What is segmentation? Audiences are more fragmented than ever. Segmentation divides an audience into subgroups to identify specific attitudes, beliefs, patterns, or trends. Segmentation is used to create a profile of the niche audience. Persuasive messages target the niche group on the basis of their unique characteristics. Segmentation may involve any of the following: Age Gender Culture/ethnicity Class Illnesses, disabilities Income Education Language Lifestyles Location Sports, Hobbies
example 1: metro versus retro-sexuals The Man Study by the Leo Burnett advertising agency, which created the Marlboro Man, found that half of all men report that they dont know what is expected of them in society. three-quarters of men think that images of men in advertising are out of touch with reality. Most ads have lumped men into one of two groups: metrosexuals: soft, caring males who are in touch with their feelings. They use product in their hair, get facial peels, wear edsigner clothes retrosexuals: manly, macho types. They drink beer, worship sports, work on cars
Segmenting male consumers Metrosexuals: straight urban men who are into style, fashion wear designer clothes like fine cuisine get expensive haircuts get waxed enjoy shopping at Banana Republic Retrosexuals (real men): straight males who are more macho, prefer sex role differentiation watch Nascar Play Xbox 360 and Sony PS2 like Carls Jr. use power tools enjoy shopping at Bass Pro live in a man cave
Other male niches African American males Asian American males Hispanic males Anglo-Euro American males gay males bachelors emo guys macho men liberal, cause-oriented men sports nuts older dads divorced, separated males NASCAR dads nerdy, geeky men athletic, fitness-oriented conservative males born-again, religious males
Advantages and disadvantages identify a new audience, market tailor message to a specific audience focus on most relevant media micro-marketing can be costly More time, effort, expense to develop individual messages and strategies if a brand is associated with one subgroup it may be shunned by other subgroups
Example 2: marketing to gays and lesbians There are lots of gays/lesbians Kinsey Report pegs 10% of the population as being gay. 6-7% openly identify themselves as gay/lesbian higher concentrations of gays (12%) in large urban areas.
Gays as upscale consumers Gays/lesbians have considerable purchasing power generally better educated, more affluent more tech savvy, computer literate tend to be trendsetters, early adopters, of technology politically involved
Gays as a niche group Advertising to gays/lesbians is perceived as a form of social validation 77% of gays report changing to brands that are gay friendly. mygayweb.com reports that 78% of gay online users prefer to buy from companies that market to the GLBT community. example:gay friendly hotels, tour operators insensitive campaigns may backfire
Gay friendly ads
Example 3: Marketing to hispanic teens There are lots of Hispanic teens As of the 2000 U.S. Census, Hispanic youth ages had become the largest ethnic youth population Nearly 40% of Hispanics are under age 20 By 2010, nearly 1 in 5 young people in the United States will be Hispanic By 2020, the Hispanic teen population is expected to grow 62% compared to 10% for U.S. teens overall. A larger percentage of children (ages 0-4), 17+%, are Hispanic oplay?docid= &q= spanish+commercial&hl=en
Hispanic teens are bilingual (duh!) Hispanic teens are more bilingual than their adult counterparts. about 75 percent of U.S. Hispanics speak Spanish at home. 96 percent of Hispanics use at least some Spanish at home and 86 percent do so at work or school. Nielsen reports that half of Hispanic- American households are thought to prefer watching programs in Spanish. a majority (69 %) of Hispanics get more information about a product when it is advertised in Spanish than when its advertised in English only. Target ad
Hispanic teens are more receptive to Spanish language advertising Roslow Research Group (2000) advertising to Hispanics in Spanish is significantly more effective than advertising in English. …Spanish commercials are 40% more effective at increasing ad awareness than commercials in English …Spanish advertisements are twice as persuasive as ads received in English. 16% more Hispanic teens will recall the spots message if it is in Spanish.
Hispanic teens as a niche group Hispanic teens have buying power The average Hispanic teen spends $320 a month, 4% more than the average non- Hispanic, and one out of five teens in the U.S. is Hispanic`. 18- to 24-year-old Hispanics are the most brand-loyal demographic segment in the U.S. Hispanics teens have their feet in two cultures Hispanic teens are holding on to their culture Retro-acculturation Hispanics exhibit more brand loyalty and less cynicism than other consumers
Hispanic friendly marketing Accommodation Theory suggests that bilinguals are attuned to advertisers who go out of their way to reach them in Spanish. Persuaders should speak to an audience's cultural identity. The message should be relevant and resonate with the culture.
Regional or sub-segmentation How much homogeneity? Are Hispanics one group or many groups? Can a persuader use the same advertising approach to market to Mexicans, Cubans, Puerto Ricans and Central and South Americans? Hershey's made a controversial choice in promoting its new U.S. Hispanic line with language familiar to Mexicans, but not to other Spanish- speakers cajeta, is the Mexican term for the caramel flavor known as dulce de leche in the rest of Latin America
Micro-marketing Mark Penn 2007: microtrends: targeting niches within niches Stay at home workers Uptown tattooed Office romancers Archery moms Old new dads Vegan children Troubled teens College educated nannies Late-breaking gays Surgery lovers Mini-churched Militant illegals Pampering parents Mildly disordered teens Video game grown-ups Young knitters Social geeks New luddites