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.ManagementDefinition Managementis . . . 4. 2.MarketingDefinition Marketingis . . . Managementis. . . 5. 2.MarketingDefinition Marketingis. . . Managementis. . . Marketing Planis . . . 6. 3.C-ResearchDefinition Marketingis. . . Managementis. . . Marketing Planis. . . Consumer Research (CR)is . . . 7. Course Main Topics Management Marketing Research Segmentation Consumer Behavior Creativity 8. 4.SegmentationDefinition 1. Management 4.Segmentation 2. Marketing 5. Consumer Behavior 3. Research 6. Creativity Segmentationis . . . 9. 4.SegmentationDefinition Segmentationis dividing amarket into distinctgroups withdistinctneeds, 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.SegmentationTargeting Segmenting Subsets with similar needs ! Targeting Which segment/s to aim for ? 12. 4.SegmentationTargeting Demand 13. 4.SegmentationTargeting Segmentation 4.SegmentationTargeting S-1 S-2 S-3 14. 4.SegmentationTargeting Targeting Segment(s) providing most value! 4.SegmentationTargeting S-1 S-2 S-3 15. 4.SegmentationStandards Measurable - Size, purchasing power. Accessible - Can be reached and served. Substantial - Large & profitable enough. Differentiable - Can respond differently. Actionable - Effective programs can be developed. 16. 4.SegmentationStrategies

Segmentation Strategies :

- M ass marketing( undifferentiated )

- S egmented marketing( differentiated )

- N iche marketing( concentrated )

- M icro-marketing ( Individual ) 17. 4.SegmentationStrategies

Segmentation Strategies :

P3 P3 P3 P3 P2 P2 P2 P2 P1 P1 P1 P1 S3 S2 S1 S3 S2 S1 S3 S2 S1 S3 S2 S1 Micro Niche Segmented Mass Diff.P s per ind.S Diff.P s to sameS Diff.P s to diff.S s SamePto diff.S s 18. 4.Segmentation Introduction 19. 4.SegmentationMethodologies 20. 4.Segmentation Methodology -1 /6 Classification Geography Demography Psychography SociographyTechnography 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 its their turn Baby Boomers ( Booming economy 50s-60s ) - 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 yourfemaleconsumers to each other connects them to your brand. If youre marketing to one ofherlives, youre missing all the others. Ifshehas to ask, its too late. Market toherperipheral vision, and shewill see you in a whole new light. This generation offemaleconsumers 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 anA dded- V alue, not a product/ service - nor an experience.Delight Price Consonance Place Self-image Pace PsychologicalAV PracticalAV 27. 4.Segmentation Methodology -1 /6 We purchase anA dded- V alue, not a product/ service - nor an experience.Delight Price Consonance Place Self-image Pace PsychologicalAV PracticalAV 28. 4.Segmentation Methodology -2 /6 SEGMENTATION by Needs 29. 4.Segmentation by Needs -2 /6 Maslows 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 dont do, its when you should enjoy life . 36. 4.Segmentation VALSChart Va lues & L ifestyle s by VALS -5 /6 37. 4.Segmentation VALSChart Va lues & L ifestyle s by VALS -5 /6 = 38. 4.Segmentation by VALS -5 /6 VALSChart 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) ByM apping ByN eeds ByL ifestyle ByL oyalyByD iffusion of Innovation SEGMENTATION 43. 4.Segmentation! 44. Course Main Topics Management Marketing Research Segmentation Consumer Behavior Creativity 45. PartThreeout of Six