Market Segmentation, Targeting + Positioning

Question 1

Segmenting the green market

Answer 1

• segmenting markets allows firms to target marketing programs directly to those who are most likely to buy.
• demographic characteristics include age,vex and ethnicity, however are limited for identifying target segments for sustainable marketing.
• psychographic criteria tend to be more useful than demographics for identifying differences in a consumers environmental and social priorities. E.g. Values and attitudes.
• lifestyle segmentation focuses on overall patterns of consumer choices and behaviour. Two categories:
  1) primary conservationists: people who make major changes in their lives in an effort to reduce consumption.
  2) secondary conservationists: don’t change their basic consumption patterns, but they seek to offer their impact through reusing, recycling and the use of developing technologies.

Question 2

The green Gauge report (6 segments)

Answer 2

1) genuine greens - environmental activists, they perceive there is not barriers to action.
2) not me greens - environmental believers, tend to be limited to convenient actions like recycling.
3) go with the flow greens - environmental moderates, tend not to relate to problems like global warming.
4) dream greens - environmentally friendly but naive, would be more sustainable if they knew how to do so.
5) business first greens - environmentally indifferent, tend to think that the environment is somebody else’s problem.
6) mean greens - environmental cynics and sceptics, likely to think environmentalism is a sham or political conspiracy.

Question 3

Alternative consumption segments (3 definitions)

Answer 3

• alternative consumption: reject consumerism, or the notion that happiness and well being are derived from the accumulation of material goods.
• voluntary simplicity: the option to live with less, reducing ones material consumption by choice. Entails changing jobs or lifestyles in an effort to achieve more free time and a richer life.
• locavores: stresses the environmental, social and economic value of eating products grown close to home.

Question 4

Alternative consumption segments (2)

Answer 4

• anti consumption: a sociology political movement against consumerism. Motives for anti consumption include resistance to commodity culture and corporate brands.
• ‘freegans’ : dumpster divers, live off others people waste including food waste, clothing and household items.

Question 5

Positioning for sustainability (3)

Answer 5

• positioning: the use of marketing communication to create a distinctive identity for it in the minds of consumers.
• to position themselves for successes in the growing green market, firms need to examine the benefits provided by their products and services and match those benefits wi target customers core sustainability values.
• in successful segmentation, targeting and positioning, the key is to discover and resonate with the meanings and values that target customers hold most strongly.

Question 6

Positioning for sustainability (2 examples)

Answer 6

1) appeals to s segment concerned with health and safety - Mythic Paint: ‘Safe for people; Safe for pets; and Safe for the earth’
2) emphasis on economy or money savings - energy star ratings.

Question 7

Taking the green position in the business to business sector

Answer 7

• b2b sustainable segments: businesses that sell sustainable products and services to other businesses.
• sustainability minded suppliers can offer innovative solutions to customers problems.
• b2b market segments are different in that they are aligned with specific industries, materials, and processes but the need for sustainability is universal.
• Example: ford motor company works with its suppliers to increase recycling and waste reduction. As a result, less waste goes into the environment, and costs are lower for ford.

Question 8

The emerging green market definition

Answer 8

• the green market: sustainability-orientated consumers and the business that serve them.