Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 6-1 Mass Marketing “One basic marketing strategy appealing to a broad range of consumers, not addressing any distinct characteristics among the consumers.”

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 6-2 Market Segmentation “Dividing of a large market (mass market) into smaller homogeneous markets (segments) based on common needs and / or similar lifestyles.” Unique marketing strategies are implemented for unique segments.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 6-3 Segmentation Variables Demographic Psychographic Geographic Behaviour Response Customer Profile Target Market Customer Profile Target Market

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 6-4 Key Demographic Trends Aging Population Changing Household Formations Ethnic Diversity Concentration of Wealth Appealing to diverse interests is a marketing challenge.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 6-5 Age Segments Youth or Generation Y Generation X Baby Boomers Grey At what segment should marketing strategy be directed?

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 6-6 Gender Targeting 1.Changing roles call for “unisex” targeting. 2.Influence of women in decision-making is underestimated by many organizations. 3.Reinventing males in personal care marketing is a recent trend.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 6-7 Psychographic Segmentation “Dividing a market based on lifestyles of consumers.” Activities Interests Opinions Activities Interests Opinions Demographic segments can be quite different when psychographic factors are considered.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 6-8 Goldfarb’s Psychographic Classifications Traditionalists Day to Day Watchers25% Old-Fashioned Puritans18% Responsible Survivors12% Non-Traditionalists Joiner Activists16% Bold Achievers15% Self-Indulgents14%

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 6-9 Geographic Segmentation Distinct geographic regions present challenges for marketers. Language Culture Urban Suburban Rural Geodemographics Language Culture Urban Suburban Rural Geodemographics Unique regional needs and situations result in micro- marketing strategies.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Geodemographics Isolating dwelling areas (e.g., areas within a city) according to geography and demographics. People cluster with their lifestyle peers.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Behaviour Response Segmentation  Occasion for Use  Benefits Sought  Usage Rate  Loyalty Response Behavioural influences that are considered along with other segmentation variables.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Categories of Brand Loyalty Brand Loyal Inertia Driven Brand Promiscuous Consistently buys same brand for a reason. Loyalty based on habit. Mobile brand switchers.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Segmentation Strategies Market Differentiation Market Differentiation Niche Marketing Niche Marketing Many segments, products, and marketing strategies (mixes). All resources aimed at a distinct segment.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Niche Basics Niche segments are often very small. Success is based on finding opportunities that do not require economies of scale. Identify niche Exploit niche Expand niche Defend niche

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Segmentation Strategies Market Integration Market Integration Relationship Marketing Relationship Marketing Expand from single segment to embrace similar segments. Individual and interactive customer contact.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Relationship Marketing Information Database Internet Communications E-Commerce Information Database Internet Communications E-Commerce 53% of Canadians use the Internet regularly. Searching for information about goods online is common. Consumers are multi- channeling. Internet-based marketing must be integrated with traditional marketing.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Segmentation Continuum Mass Marketing Market Integration Market Differentiation Niche Marketing Relationship Marketing

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Positioning “The place a brand occupies in the customer’s mind in relation to competing products.” “The place a brand occupies in the customer’s mind in relation to competing products.” 2-Step Positioning Strategy 1.Develop and market a product to meet needs. 2.Create appropriate appeals to differentiate the product in the customer’s mind.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Positioning Strategies 1. Head-on 2. Brand Leadership 3. Product Differentiation 4. Technical Innovation 5. Lifestyle

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Repositioning “Changing the place a product occupies in the customer’s mind.” “Changing the place a product occupies in the customer’s mind.” Repositioning is necessary due to: 1.The activity of a direct competitor 2.The preferences of a target market change.