Ch 8 - Segmentation & Targeting

Market Segmentation - Sorting customers into groups based on usage, consumption or desired benefits of a product or service.
Targeting - Selecting the groups that will respond best to your message/product/service.

B2B - Biz to biz - Market is huge, well connected to internet and often invisible to the end consumer.
B2G - Biz to government - Big market, highly regulated, all contracts up for public bid.
B2C - Biz to consumer - Marketing to the end consumer. What we see, all day every day.
C2C - Consumer to consumer - Ebay, Craigslist

Market Segmentation Bases and Variables
Demographics - Age, gender, income, ethnicity
Geographics - Where they are - can be as specific as street or postal code, as general as country
Geodemographics - demographics + geographics
Psychographics - Opinions, activities, interests
Behavior - Benefit sought, usage, brand loyalty

Ethnic Groups -
Influentials - Opinion leaders, 'the cool kids'
Interest Communities - Social networks, forums. Able to get very specific on the internet.

Attitude - Speak to people how they like to be spoken to. What is the best way to engage the consumer? "Technographics"

Usage Segments
How do they use media? Differences between say, teenagers and babyboomers. 
Simplifiers - Use technology to make life more convenient. Search for quick, quality services.
Surfers - Spend time looking for the next cool thing. Cutting edge.
Connectors - "Relative novices" who use the internet mostly for email/social networking. Usually attracted to brands with a strong off-line presence.
Bargainers - Looking for deals.
Routiners - Rely on the internet for news, information. Looking for a one-up.
Sportsters - Enjoy sports and entertainment content, likely to pay for content.

Targeting On-Line Customers
Mass marketing - One strategy for your whole market. Banner ads on big sites.
Multisegment Marketing - Creating strategies to reach 2+ segments. The most common targeting method.
Niche Marketing - Developing multiple strategies to reach the same market. Used by Amazon.com. Good for the internet, where rivals can quickly move in on a market.
Micromarketing - Targeting a very small, specific demographic.