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Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition
Chapter Outline ,[object Object],[object Object],[object Object],[object Object]
Market Segmentation ,[object Object]
Three Phases of Marketing Strategy Phase 2 Target Market and Marketing Mix Selection Phase 3 Product/Brand Positioning Phase 1 Market Segmentation
Segmentation Studies ,[object Object],[object Object]
Ryka produces sneakers that meet the special needs of women’s feet.
Discussion Question ,[object Object],[object Object],[object Object],[object Object]
Bases for Segmentation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Table 3.1  Market Segmentation Occupation SEGMENTATION BASE SELECTED SEGMENTATION VARIABLES Geographic 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 status Sex Age Under 12, 12-17, 18-34, 35-49, 50-64, 65-74, 75-99, 100+ Male, female Single, 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
Table 3.1, continued SEGMENTATION BASE SELECTED SEGMENTATION VARIABLES Psychological Segmentation Learning-involvement Perception Personality Needs-motivation Shelter, safety, security, affection, sense of self-worth Extroverts, novelty seeker, aggressives, innovators 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
Table 3.1, continued SEGMENTATION BASE SELECTED SEGMENTATION VARIABLES Use-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 PRIZM NE Geodemographics “ Movers & Shakers,” “New Empty Nests,” “Boomtown Singles,” “Bedrock America” Demographic/ Psychographics Combination of demographic and psychographic profiles of consumer segments profiles SRI VALS TM Innovators, Thinkers, Believer, Achievers, Strivers, Experiencer, Makers, Survivors Hybrid Segmentation
Geographic Segmentation ,[object Object]
Demographic Segmentation ,[object Object],[object Object],[object Object],[object Object]
Web sites for Singles Looking for a Match  Match.com targets all singles The Right Stuff  targets only Ivy League graduates weblink weblink
Psychological Segmentation ,[object Object],[object Object],[object Object],[object Object],[object Object],Harley-Davidson Video
Two High-End Watches for Different Psychological Segments
Psychographic Segmentation ,[object Object],[object Object]
Table 3.6  Excerpts from AIO Inventory Instructions:  Please read each statement and place an “x” in the box that  best  indicates how strongly you “ agree ” or “ disagree ” with the statement. I feel that my life is moving faster and faster,  sometimes just too fast. If I could consider the “pluses” and “minuses,”  technology has been good for me. I find that I have to pull myself away from e-mail. Given my lifestyle, I have more of a shortage of  time than money. I like the benefits of the Internet, but I often don’t  have the time to take advantage of them. [1] [2] [3] [4] [5] [6] [7] [1] [2] [3] [4] [5] [6] [7] [1] [2] [3] [4] [5] [6] [7] [1] [2] [3] [4] [5] [6] [7] [1] [2] [3] [4] [5] [6] [7] Agree  Completely Disagree  Completely
weblink Opinions  and Attitudes ADBUSTERS Web site is targeted to consumers with a certain attitude toward advertisers
Sociocultural Segmentation ,[object Object],[object Object],[object Object]
Family Life Cycle Advertising Video cameras are often purchased by young couples with children.
Target reaches out to the Latino market.
Discussion Questions ,[object Object],[object Object]
Use-Related Segmentation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Segmenting Customers by Usage Table 3-8 High Low Consumption  High  Low LoLows (starve) HiHighs (stroke) LowHighs (chase) HiLows (tickle) Current Share
Usage-Situation Segmentation ,[object Object],[object Object],[object Object],[object Object],[object Object]
Benefit Segmentation ,[object Object]
Band-aid offers “flex” as a  benefit to consumers.
Hybrid Segmentation Approaches ,[object Object],[object Object],[object Object]
Selected Demographic Profile of USA Today  Excerpt from Table 3-10   56% 65% 55% College graduate or beyond 77% 83% 77% Attended college or beyond 45 43 45 Average Age 25% 18% 27% Age 55+ 67% 78% 65% Age 25-54 64% 73% 62% Age 18-49 34% 30% 34% Women 66% 70% 66% Men USA TODAY NETWORK USA TODAY.COM USA TODAY
Selected Lifestyle Profile of USA Today  Excerpt from Table 3-11  120 45% Book reading 123 48% Entertain friends or relatives at home in last 12 months 112 69% Household subscribes to cable 126 46% Bought music CD/tapes in last 12 months 120 73% Attended movies in last 6 months Leisure Activities 130 22% Owns digital camera 119 84% Household owns a PC 182 40% Online purchase for business or personal use in past 30 days 128 79% Internet access at home 174 32% Use Internet more than once a day Tech Savvy Readers Index % Comp
VALS Framework  Figure 3-7
Discussion Question ,[object Object],[object Object],[object Object],[object Object],[object Object],weblink
Criteria for Effective Targeting of Market Segments ,[object Object],[object Object],[object Object],[object Object]
Implementing Segmentation Strategies ,[object Object],[object Object],[object Object],[object Object]

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Chapter 3 Market Segmentation

  • 1. Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition
  • 2.
  • 3.
  • 4. Three Phases of Marketing Strategy Phase 2 Target Market and Marketing Mix Selection Phase 3 Product/Brand Positioning Phase 1 Market Segmentation
  • 5.
  • 6. Ryka produces sneakers that meet the special needs of women’s feet.
  • 7.
  • 8.
  • 9. Table 3.1 Market Segmentation Occupation SEGMENTATION BASE SELECTED SEGMENTATION VARIABLES Geographic 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 status Sex Age Under 12, 12-17, 18-34, 35-49, 50-64, 65-74, 75-99, 100+ Male, female Single, 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
  • 10. Table 3.1, continued SEGMENTATION BASE SELECTED SEGMENTATION VARIABLES Psychological Segmentation Learning-involvement Perception Personality Needs-motivation Shelter, safety, security, affection, sense of self-worth Extroverts, novelty seeker, aggressives, innovators 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
  • 11. Table 3.1, continued SEGMENTATION BASE SELECTED SEGMENTATION VARIABLES Use-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 PRIZM NE Geodemographics “ Movers & Shakers,” “New Empty Nests,” “Boomtown Singles,” “Bedrock America” Demographic/ Psychographics Combination of demographic and psychographic profiles of consumer segments profiles SRI VALS TM Innovators, Thinkers, Believer, Achievers, Strivers, Experiencer, Makers, Survivors Hybrid Segmentation
  • 12.
  • 13.
  • 14. Web sites for Singles Looking for a Match Match.com targets all singles The Right Stuff targets only Ivy League graduates weblink weblink
  • 15.
  • 16. Two High-End Watches for Different Psychological Segments
  • 17.
  • 18. Table 3.6 Excerpts from AIO Inventory Instructions: Please read each statement and place an “x” in the box that best indicates how strongly you “ agree ” or “ disagree ” with the statement. I feel that my life is moving faster and faster, sometimes just too fast. If I could consider the “pluses” and “minuses,” technology has been good for me. I find that I have to pull myself away from e-mail. Given my lifestyle, I have more of a shortage of time than money. I like the benefits of the Internet, but I often don’t have the time to take advantage of them. [1] [2] [3] [4] [5] [6] [7] [1] [2] [3] [4] [5] [6] [7] [1] [2] [3] [4] [5] [6] [7] [1] [2] [3] [4] [5] [6] [7] [1] [2] [3] [4] [5] [6] [7] Agree Completely Disagree Completely
  • 19. weblink Opinions and Attitudes ADBUSTERS Web site is targeted to consumers with a certain attitude toward advertisers
  • 20.
  • 21. Family Life Cycle Advertising Video cameras are often purchased by young couples with children.
  • 22. Target reaches out to the Latino market.
  • 23.
  • 24.
  • 25. Segmenting Customers by Usage Table 3-8 High Low Consumption High Low LoLows (starve) HiHighs (stroke) LowHighs (chase) HiLows (tickle) Current Share
  • 26.
  • 27.
  • 28. Band-aid offers “flex” as a benefit to consumers.
  • 29.
  • 30. Selected Demographic Profile of USA Today Excerpt from Table 3-10 56% 65% 55% College graduate or beyond 77% 83% 77% Attended college or beyond 45 43 45 Average Age 25% 18% 27% Age 55+ 67% 78% 65% Age 25-54 64% 73% 62% Age 18-49 34% 30% 34% Women 66% 70% 66% Men USA TODAY NETWORK USA TODAY.COM USA TODAY
  • 31. Selected Lifestyle Profile of USA Today Excerpt from Table 3-11 120 45% Book reading 123 48% Entertain friends or relatives at home in last 12 months 112 69% Household subscribes to cable 126 46% Bought music CD/tapes in last 12 months 120 73% Attended movies in last 6 months Leisure Activities 130 22% Owns digital camera 119 84% Household owns a PC 182 40% Online purchase for business or personal use in past 30 days 128 79% Internet access at home 174 32% Use Internet more than once a day Tech Savvy Readers Index % Comp
  • 32. VALS Framework Figure 3-7
  • 33.
  • 34.
  • 35.