8-1

Chapter Questions

How can markets be segmented?

How can a company best divide a market into segments?

How should a company choose the most attractive target markets?

What are the requirements for effective targeting?

8-2

Mature consumers are a rapidly growing market

8-3

Segmenting Consumer Markets

GeographicGeographic

DemographicDemographic

PsychographicPsychographic

BehaviouralBehavioural

8-4

Basic Market Preference Patterns

8-5

Effective Targeting Criteria

MeasurableMeasurable

SubstantialSubstantial

AccessibleAccessible

DifferentiableDifferentiable

ActionableActionable

8-6

Effective Targeting Requires…

• Identify and profile distinct groups of people

who differ in their needs and preferences.

• Select one or more market segments to

target.

• Establish and communicate the distinctive

benefits of the market offering.

Water Use: 8 Identified Audiences!

• First priority audiences:– Local/elected officials– Operators– Homeowners/landowners– Watershed groups/associations

• Second priority audiences:– Homeowner associations, septic professionals, civic

groups, NCWS

• See detailed information on each audience

Local/Elected Officials

• Who: Many levels of leadership, often not a full-time job as a leader

• Knowledge: Ins and outs of local community

• Motivators: Serving community, reduced complaints, saving money

• Barriers: Lack of time and financial cost to address issue

Community Water System Operators

• Who: In charge of many things, not just water system

• Knowledge: About doing their job, but less about community outreach/policy change

• Motivators: Do the right thing, save time, less monitoring

• Barriers: Don’t have authority, little time

Homeowners and Landowners

• Who: Individuals with on-site septic systems living in small communities

• Knowledge: Know about on-site systems

• Motivators: Protect water, save money, protect property values

• Barriers: Source of problem may be outside jurisdiction, limited interest until “crisis” occurs

Watershed Groups and Associations

• Who: Groups with a specific water focus

• Knowledge: Lots about water in general, not as much about septic/drinking water

• Motivators: Doing the right thing, making a difference, activism

• Barriers: Distrusts industry, dislikes compromise

Homeowner Associations

• Who: Groups of homeowners living in clustered communities

• Knowledge: Varies greatly, some will know more than others about this issue

• Motivators: Protecting drinking water, saving money

• Barriers: Issue is complex and potentially expensive to deal with

Septic Installers and Service Providers

• Who: Mostly small business people who interact with customers

• Knowledge: Lots about septic, less about source water protection

• Motivators: Business-oriented, making money

• Barriers: Lack of time

Civic/Special Interest Groups

• Who: Involved individuals within a community

• Knowledge: How to get things done in their community

• Motivators: Doing the right thing, positive publicity

• Barriers: Competing with other issues

Non-Community Water Systems

• Who: Mostly part-time operators

• Knowledge: Often understand both drinking water and wastewater

• Motivators: Technical assistance, ability to be involved in community

• Barriers: Lack of time, not adept at communications with others

Similarities Across all Groups

• Time is limited

• Prefer short messages

• Agreement that issue is important, but understanding is limited/incomplete

• Few resources (financial or time) to readily devote to this issue

• Other competing priorities

Differences Across Groups

• Initial interest in this topic

• Willingness to work on this topic

• Level of authority to solve problem or address issue

• Level of comfort in working with others in community to solve problems

• Communication styles and preferences