Project Activity #1: Who are my customers? You and your team members are the founders of a new digital marketing firm that helps organizations in the private, social, and public sectors integrate augmented reality into their marketing strategies. As founders of the firm, it’s your responsibility to develop new clients. Tonight, begin developing a segmentation & targeting strategy for your new digital agency. By the project presentation, you’ll want to identify the segments in the market, which you plan to target, and why. In the case of this B2B sale, understanding your target segment will also require understanding your prospective clients’ target segments, as well. Consider the potential market for your new firm’s AR application. Brainstorm potential market segments, using the content from today’s lecture & the “Segmentation & Targeting” reading. Which segmentation variables are most relevant to your segmentation strategy? How will you define distinct market segments? (Exhibit A) Evaluate the “Who, What, Why” to refine prospective segments & what motivates them. When doing this, consider that your new firm is selling B2B, so your team will need to evaluate your prospective client’s customers and how your AR solution will help your clients better serve their customers. Also, consider the buying approach for the prospective segments. (Exhibit B) Discuss which of the segment(s) your new firm will target and why. (Exhibit C). Finally, discuss which marketing intelligence / market research sources you’ll use to test & support your segmentation.

EXHIBIT A Variable Description Geographic Country, City, Region, Urban vs Rural, Climate Demographic Age, Income, Gender, Generation, Marital Status, Family Size, Occupation Psychographic Lifestyle, Personality, Activities, Interests, Opinions, Behavioral Usage Rate, Loyalty, Product Knowledge, Involvement, Decision, Purchase Occasion Benefits Sought Convenience, Value, Safety, Status Variable Description Geographic Country, City, Region, Urban vs Rural, Climate Firmographic Industry, Firm Size, Global/Regional, Ownership Structure Buying Approach Centralized / Decentralized, Purchase policies, Involvement of Decision Makers Behavioral Volume, Loyalty, Attitude toward risk, Purchase frequency, Urgency Benefits Sought Price, Product quality, Customer service, Relationship

WHY WHAT WHO EXHIBIT B Why do customers make the decisions they do? Needs, preferences, decision-processes WHAT What have the customers done? Usage, loyalty, profitability WHO Who are the customers? Demographics, media habits, lifestyle

Target Market Selection EXHIBIT C SEGMENT CHARACTERISTICS Segment Size Segment Growth Rate Segment Profitability COMPETITION Competitor’s Strengths Competitor’s Resources Competitor’s Intensity Target Market Selection COMPANY FIT Objectives Competencies Resources

At the end of class this evening, please email me with your team’s progress on this activity. This does not have to be formal, so feel free to send in any format – a link to a google doc, text in an email, a few slides, etc. If you have questions, please note them in the text of the email. Thanks! rzinn@temple.edu

Project Activity #2: What do they value? You and your team members are the founders of a new digital marketing firm that helps organizations in the private, social, and public sectors integrate augmented reality into their marketing strategies. As founders of the firm, it’s your responsibility to develop new clients. Tonight, begin to identify what your prospective customers value & how they make decisions. To that well, it will help to understand what your customers’ customers value first. Define the OBC for your target segment. Who will help make decisions? Outline a few notes on your target customers’ customers. Who are the customers? How does your client/customer provide value to them? How can your AR solution help your prospective client provide more, better, faster value to their customers? Use the 30 elements outlined in the Elements of Value to identify elements that most apply to your target segment. NOTE: All work completed in class should be substantiated & tested through research before presenting your final project.