Mike used a term in class called segmenting. Being from the marketing program I have heard to term before but never really looked much into it. I always just assumed that segmenting and targeting were the same but the way Mike explained it was different. He explained it by drawing a circle. This was the car market. Within the car market he was able to segment it into SUV’s, crossovers, sedans, trucks, etc. This is what segmenting is. It is the process of breaking up a market into smaller segments. I thought another example might be the alcohol market. I was able to find a study about segmentation of the alcohol market. Some ways they segmented were by what type of alcohol is the people favorite to drink. This was split up into wine, beer, and spirits. They also segmented by age, by gender, and by how much an individual drinks. These were all ways that they could segment the market and choose who to target. In the article they said that 6 main segments formed with the people that drank alcohol. Segment 1: Love my tasty beer. The reason they drank was for flavor. The average age was 25-36. Usually drank at home or at a bar. Segment 2: Bonding with Friends. This segment drinks to bond with friends. The average age was 21-24, mostly males. Usually drank at home, friend’s house, or at a bar. Segment 3: Nice women don’t drink beer. Taste is important. They drink because it’s healthy for them. Usually drink at a friend’s house or their own home, not in public. Segment 4: My lifestyle. Both male and female. College educated 25-34 year olds. The main reason to drink was because it complements food. Segment 5: Living on the wild side. These were the kids in college who drink for parties. Mostly males 21-24 years old. Drink to have fun and relax. Segment 6: moms at home relaxing. Mostly females. Drink at home or in restaurants. Main reason to drink is to relax. This is an example of how companies segment their clients. This is also a very good example of psychographics.
One thing I took away from class today was how Nike really changed their branding. They were originally branding by saying that if you wear Nike you will be great like all of the great athletes in the world. Now they are saying everyone has greatness in them and that Nike supports the greatness inside of you. This was a very important move they made in branding and I think it was a good one. I really enjoyed the commercial that Mike showed with the heavy set kid jogging down the road. This shows that you don’t have to be the most athletic person in the world to be great. As long as you try your hardest you will achieve greatness. The picture I posted is one of Nikes new ad’s that focuses on greatness. The quote they said with this ad is what hit me the most. “Greatness. It’s just something we made up. Somehow we have come to believe that greatness is a gift. Reserved for a chosen few. For prodigies. For superstars. The rest of us can only stand by watching. You can forget that. Greatness is not some rare DNA strand. It’s not some precious thing. Greatness is no more unique than us breathing. We are all capable of it. All of us.”
In all of my marketing classes mike always stresses how important market research is to determine your demographics of your customers. Demographics include age, gender, income, race, etc. These are important when a company decides who they want to target with a product. Also psychographics are very important too. Psychographics is the study of personality, values, opinions, attitudes, interests, and lifestyles. A great website that I have found to research demographics is The Bureau of Labor Statistics website, bls.gov. This website can give you demographics for any area in the country. This is also a free website and I would recommend looking at it before you spend a fortune doing market research in an area if you are launching a new business or product.