Marketing Communications

134 CHAPTER 4 TARGET GROUPS

Markets can also be segmented on the basis of usage rate. Heavy users are of particular

interest to a company because they make up the largest part of sales. Light users may be per-

suaded to buy and consume more of the product by means of special off ers or ‘basket-fi lling’

promotions, increasing the number of items they buy.

Segmenting on the basis of benefi ts looked for by consumers can be done by researching

all benefi ts applicable to a certain product category, e.g. a salty snack should be crunchy, taste

good and not be expensive. For each of these benefi ts consumers preferring that benefi t are

identifi ed and for each benefi t products or brands off ering that benefi t are defi ned. Th is

segmentation links psychographic, demographic and behavioural variables. A specifi c benefi t

for which a brand has a unique strength can be defi ned, and the communications eff ort can

be targeted at the customer group preferring that particular benefi t. As such, benefi t segmen-

tation is conceptually very close to positioning.

Finally, consumers can be divided into more homogeneous sub-groups on the basis of

their buyer readiness. When a potential customer is unaware of a brand, awareness-building

advertising and sponsorship will have to be used. For a group of customers already aware

of the product, attitude-building campaigns are called for. People who are interested in and

like the product should be persuaded to try it by means of sales promotions and in-store

communications.

Requirements for effective segmentation

In stage 2 of the STP process, segmentation variables can be combined to form segmentation

profi les. Segment profi les have to meet a number of requirements to be eff ective ( Figure 4.2 ).

Segments have to be measurable. It should be possible to gather information about segmenta-

tion criteria and about the size, composition and purchasing power of each segment. Segments

have to be substantial enough to warrant separate and profi table marketing campaigns to be

developed particularly for that segment. Segment profi les have to be attainable, i.e. accessible

and actionable. Th e marketing manager must be able to identify the segment members and

target the marketing action programme at them separately. Unless most members of the

segment visit similar places, shop in similar supermarkets or read similar media, it will be

diffi cult to reach them separately and develop specifi c stimuli for them. In other words, the

chosen segments must be within reach of communications media and distribution channels.

Finally, market segmentation should ideally lead to more homogeneous sub-groups in that

the members of one group should react similarly to marketing stimuli and diff er in their

reactions to these stimuli from the members of other segments.

Figure 4.2 Requirements for effective segmentation

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