Marketing for Lawyers Segmentation Lesson 2 •Eva Tomášková •eva.tomaskova@law.muni.cz How to be successful? 1.segment the market, 2.target a single segment or series of segments, and 3.position within the segment(s) Segmentation lAnalysis customers needs and behavior lTo find out similar needs and demonstrate similar buyer behavior lTo match groups of the same set of needs and buyer behavior (segment) lthe segments are often named and/ or numbered in some way l lhomogeneous preferences ldiffused preferences lclusters Customers needs lCustomers buy a product for solving some problem (need) l lWhy do you need to buy a car? lTell us about your needs. l Customer behavior lCircle of needs and consumption •Needs •Wishes •Requests •Products •New market •Buing •Action Consumer market segmentation lby geography lwhere the customers live lby psychographics llifestyle or beliefs lby socio-cultural factors la social class, culture lby demography lsuch as age, sex, etc. lbuyer behavior lhow often they buy the product, who they buy with l Goal of segmentation is: lGoal of segmentation is: lTo identify groups of similar customers and potential customers; lTo prioritize the groups to address; lTo understand their behavior; lTo respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment. l l= to improve business performance (profit) Targeting l= choosing which segments to address l lEvery segment should be: lDifferent - is it distinct from other segments (different segments have different needs)? lHomogeneous - is it homogeneous within the segment (exhibits common needs)? lViable – the potential growth of the segment; how big the segment is; Is it possible to make a profit? lAccessible – Is it easy to get the segment? lMeasurable - Is it possible to obtain real data? l Positioning l= designing an appropriate marketing mix (product, place, price, promotion) for each segment l l= company should have different strategy for every segment Segment concentration l1 segment concentration lSelective specialization lProduct specialization lMarket specialization lFull market specialization l Task lPrepare segmentation of your group (Find at least 15 characteristics) l supermarket Silent generation lgeneration born during the Great Depression and World War II. lgeneration born from 1925 to 1945 lfound its characteristics as: lgrave and fatalistic, lconventional, lpossessing confused morals, lexpecting disappointment but desiring faith, and lfor women, desiring both a career and a family. Baby boomers lborn during the demographic Post-World War II baby boom lgeneration born from 1946 to 1964 lfound its characteristics as: leconomic power, ltheir life experiences, which include the rise of television and electronic mass media, lhigh level of education, and lthe large number of women who chose fulltime careers in the workplace Generation X lgeneration born after the baby boom lgeneration born from 1965 to 1977 lfound its characteristics as: lmore individualistic than previous generation lmore sceptic and media-wise l l Generation Y lknown as the Millennial Generation or Generation Next or Net Generation lgeneration born from 1978 to 1994 lfound its characteristics as: ltrend toward smaller families in developed countries continued lmarked by an increased use and familiarity with communications, media, and digital technologies l l Millennials lgeneration born from 1995 to 2010 lfound its characteristics as: lhave developed work characteristics and tendencies from doting parents, structured lives, and contact with diverse people. lworking in teams and want to make friends with people at work Who is a customer? lBio products l lcosmetics L´ORÉAL l linstant soup or food l lNike shoes l swoosh New Trends 1 lAge structure lolder people – segment Young old (medicaments, cosmetics, special offers for this segment – trips…) l lSize of household lsmaller households, a lot of unmarried (size of packages) l lIncome structure lgreat polarization of income (luxury goods x cheap goods) l lStructure of workers lgreat rate of working woman lquestion: family or careers (products increasing comforts, Household products make life a lot easier) New Trends 2 lPrice orientation lQuality orientation lPrice and Quality orientation lHealth and beauty orientation lAdventure orientation lInternet orientation lComfort orientation Task lWhich segment concentration from new trends is suitable for lawyers? lWhich of trends in the legal industry are possible to see in your countries? Task Task for next lesson lFind out usually price paid for lawyers (legal act) in your country and make comparison with the lawyers in the Czech Republic. Ways how to create the price lKnow the market lIt is necessary to find out how much customers will pay, as well as how much competitors charge l lCost-plus or value-based lCost-plus pricing involves adding a "mark-up" percentage to costs, which will vary between products, businesses and sectors. lValue-based pricing is determined by how much value customers attach to the product. l lAccording to the real costs l creating the calculation l lConsider cost-plus pricing lThis is usually expressed as a percentage of breakeven l lAdd other influences on price lHow will charging VAT have an impact on price? ldifferent prices for different regions. l lChange according to change of market or costs lThe price should be to optimal for customers Thank you for you attantion.