1. Discuss the rationale for utilizing segmentation as a basis for the National Alcohol Campaign.
It is basic principle in research to define the target audience in which the study is directed. In marketing, segmentation fully recognizes that buyers of any product or service category need, desire, want and expect different performance characteristics from products or services in the category. It helps the company to position the product properly and prepare marketing strategies to satisfy a more focused range of consumer needs and wants (1988). Furthermore, it is also a factor in effectively using limited marketing resources, identifying unique market niches, improving profitability and helping to retain consumer loyalty. The basis for the market categorizations of clients and customers include the (1) demographic characteristics, (2) the geographical location, (3) consumer behavior, and (4) psychographic characterizations (2002). To these authors, segments represent geographic groupings or groups of individuals and consist of prospective consumers who are likely to exhibit similar responses to marketing efforts. Furthermore, segmentation is as simple as grouping of people in terms of a single variable.
In this case, segmentation was used to deliberately define certain group of individuals as targets of the campaign. The overall intent of segmentation is to identify groups of similar consumers and potential consumers; to prioritize the groups to address; to understand their behavior; and to respond with appropriate strategies that satisfy the different preferences of each chosen segment. Improved segmentation facilitates higher level of accuracy and significantly affects effectiveness of the implementing processes. With the right segmentation, results can be improved and approval can be increased. Thus, the main rationale of segmentation in this campaign is the need to define a particular segment of people in which the campaign will be focused with the hopes of getting the most appropriate and reliable responses to the given population.
2. This campaign utilised demographic segmentation, on what other basis could the campaign have been segmented.
In undertaking an investigation or campaign like this, sometimes that target population is to large that it is more practical to use the responses of the sub-group in estimating the responses of the overall group. It should be more convenient for a researcher to use a sample or sub-group rather than the totality of the population. However, there are survey researches in education, psychology and in other fields of discipline that sampling is not needed anymore because of the small size of the population. Thus, there is just a requirement of identifying the segment of the population aside from its demographic variables such as age, gender, sexual orientation, family size, family life cycle, education, income, occupation, education, socioeconomic status, religion, nationality/race, and language.
This campaign can also be based on consumer behavior, psychographic as well as behavioral segmentation. Psychographic segmentation includes the following variables: personality, lifestyle, value and attitude. Meanwhile, behavioral variable are benefit sought, product usage rate, brand loyalty, product end use, readiness-to-buy stage, and decision making unit. It is acknowledge that when numerous variables are included and combined with the aims of having an in0depth understanding of a segment, it is called depth segmentation. A statistical technique that can be used in these types of segmentation is cluster analysis.
Consumer behavior enumerates the customers’ product knowledge, usage, attitudes and responses to a particular commercial item or service (2002). In this regard, the familiarity with, function, and purpose of commercial goods or services are distinguished depending on the consumers’ needs and use. For example, an educated and computer literate individual has a more tendency to buy technological gadgets that people who are not exposed to technological innovations that are available today. According to (2001), consumer buying behavior refers to the buying behavior of the individuals and households who buy the goods and services for personal consumption. Consumers around the world are different in various factors such as age, income, education level and preferences which may affect the way they avail of goods and services. This behavior then impacts how products and services are presented to the different consumer markets. There are many components which influence consumer behavior namely: cultural, social, personal and psychological ( 2001).
Psychographic characterizations of the clients and customers are their lifestyles, values, and personality (2001). These factors dictate their purchasing behavior upon exposure to commercial items. Take the example of a Muslim and a Christian buying preference of food. Since their lives are governed in one way or another by their respective religious belief, their choices on commercial items are affected. The food choices of the Muslim are more limited compared to the appetite that a Christian can indulge in.
All in all, these segmentation strategies are dependent on the objectives of the research process or campaign. Given the opportunity to use any of the three presented segmentation strategies, it can pave way to another area of research in which correlation is related. Here, the researcher can relate the findings of the former studies to the concurrent investigation.
3. Applying the criteria for effective targeting of marketing segments discussed in this chapter, would you say these criteria are satisfied?
Applying the criteria for effective targeting of marketing segments, it could be concluded that these criteria are satisfied. Oftentimes, segmentation in research particularly in marketing is unavoidable and always premeditated (2000). This is because of the fact that the overall process involves a lot of time, money and effort. As long as the segment used is a representative portion of the overall population in which any endeavor is directed, there is no significant question of inaccuracy unless proven so. Using these criteria, he researcher is able to generalize with complete confidence and describe the population from which segments are taken. The findings and conclusions obtained from the segment are valid.
Regardless of the specific technique used in selecting a segment, the steps used should include the identification of the population, the determination of the required sample as well as segment, and the selection of the sample or segment. Aside from the innate characteristics of the sample, it is recommended that the criteria for effective targeting of marketing segments, when used in any application, should be connected to the concept, studied carefully by the researcher, and proven to be applicable and effective in eliciting satisfactory and factual results.
4. What segmentation implementation strategy was used for this campaign and was it effective?
Market segmentation is the identification of subgroups within the total market that the company wants to target. This fully recognizes that buyers of any product or service category need, desire, want and expect different performance characteristics from products or services in the category (1998). It helps the company to position the product properly and prepare marketing strategies to satisfy a more focused range of consumer needs and wants. Furthermore, it is also a factor in effectively using limited marketing resources, identifying unique market niches, improving profitability and helping to retain consumer loyalty.
Specifically for this campaign, demographic segmentation was used. It is proven to be effective because it is interconnected with the objectives of the campaign. For the campaign needs straightforward responses to a chosen population, this segmentation strategy is the most relevant and appropriate. However, there is a need for a researcher to minimize the perceived disadvantages of demographic segmentation. The limitation of basing the findings and conclusions to the demographic profiles of respondents is not enough. Thus, a recommended follow-up focusing on the deeper and more scientific perspectives such as psychographic segmentation or consumer behavior is needed.
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