1. 1 Ravi Vatrapu vatrapu@itu.dk Segmenting Internet Markets Rodgers, S., Cannon., H., & Moore, J. (2007). Segmenting Internet Markets. Chapter 07 of Internet Advertising. Course Portal: http://www.itu.dk/~rkva/2011-Spring-EB22http://www.itu.dk/~rkva/2011-Spring-EB22 Facebook: http://www.facebook.com/group.php?gid=133258548012http://www.facebook.com/group.php?gid=133258548012 Etherpad: http://ietherpad.com/7y3drhMCnqhttp://ietherpad.com/7y3drhMCnq Thursday, 24-Feb-2011 EB22: Online Marketing: Lecture 12 Auditorium 4, ITU, Copenhagen, Denmark

2. Market Segmentation “Segmenting is the process of dividing the market into more manageable submarkets or customer segments” p. 149 (Urban 2004) Gain better understanding of customers Seek new product opportunities Create improved advertising message strategies Basis Proposition: Markets are made up of homogenous sub-markets 2

3. Types of Market Segmentation  Geographic  Demographic  Psychographic  Behavioral  Technographic 3

4. Online Market Segmentation  Consumer-based vs. Product/Service-based  A priori vs. post hoc  Consumer Based  Demographics  Product-related attitudes  Product Based  Internet Usage  Usage Motives 4

5. Online Internet User Segments  Phobics  Pragmatics  Passionates 5

6. Theoretical Implications  Information Processing  Uses and Gratifications  Diffusion Research  Means-End Research 6

7. Policy Implications  Privacy and Security Issues  Size and type of Internet ads  Clear advertising labels 7

8. Practical Implications  Media Planning  Advertising  Encouraging repeat visits  Health Messages  E-commerce  Website Design and Navigation 8

9. Discussion 9 Exercise 10: Market Segmentation http://www.decisionanalyst.com/Downloads/MarketSegm.pdf http://en.wikipedia.org/wiki/Market_segment