INTERNET SEGMENTS MKTG 476 Segmentation Internet segments The
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INTERNET SEGMENTS ¡ ¡ ¡ MKTG 476 Segmentation Internet segments The “Digital Divide” Online activities Consequences of Internet use SEGMENTS Lars Perner, Instructor 1
Definition Although not all these consumers are completely alike, they share relatively similar needs and wants Marketing action: involves efforts, resources, and decisions--product, distribution, promotion, and price MKTG 476 SEGMENTS Segmentation: “Aggregating prospective buyers into groups that (1) have common needs and (2) will respond similarly to a marketing action. ” Lars Perner, Instructor 2
Approaches to Marketing ¡ Undifferentiated Strategy (no intended difference from competitors; no specific consumer group sought out) l l Southwest Airlines ¡ Concentrated Strategy (differentiation; one consumer segment sought) l ¡ MKTG 476 E. g. , AOL: Easy to use; protection Differentiated Strategy (same firm makes different versions for different segments) l Auto makers Generic, local Internet access Generic information web page E. g. , Yahoo! offers different types of email access and information access to different customers SEGMENTS Lars Perner, Instructor 3
Example ¡ Internet access l l l MKTG 476 Casual, price sensitive user: Cost is most important; speed less so will probably choose generic dial-up Casual user, ease of use: Ease of use is more important; will pay for ease may choose AOL dial-up Heavy user: May choose broadband Moderate user: Will choose broadband only if the price is low enough Traveler: Must have access both at home and while on the road (dial-up or wireless) SEGMENTS Lars Perner, Instructor 4
Bases for Segmentation ¡ Buyer/consumer characteristics l l l Demographics User type Lifestyle Behavior ¡ Situation ¡ Benefit desired ¡ MKTG 476 SEGMENTS Lars Perner, Instructor 5
Positioning Strategies ¡ “Head-on” competition l ¡ Differentiation l l MKTG 476 Net Zero: Offers access comparable to AOL but at a lower cost AOL: Ease of use, differentiation Google: Large free e-mail account but must accept advertising SEGMENTS Lars Perner, Instructor 6
Segments must Be relatively similar within and differ between ¡ Respond similarly to different “treatments” (e. g. , product offerings, prices, options) ¡ Be practically serviceable ¡ l l MKTG 476 Service must be feasible Segment must be large enough to be profitable SEGMENTS Lars Perner, Instructor 7
Targeting: Selecting Segment(s) and Specializing ¡ ¡ ¡ “You can’t be all things to all people” ---> choose one or more groups Focus narrows scope of competition, but demands are greater Repositioning: Changing established position may be Good sales; difficult -- e. g. , poor everyday l l MKTG 476 Sears Mc. Donald values Lunch; not dinner Good for children SEGMENTS Lars Perner, Instructor 8
Enterprise Segments ¡ Businesses l l ¡ Large Small Non-business l Public sector Government ¡ Educational ¡ l MKTG 476 Non-profit organizations SEGMENTS Lars Perner, Instructor 9
The “Digital Divide” ¡ Is the Internet an “equalizer” or another obstacle for the disadvantaged? l l l ¡ MKTG 476 U. S. Europe Developing countries Cultural issues in Internet use SEGMENTS Lars Perner, Instructor 10
High growth rate activities Consumer Internet Behavior ¡ ¡ ¡ E-mail Instant messaging Information search l l ¡ Work-related Educational Entertainment News File sharing l l l Photos Entertainment Software/data ¡ ¡ ¡ ¡ ¡ Online shopping/purchasing Online banking Travel reservations Online auctions Downloading Hobby information Medical information research e. Government Internet telephony See Siegel, pp. 64 -65 MKTG 476 SEGMENTS Lars Perner, Instructor 11
Possible consequences Social isolation ¡ Internet addiction ¡ Making new contacts ¡ Different types of communication ¡ Activism ¡ MKTG 476 SEGMENTS Lars Perner, Instructor 12