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Powerful Segmentation

Back when I was a kid, I often wonder through the stack of magazines in my father’s office, often picking up several magazines to look through. One of the magazine was called ELITE which is published exclusively for members of the Royal Bangkok Sports Club, which is a club with a membership of 9000, consisting of current and former prime ministers, military officials, influential businessmen, or basically, the Thai aristocrats. Looking through magazines, I often would look at advertising as they strike the young version of myself as colour and interesting. I understand why many marketers would want to advertise their product/service through magazines with a great reader base as they will get a lot of publicity, what I am confused about is why would they want to advertise in ELITE where the reading base is very small. However, it is only until now – having learned about STP – that I understand that advertising in ELITE, marketers (including BMW, Ferrari, and Lexus) are segmenting the market demographically (with income being the variable) to potentially entering a market segment with the biggest potential spending power in Thailand. By basically advertising in the right spot, they can eliminate the need to filter unwanted segments straight away. Now THAT is powerful!!!

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