MKT3017

Digital Campaign Planning and Analytics

Lecture 3 – Accountability in the digital Age AND

Marketing segmentation, targeting and positioning

Matt Brown
Learning Outcomes

By the end of this session, you should be able to

• Distinguish between marketing and digital marketing accountability

• Explain the primary sources of concern for accountability in the digital
world
• Briefly outline the main groups of accountable online users
• Elaborate on the importance of corporate digital responsibility
• Briefly outline the difference between market segmentation, targeting and
positioning.
• Explain in detail why it is important to segment consumer markets.
• Distinguish between the different segmentation variables.
• Explain the main four targeting strategies.
• Elaborate on why positioning a product or service is essential to its success.
ACCOUNTABILITY IN THE DIGITAL WORLD
MARKETING ACCOUNTABILITY

Marketing accountability

Marketing accountability refers to metrics to link a firm’s

marketing actions to financially relevant outcomes and
growth over time. This accountability allows marketing to
take responsibility for the profit and loss from investments in
marketing activities and demonstrate the financial
contributions of specific marketing programs to the overall
financial objectives of the firm, including brand asset value.
Source: Marketing Accountability Standards Board
(MASB, 2016)
MARKETING ACCOUNTABILITY

• One way of looking at marketing accountability is

to establish how marketing activities contribute
to business growth over time.
• Marketing accountability also entails responsible
marketing activities by putting the consumer’s
well-being at the center of all marketing activities.
• With the availability to access high amounts of
data online comes the need for heightened
accountability.
ACCOUNTABILITY IN THE DIGITAL
WORLD

Stewart (2019) specifies four primary sources of

concern regarding accountability in the digital
world.
• Privacy
• Fraud and inappropriate information
• Competition and marketing concentration
• Management of assets
Corporate Digital Responsibility
(CDR)

Corporate digital responsibility (CDR) is the set

of shared values and norms guiding an
organization's operations concerning four main
digital technology and data processes. These
processes are creating technology and data
capture, operation and decision making,
inspection and impact assessment, and
refinement of technology and data.
Source: Lobschat, Mueller, Eggers, Brandimarte,
Diefenbach, Kroschke, and Wirtz (2021)
GDPR - Consists of 7 key principles
MARKET SEGMENTATION, TARGETING AND
POSITIONING
CONSUMER SEGMENTATION
VARIABLES
ONLINE CONSUMER TYPOLOGIES

A study by Huseynov and Yıldırım (2017) found

five different types of consumer segments:

• opportunist customers
• transient customers
• need-based shoppers
• sceptical newcomers
• repetitive purchasers
TARGETING

A common set of six criteria is applied to segments to decide which of the identified
segments a business should target (Kotler & Keller, 2012).
• Identifiable. The buyers in your segments need to be identifiable in order to be able to
serve them effectively.
• Substantial. A segment needs to be of sufficient size to promise profits.
• Accessible. A business needs to consider the accessibility of the segment since if you
cannot reach your audience, you cannot communicate with them.
• Stable. A segment needs to be around for long enough to justify a tailored
communication strategy.
• Differentiable. Consumers in one segment need to have similar needs to those within the
segment but different enough to those not part of the segment.
• Actionable. This is almost summarizing factor of all of the previous ones. A business must
be able to put their plan into action for the identified segment otherwise they would
need to choose an alternative.
TARGET MARKET STRATEGIES

Fahy & Jobber (2015)

Undifferentiated

outline the following

four generic target
marketing strategies Target
Focused market Differentiated

strategy

Customized
THE IMPACT OF DIGITAL TECHNOLOGIES
ON TARGET MARKETING STRATEGIES

The following list shows a few examples of how digital

channels facilitate successful targeting strategies.
• Targeting based on interests
• Targeting through personalisation of emails
• Targeting through personalisation of the shopping
experience
• Targeting with the help of augmented-reality apps
• Targeting through custom video content
• Targeting through multiple channel exposure
POSITIONING

There are various features that a company can

choose to base their positioning on. The following list
highlights a few of those features (Hayley, 2022):
• Pricing
• Quality
• Differentiation
• Convenience
• Customer service
• User groups
POSITIONING STATEMENT

• A positioning statement is an expression of

how a given product, service or brand fills a
particular consumer need in a way that its
competitors don’t.
• Positioning is the process of identifying an
appropriate market niche for a product (or
service or brand) and getting it established in
that area (Wigmore, 2022).
People
Why segmentation

Most marketing starts with

understanding the customer

But selling to each individual

separately can be inefficient Know
your
Recognising that other customers may customer
behave and react to the same offers in
the same way helps us find other
customers we can sell to more
efficiently
•The process of identifying individuals or organisations with
similar characteristics that have significant implications for the
determination of marketing strategy Jobber (2004:210)

•Identified segments must be:

– Measurable
– Accessible (within resource constraints)
– Actionable
– Useful (profitable or within strategic plan)
– Ethically and legally acceptable
– Ideally, mutually exclusive
Why segment

Better understanding • Customer characteristics are

understood
• Focus on identified customer needs
Better product
• Products developed with tailored
benefits
More cost-effective to target • Greater customer satisfaction
• Continuous research to
maintain competitive
advantage
• Marketing mix designed for
target market
• Allows differentiated strategies and
creates differential advantage
• Brands often different segments
with different non-competing
product. Can you name any?
Why segment

SINGLE PRODUCT LINE MULTIPLE PRODUCT LINES: VW

Different products sold profitably to different
groups, avoiding cannibalisation
Volume
- Volkswagen, Volkswagen Commercial
Vehicles
Finding a space where to compete - Skoda
most effectively - Seat
- Cupra
Premium
- Audi, Bentley, Lamborghini, Ducati

Sport
- Porsche
For and against segmentation

Majority Fallacy Double jeopardy

• Error of assuming the biggest, • Brands with lower market share
average segment is most profitable suffer lower purchases and
• Smaller or more extreme groups lower loyalty
may have less competition

There is no fixed set of rules you must follow in strategy.

Geographic

• Focuses on the where issue

• Local segmentation often used by small
firms
• Keeps the market confined to a
manageable area
• Global segmentation : The company
sees the entire world as its
appropriate playing field
– Potential for cultural inappropriateness Example from Mintel

• Need to also consider topography

West, Ford, & Ibrahim (2015), Strategic Marketing, 3
rd

edition
– Costs of overcoming physical obstacles
Cross-border segmentation and
international challenges

Variety of new challenges faced by companies going outside their

country borders
–Culture is single biggest challenge
–Study individual segments to determine choice drivers
–Combine secondary data with on-the-ground observations
–Phenomenology – studying consumers as they go through daily activities
–Localization often depends on how similar are the uses of the product
in the new context to the home uses
–Diaspora marketing – using immigrants from the home country as
targets in new international markets

West, Ford, & Ibrahim (2015), Strategic Marketing, 3rd

edition
Demographics

Gender
Age
Cohort
s of
society
Moments and events in late adolescence / early
adulthood (17-23 yrs) , Gen Z
This may not work globally
Level of Education
Level of
Income
Occupation
Religion
Ethnicity
Family size Examples from Mintel
Family life cycle
West, Ford, & Ibrahim (2015), Strategic Marketing, 3
rd

stageedition
Social
class/status
Psychographic

• Perceptual issues, psychologically similar in their orientation

• Excellent potential for effective targeting segments, understanding how the
segments live their daily lives
• Lifestyle
– The ways in which individuals choose to live their lives
• Personality
– Similar personality types
– Kotler (2003) lists four main variations of personality: compulsive, gregarious,
authoritarian and ambitious
• Core Values
Examples from Mintel
– Match its core values with those of the segments, building positive
associations

West, Ford, & Ibrahim (2015), Strategic Marketing, 3rd

edition
Psychographic - Examples

VALS Typology
• A multi-based approach to segmentation incorporating both psychological & demographics is
developed by SRI International
• For the US market SRI identified eight separate groups for segmentation purposes
– Actualizers (10 % of population)
– Fulfilleds (11% of population)
– Experiencers (13% of population)
– Achievers (14% of population)
– Believers (17% of population)
– Strivers (12% of population)
– Makers (12% of population)
– Strugglers (12% of population)

West, Ford, & Ibrahim (2015), Strategic Marketing, 3rd

edition
Post COVID example from
IPSOS

Source: What we know about segmentation : WARC 2022

Behavioural

Activities and events

• Business travellers Within our sales funnel
Buyers within category
• Violin players
Prospects who have visited the website
• Car enthusiasts Prospects who have requested a quote
People at check-out or
• Regular commuters
in store Customers
• Subscription buyers Repeat customers
Frequency
of purchase Value of
West, Ford, & Ibrahim (2015), Strategic Marketing, 3rd sales
edition
Recency of sales and
potential leavers
Loyalty club customers
Advocates / complainers
Technographic

Attitudes to, and adoption of technology

Innovators Early adopters Early Majority Late Majority 34% Laggards 16%
3.5% 12.5% 34% Don’t want to get left Cannot see why they should
Committed Will work with Pragmatists behind when they adopt
to new wanting it easy see majority adopt
new tech for advantage
Will affect how-to-reach , and what reaction to expect

West, Ford, & Ibrahim (2015), Strategic Marketing, 3rd

edition
Analog vs digital segmentation

Broadcast to many Narrowcast to segment One to one

Segment Segment Segment
- Based on media - Based on media - Based on data
targeting targeting
- Based on - Based on
messaging messaging
- Based on
Segmentation beyond the access capabilities is irrelevant – One-to-one requires mutually
some overlap is acceptable situation
excusive segments
 How segmentation is being used

Creatively
- Find insights of segment(s)
- Research
- Create messages that appeal
- Reflect the life of the segment in creative executions
- Signals to the audience in the non-segmented media

Example: Amtrak – making trains appeal to millennials

- Research uncovers insight no relaxation until you arrive
- Creative : get carried away
(https://www.facebook.com/Amtrak/videos/323577851686269/ )

Case study: https://www-warc-com.ezproxy.mdx.ac.uk/content/article/amtrak-get-carried-away/142435

 How segmentation is being used

Creative and media : IKEA

• Used 1st party data to identify 8 segments and their products
• Challenge, use just two videos to increase use of catalogue

Worked with Google Merchant Centre and YouTube Director Mix

target and to customize images, contextual pictures to match
segments

Targeted ads on Google based on affinity to our segments

Case study: https://www-warc-com.ezproxy.mdx.ac.uk/content/article/warc-awards-media/ikea-2021-new-

catalogue/139358
How segmentation is being used

•Media questions
- Focus the budget on the audience where it is worthwhile
- Do you sacrifice stature (TV) for targeting (specialist site)

•Digitally enabled
- Much richer targeting (based on previous searches,
interests)
- Behavioural targeting, eg re-targeting web-visitors
- Digital enables look-a-like targeting – mirroring your
database
Digital Personas
Personas

• Buyer Personas are fictional, generalized representations

of your ideal customers. They help you understand your
customers (and prospective customers) better, and
make it easier for you to tailor content to the specific
needs, behaviors, and concerns of different groups.

• The strongest buyer personas are based on market

research as well as on insights you gather from your
actual customer base (through surveys, interviews,
customer data, etc.). Depending on your business, you
could have a few personas or a lot of specialized
personas — you can always develop more later if needed
 Technology/Product Buyer Persona

Lea Goals/Metrics/Motivations

Primary/secondary goals? Personal

Challenges

What does this person struggle with in

Blask
vs professional goals? Top metrics relation to meeting goals? What serves as a
they track? Motivations? roadblock for this person’s success?

Your text here... Your text here...

Background
— Job?
— Career path?
— Family? Skills
— Lifestyle?
— Spending habits? CRM

Your text here

Coding

Demographics What can we do?

Software Knowledge
— Age? ...to help our persona achieve
— Income? their goals? ...to help our persona
— Location? overcome their challenges?
— Gender identity? Another skill
Your text here...
Your text here

Technology/Social Media Real Quotes

Device preferences? Social
media platforms? Tech About goals, challenges, etc.
savvy?
Your text here...
Your text here
• Go to: https://www.hubspot.com/make-my-persona
Any Questions?
LIST OF REFERENCES

• Fahy, J & Jobber, D (2015) Foundations of Marketing, McGraw-Hill Education,

Berkshire
• Hayley (2022) Positioning in Marketing: Definition, Types, Examples, Benefits
& How to, Mageplaza, 1 May. Available from
https://www.mageplaza.com/blog/positioning-in-marketing.html [Accessed
27 May 2022]
• Huseynov, F., & Yıldırım, S. O. (2017) Behavioural segmentation analysis of
online consumer audience in Turkey by using real e-commerce transaction
data. International Journal of Economics and Business Research, 14, pp 12-28.
• Kotler, P & Keller, K (2012) Marketing Management, 14th ed. Upper Saddle
River, NJ: Prentice Hall
• Wigmore, I (2022) Positioning statement, Tech Target. Available from
https://www.techtarget.com/whatis/definition/positioning-statement#:~:text
=A%20positioning%20statement%20is%20an,it%20established%20in%20that
%20area
. [Accessed 27 May 2022]
LIST OF REFERENCES

• Marketing Accountability Standards Board (2016) Marketing

Accountability, October. Available from
https://marketing-dictionary.org/m/marketing-accountability
/
[Accessed 22 March 2022]
• Stewart, D W (2019) The accountability crisis in advertising
and marketing - self-regulation and deeper metrics are
needed to survive the digital age. Journal of Advertising
Research, December 2019, pp 385-390
• Lobschat, L, Mueller, B, Eggers, F, Brandimarte, L, Diefenbach,
S, Kroschke, M, and Wirtz, J (2021) Corporate Digital
Responsbility. Journal of Business Research, 122, pp 875-888