TARGET

MARKETING
STRATEGIES
CHAPTER 7

LECTURE 4 - WEEK 4
COURSE COORDINATOR: DR DAVID FLEISCHMAN
EMAIL: DFLEISH@USC.EDU.AU
 Assessment
Submission
Learning/ via Assessme
Assessment Hard Safe Due Date Length nt
Tasks Copy Assig Weighting
n
40 MC
questions
Week 5
1. Concepts Test 2 short 25%
Lecture
answer
2 hours
Week 9
Friday @ 5pm
2. Innovative Appx 10
marketing (Project
Should be thinking min 35%
highlight digitalabout your topic! timeline plan
due Friday
presentation week 6 @
5pm via
email!)
Week 13
3. Marketing 2,500
Sunday@ 40%
Report words
5pm
 TASK 3 PRODUCT
CATEGORIES
1. Packaged beverage or food products
2. Clothing
3. Furniture
4. Household appliances
5. Wearable technology

Choose something you are interested in!

YOU MUST FIND A PRINT AD!!
Thursdays
Thursdays 2pm
2pm 4pm
4pm BUS105 Weeks 8-
Weeks 2-13 (excluding breaks)
BUS105 Weeks 8-
Weeks 2-13 (excluding breaks) 12 w/Jacqueline
FAB 12 w/Jacqueline
FAB Conference
Conference Room Room Burgess
Building K, ground floor
Building K, ground floor Burgess

Understanding assessment questions Researching for assessments

Assessment structure & writing Assessment content
Additional skills services/workshops Referencing
COURSE OVERVIEWOUR JOURNEY

Foundation Marketing Principles

Lectures 1 - 4

Concepts Test
Lecture 5

Product Place Managing the

Lectures 6 and 7 Lecture 10 Marketing Program
Lectures 11 - 12

Price Promotion Task 3 Workshop

Lecture 8 Lecture 9 Lecture 13
 CONCEPTS TEST (25%)
Lecture 5
Length: During the 2 hour lecture period

40 multiple-choice questions @
Description: mark each = 20%; 2 short answer
Conducted @ 2.5 marks each (5%)
under exam Tests marketing theory/concepts
conditions covered in Weeks 1 4 (Chapters
1,2 (pp.56-62), 4, 5, 6 & 7)

It is each students responsibility to

ensure that they are available to sit the
Concepts Test in the lecture 5
 PREPARING FOR THE
CONCEPTS TEST
Do NOT rely only on the PowerPoint Slides
It is ESSENTIAL that you read the text
chapters
Read Chapters 1,2 (pp.56-62), 4, 5, 6 & 7.

Spend some extra time on the definitions

 LECTURE 3 REVIEW
When studying consumer behaviour,
what are we trying to get a basic
understanding of?
There are many factors that influence
consumer decision making, what are
some examples?
Would they be classified as internal, social or
situational?
What are some basic examples of how
B2C and B2B markets differ?
LECTURE OVERVIEW

Market
segmentation
Targeting

Positioning
MILKMMMMMM

Do you
What type of
milk do you
drink more
drink? than one
type?
Why do you
drink the
type/(s) of
milk that you
do?
 THE MILK STORY

Once upon a time .

there was full-fat cream milk that was sold
in one pint glass milk bottles with silver foil
tops, one inch of cream sat on the top
the milkman delivered the fresh milk to the
door each morning and collected the
empty bottles
but kiddies thought it was yucky and would
not drink it, so they developed flavoured
milk
but flavoured milk and full cream milk was
considered to be fattening, so many
women would not drink it, so they
developed low fat milk
 MILK STORY CONT..
Now there is a milk to meet the
needs of just about everyone
cream top/froth top
extra creamy
lactose free
high calcium
goats milk
Soy
Almond
Whatever else you can think
of!
So everybody drank milk and
lived happily every after
I just want
milk that
tastes like
real milk
 Target marketing
Target involves developing a
different marketing
Marketing mix for each targeted
market segment.
SEGMENTING THE
MARKET
Market many consumer groups due to
diverse (different) needs and wants
fragmentatio organisations cannot appeal to all
n buyers in the same way

process of dividing the total market

Market for a product into smaller
segmentatio homogeneous segments based on
n one or more meaningful shared
characteristics

selecting one or more market

Target segments and then developing a
marketing unique marketing mix (4Ps) that
closely matches the needs and
strategy wants of each segment
15
BASES FOR SEGMENTING CONSUMER MARKETS

Geographic Demographic

Psychographic Behavioural
SEGMENTING BY
GEOGRAPHIC VARIABLES
Climate

Country

Region

Urban,
suburban, What types of products are
rural segmented by geographic
variables?
EXAMPLES:
GEOGRAPHIC
SEGMENTATI
ON
 Geo-demography is a segmentation
technique that combines geography and
demography
DEMOGRAP
HIC
VARIABLES
Age Ethnicity

Family
Income
structure

Educatio
Gender
n

ABS data
Generation persuasive force in the
Z (1995 economy pester power
plus)
Generation Y difficult to reach through
(1980-1994) traditional marketing efforts
Generation individualistic and
X (1965- opinionated
1980) I am not the target market
Baby a big market, approaching
Boomers retirement, with money to
(1946-1964) spend
MCCRINDLE
RESEARCH
CHILDREN AS DECISION MAKERS

Children are being socialised as consumers earlier than

ever.

Marketers advertising to children need to be aware of the

sensitivities of talking to them.

Hmm, s
hould I
Three distinct markets: go with
a
or a mo latte
1. Primary market cha?
2. Influence market
3. Future market
GENERATION WHY?
Gen Y makes up 20% of the Australian population.

Many Gen Yers still live at home.

-Boomerang children

Helicopter parents parents who seem ever-present in the

major decisions of Gen Yers.
-Can lead to offspring who lack in life skills

Being connected is critical to this group

Members of Gen Y are jugglers they value being both

footloose and connected to their peers.
-This is labelled as connexity.
Gen Y are considered to hold relatively traditional values and
prefer to fit in rather than rebel.
GEN-Z
Average hours spent on TV/Internet per week by
Generation (source: http://www.roymorgan.com.au/)
ADS FOR KIDS??
TARGETING HIGH INCOME
EARNERS
TARGETING
FEMALE
AUDIENCES

29
 AND RESPONSIBLY EDUCATING CHILDREN

30
Source: http://www.johnwest.com.au/#/media
TARGETING MEN

31
 TARGETING
MILLENIALS

https://thenewswheel.com/chevrolets-pandering-millennial-
commercials-are-becoming-self-aware/
SEGMENTING BY
PSYCHOGRAPHICS

Psychographic data is
useful for understanding
consumers with different
values and attitudes

AIO Attitudes, Interests

and Opinions
PSYCHOGRAPHIC
SEGMENTATION
Personality traits, attitudes, habits

rational (functional) or
Motives emotional (psychological)

neighbourhood lifestyle
Geo- categories
demographics Morgan target mapping
activities, opinions, interests
Lifestyle value segments
 VALS
Divides entire population into 8 segments,
determined by primary motivation and
resources.
ideals,
3 primary consumer achievement, self-
motivations expression.
guided by knowledge and
Ideals principles

seek products/services that

Achievement demonstrate success to peers

Self- desire social and physical

expression activity, variety and risk.
 Value and
Lifestyle Survey
(VALS)
defines an
individuals
self-concept
according to
his/her values,
attitudes and
lifestyle
http://www.roymorgan
http://www.roymorgan
.com/products/values-
.com/products/values-
segments/values-
segments/values-
segments.cfm
segments.cfm
LIFESTYLE TARGETING
LUXURY LIFESTYLE
TARGETING
 GREEN MARKET SEGMENTS

Un-Green
put convenience and price before pro-
environmental factors

Green at
the often buy green and eat organic foods, most
likely because of health concerns - not
Supermark necessarily out of concern for the environment.

et
Green in say its important to protect the environment
and to be in tune with nature, but their choice in
Theory products doesnt necessarily back this up.

Green but have positive views on protecting the

environment, but they are not willing to give up
convenience or pay more for environmentally
only if safe products.
 Green think green, shop green, and live green.
They are true believers in environmental

at Their causes, consistently recycling and buying

environmentally friendly products, even
when those products are less convenient or
Best cost more than similar items.

greenest of the Green. Nature and the

Green environment are of paramount importance

to this segment, whose members firmly
believe their actions have an impact on
Advocat the world. They not only recycle but also
consider environmental impact an

es overriding factor in all their purchase

decisions. And they actively support
environmental causes.
APPEALING TO GREEN
CONSUMERS
SEGMENTING BY BEHAVIOUR
Segmenting consumers on the basis of
how they act towards, feel about, or use
a product
users
User status non-users

heavy users 80/20 Rule

Usage rate moderate users
light users
20% of purchasers account
for 80% of sales

Usage Seasonal
Holidays
occasion Certain activities
Segmentatio
n by user
status:
Fosters
Group
 OTHER VARIABLES FOR BEHAVIOURAL
SEGMENTATION
Benefits
sought

Buyer
readiness
stage

Loyalty
status

Attitude
EXAMPLE: SEAFOOD CONSUMER
SEGMENTATION
Usage rate Knowledge
regular versus segments fish Information
light versus very experts versus segments
light/non novices

Food-related
lifestyle Health segments Green segments
segments

Purchase
occasion
Convenience
segments Others??
segments
everyday versus
special occasion
 SEAFOOD CONSUMER
SEGMENTS

N
o
Ut
n
if
nu Environmentally
Inexperienced
Seafood
and price
buffs
aware
(16%)
conscious
(23%) (13%)
ts
es
ry
e,
s
tm
ea
di
n
i
ns
t
fr
ie
sa
hm

(( 47
83
%0 in Melbourne Ruello, N. (2006)
Source: Retail sale and consumption of seafood
CONCEPT
CHECK

_____
segmentati a. Demographic
on variables
classify b. Behavioural
consumers c. Geographic
on the basis
of how they d. Psychographic
act toward, e. Geo-
feel about,
or use a demographic
product
SEGMENTING BUSINESS
MARKETS
Variables

Size sales or employees

Number of facilities
Scope of operations
state, national,
multinational
Purchasing policies and
approaches
Type of business
Production technology
used
STEP 2: TARGETING

the market
segment/s
where a
Target marketing
marke organisation
focuses its
t marketing
plan and
efforts
EVALUATING MARKET
SEGMENTS
Are members of the segment similar to each
Identifiable other in terms of needs and wants, but different
from other segments

Measurabl Can marketers measure the segment?

e
Sustainabl Is the segment large enough to be profitable
now and in the future?
e
Reachable
Can the segment be reached with marketing
communications?

Actionable
Can the marketer adequately serve the
segments needs?
DEVELOP SEGMENT PROFILES

A description of the
typical customer in the
segment
characteristics
needs and benefits
sought
media habits
buying behaviour
CHOOSING A TARGETING STRATEGY
Mass marketing appealing to a broad
Undifferentiated spectrum of people
Economies of scale

Target marketing developing a

Differentiated different marketing mix for selected
market segments

Niche marketing selecting one

Concentrated attractive segment

Develop solutions for individual

customers
Customised Mass customisation modification for
individual customers
CONCEPT
CHECK

A company
that uses
a/n fragmented
___________ undifferentiated
targeting
strategy is
concentrated
appealing differentiated
to a broad customised
spectrum
of people.
 Step 3:
Positioning
the place the product
Product occupies in consumers
position minds relative to competing
products.

developing a marketing
strategy aimed at
influencing how a particular
Positioning market segment perceives
a good or service in
comparison to the
competition
PERCEPTUAL
MAPS
Used to map a
picture of how
brands are
perceived and
located in
consumers minds

Uses key purchase

characteristics
(attributes) as the
basis of the maps

Determinant
attributes versus
important attributes
 A PERCEPTUAL MAP FOR
CHOCOLATE
High
I think price

Low
High
quality quality

Generic
brand
Low
price
DEVELOPING A POSITIONING
STRATEGY

Evaluate the
target
Analyse the Offer a
Determine markets
competitors product with
the response so
positions in a
marketing modification
the competitive
mix s can be
marketplace advantage
made, if
needed
IDENTIFY COMPETITORS

Direct competitors Indirect competitors

are firms selling the are firms selling a
same product to the product that may meet
same market the same need
For example, what are What is the need
Coke and Pepsi selling Coke and Pepsi meet?
Who are their direct Who are Coke and
competitors? Pepsis indirect
 POSITIONING STRATEGIES
Product attributes or
Volvo safe, fast and stylish
benefits

Price/quality Lindt Chocolate - connoisseur quality

baking soda cooking, cleaning,

Application or use
bathing

Product class cork flooring

Product user Vegemite folate for pregnant ladies

Competitor Avis we try harder

Cultural symbols i.e. Louie the Fly

POSITIONING BY ATTRIBUTE

Highlighting
the
Australian
attribute

http://www.qantas.com.a
 POSITIONING BY BENEFIT

Highlight
s
refreshin
g mint
taste

http://www.colgate.com.au/app/MaxFresh/AU/EN/tp.cvsp
POSITIONING BY USAGE
OCCASION
After sport

Before
sun
POSITIONING BY USER

Babies

Men

Women
POSITIONING AGAINST A
DIRECT COMPETITOR
POSITIONING AWAY FROM DIRECT COMPETITORS

No hidden The non-

cost cola
alternative alternative
POSITIONING BY PRODUCT
CLASS
Soap that calls it
self a beauty cream
bar

Margarine that
competes against
butter
 Modifying a
REPOSITIONIN products
G position to
respond to
marketplace
changes
CONCEPT
CHECK
_____ is the
process of
dividing a a. acculturation
larger
market into b. segmentation
smaller c. customisation
pieces based
on one or d. market
more aggregation
meaningful
shared e. positioning
characteristi
cs.
 WHERE TO NEXT
Foundation Marketing Principles
Lectures 1 - 4

Lecture 5
Concepts Test 25%
Lecture 6
Product part 1