session 5 - market segmentation
TRANSCRIPT
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