Section 2: Market Segmentation and Target Marketing

Market segmentation and target marketing consists of:

1. Segmenting the Market
2. Identifying Target Audiences
3. Analysis of Target Audiences
4. Section Summary

A. Segmenting the Market

Markets can be populations of:

• Individuals
• Groups
• Organizations

Market segmentation is the division of the total market into relatively homogeneous, but distinct segments. It is used to identify target audiences and strengthen a campaign's effectiveness in reaching selected segments. Segments usually respond to campaign elements differently and different techniques are required to reach and motivate various segments.

Some ways to segment a population are:

• Geographically: by location
• Demographically: by socio-economic group, characterized by age, income, sex etc.
• Psychographically: by such things as attitudes, values, lifestyles, and opinions.

Stages of Change Model

A commonly used tool in segmenting a market for social marketing is the "Stages of Change Model" developed by Doctors James Prochaska and Carlo DiClemente. The model explains the psychological process individuals experience as their behaviour changes. This model tends to divide populations into segments with common knowledge, attitudes, beliefs and behaviors relative to the issue at hand.

Stages of change:

Stage	Characteristics
Pre-contemplation	No intention to change behaviour In denial or uninformed of the need to change
Contemplation	Acknowledge problem and beginning to think about change
Preparation	Plan to take action within the next month and make adjustments before behaviour change
Action	Modify behaviour and surroundings to facilitate change
Maintenance	Work to consolidate the gains attained during action phase Struggle to prevent lapses and relapse
Termination	New behaviour is fully adopted

For more information on the Prochaska Stages of change, visit:
www.cellinteractive.com/ucla/physcian_ed/stages_change.html

Example 1:

In 2005 Health Canada conducted a survey on attitudes and behaviours related to healthy eating, physical activity and sport participation in preparation for a campaign on Healthy Living. Part of the research was a psychographic analysis, which segmented the market based on:

• Current behaviour
• Perceptions of the benefits of healthy eating and physical activity
• Need for information on healthy living subjects
• Current actions/intentions to improve their families' health

Four different segments, with different levels of commitment to healthy living and with different information needs, were identified. They are:

• Gold Medallists - Low information needs, highest commitment to healthy living
• Status Quo - Moderate information needs, high commitment to healthy living
• Info Seekers - High information needs, high commitment to healthy living
• Sceptics - Moderate information needs, lowest commitment to healthy living

The two groups Health Canada selected as target audiences are the Status Quo and the Info Seekers groups, as they were in a position to make improvements and were responsive to change.

Example 2:

Another well-known Health Canada segmentation analysis was conducted for the 1987 "Really Me!" campaign. "Really Me!" was designed to prevent illicit drug use among 11 to 13 year olds.

A psychographic analysis of youth at the time of the campaign identified seven lifestyle groups segmented based on their views regarding:

• work ethic
• family values
• current drug use behaviour
• tendency to follow others, and
• their futures.

The groups are as follows:

Group	Characteristics
TGIF (Thank God it's Friday's)	Less ambitious and disciplined Substance use/abuse tends to be part of the TGIF lifestyle.
Tomorrow's Leaders	Ambitious; Leaders not followers Optimistic about future Tend to be against smoking
Quiet Conformers	Strong work ethic and social conscience Follow rather than lead Against smoking and other substance abuse
Concerned Moralists	Very traditional attitudes toward family, sexuality, etc. Follow rather than lead Need the support and approval of others
Passive Luddites	More tolerant of, if not involved in, substance use/abuse Some degree of independence, but concerned about how one seen by others
Small Town Traditionalists	Traditional attitudes and beliefs Ambitious; self-confident Anti-substance use/abuse
Big City Independents	Independent Not easily influenced "Loners" more than team player Wide range of substance-use behaviours

For more information on this psychographic segmentation see Appendix A of the report titled "Still Making a Difference".

A more recent analysis of youth aged 12-18 identified three psychographic groups based on drug use attitudes and behaviour, particularly use of marijuana.

Group	Characteristics
Active Segment	Larger percentage of older youth Willing to experiment with drugs Highest proportion of friends that use drugs
Contemplators Segment	Equally split between younger and older teens Some use marijuana, but infrequently Least likely to be leaders
Inactive Segment	Least likely to have tried Marijuana Believe that drug use is dangerous Majority prefer not to be with those that use drugs

B. Identifying Target Audiences

Target marketing is the selection and concentration of marketing resources on one or more market segments.

Often more than one target audience is selected. Audiences are then divided into primary and secondary target audiences.

TARPARE Model for selection of Target Audiences

TARPARE (Donovan, 1999) is a model that can help to analyze market segments with a view to choosing target audiences where the greatest impact is likely to occur. TARPARE is an acronym for the assessment criteria to consider when choosing target audiences.

Initial	Criteria	Description
T	Total number of people in the segment.	Segments encompassing larger groups of individuals are more attractive
AR	At Risk	Segments at higher levels of risk should be given priority
P	Persuadability	A segment that is easily persuaded to change should be given higher priority, as it will take fewer resources to establish a behaviour change
A	Accessibility	Target audiences that are easier to reach with messages are more attractive as less work and fewer resources will be needed to make an impact
R	Resources required	The fewer resources required, to meet the needs of the target market, the greater the expected return on investment
E	Equity	The need to target specific disadvantaged segments

Example:

The primary target audience for Health Canada 's 2002 "Eat Well. Have Fun. You can prevent type 2 diabetes" campaign was women, with an emphasis on mothers, 25-39 and women who had lower levels of education and income. Research showed that individuals with lower levels of education and income and their families had the l owest awareness of type 2 diabetes, lowest activity levels and the poorest eating habits.

Women were selected as the primary target, as they were accessible and often made decisions that contributed to the health of their children, spouses (men, at higher risk) and parents (seniors, at higher risk), thus disseminating messages to all intended targets.

The secondary target was adult men aged 25-39 years. They tended to have lower awareness levels of diabetes and worse eating habits, but were found to be the least accessible target audience. Therefore, women were selected as the primary target audience.

C. Analysis of Target Audience

Analysis of the target audience helps social marketers understand:

• Current behaviour, knowledge, attitudes and values of target audiences
• Barriers that discourage target audiences from adopting the desired behaviour
• Knowledge gaps
• The appeal of competing behaviours

These can help to explain why the target audience is not already performing the desired behaviour.

Example:

In 1991, Health Canada created "Vitality" a campaign to promote healthy eating and physical activity. The target audience selected for "Vitality" was adults aged 25-44, with 9 to 13 years of education as they were at increased risk of developing cancer, heart disease and diabetes, yet existing public awareness and prevention programs had not been successful in changing their behaviour.

Research showed that the target audience:

• Supported government efforts to provide information on healthy eating
• Recognized healthy eating and physical activity improved health. (However, obesity was a rising problem within the segment.)
• Was interested in spending time with friends and children, when not at work
• Was not responsive to messages on weight loss. These programs had rarely been successful in creating long term change and often left individuals feeling discouraged
• Felt lack of time was a major obstacle to eating nutritiously and engaging in regular physical activity

Based on this research Health Canada initiated a program that integrated healthy eating, physical activity and positive body image. A positive message was used to motivate individuals to act on knowledge they already had.

The "Vitality" campaign worked to incorporate the values of the target audience and showed moments of daily life when adults forgot about their concerns, and spent time in the company of their children or friends.

Upstream Social Marketing

Sometimes significant environmental barriers exist which makes it difficult for change to occur at the individual level. In these cases, it may be necessary to employ upstream efforts, which aim to change the political, social, legal, physical or public policy environment by giving messages to industry or government.

Example:

In 2002 Health Canada ran a campaign on Second-Hand Smoke in the workplace. Health Canada had been delivering messages on the harms of tobacco use and second hand smoke for many years, but the "Heather" campaign was aimed at a different target. The campaign featured Heather Crowe a real Canadian who had been a waitress for 40 years. Heather never smoked, but worked in smoke-filled restaurants, and in the campaign material she explained that she is dying from lung cancer, due to second hand smoke. Heather has become a well-known spokesperson on second-hand smoke and has toured the country speaking about second-hand smoke in the workplace. The advertising campaign and the work Heather has done personally in communities across Canada , have had major impact on provinces and cities invoking bans on smoking in workplaces, restaurants and bars.

D. Section Summary

• Summary of Questions
• Test your knowledge