Book: Social MarketingPhilip Kotler & Nancy Lee Summary of Ch 4, for Ahram Canadian University (ACU), Faculty of Mass Com.

1. Selecting Target Markets
Dr. Samir Al-Alfy
Senior Communication Advisor
JHU/CCP
April 2011
samiralfy@yahoo.com

2. SELECTING TARGET MARKETS
A set of buyers sharing common needs or
characteristics that the company decides to serve.
1- Segment the Market
Smaller groups require unique but similar strategies to
be persuaded to change their behavior.
Common: needs, wants, motivations, values, behavior, lifestyles, etc.)
2- Evaluate Segments
3- Selection
• Increased effectiveness (Fishing & Bait)
• Increased efficiencies: Outcomes relative to outputs
• Input for resource allocation
• Input for developing strategies

3. VARIABLES USED TO SEGMENT MARKETS
Traditional Variables Behavior Change Healthstyle
Variables
Transtheoritical Diffusion of Cluster
Innovation Systems
PRIZM
VALS

4. VARIABLES USED TO SEGMENT MARKETS
1- Best predictor of needs,
Traditional Variables wants, barriers, behavior
2- More readily available
Demographic (Socioeconomic):
Age, gender, marital status, family size, income,
occupation, education, religion, race, and nationality.
Geographic:
Continents, countries, states, regions, counties, cities,
and neighborhoods.
Psychographic:
Social class, lifestyle, values, personality characteristic.
Behavior segmentation:
Knowledge, attitude, and behavior (KAP).
Occasion, benefit sought, usage level, readiness, attitude
Use a combination of variables
Use a combination of variables

5. Stages of Behavior Change
Stages of change (transtheoretical) model
(Left the bed) ‫ﺴﻠﻭﻙ ﺜﺎﺒﺕ‬
‫ﺍﻟﻌﻤل‬
(Termination)
(Sitting up)
‫ﺍﻻﺴﺘﻌﺩﺍﺩ‬
‫ﺍﻻﺴﺘﻤﺭﺍﺭﻴﺔ‬
(awake but not
moved) ‫ﺍﻟﺘﻔﻜﻴﺭ‬ ‫ﺍﻻﻨﺘﻜﺎﺱ‬
‫ﻤﺎ ﻗﺒل ﺍﻟﺘﻔﻜﻴﺭ‬
(Sound asleep) ‫ﻨﻤﻭﺫﺝ ﻤﺭﺍﺤل ﺍﻟﺘﻐﻴﻴﺭ‬
Prochaska & DiClemente, 1980

6. Stages of Behavior Change
Where is your audience with respect to the desired action?
What information or messages do they need at that stage?
Maintenance
Action
Intention
Decision-
making
Comprehension
& Risk Perception
Awareness

7. VARIABLES USED TO SEGMENT MARKETS
Stages of change (Diffusion of Innovation)
Adopter Size Adoption Motivation
Segments timing
Innovator 2.5% First Novelty & be
different
Early adopter 13.5% Second Values from contact
with innovators
Early majority 34.0% Third Need to imitate
Late majority 34.0% Fourth Jump on the
bandwagon
Laggard 16.0% Last Respect tradition

8. VARIABLES USED TO SEGMENT MARKETS
Healthstyles Segmentation
Used for health-related program planning.
Demographic, psychographic, and behavior (KAP) variables

9. VARIABLES USED TO SEGMENT MARKETS
Cluster Systems: PRIZM and VALS
PRIZM NE:
Geodemographic classification system:
US neighborhood: 66 distinct social groups (segments), based on
shared socioeconomic characteristics of the area.
“birds of a feather flock together”
“God’s Country”
“Red, White & Blues”
“Kids & Cul-de-Sacs”
“Blue Blood Estates”
“……………………..”

10. VARIABLES USED TO SEGMENT MARKETS
Cluster Systems: VALS
Resources
Innovation
http://www.strategicbusinessinsights.
com/vals/ustypes.shtml

11. VARIABLES USED TO SEGMENT MARKETS
Segmenting Target Audiences Upstream
Influencing markets upstream from the individuals –
politicians, media figures, community activists,
corporations, schools, foundations
Influence over target market & environments

12. VARIABLES USED TO SEGMENT MARKETS
Combination of Variables
1. Use a combination of variables to segment the market
2. One base used as a primary way to group a market (age)
3. Each segment is further profiled by using additional
relevant variables (education, income, etc.)
Use the behavior-related segmentation variables as the
primary base for profiling the market.
(Andreasen’s stages of change model)

13. VARIABLES USED TO SEGMENT MARKETS
CRITERIA FOR EVALUATING SEGMENTS
Andreasen Factors
Andreasen Factors
1. Segment Size
2. Problem Incidence
1- Effectiveness Scores
3. Problem Severity
4. Defenselessness
5. Reachability
6. General Responsiveness
2- Efficiency Scores
7. Incremental Cost
8. Responsiveness to Marketing Mix
9. Organizational Capabilities

14. VARIABLES USED TO SEGMENT MARKETS
HOW TARGET MARKETS ARE SELECTED
Undifferentiated Marketing (Mass Marketing)
Use same strategy for all segments, focusing on what is
common rather than on what is different
(e.g. drinking water, Seatbelts, flossing teeth, ………)
Differentiated Marketing
Develop different strategies for different audience.
(e.g. breast cancer, physical activity, water safety, ………)
Concentrated Marketing
Develop the ideal strategy for one or only few key segments.
(e.g. folic acid to pregnant, AIDS prevention to drug abusers, ……..)

15. VARIABLES USED TO SEGMENT MARKETS
WHAT APPROACH SHOULD BR CHOSEN?
• Greatest need: size, incidence, severity, defenselessness
• Most ready for action: ready, willing, able to respond
• Easiest to reach: distribution channels, communication
• Best match: organizational mission, expertise, resources