Section 7: Segmentation and targeting

The principles of market segmentation

Having recognised that there is a wide range of potential markets for social marketers to engage with, the next stage is to adopt relevant segmentation criteria.

This section will focus on the end user, e.g. children. For consumer markets typical segmentation criteria are:

• Demographic factors, e.g. age, gender, income

  Demographic factors are probably the easiest to identify and use as a basis for target marketing. Age groups are a key factor. For example, figures from the USA focus on three age groups: 2-5 years, 6-11 years and 12-19 years. The figures show that for preschool children of 2-5 years the obesity rate has more than doubled in the last three decades; and similarly for adolescents aged 12-19. For children aged 6-11, however, the rate has tripled. Household income is a further factor since fresh fruit and vegetables may be non-affordable or non-accessible, compared to fast food, for low income families.

  
  
• Geographic factors, e.g. city, rural areas

  Again, research suggests that urban and suburban designs can discourage walking and other physical activities. Childhood obesity is a particular problem in countries such as the USA and is currently increasing also in both developed and developing countries.

  
  
• Psychographic factors, e.g. lifestyle, personality

  Other factors that contribute to obesity include lifestyle pressures for parents to minimise food acquisition and preparation time, which results in the increased consumption of convenience foods. The lifestyles of children themselves, e.g. involvement in social activities, is also influential.

  
  
• Behavioural, e.g. habits, product use, benefits sought

  Consumers can also be differentiated according to their behaviours: e.g. car use rather than physical exercise; frequency of food consumption; fast food vs healthier options; where they eat (at home or at school).

Example

For a detailed analysis of market segments for cycling click here

Target markets

Once markets have been segmented according to relevant criteria then target markets can be established.

The diagram illustrates how 12 potential target markets for interventions for childhood obesity can be developed from three criteria: age group, level of household income, and degree of control over eating and exercise habits (a behavioural factor). Clearly, there will be inter-relationships since age and degree of control are likely to be correlated.

So Box 1 identifies a target market of 2-5-year-olds living in households with below average income and with a low level of control over their own eating habits.

Criteria for effective segmentation and targeting

Once established, target markets should then be assessed against a number of criteria.

Click on each link below for more information.

• Homogenous

  The principle of market segmentation rests on the premise that individuals within the target market are relatively homogenous and therefore likely to respond to marketing stimuli in similar ways.

  
  
• Differentiable

  At the same time, the segment must be differentiable. Individuals within the segment must respond differently to those in other segments.

  
  
• Measurable

  Individuals within the segment must be clearly identifiable so that the size of the market can be established. It is relatively easy to establish segment size based on demographic and geographic data, but harder if segments are based on attitudinal or behavioural characteristics. (Some 2-5-year-olds have a big say in what they eat!)

  
  
• Accessible

  Target markets must be accessible, or able to be reached, by marketing communications, distribution channels, etc.

  
  
• Actionable

  This refers to the resources of the organisation and the ability to reach and influence the market.

  
  
• Viable/Substantial

  Commercial marketers will consider a market that is profitable and sustainable. Social marketers must assess whether the chosen target market will fulfil the programme objectives and justify the resources allocated to it.

Ethical issues If a social marketing campaign is concerned with positive behavioural change that will improve health and wellbeing, is it ethical to adopt a segmentation and targeting approach? By definition this means that some groups of people will be excluded. For more discussion on this go to the course ebook, Chapter 10, p. 213.

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