NEO-Marketing (and a Glossary of Marketing Terms)

The global meltdown has created a rare opportunity for marketers to shine. The starting point is a better way to measure and map social segments (see Glossary below). After all, some consumers are more valuable than others: happy to part with their hard-won cash, and prepared to do so frequently. Their spending propensity and spending capacity makes them potentially the most profitable consumers in the economy.

However, the absence of an evidence-based way to identify personal profit potential made it difficult for marketersto unlock and deliver that potential. Marketing was often misdirected with high levels of wastage in media spend. Managers' guesswork failed to attract and excite high-value customers, even if they already had them in their customer base.

We now have a better way.

Now at last, landmark research explains the links between high-value consumption and the intimate personal values and behaviours that drive it. This scientific research has, for the first time, identified a New Economic Order (NEO); the growing class of consumers powering the economy. It forensically defines who spends the most – most frequently – and it provides rich insights into their mindset, lifestyles and attitudes. Critically, it identifies what differentiates high-value NEOs from everyone else.

We now know who has the highest personal profit potential; and what makes them tick. We know how they can be identified; their expectations of products, services and customer service. We know what kind of marketing and branding appeals to them; what turns them on...and what turns them off! 

Drawing on its success stories with global and national brands, NEO Consulting helps marketers profit from NEOs. With NEO diagnostic tools practical 'how to' specifications available, you can:

• Assess your readiness to profit uplift from NEOs
• Plug rich NEO attitudes & behaviours into your existing market segments
• Design or package products/services for NEOs
• Efficiently reach & acquire NEOs in the marketplace
• 'Flag' NEOs on your customer database(deepen share of wallet/retention)
• Create digital strategies for NEOs
• Train staff to recognize & build personal relationships with NEOs
• Measure NEO market share against competitors

NEO Consulting ensures marketing strategies are developed and implemented quickly and with confidence. Discover how a more targeted reduction in marketing spend can deliver new revenue and highher margins. And shine while the global financial crisis window of opportunity is still open.

GLOSSARY OF MARKETING TERMS

Term	Description
Social Segment	A social segment is a proportion of the population who share a mindset determined by similar attitudes and values, causing them to behave in similar and identifiable ways. A true social segment meets all of the following criteria: it is distinct from other social segments (heterogeneity across society) it is homogeneous within the social segment (exhibits common attributes – generally a combination of  values-based, attitudinal and behavioural characteristics) it responds similarly to a social issues or a market stimulus (e.g. sustainability issues or a “quality experience”) Broadly, populations can be divided into social segments – according to an aggregation of specific criteria, such as values & attitudes; and behaviours such as spending, consumption, media choices, leisure choices. Social segmentation is typically conducted using Psychonomics (psychographics, psychological profiling (values, attitudinal & behavioural) +  a statistical discriminant model (SDM) using multivariate modelling (to characterizing the differences between social segments) + a spending propensity model (SPM) to identify the respective economic impact of each social segment. Example: NEO (new economic order) is 24% of the population (4 million Australians, 59 million Americans) and is defined by 100 behavioural factors, 82 attitudinal factors & 12 discretionary factors – and they respond similarly to social, political & market (commercial) stimuli. They are found across all customer or market segments.
Customer or Market Segment	A market segment is a group of people sharing one or more characteristics that cause them to have similar product needs. A true market segment meets all of the following criteria: it is distinct from other segments (heterogeneity across segments) it is similar within the segment (exhibits common attributes- generally a combination of demographic and/or occupational, characteristics) it has needs that are similar within the segment (e.g. quick service; instant access to information) Broadly, market segments can be divided according to a number of general criteria, such as by industry vertical; or public versus private sector. Generally segmentation is conducted using demographic, geographic, occupation, transactional, needs, life-event or lifestage data. Example: SME’s- small and medium sized business owners. This group has a common set of needs associated with managing a business and business finances; however their deeper, more specialised needs may be dependant on their niche or sub-segment.
Customer Niche	A niche market is a focused targetable portion (subset) of a market segment. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. A niche market may be thought of as a narrowly defined group of potential customers. A distinct niche market usually evolves when a potential demand for a product or service is not met by any supply, or when a new demand arises due to changes in society, technology, or the general environment. Example: SME niches may be defined along a number of dimensions such as: Business structure: sole traders, partnerships, company structures or trusts Business model & relationships: franchises, affiliated business (eg. dealership/ practice relationship), independent Industry type: white collar vs. blue collar industry; primary, secondary or tertiary industry grouping (raw material producer, manufacturer or service provider)
Customer Value Proposition (CVP)	A clear articulation of benefits from a client perspective. These may be tangible or intangible (e.g. The cheapest in the market vs. “I feel in control”) and will likely be associated either with a social segment across all customer segments; or sometimes with one customer segment and its niches.
Market Positioning	An overarching message or theme generally associated at a brand level which guides marketing language, campaigns etc. A CVP will need to align to the market positioning, and the positioning is likely to be associated with a social segment rather than specific market segments and niches.
Customer Offer	A defined set of characteristics covering the aspects of: Product Price Functionality Experience Service