Lecture 6 Identifying Market Segments and Targets

Companies cannot connect with all customers but they can divide such markets into groups of segments
with needs and wants. A company then needs to identify which market segments it can serve effectively.
Effective Targeting Requires…
1. Identify and profile distinct groups of buyers who differ in their needs and preferences.
2. Select one or more market segments to enter.
3. Establish and communicate and explain (Core Competitive value for me) benefits of the market
offering.
Differentiated marketing plan and undifferentiated:
Differentiated: Target many segments and must differentiate in the marketing plane.
Undifferentiated: Will market my products to one segment or one group of people.
Segmentation:
Flexible market offering
 Naked solution: marketing to all segment member’s the basic product and service elements.
 Discretionary options: marketing to some of this segment need special value.
Local and Individual Marketing:
Local marketing: specify to the needs and wants of local customer groups in trading areas, neighborhoods.
And apply offers and deals customized for those specific need this called 3 miles marketing.
Nike promotion: Example of Individual Marketing specify the London only people not generic campaign.
H&M: langue is different and the idea local designer for H&M.
Grassroots Marketing: More specific than the local marketing, concentrate in getting as close and personally
relevant to individual customers as possible like Pepsi sponsor ship for the schools.
Individual Marketing: the ultimate level of segmentation leads to “segments of one”, customized
marketing or “one to one marketing.
Mass customization vs.: Mass customization like coca cola names campaign customer not have a lot of
customized options like the flavor or the shape or the color (Oreo and M&Ms Adv. same idea)
Individual customization: Like Nike customize website we can customize and choose every detail (child
with book Adv. Mentioned the child name).
Geographic segmentation: divides market to geographical as nations, states, regions, cities, neighborhoods.
Behaver segmentation: Consumer behavior is the study of how individuals, groups, and organizations select,
goods, services, ideas, or experiences to satisfy their needs and wants.
Segmentation by Behavior:
Occasion segmentation: is grouping buyers according to occasions like Ramadn will buy nuts and decoration.
Benefit segmentation: Every customer use the product for different benefit like the gym, every segment use
the gym for diff benefits
Usage Rate segmentation is grouping markets into light, medium, and heavy product users for example milk
different sizes of packaging.
Buyer readiness segmentation: is the consumer having high demand to buy my product like apple products
Loyalty segmentation: like Starbucks usage card, Hyper usage cards.
Lecture 7 Brand loyalty
My customer will remember my product brand through branding. Choose brand different about my identity:
Name, term, sign, symbol, design.
Customer base brand equity: The extent to which consumers hold, unique, and strong associations about
their brands in their minds either positive or negative and if positive I will gain the customer loyalty.
80 20 rule: the customer having loyalist 20% will bring 80% of my profit.
Branding: is endowing (providing) products and services with the power of a brand.
Scope of Branding: Convince consumers of meaningful differences through the brand.

Difference between awareness and knowledge: awareness is let the customer know that I am exist,
knowledge is the brand knowledge details (flavors, places I exist, prices…) like Sun Bites campaign.
Product development: must take into our consideration the customer back ground knowledge like Pepsi
crystal, Ben-Gay medicine, Colgate readymade meals, and BIC perfumes.
Perceived quality: Services products is the most impacted by changing in the quality so must insert some
quality control: reliability, tangibility, responsiveness, assurance and empathy.

Lecture 5 CONSUMER BEHAVIOR

Consumer behavior: the study of the processes involved when customers select, purchase or use of
products, services, ideas, to satisfy needs and desires. Consumers may choose brands that match with their
own identities.
Stages in the Consumption Process: 1) pre purchase, 2) purchase, 3) post purchase. Marketers need an
understanding of all three stages
Medicine for ‫ حموضه‬ADV. shows that I can direct the marketing plan to different customer depend on
Segmenting
Segmenting Consumers: Demographics: Demographics: Age, Gender, Family structure, Social class/income
Geography, Lifestyles.
Consumer-Brand Relationships:
Self-concept attachment means that the product helps to establish the user’s identity.
Nostalgic attachment means the product serves as a link to the consumer’s past.
Interdependence means that the product is a part of the user’s daily routine.
Love means that the product elicits emotional bonds of warmth, passion, or other strong emotion.
Social media: communication among interconnected and interdependent networks of people, communities,
and organizations enhanced by technological capabilities and mobility.
Objective of marketing: create awareness that needs exist, not to create needs
Does advertising foster materialism? Products are designed to meet existing needs; Advertising only helps to
communicate their availability

Chapter Summary
Consumer behavior is a process.
Consumer use products and brands to define their identity to others.
Consumers from different segments have different needs and wants.
Consumer behavior benefits from several fields.

Red Bull now leads with 24.9% share of the US energy drink market in 2019, selling more than 7.5 billion cans
globally. They are able to achieve these numbers because they produce content which can be considered on
par with the major publishers and also pulling off mind-blowing events making them one of the most talked
about brands in the world. Red Bull is active on various social media platforms and different channels and use
out of the box approaches and tactics in order to create content that is would give people the experience
they would be interested in.