Transcript Market Segmentation Market Segmentation Definition of a Target Market: A sub-group of a larger market chosen as the focal point for a marketing.

Market Segmentation
Market Segmentation
Definition of a Target Market: A sub-group of
a larger market chosen as the focal point
for a marketing or advertising campaign.
Market Segmentation
The identification of
specific portions of a
market and targeting them
with specific advertising
messages is called market
segmentation.
Market segmentation
divides the pool of potential
customers into segments.
The STP Marketing Process
(Segmenting, Targeting, Positioning)
1. Break the market into smaller,
more homogenous segments
2. Specifically target the discrete
market segments
3. Position the product or service to
appeal to the targeted segments
Identifying Target Segments:
Market Segmentation
Geography
Demographics
Lifestyles
Psychographics
Commitment
Levels
Benefits
Usage Patterns
Demographic Segmentation
1.
2.
3.
4.
5.
6.
7.
Age
Gender
Race
Marital Status
Income
Education
Occupation
How would you
describe the
demographic segment
targeted by this
advertising campaign?
How about this ad?
What is the target
demographic for this
ad campaign?
Geographic Segmentation
Psychographics and Lifestyle
Segmentation
Opinions
Lifestyle
Activities
Interests
Lifestyle segmentation
provides insight into
consumer’s
motivations
One Psychographic
Segmentation System
Self Orientation--What gives shape, substance, character to consumers’ identities
Resources--Physical, psychological, material, social means at consumers’ disposal
MAKERS
• practical; self-sufficient; like to work with
their hands; value things with a functional
purpose such as tools and utility vehicles;
tend to hunt and fish more than the
general population.
ACHIEVERS
• conventional; politically conservative;
social lives revolve around family, church
and career; work provides status, material
success and sense of duty; tend to own
swimming pools.
EXPERIENCERS
• young, enthusiastic, seek variety and
excitement; into sports and social
activities; spend money on fast food,
clothes, movies, music; likely to have
attended rock concert in past year.
STRIVERS
• money defines success; concerned about
opinions of others; trying to find their place
in life but may feel unsure of themselves;
want to be stylish and own high-status
possessions.
ACTUALIZERS
• successful, affluent, active, high selfesteem, interested in expressing
themselves in different ways; often leaders
yet seek new challenges; tendency for
foreign travel, dinner parties and the arts.
STRUGGLERS
• poor, elderly, low education, concerned
about health, cautious; may feel resigned
and passive about life; worried about
security and safety; may not buy much but
are loyal to their favorite brands.
BELIEVERS
• conventional, conservative, predictable;
strong, fixed beliefs and rules of conduct
about church, family, community and
nation; modest incomes and education but
sufficient to meet their needs.
FULFILLED
• mature, reflective; well educated, well
informed and value knowledge;
professional occupations; while respecting
order, also open to new ideas and change
in society; want durability and functionality
in what they buy.
Segmenting by Usage and
Commitment
• Advertising targeted to:
–
–
–
–
–
Heavy users
Nonusers
Brand-loyal users
Switchers/Variety seekers
Emergent Consumers
Benefit Segmentation
Prestige?
Passenger
Safety?
Fuel Economy?
What psychographic
grouping do you think
this ad is aimed at?
TARGET MARKET?
TARGET MARKET?
TARGET MARKET?
TARGET MARKET?
PART 2:
CONSUMER BEHAVIOR
WE NOW KNOW WHO THEY ARE.
BUT WHAT MOTIVATES THEM?
CONSUMER BEHAVIOR
TO INFLUENCE CONSUMERS, WE NEED TO
KNOW WHAT MOTIVATES THEM
-PSYCHOLOGICAL FACTORS
• NEEDS AND WANTS
• PERCEPTIONS
• ATTITUDES, VALUES
-SOCIAL FACTORS
• CULTURE
• SUB-CULTURE
• FAMILY, PEERS
Different Views of What
Causes Motivation
Biological Vs. Learned Needs
Drive Theory (degree of push)
Focuses on Biological
Needs that Produce
Unpleasant States of
Arousal, i.e. Hunger.
Homeostasis: Behavior
Which Tries to Reduce or
Eliminate This Unpleasant
State and Return to
Balance.
Expectancy Theory
(degree of pull)
Behavior is Largely
Pulled by Expectations
of Achieving Desirable
Outcomes (a Positive
Outcome or Absence of
Negative) - Pulled
Toward the Outcome
Two Dimensions of Motivation
• Motivational Intensity or Strength:
– The amount of push or pull that motivation
exerts on an individual (e.g., amount of
tension, consequences, immediacy). The
Degree to Which a Person is Willing to
Expend Energy to Reach One Goal as
Opposed to Another.
• Motivational Direction:
– Particular way a consumer attempts to
reduce motivational tension (eg. how to
become wealthy)
Motivational Direction:
Goal Directed Behavior
• Positive
• Negative
– Approach
– Avoidance
e.g., Work out to look
and feel healthy
e.g., Work out to avoid
being stigmatized
socially
Motivational Direction: Needs vs.
Wants
Wants
The specific Way a Need is Satisfied, depends on
Individual’s Unique History, Learning Experiences
and Cultural Environment.
Needs
• Needs are more fundamental than wants
•e.g., How to satisfy hunger? How to relieve boredom? How to
get interest of sexually attractive person?
Motivational Direction
Four Types of Needs
Biogenic
Psychogenic
Utilitarian
Hedonic
Marketers Tend to Focus on Psychogenic
Needs
• Need for Achievement
– Value personal accomplishment
• Need for Affiliation
– Desire being in the company of other people
• Need for Power
– Control one’s environment
• Need for Uniqueness
– Desire to assert one’s individual identity
– Examples of products focused on these needs?
Another Model of Needs:
Maslow’s Hierarchy - Holds that Needs
Evolve as Society or a Consumer Develops
Self
Actualization
Esteem
Social
Safety
Physiological
Values--Identify What is Good and
Desirable
• Values are higher level motives that tell us how
desirable a given goal is (e.g., beautify the world,
comfortable life, self respect).
• Cultural values – values common to one’s culture
(e.g., achievement, autonomy, interdependence)
• Consumption-specific values – values related to the
process of buying (e.g., convenience, friendly
service)
• Product-specific values – values related to a
particular product (e.g., flexibility, speed, natural
materials, creative)
POSITIONING
• Where is product positioned in the minds of
target market with respect to other products?
• Head-on (Duracell vs. Energizer)
• Brand Dominance (Coke: the real thing)
• Product Differentiation (Jolt Cola)
• Technical Innovation (Gillette Mach 3)
• Lifestyle (any beer, soft drink aimed at you)
Types of Involvement
• Rational and emotional involvement
• Rational involvement would be devoid of any affect e.g.
Choice of steam iron , the consumer would try to
optimise a cost-benefit ration with no emotion or interest
toward product category - pleasure is absent
• Emotional involvement might include hedonic pleasure
eg. Choice of restaurant (Hirschman and Holbrook,
1982)