Segmentation Segmentation analysisanalysisPersuading niche audiencesPersuading niche audiences

What is segmentation?What is segmentation?

Audiences are more fragmented Audiences are more fragmented than ever beforethan ever before

Segmentation divides an audience Segmentation divides an audience into subgroups to identify specific into subgroups to identify specific attitudes, beliefs, patterns, or trends.attitudes, beliefs, patterns, or trends.

Segmentation is used to create a Segmentation is used to create a profile of the niche audience.profile of the niche audience.

Persuasive messages target the Persuasive messages target the niche group on the basis of their niche group on the basis of their unique characteristicsunique characteristics

Segmentation may Segmentation may involve any of the involve any of the following:following: Age Age GenderGender Culture/ethnicityCulture/ethnicity Class Class Illnesses, disabilitiesIllnesses, disabilities IncomeIncome EducationEducation LanguageLanguage Lifestyles Lifestyles LocationLocation Sports, HobbiesSports, Hobbies

example 1: metro versus example 1: metro versus retro sexualsretro sexuals

The “Man Study” by the Leo The “Man Study” by the Leo Burnett advertising agency, Burnett advertising agency, which created the Marlboro Man, which created the Marlboro Man, found that half of all men report found that half of all men report that they don’t know what is that they don’t know what is expected of them in society.expected of them in society.

three-quarters of men think that three-quarters of men think that images of men in advertising are images of men in advertising are out of touch with reality.out of touch with reality.

Most ads have lumped men into Most ads have lumped men into one of two groups -- the soft, one of two groups -- the soft, caring type known as caring type known as "metrosexuals," who are "metrosexuals," who are comfortable with facial peels and comfortable with facial peels and pink shirts, or the stereotypical pink shirts, or the stereotypical "retrosexuals," who remain "retrosexuals," who remain oafishly addicted to beer and oafishly addicted to beer and sports.sports.

Segmenting male Segmenting male consumersconsumers

Metrosexuals: straight urban Metrosexuals: straight urban men who are into style, fashionmen who are into style, fashion wear designer clotheswear designer clothes like fine cuisinelike fine cuisine get expensive haircutsget expensive haircuts get waxedget waxed enjoy shopping at Banana enjoy shopping at Banana

RepublicRepublic

Retrosexuals (“real men”): straight Retrosexuals (“real men”): straight males who are more macho, prefer males who are more macho, prefer sex role differentiationsex role differentiation watch Nascarwatch Nascar Play Xbox 360 and Sony PS2Play Xbox 360 and Sony PS2 like Carl’s Jr.like Carl’s Jr. use power toolsuse power tools enjoy shopping at Bass Proenjoy shopping at Bass Pro

Advantages and Advantages and disadvantagesdisadvantages

Identify a new audience, Identify a new audience, marketmarket

tailor message to a tailor message to a specific audiencespecific audience

micro-marketing can be micro-marketing can be costlycostly More time, effort, expense More time, effort, expense

to develop individual to develop individual messages and strategiesmessages and strategies

If a brand is associated If a brand is associated with one subgroup it may with one subgroup it may be shunned by other be shunned by other subgroupssubgroups

Example 2: marketing to Example 2: marketing to gays and lesbiansgays and lesbians

There are lots of gays/lesbiansThere are lots of gays/lesbians Kinsey Report pegs 10% of the Kinsey Report pegs 10% of the

population as being gay. 6-7% population as being gay. 6-7% openly identify themselves as openly identify themselves as gay/lesbian, with higher gay/lesbian, with higher concentrations (12%) in large concentrations (12%) in large urban areas.urban areas.

Gays as upscale Gays as upscale consumersconsumers

Gays/lesbians have Gays/lesbians have considerable purchasing considerable purchasing powerpower

generally better educated, generally better educated, more affluentmore affluent

more tech savvy, computer more tech savvy, computer literateliterate

tend to be trendsetters, “early tend to be trendsetters, “early adopters,” of technologyadopters,” of technology

politically involvedpolitically involved

Gays as a nicheGays as a nichegroupgroup Advertising to gays/lesbians is Advertising to gays/lesbians is

perceived as a form of social perceived as a form of social validationvalidation 77% of gays report changing to 77% of gays report changing to

brands that are gay friendly.brands that are gay friendly. mygayweb.com reports that 78% mygayweb.com reports that 78%

of gay online users prefer to buy of gay online users prefer to buy from companies that market to from companies that market to the GLBT community. the GLBT community.

example:“gay friendly” hotels, example:“gay friendly” hotels, tour operatorstour operators

insensitive campaigns may insensitive campaigns may backfirebackfire

Gay friendly adsGay friendly ads

Example 3: Marketing to Example 3: Marketing to hispanic teenshispanic teens

There are lots of Hispanic teensThere are lots of Hispanic teens As of the 2000 U.S. Census, Hispanic As of the 2000 U.S. Census, Hispanic

youth ages 12-20 had become the youth ages 12-20 had become the largest ethnic youth populationlargest ethnic youth population

Nearly 40% of Hispanics are under age Nearly 40% of Hispanics are under age 2020

By 2010, nearly 1 in 5 young people in By 2010, nearly 1 in 5 young people in the United States will be Hispanic the United States will be Hispanic

By 2020, the Hispanic teen population is By 2020, the Hispanic teen population is expected to grow 62% compared to expected to grow 62% compared to 10% for U.S. teens overall.10% for U.S. teens overall.

A larger percentage of children (ages 0-A larger percentage of children (ages 0-4), 17+%, are Hispanic4), 17+%, are Hispanic

http://video.google.com/videoplay?docid=-4484245883891789484&q=spanish+commercial&hl=en

Hispanic teens are Hispanic teens are bilingual (duh!)bilingual (duh!)

Hispanic teens are more bilingual Hispanic teens are more bilingual than their adult counterparts. than their adult counterparts.

about 75 percent of U.S. Hispanics about 75 percent of U.S. Hispanics speak Spanish at home.speak Spanish at home.

96 percent of Hispanics use at least 96 percent of Hispanics use at least some Spanish at  home and 86 some Spanish at  home and 86 percent do so at work or school.percent do so at work or school.

Nielsen reports that half of Hispanic-Nielsen reports that half of Hispanic-American households are thought to American households are thought to prefer watching programs in Spanish.prefer watching programs in Spanish.

a majority (69 %) of Hispanics get a majority (69 %) of Hispanics get more information about a product more information about a product when it is advertised in Spanish than when it is advertised in Spanish than when it’s advertised in English only. when it’s advertised in English only.

Target ad

Hispanic teens are more Hispanic teens are more receptive to Spanish receptive to Spanish language advertisinglanguage advertising

Roslow Research Group (2000) Roslow Research Group (2000) advertising to Hispanics in Spanish advertising to Hispanics in Spanish is significantly more effective than is significantly more effective than advertising in English. advertising in English. ……Spanish commercials are Spanish commercials are

40% more effective at 40% more effective at increasing ad awareness than increasing ad awareness than commercials in Englishcommercials in English

……Spanish advertisements are Spanish advertisements are twice as persuasive as ads twice as persuasive as ads received in English. received in English.

16% more Hispanic teens will 16% more Hispanic teens will recall the spot’s message if it is recall the spot’s message if it is in Spanish.in Spanish.

1.96

2.73

2.10

2.47

Viewed Spanish Viewed English

PrePost

Hispanic teens as a niche Hispanic teens as a niche groupgroup

Hispanic teens have buying powerHispanic teens have buying power The average Hispanic teen spends $320 a The average Hispanic teen spends $320 a

month, 4% more than the average non-month, 4% more than the average non-Hispanic, and one out of five teens in the Hispanic, and one out of five teens in the U.S. is Hispanic`.U.S. is Hispanic`.

18- to 24-year-old Hispanics are the most 18- to 24-year-old Hispanics are the most brand-loyal demographic segment in the brand-loyal demographic segment in the U.S. U.S.

Hispanics teens have their feet in two Hispanics teens have their feet in two culturescultures Hispanic teens are holding on to their Hispanic teens are holding on to their

cultureculture Retro-acculturationRetro-acculturation

Hispanics exhibit more brand loyalty and Hispanics exhibit more brand loyalty and less cynicism than other consumersless cynicism than other consumers

Hispanic friendly Hispanic friendly marketingmarketing

Accommodation Theory Accommodation Theory suggests that bilinguals are suggests that bilinguals are attuned to advertisers who go attuned to advertisers who go out of their way to reach them in out of their way to reach them in Spanish.Spanish.

Persuaders should speak to an Persuaders should speak to an audience's cultural identity. The audience's cultural identity. The message should be relevant message should be relevant and resonate with the culture.and resonate with the culture.

Regional or sub-Regional or sub-segmentationsegmentation

How much homogeneity? Are How much homogeneity? Are “Hispanics” one group or many groups?“Hispanics” one group or many groups? Can a persuader use the same advertising Can a persuader use the same advertising

approach to market to Mexicans, Cubans, approach to market to Mexicans, Cubans, Puerto Ricans and Central and South Puerto Ricans and Central and South Americans?Americans?

Hershey's made a controversial choice in Hershey's made a controversial choice in promoting its new U.S. Hispanic line with promoting its new U.S. Hispanic line with language familiar to Mexicans, but not to language familiar to Mexicans, but not to other Spanish-speakersother Spanish-speakers cajeta,cajeta, is the Mexican term for the caramel is the Mexican term for the caramel

flavor known as flavor known as dulce de lechedulce de leche in the rest of in the rest of Latin America Latin America