SEGMENTATION OF MARKETINGIn order of appearanceAyodele AfolabiBilly MorrisonSean SkillingDanielle SimpsonLisa SmithJessica Silverton

INTRODUCTION

Market segmentation

Targeting Segmentation

Targeting Segmentation

Quiz

PositioningSegmentation

Summary

Why do we need market segmentation? Increased understanding of wants and needs Different products for different group of people Better match between customer wants and product benefits Maximise the use of available resources

UNDIFFERENTIATED VS SEGMENTED & TARGETEDThe Lego Movie vs Transformers

• Both based on children’s toys

• But are both aimed at children?

Transformers “generation 1”

• TV show and toys released simultaneously

• Both toy and TV show aimed firmly at children’s market

• Created by Hasbro in 1984

• TV show promoted the toy

Transformers film series

• First produced by Paramount Studios in 2007

• Aimed at an older market

• Action, Sci-fi target group

• Films are selling other products, specifically cars

General Motors

• Targeting fans who can buy now

• Targeting youth who will associate brand with excitement

• Targeting Chinese market

• “(GM) had the opportunity to not just feature their cars as simple product placement, but to turn them into bonafide stars and help with their global marketing campaign.” (Jollet, 2014)

• Transformers: Age of Extinction grossed $1 billion, despite18% rating on Rotten Tomatoes (Lang, 2014)

• Highest grossing film ever in China

• Partially filmed in China

• Features the GM Trax compact SUV

• China predicted to buy 7 million SUVs by 2020 (Jollet, 2014)

Lego Movie

• Aimed as much at adults as it is children – who holds the purse strings?

• Is aimed at pushing the brand in general

• “How do you get away with battering people over the head with a promo for a toy for so long? Simple: make it really, really entertaining.” (Alcock, 2014)

• “…a film which appeals to all four major demographic groups: male, female, and the over & under 25 year-olds” (Ratcliff, 2014)

• “The point when LEGO got its marketing strategy dead-on is when it started treating adult and child one and the same.” (Ratcliff, 2014)

• Has previously had tie-ins with films – Star Wars, Lord Of The Rings, Batman…

• 96% on Rotten Tomatoes

• Undifferentiated approach

• Both great commercial successes, but both approaching their market in different ways

• Transformers with GM – segmented the market, targeted at present and future car buyers, products positioned in a place whether that market will see them. New films introduce new models.

• Lego Movie takes a broader approach, taking great care to appeal to any demographic who is likely to attend the cinema. Selling the brand to all generations.

Market Segmentation

What is Segmentation?

•Market broke down into groups such as•Age•Sex•Lifestyle prefrence•Income •Religion

•Canned drinks example

•Most businesses identify relevant buyer characteristics to ensure success

Example of segmentation in films

•Fast & furious sequels http://www.youtube.com/watch?v=2TAOizOnNPo

•Obvious that the directors are targeting Males as females don't have as much interests involved in advert, age

•Would have looked at lifestyle preferences when identifying a segment (hobbies)

•People in other segments are often attracted aswell, essential that the segment is big and profitable enough

•Most films are targeted at a certain segment in the market such as the films we have talked about

•Why?

•It can make advertising and promotion more focused e.g. advertising in car magazines

• It can help the film achieve higher sales and a stronger position in the market

•It can help increase the success and profits from the film, leading to..

Segmentation in films

Quiz

On the sheet that will be given out, in groups list beside the film what segment you think the film is targeted at.

When deciding consider…

•Age •Gender•Socio economic group •Lifestyle preferences (Hobbies, voting preference, personal values)

TARGET MARKETINGIs a group of customers towards which a business has decided to aim its marketing efforts and ultimately its merchandise

3 Strategies of Target Marketing

DifferentiatedUndifferentiated

Concentrated

OR D.U.C

BUT FIRST!

There are factors to consider

1. Size and Growth of Segments2. Segment Attractiveness3. Company Objectives and Resources4. Competition5. Financial and Economic 6. Technology7. Socio-Political8. Regulatory

NOW BACK TO D.U.C….

BUT WHAT WERE THEY AGAIN?

DifferentiatedUndifferentiatedConcentrated

Differentiated

A company chooses to focus on 2 or more well defined segments and develop different strategies

for them

Undifferentiated

View the market as one group and uses a single strategy

Concentrated

Selecting a particular market niche on which marketing efforts are targeted

www.youtube.com/watch?v=ZwHIkOJmRr4

WHY USE TARGET MARKETING?

Gives more power to your brand

It is easier to create advertising campaigns that communicate the brand message effectively

Ultimately this normally gives sales a boost, driving up revenue and profits

MARKET POSITIONING

MARKET POSITIONING IS THE EFFORT TO INFLUENCE CONSUMER PERCEPTION OF A BRAND OR PRODUCT RELATIVE TO THE PERCEPTION OF COMPETING BRANDS OR PRODUCTS.

What is Market Positioning?

Within Market positioning, there has to be a chosen positioning strategy:

• Establish the strongest strength and use it to position product on the market.

• Provide difference in the product to make it desirable and noticed.

• Create value to the product that is being offered.

http://www.youtube.com/watch?v=0-U4Yr9UNBo

• 3 different types of phone brands featured in the trailer for a Windows phone, conveys uniqueness to each brand of phone.

• Samsung is bigger and • Apple has both the Voice search/Autocorrect featureHowever, amidst the fight between the two most popular selling brands, Windows introduces its new Nokia Lumia phone.

The phone differs that it is a new model, it offers a different and unique layout and delivers on it’s services for Microsoft.

HTTP://WWW.YOUTUBE.COM/WATCH?V=2XZP-GLMMJ0

Primary elements of Market Positioning are:

• Price - (Is the product affordable for all types of people? Is it a luxurious product?)

• Quality – (Is product well produced? Warranties, customer friendly guarantees included, return policies etc.?)

• Service – (Added value of support and customer services offered? Is product customised/personalised?)

• Distribution – (Distribution is considered a part of positioning, where to collect the product)

• Packaging – (Delivers the statement of the company/delivering message that is intended)

We are now going to do a quiz…#EVERYTHINGISCOOLWHENYOUAREPARTOFATEAM

http://www.onlinequizcreator.com/marketing-product-placement/quiz-41468

#EverythingIsAwesome

• Alcock, N. (2014) The Incredible Suit [Online] Available: http://theincrediblesuit.blogspot.co.uk/2014/02/the-lego-movie-review.html [11 October 2014].

• Dibb, S., Simkin, L., Pride, W.M., Ferrell, O.C. () Marketing Concepts and Strategies 6th ed.• Jollet, T. (2014) How GM Nailed Product Placement With Transformers Franchise [Online] Available: http://www.aretedis.com/5-reasons-

transformers-franchise-cars-perfectly-placed/ [15 October 2014].

• Lang, B. (2014) ‘Transformers: Age of Extinction’ Hits $1 Billion Globally [Online] Available: http://variety.com/2014/film/news/transformers-4-1-billion-box-office-1201274581/ [15 October 2014].

• Lewer, J.J., Gerlich, R.N. & Pearson, T. (2006) "MARKET SEGMENTATION FOR ONLINE COURSES IN THE COLLEGE OF BUSINESS“. Academy of Marketing Studies Journal. Vol. 10, no. 2, pp. 95-105.

• Natter, M., Mild, A., Wagner, U. & Taudes, A. (2008) "Planning New Tariffs at tele.ring: The Application and Impact of an Integrated Segmentation, Targeting, and Positioning Tool“. Marketing Science. Vol. 27, no. 4, pp. 600-609,752-753.

• Mendelson , S., 2014. Fast and furious: Universal's fast and furious ‘ marketing triumph. [Online] Available at: http://www.forbes.com/sites/scottmendelson/2014/04/03/universals-fast-furious-marketing-triumph/ [Accessed 15 October 2014]

• Ratcliff, C. (2014). The LEGO Movie: content marketing triumph or 100 minute advert? [Online] Available: https://econsultancy.com/blog/64309-the-lego-movie-content-marketing-triumph-or-100-minute-advert#i.2bfkt4fqddp4xg [Accessed 16 October 2014].

• Vitale, D.,2014. Finding you’re audience through market segmentation. [Online] Available: http://www.artsmarketing.org/sites/default/files/documents/practical-lessons/lesson_3.pdf [15 October 2014]

• Welborn-Nichols, J., Arbor, A. (1993) Market Positioning [Online] Available: http://www.tenonline.org/art/mm1/9305.html [14 October 2014]

References