This ppts describes the application of traditional method of segmentation, targeting & positioning in the digital arena and tools that are used for STP

2. The key difference between
traditional and online
segmentation relates to the kind
of data that was available,
collected and the manner in
which segments were
developed.
Data at each customer
transaction level can be
analysed with sophisticated
technologies to yield refined and
actionable audience clusters.

3.  Internet Penetration
 Internet Usage Rate/Trends
 Purchasing Patterns
 Preferences of consumers
 Response to change in technology
Specific products
for specific
Geographical
Location

4.  Age, gender, family size, family life cycle, income, occupation,
religion, ethnicity, race, and nationality.
 Most common criteria for dividing the market into groups of
customers :
◦ Most of the demands and needs show a significant change in the effect
of demographic change
◦ These variables are much easier to measure than other variables
◦ Demographic data of online consumers is easily available from their
online profiles.

5.  Usage time
 Usage situation
 Usage
 Loyalty
Factors
 Occasion
 Expected benefits
 User characteristics

6. Division of groups based on :
 Lifestyle
 Personality
 Interests
 Expected benefits
 Consumer personality traits
As a result of which the following arises:
Needs, desires, shopping behaviour, choice of media usage,
activities and interests, and eventually buying patterns

7.  Facebook as a tool for segmentation
◦ both pages & advertising offer rich interactivity through targeted and
personalised content
◦ Collects wide range of data such as consumer demographics, page likes,
user activity, users reach and influence
◦ Ready-to-use dashboards which provide information with regard to
user demography, interests and psychographic analysis
◦ Campaigns can be personalised and users can be appropriately targeted
◦ Companies can find what pages are most popular with their facebook
fans

8.  Basic communicators : consumers that use the internet
mainly to communicate via e-mail
 Lurking shoppers : consumers that employ the internet
to navigate and to shop heavily
 Social thrivers : Consumers that exploit the internet
interactive features to interact socially, by means of
chatting, blogging, video streaming, and downloading

9. Data Origin
DataType
Internal Data External Data
Offline
Data
Online
Data
Data from brand
owned media :
Website, blogs, Social
channels, mobile
apps, etc.
Traditional Data on
customer
segments : CRM
subscription, retail,
surveys, focus
groups etc.
Data from earned and paid
media : Search keywords, social
listening, customer journey, e-
commerce site visits,
Nielsen/Experian profiting and
others
External Data : Market analysts,
trade publications,
competitors, third party data
etc.

10.  Data segmentation matrix provides an easy-to-classify framework for all
data which can be collated across online and offline presences to integrate
it and develop clarified meaningful, and actionable segments which
customers can further target
 E.g. : Nielsen devises customised segmentation techniques for different
clients based on their needs, firms can make use of such predefined micro
segments to discover which segments are best suited and most probable
to respond to marketing efforts targeted to them. Some of its
segmentation types are below :
◦ $YCLE – identifies households by financial behaviour and wealth
◦ ConneXions – segments based on consumer technology usage and behaviours
https://www.nielsen.com/ssa/en/solutions/segmentation/

11.  What does the web offer consumers and what do consumers seek from
the web?
 Convenience in shopping
 Ease with the information
 Security of information
 Service
 Vendor reliability
 Financial security
 Competitive pricing
Segmenting consumers into homogenous groups to identify ways to target
them on the basis of their expectations from the online experience

12.  Traditional method : Once the customer segments were created,
marketers had limited options to choose from the segment mix and even
media planning for traditional channels only allowed targeting to such
broad-based classifications.
 Online Targeting (Targeting 2.0) : The concept of user personas which
involves defining audience clusters and making use of more authoritative
and quantitative data available across multiple online elements.

13. The likelihood of the
consumer response forms
the basis for the marketer’s
targeting efforts

14.  Rules based targeting – “If visitor performs the following actions, then offer
x,y,or z” or “If visitor belongs to segment A, then offer product x”
 Implies – that not only do consumers receive promotional information at the
time of a purchase, based on their purchase behaviour but also the marketers
and advertisers can push the promotions to the consumers
 Data derived from consumers usage history from different devices, ads are
served accordingly
 Applies business rules, constraints, pre-existing segmentation and
analytical techniques
 Larger groups or community
 Have associated costs – system costs, data costs, analytical costs and
experience costs

15.  Tools for behavioural targeting : BTBuckets, Personyz, audience science for
small business advertisers
 Tool features:
◦ Profile visitors to a company website in real time in order to provide them with
customised offerings
◦ Can work in synchronisation with Google analytics
◦ Primary information of value include data pertaining to cookies, consumer IP
addresses, links clicked by the consumer, keywords used for search, products
clicked on etc,
◦ Assess consumer intent on the website and time spent and the site to judge
consumer interests.

16.  Buyer Personas’
◦ Involves building archetypes of the members of a target audience to create
reliable and realistic representations of them
◦ The clusters/segment share a common set of needs and display similar buying
characteristics
 Persona Development exercise
◦ Target Segment identification
 To begin with persona development, firms must have identified multiple
segments/clusters for which they would want to develop detailed personas
◦ Understanding values, behaviours, and interests
 Needs, demographics, pain points, buying behaviours, interests, buying motivation,
driving factors in purchase decision making
◦ Research site analytics, search keywords, social media listening
 Insights from multiple consumer touch points and channels to understand interactions
and preferences – keywords searched, sites referred, content consumed, etc.

17. ◦ Qualitative data-audience interview/focus groups/affinity mapping
 Specific segment interviews, focus groups, use case scenario, affinity mapping
(taking representatives from different teams and brainstorming on persona-
building exercise)
 Further steps :
◦ Naming the persona: so that it feels like a real person
◦ Developing the persona :
 demographic details,
 persona’s goal and challenges such as pain points motivation, values, fears etc
 Type of product experiences they desires/influences
 A day in the life of the persona: key activities they perform online
 Types of sites visited, social media usage, content preferences, etc.
◦ Refining the persona : once the profile has been created, it is repeatedly put to test
to check what holds true and what not
https://blog.hubspot.com/marketing/buyer-persona-research
https://blog.hubspot.com/marketing/buyer-persona-questions
https://blog.alexa.com/10-buyer-persona-examples-help-create/

18.  Once the firm has developed representative personas related to each
segment, the firm would analyse the following factors :
◦ Segment size and growth
◦ Company’s strategic direction
◦ Product mix and product life cycle stage
◦ Competitor’s market strategy
◦ Emerging marketplace and consumer trends

19.  Possibility of understanding audiences at individual level for each of the
chosen clusters
 Segregating them across the marketing funnel, marketers have the power
to position differential, customised messages in real time across each of
the funnel stages depending upon the customer type and conversion
metrics being targeted for that channel.

20.  Differentiating a brand to stand out before a target audience by
demonstrating it as more significant than the competing brands.
 Effective brand positioning in the virtual world:
◦ Differentiation :
 Establish a point of differentiation
 Identification of unique attributes
◦ Content:
 Create thought provoking content on the website
 Effective keyword management
◦ Sharing:
 Identification of online domains where prospective consumer population is present
and share content/ads there
 Positioning the identified personas : Intent, awareness, interest, action,
and follow

21. Intent Awareness Interest Action Follow
Custome
r Journey
customer has
heard of a brand a
lot and has visited
the website first
time
Customer has
interacted
with the
brand and
looked
through key
pages
Active
interest in the
brand and has
a definite
need
Has
conducted all
the necessary
research and
comparisons
with
competitors
and is sure of
buying
Has become a
strong
supporter of
the brand or
falls out to
competitor
Persona
creation
“Curious
customer” with no
specific intent to
buy
“Passive
Prospect”
showing
intent to
touch-base
with brand
“Active Lead”
new/returnin
g consumers
that are close
to conversion
stage
“Last Mile
Purchaser”
whose main
objective is
the ease with
which he can
transact
“Brand
Loyalist”
Positioni
ng
Ensuring the
landing page
provides a good
experience
(Impactful)
Make sure
that design
layout, blogs,
etc positively
showcase the
core
attributes
Informative
message &
focus on
creating a
brand value
Optimise the
average order
size by
reinstating
post-purchase
benefits
Make
stronger post-
purchase
connections &
develop them
as brand
referees

22. Indian Segment Segment Details Targeting strategies (online)
First-time users - High aspiration
- Significant input from
influencers
- Leading companies use
influencers to effectively
engage & reduce purchase
related risk
- Aspirations to rise in society
& become socially active
- Becoming part of online
social group
- Online opinion leaders seed
relevant online forums with
positive WOM
- Influence consumers to
generate pull factors for
products
Bottom of pyramid (BoP)
users
- Increasing media penetration
and brand exposure
- Local influencers determine
the purchasing habits of BoP
segment in small cities
- Successful models built
around : low-cost delivery,
high degree product
customisation & scalability
- Internet to help this
segment:
Compare Price, Product
information, economical
product options, latest
schemes, coupons etc.
- E-mail and mobile marketing
campaigns
https://www.strategy-business.com/article/The-New-Fortune-at-
the-Bottom-of-the-Pyramid?gko=c5f11 (For your understanding)

23. Time-Starved consumers _ hectic urban lifestyles
- growing incomes leading to
growth of this segment
- Are fast to adopt online
options
- Are less sensitive to price
comparisons
- value online experience and
simplicity
Value-conscious users - Constantly seeking value
deals
- Impacted by economic
factors such as inflation, ltd.
Disposal income
- Benefit positioning strategy
to improve & create value
- Hosting meaningful online
discussions building customer
relationships & brand value
Urban consumers - Large number of
heterogeneous sub groups
that remain largely
underserved
- increased brand
consciousness
- Are very brand conscious
- Specific internet marketing
strategies to target
Emerging effluents - Segment seeking better
advice (because of high
incomes and urbanisation)
- Receive tailored solution
setting them apart
- Strategies : interactivity,
personalisation, and
customisation
- leveraging technology to
enhance consumer reach and
convenience