MKTG2112 · Consumer Behaviour
To Whom? Segmentation, Targeting & Personas
Once you can map the journey, you must decide whose journey to serve. This topic runs STP (Segmentation → Targeting → Positioning), the bases used to slice a market (consumer-rooted vs consumption-specific), the five-part test of whether a segment is worth targeting, and how raw data becomes a persona or an over-indexed insight (the Roy Morgan Asteroid approach). It is examined as short-answer / essay, so you choose appropriate bases, apply the targeting criteria, and interpret an index number into a marketing action.
What this chapter covers
- 011. STP: Segmentation → Targeting → Positioning
- 022. Market segmentation: dividing a market into distinct subsets with common needs, then targeting one or more
- 033. Consumer-rooted bases: demographics, age cohort, geographic/geodemographic, personality, lifestyle/psychographics (VALS), values
- 044. Consumption-specific bases: usage rate, usage situation/occasion, benefits sought, brand loyalty, level of involvement
- 055. Criteria for effective targeting: Sizeable, Identifiable, Stable, Congruent, Accessible (must satisfy all)
- 066. Personas: research-grounded archetypes of a target segment that guide strategy
- 077. From data to insight: index numbers and over-indexing (>100 = above the population base)
- 088. Profiling tools: Roy Morgan Asteroid / Helix Personas — combining clear index difference with adequate sample size and relevance
Targeting criteria & reading an index (short answer, 7 marks)
- 3 marks (all five named)List the five effective-targeting criteria — a worthwhile segment must be all of: Sizeable, Identifiable, Stable, Congruent (with the company's objectives and resources) and Accessible.
- 2 marksInterpret the index: an index of 134 means early-morning gym-goers are 34% more likely than the base population to buy functional beverages weekly — they over-index on the behaviour (anything above 100 is over-indexed).
- 2 marksGive a 'so what': concentrate spend on this over-indexing segment — e.g. sample at 6am gym sessions and advertise through fitness channels and apps this group also over-indexes on — because they are disproportionately likely to convert.
Key terms
- STP
- Segmentation → Targeting → Positioning — the three-step logic of choosing a market. Segment the market into groups, select (target) one or more, then position a distinct offer in the chosen segment's mind.
- Market segmentation
- Dividing a market into distinct subsets of consumers with common needs or characteristics, so a marketer can select one or more to serve with a tailored strategy rather than treating the market as uniform.
- Bases for segmentation
- The variables used to slice a market. Consumer-rooted bases describe who the consumer is (demographic, geographic, psychographic/lifestyle, values); consumption-specific bases describe how they relate to the category (usage rate, occasion, benefits sought, loyalty, involvement).
- Effective-targeting criteria
- The test a segment must pass to be worth targeting: Sizeable, Identifiable, Stable, Congruent (with company objectives/resources) and Accessible. A segment failing any one is generally not actionable.
- Persona
- A research-grounded, semi-fictional archetype of a target segment — name, demographics, goals, behaviours and frustrations — used to keep strategy and creative focused on a concrete consumer rather than an abstract group.
- Index / over-indexing
- An index compares a segment's rate of a behaviour to the population base: Index = (segment % ÷ base %) × 100. An index above 100 means the segment over-indexes (does it more than average); below 100, under-indexes.
To Whom? Segmentation, Targeting & Personas FAQ
What is the difference between consumer-rooted and consumption-specific segmentation bases?
Consumer-rooted bases describe who the person is independently of the category — age, gender, income, geography, personality, lifestyle and values. Consumption-specific bases describe how the person relates to the product category — how often they use it, on what occasion, what benefit they seek, how loyal they are, and how involved they get. Strong strategies usually combine both.
Why must a segment meet all five targeting criteria?
Because a segment can be attractive on one dimension yet useless to act on. It must be Sizeable (worth the effort), Identifiable (you can recognise members), Stable (it won't vanish before you reach it), Congruent (it fits your objectives and resources) and Accessible (you can actually reach it with media and distribution). A huge but unreachable, or reachable but tiny, segment fails the test.
How do I read an over-indexing figure in an exam?
Treat 100 as the population average. An index of 126 means the segment is 26% more likely than the base to do something; an index of 80 means 20% less likely. Always state the direction (over- or under-indexed), convert to a percentage above/below the base, and add a marketing implication. The unit also warns to combine a clear index difference with adequate sample size and real-world relevance before acting.
How is this topic examined?
As short-answer / essay: choose and justify segmentation bases for a scenario, apply the five effective-targeting criteria, build or critique a persona, and interpret an index/over-index figure into an action. The data-to-insight skill (turning a profiling table into a 'so what') is a favourite, mirroring the Roy Morgan week.
Exam move
Commit STP and the two families of bases to memory, then practise picking bases for different scenarios and defending them. Memorise the five targeting criteria as a checklist (Sizeable, Identifiable, Stable, Congruent, Accessible) and run any proposed segment through all five. The highest-value drill is data-to-insight: take an index table, state which segments over- and under-index, convert each to a percentage above/below base, and write a one-line marketing action — examiners reward the 'so what', not the raw number. Finally, practise sketching a persona from a brief so you can produce a research-grounded archetype quickly under exam time.
