Segmenting Entertainment Audiences Chapter 6

Segmentation Schemes  Mutually exclusive - separate from all others  Exhaustive - everyone must have an appropriate group  Measurable - size, purchasing power and profiles must be measurable  Substantial - each segment should have a significant membership  Actionable - can be reach through media  Mutually exclusive - separate from all others  Exhaustive - everyone must have an appropriate group  Measurable - size, purchasing power and profiles must be measurable  Substantial - each segment should have a significant membership  Actionable - can be reach through media

Benefits of Segmentation  Valuable insight into product/service design to reflect market demand  Gives direction to advertising messages  Yields cost savings from accurate promotional message placement  Enables focusing on competition’s strengths/weaknesses by reducing variables  Fosters production of informed strategic marketing plans  Valuable insight into product/service design to reflect market demand  Gives direction to advertising messages  Yields cost savings from accurate promotional message placement  Enables focusing on competition’s strengths/weaknesses by reducing variables  Fosters production of informed strategic marketing plans

Determine Target Audience 1.Undifferentiated marketing - shotgun 2.Differentiated - targets multiple segments with different incentive and message 3.Niche marketing - targets small groups of like audiences members 1.Undifferentiated marketing - shotgun 2.Differentiated - targets multiple segments with different incentive and message 3.Niche marketing - targets small groups of like audiences members

Demographic Segments  Baby boomers - use benefit segments  Generation Y - diversity, high income, computer literate  Teenagers - online sharing  Geodemographics - use of PRIZM lifestyle segments by zip code  Baby boomers - use benefit segments  Generation Y - diversity, high income, computer literate  Teenagers - online sharing  Geodemographics - use of PRIZM lifestyle segments by zip code

Demographic Segments

Psychographic Segments  Lifestyles, patterns of behavior  Activities, interests, opinions  VALS (psychocentric, midcentric, near allocentric, allocentric)  Cohort segments - grew up at the same time; life stages  Lifestyles, patterns of behavior  Activities, interests, opinions  VALS (psychocentric, midcentric, near allocentric, allocentric)  Cohort segments - grew up at the same time; life stages

VALS 2

Global Lifestyle Segments  Teens  Gender  Religious  Symbolic capital - status  Ethnic  Teens  Gender  Religious  Symbolic capital - status  Ethnic

Generic Segmentation Factors  Usage - rate, occasion-based, loyalty status  Price  Benefits Segmentbenefit Message Teenssocialize without parents Touristcultural exposure Employeeschance to be outside  Usage - rate, occasion-based, loyalty status  Price  Benefits Segmentbenefit Message Teenssocialize without parents Touristcultural exposure Employeeschance to be outside

Aesthetic Segmentation  Stimulation  Realism  Conventional sex identity  Shapes of round and curved  Social status orientation  Seriousness vs. frivolity  Stimulation  Realism  Conventional sex identity  Shapes of round and curved  Social status orientation  Seriousness vs. frivolity

Segmenting by Action  Prosumers - consumers help design products, reject traditional ads, use Internet research  C2C economy requires dialog  Prosumers - consumers help design products, reject traditional ads, use Internet research  C2C economy requires dialog

Persona Segmentation  Consumer models = personas or archetypes  Qualitative analysis of user behavior  Reveal motivations and potential usage patterns  Consumer models = personas or archetypes  Qualitative analysis of user behavior  Reveal motivations and potential usage patterns

Niche Markets  Special interest groups  Immigrants and expatriates for homeland news  Addresses needs and wants of special segments with directed promotional messages  Special interest groups  Immigrants and expatriates for homeland news  Addresses needs and wants of special segments with directed promotional messages

Questions  What is the value of cohort segmentation for targeting mature consumers for a vacation destination?  When would you use PRIZM vs. MOSIAC for promotion purposes?  What new market segments may emerge for future global audiences?  What is the value of cohort segmentation for targeting mature consumers for a vacation destination?  When would you use PRIZM vs. MOSIAC for promotion purposes?  What new market segments may emerge for future global audiences?