MER1401 S9

Segmentation in Marketing

Introduction to Segmentation

• The speaker introduces the topic of segmentation in marketing, expressing enthusiasm for the subject and mentioning that this video is part of a series on segmentation.

• The discussion will cover different levels of segmentation, starting with a relatable analogy involving personal experiences from childhood.

Levels of Segmentation

• The speaker emphasizes the importance of understanding segmentation as marketers define products or services based on group affiliations.

• Key types of marketing discussed include mass marketing, segment marketing, niche marketing, and personalized marketing.

Mass Marketing

• Mass marketing aims to reach a broad audience using various media channels; it’s not just about reaching everyone but also utilizing mass distribution methods.

• Political campaigns serve as an example of mass marketing, targeting all eligible voters aged 18 and above in Mexico.

Characteristics of Mass Marketing

• Campaigns utilize diverse advertising mediums such as radio, television, social media, and outdoor advertisements to engage the general population.

• Direct selling techniques are also employed alongside traditional advertising methods to enhance outreach efforts.

Segment Marketing

• Transitioning into segment marketing involves categorizing audiences based on specific characteristics like gender.

• Gender-based segmentation is highlighted as a traditional method; however, modern considerations include broader definitions beyond binary classifications.

Age-Based Segmentation

• Within gender segments, age becomes another critical factor for defining market segments more precisely (e.g., young women vs. older women).

Niche Marketing

• Niche markets are identified by even more specific characteristics within segments; for instance, targeting older women interested in fitness.

Examples of Niche Markets

• A focus on older women who engage in fitness activities illustrates how niche markets can cater to unique needs (e.g., specialized clothing or supplements).

Conclusion: Understanding Your Audience

• Identifying niches requires thorough research and understanding consumer behavior through interviews and data collection.

• The speaker concludes by emphasizing the importance of recognizing diverse groups within larger populations for effective market strategies.

Market Segmentation and Personalization in Marketing

Identifying Market Niches

• The speaker discusses the importance of identifying market niches that require different services, emphasizing the need to understand their characteristics for effective campaign definition.

Customization in Automotive Industry

• An example is provided about personalized cars, highlighting how some dealerships offer customization options not just in design but also in engine types and other functionalities.

Personalization Examples

• The discussion includes various aspects of car personalization, such as seat types and specific features like headlights and bumpers, illustrating the extent of customization available.

Custom Cakes as a Market Example

• The speaker compares personalized cakes from bakeries to mass-produced items, noting that while common flavors exist, custom orders can be tailored for individual preferences.

Product Lines: Institutional vs. Personalized

• It is mentioned that businesses like bakeries often have both institutional product lines and personalized offerings, which affects pricing strategies and marketing approaches.

Levels of Marketing Strategy

• The speaker concludes by summarizing four levels of marketing strategy relevant to targeting different segments versus mass-market approaches.