session 5 - market segmentation

A quick Recap

Introduction to Consumer Behavior

Consumer Search

Dated : 11.09.2008

Consumer behavior definition

• It is the behavior Consumer displays in searching for, purchasing, using, evaluating and disposing of products and services that they expect would satisfy their needs and wants

• Personal Consumer

• Organisational consumer

Awareness

Interest

Rejection / Purchase

Final Adoption / Rejection

No future purchase Repeat purchase

Product Evaluation

Direct Experience

Trial

Evaluation

Need to study Consumer Behavior

Saves from Disaster

Helps formulating the right strategy

Helps in Sales promotion

Helps in market segmentation

Helps in product orientation

Helps in reorientation of the packaging

Some Questions

• Define Consumer Behavior ?• Why is consumer Behavior studied ?• What are the factors that influence

Consumer Behavior ?• What are the advantages of Studying

Consumer Behavior ?• What are the disadvantages of Studying

Consumer Behavior ?

Need Recognition

• State of Affairs– Actual Stage– Desired state

• Discrepancy

• If discrepancy meets or exceeds the level – Need is recognised

• If discrepancy is below a certain level – Need is not there

Factors Influencing the State

• Time

• Product acquisition

• Product Consumption

• Marketing Influence

• Individual Differences– Actual State Types– Desired State Types

Factors Influencing Search

• Situational

• Product Category

• Retail

• Consumer

Information Processing

• Definition

• Information processing refers to the process by which a stimulus is received interpreted stored in memory and later retrieved

MARKET SEGMENTATION

Customer Role

• User Neither payer nor buyer

• User Payer but not buyer

• User Buyer but not payer

• User Buyer and payer

Role Specialization

• Lack of expertise

• Lack of time

• Lack of buying power

• Lack of access

• Lack of affordability

Segmentation Base

• Geographic Segmentation– Region

– City Size

– Density of Area

– Climate

• Demographic Segmentation– Age / Sex / Marital Status /

– Income / Occupation

– Education

Psychological Segmentation

• Need Motivation– Shelter– Safety / Security– Affection– Esteem / Ego– Sense of self worth

Satisfying Customer’s Esteem Needs

Psychological Segmentation

• Personality– Extroverts– Introverts– Novelty seekers– Aggressive– Low dogmatic

Psychological Segmentation

• Perception– Low Risk– Moderate Risk– High Risk

Psychological Segmentation

• Learning involvement– Low involvement– High Involvement

• Attitudes– Positive attitude– Negative attitude

Psychographic

• Life style Segmentation– Economy minded– Couch potatoes– Outside enthusiasts– Status seekers

AIO Activities / Interests / Opinions

• Activities– Measures how the consumer or family members spend time –

Games, voluntary activities, etc.

• Interests– Measures the consumer’s preferences and priorities – Home,

fashion, food, etc.

• Opinions– Measures how the consumer feels about a wide variety of events,

political issues , social issues, the state of the economy, ecology, etc.

A place not only for shopping

• AIO psychographics– Use a battery of statements designed to identify

a relevant aspect of a consumer • Personality• Buying motives • Interests • Attitudes• Beliefs• Values

Friendly neighbourhood

Common choice

Retail stores attract customers through sheer variety and the choice to choose

AIO Study

• I feel that my life is moving faster and faster

• I feel that I have to pull myself out of the human resource meetingStrongly

Agree

Strongly Disagree

Hypothetical psychographics profile

• Prepares food for the child

• Gets the house ready for the day

• Serves food to the husband

• Gets herself ready for the office

• Travels in public transport

• Spends the day in office

• Tutors the child

Socio cultural Segmentation

• Cultures

• Religion

• Subcultures (race / ethics)

• Social class• Lower / Middle / Upper

• Family life cycle• Bachelors / Young married / Full nesters

Use Related Segmentation

• Usage rate / level– Heavy Users– Medium Users– Light Users

– Non Users

Use Related Segmentation

• Awareness status / level– Unaware

– Aware

– Interests

– Enthusiasts

• Brand loyalty [ degree of ]– Strong

– Some

– None

Use situation Segmentation

• Time– Leisure – Work– Rush– Morning– Night

Use situation Segmentation

• Objective– Personal– Gift– Snack– Fun– Achievement

• Location– Home – Work– Instore

Use situation Segmentation

• Person– Self– Family members– Friends– Boss– Peer

Benefit Segmentation

– Convenience– Social acceptance– Long lasting – Economy– Value for money

Hybrid Segmentation

• Demographic / PsychographicGeo Demographic

• SRI Vals

Actualizers

ExperiencersAchieverFulfilled

MakersStriversBeliever

Strugglers

Most resources

Least Resources

Action OrientedStatus OrientedPrinciple oriented

Bread Spreads