You need to identify the market segments that your scheme can serve effectively. Doing so will help you to target those groups you have the greatest chance of satisfying and enable you to target your marketing efforts and resources. Marketing tactics can then be tailored to each group and specific outcomes can be projected and evaluated.
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Geographic segmentation – dividing the market into different geographical units (eg by suburb) to see where the young families are.
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Demographic segmentation – covers age and generation, family size and family life cycle, income, occupation and education; ethnicity and social class.
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For example, if you have a high population of Chinese families in your area it may be worth translating your marketing material or placing ads in the Chinese press (FDCA can link you to translators – call us on 1800 658 699)
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Psychographic segmentation – the division of buyers on the basis of lifestyle or personality or values.
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As an example, lifestyles are partly shaped by whether people are constrained by time or money. This might be an opportunity to offer a time constrained parent a value-added service such as dance or music lessons for their child whilst in care.
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Behavioural segmentation – buyers are divided into groups on the basis of their knowledge, attitude, use or response to a product; many marketers believe that this is the best starting point for constructing marketing segments, eg: |
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Occasions are when consumers develop a need, purchase or use a product, eg a critical life event such as childbirth will give rise to new needs – so make sure your marketing material is available in the maternity ward of the local hospital, at doctor’s surgeries, baby health clinics, maternity stores and baby equipment suppliers. For around $26 a week you can arrange for a customised ad about your scheme to be made to play on a video loop in doctors’ surgeries (www.cnetwork.com.au) |
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Benefits – buyers vary considerably in the benefits they seek from the same product, eg a parent may choose a childcare service based because it has a reputation of high quality (ie a premium brand); a branded product with reliable service; convenience; or low price. Each one of these segments needs a different message and marketing mix |
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User status – markets can be segmented into non-users, ex-users, potential users, first-time users and regular users. For example, an impending birth will turn a non-user of childcare into a potential user. Recruiting first-time users will require a different marketing strategy than retaining existing users or attracting current users away from other types of childcare |
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Usage rate – consumers can be light, moderate or heavy users of a service, eg a family with two parents working full time will use more childcare than a family where one parent works part-time. Economically, it is preferable to attract one heavy user than several light users |
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Loyalty status – consumers can be divided into those who buy one brand all the time; those who are loyal to two or more brands; those who shift from one brand to another; and those who show no loyalty to any brand. Obviously we want to attract parents that are loyal to family day care! |
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Buyer-readiness stage – consumers are at varying levels of buyer-readiness, ie unaware of service; aware; informed, interested, etc. The relative numbers in each segment can make a big difference in designing your marketing program |
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Attitude – five attitude groups can be found in the market: enthusiastic, positive, indifferent, negative and hostile – gauge the attitude to determine how much time to spend with that person
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Segments are fairly large and normally attract several competitors. A niche is a more narrowly defined group seeking a distinctive mix of benefits.
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Effective segmentation
To be useful, market segments must be:
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Measurable: the size, purchasing power and characteristics of the segments can be measured
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Substantial: the segments are large and profitable enough to serve. A segment should be the largest possible group worth going after with a tailored marketing program. For example, if you have a large corporate call centre in your area, tailor a marketing program to suit the needs of its workers
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Accessible: the segments can be effectively reached and served
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Differentiable: the segments are recognisably different and so will respond differently to marketing-mix elements and plans
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Actionable: effective plans can be developed for attracting and serving the segments
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In evaluating different market segments, the scheme must look at two factors:
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the segment’s overall attractiveness, ie does the potential segment have characteristics that make it generally attractive, such as size, growth, profitability, scale economies and low risk?
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the scheme’s objectives and resources, ie does marketing to this segment mesh with the scheme’s objectives, resources and competencies? For example, if you identify a large Vietnamese population in your community, do you have a staff member who can speak Vietnamese? Do you have access to translation resources? Do you have Vietnamese carers? Are cultural differences understood? In other words, can you target this market and know how to provide them with a service they will value? |
