’s power is cumulative, longrange, and reinforcing.
Common methods for
setting ad budgets:
1)
2)
3)
4)
percent of sales
Market share/share of voice
Objective/task
Competitive parity