Before going into consumer behavior, we have to ask ourselves what is the demand and who are our targeted audiences? There are many ways to set market segments and to target them: by the book, by needs, by loyalty, by mapping, by values, by lifestyles, by VALS (values & lifestyles), and by diffusion of innovation

1. Consumer Behavior-2 Who is to Behave? Segmentation! Danny Abramovich Marketing Plan Specialist 1. Management 2. Marketing 3. Research 4. Segmentation 5. Consumer Behavior 6. Creativity

2. Course Introduction, Schedule 1. Management 2. Marketing 3. Research 4. Segmentation 5. Consumer Behavior 6. Creativity part 1 part 2 part 3

3. 1. Management  Definition Management is . . .

4. 2. Marketing  Definition Marketing is . . . Management is . . .

5. 2. Marketing  Definition Marketing is . . . Management is . . . Marketing Plan is . . .

6. 3. C-Research  Definition Marketing is . . . Management is . . . Marketing Plan is . . . Consumer Research (CR) is . . .

7. Course Main Topics Management Marketing Research Segmentation Consumer Behavior Creativity   

8. 4. Segmentation  Definition 1. Management 4. Segmentation 2. Marketing 5. Consumer Behavior 3. Research 6. Creativity Segmentation is . . .

9. 4. Segmentation  Definition Segmentation is dividing a market into distinct groups with distinct needs, characteristics, or behaviors, who might require separate marketing-mixes .

10. 4. Segmentation  M e t h o d o l o g y Management Marketing Marketing Research Market Segmentation © Danny Abramovich

11. 4. Segmentation  Targeting Segmenting Subsets with similar needs !  Targeting Which segment/s to aim for ?

12. 4. Segmentation  Targeting Demand

13. 4. Segmentation  Targeting Segmentation 4. Segmentation  Targeting S-1 S-2 S-3

14. 4. Segmentation  Targeting Targeting Segment(s) providing most value! 4. Segmentation  Targeting S-1 S-2 S-3

15. 4. Segmentation  Standards  Measurable - Size, purchasing power.  Accessible - Can be reached and served.  Substantial - Large & profitable enough.  Differentiable - Can respond differently.  Actionable - Effective programs can be developed.

18. 4. Segmentation  Introduction

19. 4. Segmentation  Methodologies

20. 4. Segmentation  Methodology - 1 /6 Classification Geography Demography Psychography Sociography Technography Behavior Added-value SEGMENTATION by…

21. 4. Segmentation  Methodology - 1 /6 Classification: Private, industrial, gov. … Geography: Trade areas, regional climate … Sociography: Income, education, religion … D emography: Age, gender, life cycle …

22. 4. Segmentation  Methodology - 1 /6  War Generation ( WWII ) - feeling guilt if they are wasteful  Silent Generation ( Rebuilding economy post WWII ) - great savers so now it’s their turn  Baby Boomers ( Booming economy 50’s-60’s ) - wants multiple choices and to feel in control  Generation X ( Energy crisis, environmentalism ) - careful shoppers looking for bargains  Generation Y ( Technology boom, terrorism ) - fashion & style are important to them

23. 4. Segmentation  Methodology - 1 /6  Connecting your female consumers to each other connects them to your brand.  If you’re marketing to one of her lives, you’re missing all the others.  If she has to ask, it’s too late.  Market to her peripheral vision, and she will see you in a whole new light.  This generation of female consumers will lead you to the next.

24. d e m o g r a p h

25. 4. Segmentation  Methodology - 1 /6 Psychography: Personality, values … Technography: Technological preference … Behavior: Consuming habits, usage … A dded-value: Practical, psychological …

26. 4. Segmentation  Methodology - 1 /6 We purchase an A dded- V alue, not a product/ service - nor an experience. Delight  Price Consonance Place Self-image Pace Psychological AV Practical AV

27. 4. Segmentation  Methodology - 1 /6 We purchase an A dded- V alue, not a product/ service - nor an experience. Delight  Price Consonance Place Self-image Pace Psychological AV Practical AV

28. 4. Segmentation  Methodology - 2 /6 SEGMENTATION by Needs

29. 4. Segmentation  by Needs - 2 /6 Maslow’s Pyramid of Needs, 1954

30. 4. Segmentation  Methodology - 3 /6 SEGMENTATION by Loyalty

31. 4. Segmentation  Methodology - 3 /6

32. 4. Segmentation  Methodology - 4 /6 SEGMENTATION by Mapping

33. 4. Segmentation  by Mapping - 4 /6

34. 4. Segmentation  Methodology - 5 /6 SEGMENTATION by Lifestyle

35. 4. Segmentation  Methodology - 5 /6  In your 20s you should try it all ,  In your 30s you should figure out what you do best ,  In your 40s you make money at what you do best ,  In your 50s you just don’t “do”, it’s when you should enjoy life .

36. 4. Segmentation  VALS Chart Va lues & L ifestyle s by VALS - 5 /6 

37. 4. Segmentation  VALS Chart Va lues & L ifestyle s by VALS - 5 /6  =

38. 4. Segmentation  by VALS - 5 /6 VALS Chart Va lues & L ifestyle s

39. 4. Segmentation  Methodology - 6 /6 SEGMENTATION by Diffusion of Innovation

40. 4.   Product Adoption Lifecycle Techies “ Try it” Visionaries Move ahead of the herd Pragmatists Stick with the herd Conservatives Move only when necessary Skeptics “ No way!” The Chasm

41. 4. Segmentation  Methodology SEG MEN TAT ION by SEG MEN TAT ION by SEG MEN TAT ION by SEG MEN TAT ION by SEG MEN TAT ION by SEG MEN TAT ION by

42. 4. Segmentation  Methodologies By (the obvious) … By M apping By N eeds By L ifestyle By L oyaly By D iffusion of Innovation SEGMENTATION  

43. 4. Segmentation!

44. Course Main Topics Management Marketing Research Segmentation Consumer Behavior Creativity    

45. Part Three out of Six