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Lecture 3

MKT 350 Lecture Notes - Lecture 3: Behavioral Targeting, Psychographic, Big Data


Department
Marketing
Course Code
MKT 350
Professor
Raju
Lecture
3

Page:
of 2
MKT 350 Consumer Behavior Chapter 2
Chapter 2: Segmentation, Targeting, and Positioning
Why is segmentation important as a strategy for most companies?
-People have different needs
-Companies can make a variety of products
-Happy medium between mass marketing and customization
-Spread risk and not put all the eggs in one basket
Three Phases of the Marketing Strategy:
1. Market Segmentation – dividing a market into distinct subsets of customers with common
needs or characteristics
2. Targeting – selecting the segments the company views as prospective customers and
wishes to pursue
3. Positioning – creating a distinct image and identity in the mind of the customer
Psychographics – consumers’ lifestyles, which include consumers’ activities, interests, and
opinions (AOIs)
-Measured using lifestyle statements
-Often combined with demographic and product usage information to provide a more
complete profile of consumers
-When combined with values we have VALS segmentation
Benefit segmentation – benefits sought represent consumer needs
-Important for positioning
-Design products based on the job they need to do for the consumer
Usage rate – heavy, medium, light, non-users
-Awareness status and level of involvement often change with the usage rate of the
consumer
Usage-occasion segmentation
-Segmenting on the basis of special occasions or situations
Criteria for Effective Targeting
-Identifiable, sizeable, stable and growing, reachable, congruent with the marketer’s
objectives and resources
Number of segments targeted
-Undifferentiated marketing – same as mass marketing or no segmentation
-Differentiated marketing – marketing to several segments like Coca-Cola, GM, etc.
-Concentrated or Niche marketing – marketing to one segment, people who like a
unique product like Dr. Pepper
Behavioral targeting – sending consumers personalized and prompt offers and promotional
messages designed to reach the right consumers and deliver to them highly relevant messages at
the right time and more accurately than when using conventional segmentation techniques
Targeting in today’s world:
Big data – collection of data from traditional and digital sources. Capturing as much
relevant data as possible.
Data Mining – finding patterns in big data for strategic decisions
Behavioral Targeting – personalized relevant information sent to consumers at the right
time.
find more resources at oneclass.com
find more resources at oneclass.com
MKT 350 Consumer Behavior Chapter 2
Consumer Analytics – using consumer data for key business decisions.
Predictive Analytics – predicting future behavior with data.
Micro-targeting – using consumer data to reach small groups of like-minded consumers
in order to influence their behavior. In today’s fragmented marketplace the success of a
company often depends on reaching many smaller segments rather than one mass market.
Predictive Analytics - Measures that predict consumers’ future purchases on the bases of past
buying information and other data, and also evaluate the impact of personalized promotions
stemming from the predictions.
Positioning - The process by which a company creates a distinct image and identity for its
products, services, or brands in consumers’ minds.
Product Differentiation – differentiating from competitors’ offerings is key to good positioning
Types of Positioning:
-Umbrella positioning is a statement or slogan that describes the universal benefit of
the company’s offering.
-Premier positioning focuses on the brand’s exclusivity.
-Positioning against the competition acknowledges competing brands.
-Key attribute positioning is based on a brand’s superiority on relevant attributes.
-Un-owned positioning is when a position is not associated with a product from the
category.
find more resources at oneclass.com
find more resources at oneclass.com