P1-Does internet marketing enable more effective targeting and segmentation? Can you describe some example?

Internet marketing enables more effective targeting and segmentation because online you can find out if your products are selling and which products are doing well and which ones aren’t. Also it aims to address similar groups of people, so if you have a target audience you can produce products that they would like and be interested in. market segmentation is when you find a segment of people that have the same wants and needs and similarities, and internet marketing enables more of this because you can reach people a lot easier on the internet and a lot more people use the internet now then ever before and shop online, Online shopping statistics out in February 2009 show a significant annual increase of 13%.

As ASOS are an online business they do most their targeting and segmentation online and internet marketing helps them achieve what they want.

Firstly for the people who aren’t registered with ASOS they have to make sure that you know about them, they do this by sending out leaflets in the areas they know there will be quite a lot of people in their age range and they also advertise on facebook, bebo, twitter and my space. And they also targeted with PR hoping that their customer will tell their friends and family about ASOS. The main segmentation used at ASOS is their target age which is between 18 and 34 so this way they know how they should design their website and how it will appeal to this audience also having this target age they know the products they would like to sell. And when you are register to ASOS they send you e-mail with their promotions and sales and when you have brought a product from them they send e-mails with items of cloths that they think you would like. And you can also talk on their blog with other people who shop at ASOS and give your opinion on their product and more.

There is also Demographical, Geographical and Psychographic and lifestyle segmentation.

Demographical segmentation  

Demographic originates from the word ‘demography’ which means a ‘study of population’ this population can be divided into age, gender, income and family lifestyle amongst other variables.

Age segmentation- peoples needs and wants change.

Gender segmentation- is commonly used with in the cosmetics, clothing and magazine industry.

Income segmentation- is used by most organisations.

ASOS uses all demographical segmentation because they look at all accepts. Age is one of the main ones they use; they have an age range of 18 and 34 because as people age their wants and needs change but because 18 to 34 is quiet a particular age that they can concentrate on. ASOS advertise to men and woman and have a big verity of products for both sexes but it is known that 80% more women shop at ASOS then men. ASOS also use income segmentation because they have different prices on their website from £10 to £100 or they have a good verity of prices so that everyone can shop with them.

Geographic segmentation

Marketers use geographic segmentation because consumers in different areas may display certain charactistics and behaviour in that particular region, this can also be divided by towns or countries.

ASOS do not just deliver in the UK they also do international deliveries in countries such as America, Canada, Europe, Russia, Asia and more. This also means that the deliver prices are different for each country.

   

 Psychographic or lifestyle segmentation

This looks at the consumer’s personal lifestyle for example their opinion, interest and personal charactistics, and then this helps the organisation put particular people into groups and then target particular products to these groups of people with the same charactistics.

ASOS find out their customer opinions and interests through their blogs were their customers can say what they like and what they think is in this season and what they should improve. Also ASOS don’t just put their customers into groups but individuals by sending them e-mails of products they think they would be interested in.