9.1 Segmentation

 

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Kunnskapskilden –  Internet Marketing Intelligence

Bench on the pier

 

Internet Marketing Intelligence

 

 

Kunnskapskilden – Internet Marketing Intelligence
Internet Situational Analysis of 1to1 Marketing/CRM

 

Research Project: Internet Situational Analysis of 1to1 Marketing/CRM  from Jan Vig  at Griffith University , Australia  1999/2000

Content

 

Chapter 1 Introduction/overview

Chapter 2 Search Strategy

Chapter 3 One to One Marketing and its environment

Chapter 4 Environmental Scan

Chapter 5 Market analysis

Chapter 6 Competitors Analyses

Chapter 7 SWOT

Chapter 8 Critical Success factors

Chapter 9 Segmentation, Customer analysis and target markets

Chapter 10 Business Objectives and Strategies

Chapter 11 Marketing Mix tactics and Conclusions

 

 

Chapter 9

Segmentation, Customer analysis and target markets

 

 

Chapter 9 Segmentation, Customer analysis and target markets

9. 1 Segmentation

9.1.1 Bases for segmenting consumer market

9.1.2 Segmentation Internet users

9.1.3 Bases for segmenting business market

9.1.4 E-Business Market Segmentation

9.2 The Internet Consumer

9.2.1 Shift of power to customer

9.2.2 Main motivations to Surf the Net

9.2.3 Facilitator:

9.2.4 Simplifier:

9.2.5 Accelerator:

9.2.6 It is 5 general categories of adopters of products

9.2.7 Strategies

9.2.8 Demographics-Age

9.2.9 Demographics- Gender

9.2.10 Female Users

9.2.11 Things that attract/repel females

9.2.12 Education attainment

9.3 The Internet Consumer and shopping

9.3.1 Shopping on the Web (Interactive Home Shopping=IHS)

9.3.2 Reasons for using the Web to shop

9.3.3 Placing orders

9.3.4 Dissatisfying experiences with IHS

9.3.5 Perceived risk with IHS

9.3.6 Overcoming perception of risks

9.3.7 Trust in Action

9.3.8 Some supporting facts

9.3.9 Types of goods and decision-making

9.3.10 The IHS difference

9.3.11 Some ways of developing a IHS competitive advantage

9.3.12 24% of retail sales may be consumer direct by 2010

9.3.12 How Do You Fare With Accessory Buyers?

9.4 One to One’s target markets

9.4.1 Target areas

9.4.2 Online targeting

 

 

9.1

Segmentation

 

Research Project: Internet Situational Analysis of 1to1 Marketing/CRM  from Jan Vig  at Griffith University , Australia  1999/2000

 

Segmentation is the breaking down of supposedly uniform markets into sub-groupings by reference to the different needs and characteristic of the customers.

 

9.1.1  Bases for segmenting consumer market

 

This is the Factors the 1to1 Industry has to take into the consideration for the consumer market 

Geographic
  • Country
  • Region
  • City or metro size
  • Density(urban, suburban, rural)
  • Climate

 

Demographic private
  • Age
  • Gender
  • Family size
  • Family life cycle
  • Income
  • Occupation
  • Education
  • Race
  • Religion
  • Nationality

 

Psychographic
  • Social class
  • Lifestyle
  • Personality
  • How he/she is taken a decision
  • Depending on groups

 

Behavioral

  • Occasions
  • Benefits
  • User status
  • Usage rate
  • Loyalty status
  • Readiness stage
  • Attitude toward product

 

Technographics – new market segmentation
iVALS http://future.sri.com/VALS/  Reach the Consumers Who Drive Your Business

VALStm (Values and Lifestyles) categorizes U.S. adult consumers into mutually exclusive groups based on their psychology and several key demographics.

 

VALS is unique because it highlights factors that motivate consumer buying behavior. Other segmentation systems, based solely on demographics or geographics, cannot do this because they do not look at the underlying psychological make-up of people.

Companies that know why their customers act the way they do have a competitive edge.

Psychographic survey developed specifically for Internet users http://future.sri.com/vals/ivals.segs.html

 

  • in addition to demographics, geographics and psychographics
  • Technographics: combination of general demographic measures with measurements of an individual’s usage and ownership of interactive technologies.

 

 

Technographics (MKT 7008 and MKT 7002)

  • segmentation based on consumers’ motivations, usage patterns and attitudes towards technology
  • Internet use heavily dependent on technology – so additional information must be obtained than just demographics and psychographics
  • Conventional Approach doesn’t work as effectively (Web-TV & Photo CD) – can tell you who bought a PC, but not that 4 people use it for different purposes
  • classified along 3 axes
  • primary motivation
  • career – the drive to get ahead
  • family – the need to create a safe and comfortable home and to educate children
  • entertainment – the desire for enjoyment
  • technology attitude
  • classification based on curiosity and desire to spend time mastering new technological products or services
  • optimists or pessimists
  • household income
  • population divided into two roughly equal groups

Technographic example

  • eg male 25-34,
  • spends 10-15 hours a week on the Internet on Netscape Navigator
  • uses a Pentium II 300mmx processor chip
  • Upgrades hardware every 1 year
  • Owns mobile phone
  • Uses electronic organiser
  • Most people on 56K
  • Europe has fastest average connection
  • Apart from the US and Europe, most people are on 33.6K connections
  • 78% access WWW from home everyday
  • 60% access WWW from work daily

 

9.1.2   Segmentation Internet users

 

Internet users can be segmented in the following categories 

  • Techno-luster
    Heavely focussed on the culture and technology sourunding the internet
  • Academic buffs
    The main users from the beginning. Although they mainly use e-mail they have a high propensity to buy books and information on-line.
  • Techno-boffins
    These people are like the Techno-lusters, but are more interested in using technology to deliver business results. they have a big propensity to buy software, training and hardware.
  • Get ahead
    Interested at staying ahead of the game, these people use the Internet as a means of status. They mostly use WWW and e-mail as a communication and information tool.
  • Hobbyists
    These are a key sector of the Internet segmented by hobby. they use the Internet for suppliers, information and purchasing products.
  • Knowledge traders
    These are consultants, owner directors, senior or middle management desperately seeking to combat information overload by using the Internet as a self-selecting library delivering critical knowledge WHEN they need it.
  • Business bods
    The business sector is beginning to leverage the Internet. They often get frustrated at the moment because everything is so «sales» push rather than information or service provision. Give them «behind the scenes» information about NorFood’s product and services and you win the battle.
  • Home users
    A part growing of the Internet is the families and couples. They want education, entertainment and easy access to suppliers. Make it fun and NorFood have won their hearts.

 

 

 

9.1.3 Bases for segmenting business market

 

Demographic
  • Industry
  • Company size
  • Location
  • Employees
  • Turnover
  • Market share
  • Product policy
  • To which Associations do they belong to

 

Operating variables
  • Technology
  • User/nonuser status
  • Customer capabilities

 

Purchasing approaches
  • Purchasing-function organization
  • Power structure
  • Nature of existing relationships
  • General purchase policies
  • Purchasing criteria

 

Situational factors
  • Urgency
  • Specific application
  • Size of order

 

Personal characteristics
  • Buyer-seller similarity
  • Attitudes towards risk
  • Loyalty

 

 

 

9.1.4  E-Business Market Segmentation

 

Metagroup.com  Strategies and Tactics for Electronic Commerce From:JeffreyMann
http://www.metagroup.com

 

 

Business drivers / strategies  Technology 
Selling-side 
  • Revenue growth
  • Customer focus
  • Communities
  • Websites / catalogues
  • Merchant packages
  • Hosting services

 

Buying-side 
  • Expense control
  • Process efficiencies
  • Supplier management
  • ORM / ASM
  • Workflow
  • ·Buying services
Supply chain – Product oriented industriesService chain –Service oriented industries 
  • Process integration·   
  •  Cost controls·
  • Accelerated cycles
  • ERM / MRP
  • EDI / VANs
  • Extranets

 

 

 

 

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