1. Foundations of Marketing MARKET SEGMENTATION CREATORS: Hayley Ebden Jade Aitken Kim Colville 24.10.2012

2. STP Process The STP PROCESS is a method by which the markets are sub-divided into different segments: The STP PROCESS is a method by which the markets are sub-divided into different segments: - SEGMENTATION - TARGETING - POSITIONING

3. MARKETING SEGMENTATION is one of the most fundamental concepts in marketing. Definition of Market Segmentation: Definition of Market Segmentation: The division of prospective buyers into IDENTIFIABLE and DISTINCT GROUPS, otherwise known as SEGMENTS, that have COMMON CHARACTERISTICS and NEEDS and RESPOND in a similar way to a MARKETING ACTIONS.

4. Marketing Segmentation Global Market Market Segmentation

5. Advantages/Benefits of Market Segmentation Enhances a company’s competitive position by providing focus and direction for marketing strategies. Enhances a company’s competitive position by providing focus and direction for marketing strategies. Examines and identifies growth opportunities in the market through the identification of new customers, growth segments or new product uses. Examines and identifies growth opportunities in the market through the identification of new customers, growth segments or new product uses. More effective and efficient matching of company resources to targeted market segments promises greatest return. More effective and efficient matching of company resources to targeted market segments promises greatest return.

6. Market Segmentation in Consumer Markets There are 3 main approaches: There are 3 main approaches: PROFILE PSYCHOLOGICAL BEHAVIOURAL - Demographic - Lifestyle - Purchase/Transaction - Personality - Personality - Socio-Economic - Perceptions - Consumption/Usage - Attitudes - Attitudes - Geographic - Motives - Media Usage - Benefits Sought - Benefits Sought - Technology Usage - Technology Usage

7. Profile (WHO & WHERE) Building up knowledge of your customers and potential customers Building up knowledge of your customers and potential customers Understanding your target audience i.e. age, location, life-stage, income band, property value and lifestyle choices. Understanding your target audience i.e. age, location, life-stage, income band, property value and lifestyle choices. Gain an understanding of how customers interact with your products and services Gain an understanding of how customers interact with your products and services Establish the way clients currently perceive your products and services Establish the way clients currently perceive your products and services Three main profiles which are broken down as follows: Three main profiles which are broken down as follows: –Geographic Profiles –Demographic Profiles –Psychographic Profiles –Behavioural Profiles

8. Profile Segments of Paisley Better signage and advertising campaigns Better signage and advertising campaigns Adapting marketing segmentation by investigating and setting up the three key profiles Adapting marketing segmentation by investigating and setting up the three key profiles Targeting both university and colleague students Targeting both university and colleague students

9. Psychological (WHY & WHO) Lifestyle, Personality, Perceptions, Attitudes, Motives: Analysing consumer activities, interests, and opinions we can understand individual lifestyles and patterns of behaviour which in turn affect their buying behaviour and decision making processes. On a similar basis, we can also identify similar product and/or media usage patterns. Lifestyle, Personality, Perceptions, Attitudes, Motives: Analysing consumer activities, interests, and opinions we can understand individual lifestyles and patterns of behaviour which in turn affect their buying behaviour and decision making processes. On a similar basis, we can also identify similar product and/or media usage patterns. Benefits Sought: By understanding the motivations customers derive from their purchases it is possible to have an insight into the benefits they seek from the product use. Benefits Sought: By understanding the motivations customers derive from their purchases it is possible to have an insight into the benefits they seek from the product use.

10. Psychological Segments of Paisley The following shows the Social Class to all people aged 16+ in Paisley Households The following shows the Social Class to all people aged 16+ in Paisley Households Social Class Total %Renfrewshire % AB Higher & Intermediate Managerial/Admin/Professional 10,752 17.8% 19.7% C1 Supervisory, Clerical, Junior Managerial/Admin/Professional 15,49225.6% 26.4% C2 Skilled Manual workers 7,49712.4% 13.4% D Semi Skilled and Unskilled Manual Workers 11,41718.9% 17.7% E On State benefit, Unemployed, Lowest grade workers 15,36425.4% 22.8% Total 60,522 100.0% 100.0% Census 2001, July 2004

11. Lifestyles (cont...)

12. Lifestyle Segments TouristsYouth - Paisley Museum & Art Gallery - Paisley Beer Festival - The Coats Observatory - Hold Music Concerts in - The Paisley Pipe Band Paisley - Paisley Abbey - Leisure Facilities Shoppers - Make Paisley an outlet Centre/Discount TownHeath Conscious - Boutique Shops- Lagoon Sports Complex - Farmers Markets- Pro-Life Fitness/Curves Students - More Student Accommodation - Internet Cafes Paisley Strengths Large Catchment Area, Substantial Business Base, Thriving University, Existing Retail Base, Transport Hub

13. Behavioural (WHO, HOW, WHERE & WHEN) Purchase/Transaction: Data about customer purchases and transactions provides scope for analysing who buys what, when, how often, how much they spend, and through what transactional channel they purchase. Purchase/Transaction: Data about customer purchases and transactions provides scope for analysing who buys what, when, how often, how much they spend, and through what transactional channel they purchase. Product Usage: Segments are derived from analysing markets on the basis of their usage of the product offering, brand or product category. This may be in the form of usage frequency, time of usage and usage situations. Product Usage: Segments are derived from analysing markets on the basis of their usage of the product offering, brand or product category. This may be in the form of usage frequency, time of usage and usage situations. Media Usage/Technology Usage: Data on what media channels are used, by whom, when, where and for how long provides useful insight into the reach potential for certain market segments through different media channels and also insight into their media lifestyle. Media Usage/Technology Usage: Data on what media channels are used, by whom, when, where and for how long provides useful insight into the reach potential for certain market segments through different media channels and also insight into their media lifestyle.

14. Behavioural Segments of Paisley 61% of homes in the Paisley area have internet access & regularly use this media to purchase goods and services. 61% of homes in the Paisley area have internet access & regularly use this media to purchase goods and services. Products purchased regularly are most often bought at out of town shopping malls i.e. Braehead & Silverburn or supermarkets i.e. Morrisons, Tesco, Asda & Sainsburys. Products purchased regularly are most often bought at out of town shopping malls i.e. Braehead & Silverburn or supermarkets i.e. Morrisons, Tesco, Asda & Sainsburys. People who shop in Paisley town centre are either elderly or unemployed. People who shop in Paisley town centre are either elderly or unemployed.

15. Behavioural (cont…)

16. Conclusion