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Market Segmentation
Consumer Behavior,
Ninth Edition
Schiffman & Kanuk
Chapter Outline
What Is Market Segmentation?
Bases for Segmentation
Criteria for Effective Targeting of
Segments
Implementing Segmentation Strategies
3-2
Market Segmentation
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.
3-3
Phase 1
Market Segmentation
3-4
Segmentation Studies
Discover the needs and wants of
groups of consumers to develop
specialized products to satisfy group
needs
Used to identify the most appropriate
media for advertising
3-5
Ryka produces
sneakers that
meet the special
needs of
womens feet.
3-6
Discussion Question
Considering the largest bank in your
colleges city or town:
How might consumers needs differ?
What types of products might meet their
needs?
What advertising media makes sense for
the different segments of consumers?
3-7
Geographic
Demographic
Psychological
Psychographic
Sociocultural
Use-Related
Usage-Situation
Benefit Sought
Hybrid
3-8
3-9
3 - 10
3 - 11
Geographic Segmentation
The division of a total potential
market into smaller subgroups on
the basis of geographic variables
(e.g., region, state, or city)
3 - 12
Demographic Segmentation
Age
Sex
Marital Status
Income, Education, and Occupation
3 - 13
Psychological Segmentation
Motivations
Personality
Perceptions
Learning
Attitudes
Harley-Davidson Video
3 - 14
3 - 15
Psychographic Segmentation
Also known as Lifestyle Analysis
Psychographic variables include
attitudes, interests, and opinions
(AIOs)
3 - 16
Agree
Completely
Disagree
Completely
3 - 17
Opinions
and Attitudes
ADBUSTERS
Web site is
targeted to
consumers
with a certain
attitude toward
advertisers
weblink
3 - 18
Sociocultural Segmentation
Family Life Cycle
Social Class
Culture, Subculture, and Cross-Culture
3 - 19
3 - 20
Discussion Questions
What types of marketers might
segment according to social class?
What ethical issues might marketers
have when marketing to different social
classes?
3 - 21
Use-Related Segmentation
Rate of Usage
Heavy vs. Light
Awareness Status
Aware vs. Unaware
Brand Loyalty
Brand Loyal vs. Brand Switchers
3 - 22
Low
HiHighs
(stroke)
LowHighs
(chase)
HiLows
(tickle)
LoLows
(starve)
Consumption
Low
3 - 23
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 Im away on business, I try to stay at
a suites hotel.
I always buy my wife flowers on
Valentines Day.
Copyright 2007 by Prentice Hall
3 - 24
Benefit Segmentation
Segmenting on the basis of the most
important and meaningful benefit
3 - 25
Hybrid Segmentation
Approaches
Psychographic-Demographic Profiles
Geodemographic Segmentation
SRI Consultings VALS
3 - 26
USA
TODAY.COM
USA TODAY
NETWORK
Men
66%
70%
66%
Women
34%
30%
34%
Age 18-49
62%
73%
64%
Age 25-54
65%
78%
67%
Age 55+
27%
18%
25%
Average Age
45
43
45
83%
77%
65%
56%
3 - 27
Index
32%
174
79%
128
40%
182
Household owns a PC
84%
119
22%
130
73%
120
46%
126
Book reading
45%
120
48%
123
69%
112
Leisure Activities
3 - 28
VALS Framework
Figure 3-7
3 - 29
Discussion Question
How would you classify
yourself according to
VALS? Your parents?
Do you think this
represents you as a
consumer?
If so, for what products
does this fit you as a
consumer?
Copy down the URL below
to take the VALS survey
tonight. See if you were
right in your
classification
http://www.sricbi.com/VALS/presurvey.sht
ml
weblink
3 - 30
Identification
Sufficiency
Stability
Accessibility
3 - 31
Implementing Segmentation
Strategies
Concentrated Marketing
One segment
Differentiated
Several segments with individual
marketing mizes
3 - 32