Segmentation Analysis

1. Segmentation Analysis Persuading niche audiences

2. What is segmentation? • Audiences are more fragmented than ever. • Segmentation focuses on subgroups with specific attitudes, beliefs, or patterns of behavior. • Persuasive messages target niche groups on the basis of their unique characteristics. • Segmentation may involve any of the following: • Age • Gender • Culture/ethnicity • Class • Illnesses, disabilities • Income • Education • Language • Lifestyles • Location • Sports, Hobbies

3. example 1: metro versus retro-sexuals • The “Man Study” by the Leo Burnett advertising agency, which created the Marlboro Man, found that half of all men report that they don’t know what is expected of them in society. • three-quarters of men think that images of men in advertising are out of touch with reality. • Most ads have lumped men into one of two groups: • “metrosexuals”: soft, caring males who are in touch with their feelings. They use product in their hair, get facial peels, wear designer clothes • “retrosexuals”: manly, macho types. They drink beer, worship sports, work on cars

4. Segmenting male consumers • Metrosexuals: straight urban men who are into style, fashion • wear designer clothes • like fine cuisine • get expensive haircuts • get waxed • enjoy shopping at Banana Republic • Retrosexuals (“real men”): straight males who are more macho, prefer sex role differentiation • watch Nascar • Play Xbox 360 and Sony PS2 • like Carl’s Jr. • use power tools • enjoy shopping at Bass Pro • live in a “man cave”

5. Other male niches • African American males • Asian American males • Hispanic males • Anglo-Euro American males • gay males • bachelors • emo guys • macho men • liberal, cause-oriented men • sports nuts • older dads • divorced, separated males • NASCAR dads • nerdy, geeky men • athletic, fitness-oriented • conservative males • born-again, religious males

6. Advantages and disadvantages • identify a new audience, market • tailor message to a specific audience • focus on most relevant media • micro-marketing can be costly • More time, effort, expense to develop individual messages and strategies • if a brand is associated with one subgroup it may be shunned by other subgroups

7. Example 2: marketing to gays and lesbians • There are lots of gays/lesbians • Kinsey Report pegs 10% of the population as being gay. 6-7% openly identify themselves as gay/lesbian • higher concentrations of gays (12%) in large urban areas.

8. Gays as upscale consumers • Gays/lesbians have considerable purchasing power • generally better educated, more affluent • more tech savvy, computer literate • tend to be trendsetters, “early adopters,” of technology • politically involved

9. Gays as a niche group • Advertising to gays/lesbians is perceived as a form of social validation • 77% of gays report changing to brands that are gay friendly. • mygayweb.com reports that 78% of gay online users prefer to buy from companies that market to the GLBT community. • example:“gay friendly” hotels, tour operators • insensitive campaigns may backfire

10. Gay friendly ads

11. Example 3: Marketing to hispanic teens • There are lots of Hispanic teens • As of the 2000 U.S. Census, Hispanic youth ages 12-20 had become the largest ethnic youth population • Nearly 40% of Hispanics are under age 20 • By 2010, nearly 1 in 5 young people in the United States will be Hispanic • By 2020, the Hispanic teen population is expected to grow 62% compared to 10% for U.S. teens overall. • A larger percentage of children (ages 0-4), 17+%, are Hispanic http://video.google.com/videoplay?docid=-4484245883891789484&q=spanish+commercial&hl=en

12. Hispanic teens are bilingual (duh!) • Hispanic teens are more bilingual than their adult counterparts. • about 75 percent of U.S. Hispanics speak Spanish at home. • 96 percent of Hispanics use at least some Spanish at  home and 86 percent do so at work or school. • Nielsen reports that half of Hispanic-American households are thought to prefer watching programs in Spanish. • a majority (69 %) of Hispanics get more information about a product when it is advertised in Spanish than when it’s advertised in English only. Target ad

13. Hispanic teens are more receptive to Spanish language advertising • Roslow Research Group (2000) advertising to Hispanics in Spanish is significantly more effective than advertising in English. • …Spanish commercials are 40% more effective at increasing ad awareness than commercials in English • …Spanish advertisements are twice as persuasive as ads received in English. • 16% more Hispanic teens will recall the spot’s message if it is in Spanish.

14. Hispanic teens as a niche group • Hispanic teens have buying power • The average Hispanic teen spends $320 a month, 4% more than the average non-Hispanic, and one out of five teens in the U.S. is Hispanic`. • 18- to 24-year-old Hispanics are the most brand-loyal demographic segment in the U.S. • Hispanics teens have their feet in two cultures • Hispanic teens are holding on to their culture • Retro-acculturation • Hispanics exhibit more brand loyalty and less cynicism than other consumers

15. Hispanic friendly marketing • Accommodation Theory suggests that bilinguals are attuned to advertisers who go out of their way to reach them in Spanish. • Persuaders should speak to an audience's cultural identity. The message should be relevant and resonate with the culture.

16. Regional or sub-segmentation • How much homogeneity? Are “Hispanics” one group or many groups? • Can a persuader use the same advertising approach to market to Mexicans, Cubans, Puerto Ricans and Central and South Americans? • Hershey's made a controversial choice in promoting its new U.S. Hispanic line with language familiar to Mexicans, but not to other Spanish-speakers • cajeta, is the Mexican term for the caramel flavor known as dulce de leche in the rest of Latin America

17. Micro-marketing • Mark Penn 2007: microtrends: targeting niches within niches • Stay at home workers • Uptown tattooed • Office romancers • Archery moms • Old new dads • Vegan children • Troubled teens • College educated nannies • Late-breaking gays • Surgery lovers • Mini-churched • Militant illegals • Pampering parents • Mildly disordered teens • Video game grown-ups • Young knitters • Social geeks • New luddites