TARGET MARKETTARGET MARKET

TARGETING EVERYONE = TARGETING NO ONETARGETING EVERYONE = TARGETING NO ONE

2

““I WOULD CUT ANYONE’S I WOULD CUT ANYONE’S HAIR…” HAIR…” (and who would doubt it...)(and who would doubt it...)

……BUT THAT’S NOT THE POINTBUT THAT’S NOT THE POINT

3

THE TENDENCY & THE TENDENCY & OUR MISTAKEOUR MISTAKE

• TO ARGUE THAT YOU WILL GET YOUR MARKETING MESSAGES OUT TO EVERYONE

• THE REALITY IS THAT THERE IS NOT ENOUGH MONEY OR TIME

• WHEN YOU TARGET EVERYONE, YOU TARGET NO ONE

4

TARGET MARKET DEFINEDTARGET MARKET DEFINED

GETTING IT RIGHTGETTING IT RIGHT

5

IT’S SIMPLER THAN YOU

THINK…

6

EASILY IDENTIFIED TARGETSEASILY IDENTIFIED TARGETS

• FAMILIES

• SENIORS

• FEMALES/MALES

• HIGH/LOW INCOME PEOPLE

• CITY DWELLERS

• APARTMENT DWELLERS

•HOME OWNERS

•CHILDREN

•18-34 MALES

•18-49 FEMALES

•COMMERCIAL OPERATIONS

•INDUSTRIAL OPERATIONS

7

WHO REGULARLY TARGETSWHO REGULARLY TARGETS

• CUSTOMS/AIRPORT SECURITY OFFICERS (female shoppers, racial profiling)

• POLICE WITH SPEED TRAPS (roads from highways, transition zones, road to highways, bottom of hills, flat roads)

• STUDENTS WHEN THEY STUDY (particular topics based on need to know; acting on professor’s hints/emphasiss)

• TELEVISION PRODUCERS (varies by show)

• SPORTS TEAMS (Bulldogs = families; Leafs = ????)

• COCA COLA (selected campaigns go after particular segments)

• BEER COMPANIES (18-35, male, sports lover)

• SATURDAY NIGHT LIVE (urban, 25-50, $)

• JERRY SPRINGER (lower income, female)

• SOAP OPERAS (house wife, Caucasian)

• CRIMINALS (seniors, individual walking alone, empty homes during day time, particular cars, particular parking lots)

• YOU: (cleaning your car, cleaning yourself up, studying, networking)

8

HOW MUCH MARKET DOES A COMPANY HOW MUCH MARKET DOES A COMPANY NEED TO BE SUCCESSFUL?NEED TO BE SUCCESSFUL?

• APPLE’s iPhone IS HOPEFUL TO ATTRACT 1% SHARE – 10,000,000 CELL PHONES

• McDONALD’s SELLS FOOD TO ONLY 1% OF THE WORLD’S POPULATION

• WALMART IS $¼ TRILLION IN SALES AND SELLS LARGELY IN THE U.S. AND CANADA

• THE MAPLE LEAFS DRAW 17,000 PER GAME (17K/3M PEOPLE = %)AND ARE VERY SUCCESSFUL

9

MARKET SEGMENTSMARKET SEGMENTS

CARVING UP AN OVERALL MARKET INTO TARGETABLE CHUNKS BASED ON SOME CRITERIA SUCH AS: DEMOGRAPHICS (AGE, INCOME, EDUCATION, GENDER) PSYCHOGRAPHICS (ATTITUDES, INTERESTS, OPINIONS (AIO’s)) TECHNOGRAPHCS (MOUSE POTATO, GEEK) – www.forresterresearch.com BENEFITS (WHITE TEETH, HIGH SPEED) USEAGE (HEAVY vs. LIGHT VS. RECREATIONAL VS. SERIOUS) LIFESTYLE (ACTIVE, JET SETTING) CONSUMER/INDUSTRIAL/COMMERCIAL/GOVERNMENT/MILITARY

Marketing Strategies for Entrepreneurial Ventures

SEGMENTATION AREAS

1. Geographic – Region and/or area

2. Demographic – Age, gender, family size

3. Psychographic – Social class, life style

4. Behavioral – Benefits to user’s status

Target Market

If you choose to segment your market, you can select from several different variables including:

Geographic - (region, city or metropolitan area, population density, and climate);

Demographic – (age, gender, family size, family life cycle, income level, occupation, education level, religion, race, and nationality)

Target Market

Psychographic (social class, lifestyle, attitudes toward various societal situations, and personality); and

Behavioral (occasion for product or service use, benefits or problems solved, user status, use rate, loyalty status, readiness to purchase, and attitude toward the product or service)

Marketing Strategies for Entrepreneurial Ventures

TARGET MARKET SELECTION STRATEGIES

1. Single segment concentration – specialize in one

segment

2. Selective specialization – several attractive

segments

3. Product specialization – make one product to

sell in several segments

4. Market specialization – serves many needs in

selected segment.

5. Full market coverage – serve all customers.

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$300M AIO: “I AM PATRIOTIC”$300M AIO: “I AM PATRIOTIC”

• AN ‘AIO’ QUESTION BURIED IN A 200 ITEM ON-LINE SURVEY TO MOLSON BEER DRINKERS RESULTED IN THE VERY SUCCESSFUL ($300M) “I AM CANADIAN CAMPAIGN”

• WAS FOUND BY ACCIDENT THROUGH DATA MINING

15

VALUE SEGMENT IDENTIFIED VALUE SEGMENT IDENTIFIED BY LAKEPORT BREWERYBY LAKEPORT BREWERY

16

SEGMENTATION CHART SEGMENTATION CHART FOR RUNNING SHOESFOR RUNNING SHOES

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NAME THE MOST OBVIOUS NAME THE MOST OBVIOUS TARGET FOR THESE PRODUCTSTARGET FOR THESE PRODUCTS

• MAZDA MIATA

• CADILLAC ESCALADE

• MP3 PLAYERS

• ROLEX WATCHES

• HAIRCUTS

• MEDICAL WIGS

• LETTERMAN/LENO/O’BRIAN

• 60 MINUTES/THE VIEW/OPRAH/SPRINGER

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INFORMATION SOURCESINFORMATION SOURCES

• DATABASES SUCH AS: Inform New Hamilton (Human Services) http://www.inform.city.hamilton.on.ca/ Hamilton Business Directory http://www.hamiltonbusinessdirectory.ca PIC Hamilton http://www.pichamilton.net Go Steeltown - Members Business Directory

http://www.go-steeltown.com/business_directory/index.html Halton Business Directory http://www.region.halton.on.ca/business/hbd/

Statistics Canada http://www.statcan.ca/start.html Strategis Company Directories

http://www.strategis.gc.ca/sc_coinf/engdoc/homepage.html?categories=e_com INFO-GO Services http://www.pace.gov.on.ca/english/ Economic Development Related Information and Reports http://www.hamilton.ca Community and Census Data

http://www.on.hrdc-drhc.gc.ca/hamilton/english/lmi/lfpro/census/index.html

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TOONEY TUESDAY AT KFCTOONEY TUESDAY AT KFC

• POINT OF DEPARTURE IS THAT EARLY IN THE WEEK IS DEAD FOR FOOD SERVICE OPERATORS

• NEED A PROMOTION FOR IMPROVING SALES

• TARGET FOR TUESDAYS: ?????

• 4Ps FOR TOONEY TUESDAY: ?????

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RESULT:RESULT:

• # CUSTOMERS UP 60% ON TUESDAYS

• PEOPLE COME IN LOOKING TO SPEND $2.30 PER PERSON INCLUDING TAX

• LEAVE SPENDING $7.11 (+ TAX) PER PERSON (AVERAGE CHECK UP MORE THAN 300%) BY CROSS SELLING, SUPER SIZING, SEEING OTHER OFFERINGS, “GET ONE PIECE MORE FOR JUST A $1”, ETC.)

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TARGET CHARACTERISTIC

SPECIFIC MEASURE

# IN CENSUS

TRACT OR CMA

AGE 18-49, 65+

GENDER MALES

FAMILY STATUS MARRIED, SINGLE, SEPARATED

#CHILDREN MARRIED, 2 KIDS IN HOME

HOME OWNER SINGLE FAMILY DWELLING

APARTMENT DWELLER OBVIOUS

LOCALE/LOCATION BURLINGTON, SELECTED HAMILTON, ANCASTER, FLAMBOROUGH

FAMILY STATUS SINGLE, MARRIED, DIVORCED; HOW MANY MARRIAGES IN LAST YEAR

GOVERNMENT AGENCY WHERE LOCATED; HOW MANY SQUARE FEET;

COMMERCIAL # BUSINESSES FITTING CRITERIA

CHARITABLE GROUPS # CHARITIES IN A GIVEN LOCALE

The Final Product: what it looks like

22

YOU’RE NOT GREEDY…YOU YOU’RE NOT GREEDY…YOU JUST WANT YOUR FAIR JUST WANT YOUR FAIR

MARKET SHARE OF THE PIEMARKET SHARE OF THE PIETHE

END

YOU ARE HERE

YOU ARE HERE

TODAY’S MESSAGE:TODAY’S MESSAGE:

TARGET SOMEONE, TARGET SOMEONE, NOT EVERYONE!!!!!!NOT EVERYONE!!!!!!