Download - Market segmentation of conbehavior
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Consumer BehaviorConsumer Behavior
Pnl/september 2005Pnl/september 2005
Market Segmentation
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Who is the Target Market?
• Got Milk?
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Who is the Target Market?
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http://www.eu.levi.com/
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Target Market for Car Shows
• 80% male viewer ship
• Subtly suggestive show names
• Sports Cars Gone Wild
• Autorotica
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Market Market SegmentationSegmentation
The process of dividing a potential market into distinct
subsets of consumers and selecting one or more segments as a target market to be
reached with a distinct marketing
mix.
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Three Phases of Marketing Strategy
• Phase 1: Market Segmentation
• Phase 2: Target Market and Marketing Mix Selection
• Phase 3: Product/Brand Positioning
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Table 3.1: Sodexho’s Segmentation of College-age Eating Patterns
Star Gazers• Light, healthy foods• Price insensitive• Brand conscious• Employed full-time
over summer• Active, out-going• Family income >
100,000
Fun Express• Variety, taste, and
nutrition• Price conscious• Work part-time over
summer• Value leisure time• Family income
$30,000 - 60,000
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“Best” Customer Segmentation
High
Low
Consumption
High Current Share Low
LoLows(starve)
HiHighs(stroke)
LowHighs(chase)
HiLows(tickle)
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Segmentation Studies• Designed to discover the needs and wants of
specific groups of consumers in order to develop specialized products to satisfy specific group needs (e.g., Centrum)
• Designed to guide the repositioning of a product (e.g., Nintendo)
• Used to identify the most appropriate media for advertising (e.g., People and Teen People)
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Bases for Segmentation• Geographic Segmentation• Demographic Segmentation• Psychological Segmentation• Psychographic Segmentation• Sociocultural Segmentation• Use-Related Segmentation• Usage-Situation Segmentation• Benefit Segmentation• Hybrid Segmentation Approaches
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Table 3.2 Market Segmentation
Occupation
SEGMENTATION BASESEGMENTATION BASE SELECTED SEGMENTATION VARIABLESSELECTED SEGMENTATION VARIABLESGeographic Segmentation
Climate
Density of area
City Size
Region Southwest, Mountain States, Alaska, Hawaii
Major metropolitan areas, small cities, towns
Urban, suburban, exurban, rural
Temperate, hot, humid, rainy
Demographic Segmentation
Income
Marital statusSexAge Under 11, 12-17, 18-34, 35-49, 50-64, 65-74, 75-99, 100+
Male, femaleSingle, married, divorced, living together, widowed
Under $25,000, $25,000-$34,999, $35,000-$49,999, $50,000-$74,999, $75,000-$99,999, $100,000 and over
Education Some high school, high school graduate, some college, college graduate, postgraduate
Professional, blue-collar, white-collar, agricultural, military
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Table 3.2, continuedSEGMENTATION BASESEGMENTATION BASE SELECTED SEGMENTATION VARIABLESSELECTED SEGMENTATION VARIABLESPsychological Segmentation
Learning-involvement
Perception
Personality
Needs-motivation Shelter, safety, security, affection, sense of self-worth
Extroverts, novelty seeker, aggressives, low dogmatics
Low-risk, moderate-risk, high-risk
Low-involvement, high-involvement
Psychographic
Subcultures (Race/ethnic)
Religion
Cultures
(Lifestyle) Segmentation Economy-minded, couch potatoes, outdoors enthusiasts, status seekers
American, Italian, Chinese, Mexican, French, Pakistani
Catholic, Protestant, Jewish, Moslem, other
African-American, Caucasian, Asian, Hispanic
Family life cycle
Social class Lower, middle, upper
Bachelors, young married, full nesters, empty nesters
Attitudes Positive attitude, negative attitude
Sociocultural Segmentation
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SEGMENTATION BASESEGMENTATION BASE SELECTED SEGMENTATION VARIABLESSELECTED SEGMENTATION VARIABLESUse-Related Segmentation
Brand loyalty
Awareness status
Usage rate Heavy users, medium users, light users, non users
Unaware, aware, interested, enthusiastic
None, some, strong
Use-Situation Segmentation
Location
Objective
Time Leisure, work, rush, morning, night
Personal, gift, snack, fun, achievement
Home, work, friend’s home, in-store
Person Self, family members, friends, boss, peers
Benefit Segmentation Convenience, social acceptance, long lasting, economy, value-for-the-money
Geodemographics “Money and Brains,” “Black Enterprise,” “Old Yankee Rows,” “Downtown Dixie-Style”
Demographic/Psychographics
Combination of demographic and psychographic profiles of consumer segments profiles
SRI VALSTM Actualizer, fulfilled, believer, achiever, striver, experiencer, maker, struggler
Hybrid Segmentation
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Geographic Geographic SegmentationSegmentation
The division of a total potential market into smaller subgroups on
the basis of geographic variables (e.g., region, state, or
city).
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Demographic Segmentation
• Age• Sex• Marital Status• Income, Education, and Occupation
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Age: Segmentation by Age Effects and Cohort Effects
• Seven Life Development Stages (Table 3.3)– Provisional Adulthood
• Pulling up roots
– First Adulthood• Reaching out, Questions/questions, Mid-life
explosion
– Second Adulthood• Settling Down, Mellowing, Retirement
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Marital Status
• Households as a consuming unit– Singles– Divorced– Single parents– Dual-income married
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Psychological Segmentation
• Motivations• Personality• Perceptions• Learning• Attitudes
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A.I.OsA.I.Os
Psychographic (lifestyle) variables
that focus on Activities, Interests,
and Opinions.
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Table 3.7 A Hypothetical Psychographic Profile of the Techno-Road-Warrior
•Sends and/or receives 15 or more e-mail messages a week
•Regularly visits Web sites to gather information and/or to comparison shop
•Often buys personal items via 800 numbers and/or over the Internet
•May trade stocks and/or make travel reservations over the Internet
•Earns $100,000 or more a year
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Sociocultural Segmentation
• Family Life Cycle• Social Class• Culture, Subculture, and Cross-Culture
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Family Life Cycle• Phases a family goes through in their
formation, growth, and final dissolution– Bachelorhood– Honeymooners– Parenthood– Post-parenthood– Dissolution
• Explicit basis: marital status, family status• Implicit basis: age, income, employment
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Trump and Knauss
• 15-Carot Ring
• Gown $100-200K
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Use-Related Segmentation
• Rate of Usage– Heavy vs. Light
• Awareness Status– Aware vs. Unaware
• Brand Loyalty– Brand Loyal vs. Brand Switchers
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Usage-Situation Segmentation
• Segmenting on the basis of special occasions or situations
• Example Statements:– Whenever our daughter, Jamie, gets a raise, we
always take her out to dinner.– When I’m away on business, I try to stay at a
suites hotel.– I always buy my wife flowers on Valentine’s
Day.
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Benefit Segmentation
• Segmenting on the basis of the most important and meaningful benefit– Prudential - financial security– Iomega - data protection– Wheaties - good health– Eclipse - fresh breath
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Figure 3.5Ad OfferingCombined Benefits
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Hybrid Segmentation Approaches
• Psychographic-Demographic Profiles• Geodemographic Segmentation• SRI Consulting’s Values and Lifestyle
System (VALSTM)
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Table 3.8 Demographic-Psychographic Profile of Newsweek
• Total adult readers 19,593,000
• Men
• Professionals/ Managers
• Age 35-49
• Household income >$100,000
• Married
• Own laptop PC
• Spent $3000+ on vacation last year
% Index
100.0 10055.9 11735.3 17436.5 11425.1 17262.4 10912.0 15012.3 164
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Table 3.9 Demographic-Psychographic Internet Shopping Styles
• E-bivalent Newbies
• Time-Sensitive Materialists
• Clicks & Mortar
• Hooked, Online, & Single
• Hunter-Gatherers
• Brand Loyalists
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Table 3.10 Sample Claritas Geodemographic Clusters
Blue Blood Estates• .8% of U.S. households• Professional• Elite super-rich• College graduate• 35-44, 45-54, 55-64• Country club members,
own mutual phones, play golf
Young Influentials• 1.1% of U.S.
households• Professional• College graduate• Under 24, 25-34• Yuppies, drink
imported beer, read fashion magazines
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STRUGGLERS
FULFILLEDS
BELIEVERS
ACHIEVERS EXPERIENCERS
STRIVERS MAKERS
Low Resources
High Resources
Action OrientedStatus OrientedPrinciple Oriented
ACTUALIZERSFigure 3.8 VALS
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Table 3.11 Size of VALS Segment as Percent of U.S. Population
VALSVALSTMTM SEGMENT SEGMENTPERCENT OF PERCENT OF POPULATIONPOPULATION
Actualizer10.511.7%
StrugglerMakerExperiencerStriverAchieverBelieverFulfilled
9.512.012.911.814.717.0
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Mindbase Segmentation
• Monitor Mindbase based on Yankelovich’s Monitor Survey of American Values and Attitudes
• Table 3.12
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Table 3.12 Eight Major Mindbase Segments
• Up and Comers
• Young Materialists
• Stressed by Life
• New Traditionalists
• Family Limited
• Detached Introverts
• Renaissance Elders
• Retired from Life
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Criteria For Effective Targeting of Market Segments
• Identification• Sufficiency• Stability• Accessibility