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7/30/2019 Chapter 2 -Consumer Behavior- Market Segmentation
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Copyright 2006
Pearson Education Canada Inc.
Appendix to Part 1
Consumer Behaviour andMarketing Strategy
Consumer Behaviour
Canadian EditionSchiffman/Kanuk/Das
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Copyright 2006 Pearson Education Canada Inc. Appendix-2
Steps in Developing a
Marketing StrategySegment the Market
Choose a Target Market
Decide on a
Position for the Product
Develop a Suitable
Marketing Mix
Find Ways to Satisfy
And Retain Customers
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Copyright 2006 Pearson Education Canada Inc. Appendix-3
Market Segmentation
The process of dividing a potential market
into distinct subsets of consumers and
selecting one or more segments as a targetmarket to be reached with a distinct
marketing mix.
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Copyright 2006 Pearson Education Canada Inc. Appendix-4
Best Customer Segmentation
High Current Share Low
High
Low
Consumption
Lo Lows
(starve)
Hi Highs
(stroke)
Low Highs
(chase)
Hi Lows
(tickle)
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Copyright 2006 Pearson Education Canada Inc. Appendix-5
Purposes of Segmentation
Studies
To discover the needs of specific
consumer groups to develop specialized
products to satisfy specific group needs
(e.g., Centrum http://www.centrum.ca) To guide the repositioning of a product
(e.g., Nintendo http://www.nintendo.ca)
To identify the most appropriate media for
advertising (e.g., People and Teen
People)
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Copyright 2006 Pearson Education Canada Inc. Appendix-6
Bases for Segmentation
Geographic Segmentation Demographic Segmentation
Psychological Segmentation
Psychographic Segmentation
Socio-cultural Segmentation
Use-Related Segmentation
Usage-Situation Segmentation
Benefit Segmentation Hybrid Segmentation Approaches
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Copyright 2006 Pearson Education Canada Inc. Appendix-7
(continued)
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Copyright 2006 Pearson Education Canada Inc. Appendix-8
Figure A-2 (continued)
(continued)
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Copyright 2006 Pearson Education Canada Inc. Appendix-9
Figure A-2 (continued)
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Copyright 2006 Pearson Education Canada Inc. Appendix-10
Geographic Segmentation
The division of a total potential market into
smaller subgroups on the basis of
geographic variables (e.g., region, province,or city).
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Copyright 2006 Pearson Education Canada Inc. Appendix-11
Demographic Segmentation
Age
Sex
Marital Status
Income, Education, and Occupation
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Copyright 2006 Pearson Education Canada Inc. Appendix-12
Marital Status
Households as a consuming unit
Singles
DivorcedSingle parents
Dual-income married
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Copyright 2006 Pearson Education Canada Inc. Appendix-13
Psychological Segmentation
Motivations
Personality
Perceptions
Learning
Attitudes
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Copyright 2006 Pearson Education Canada Inc. Appendix-14
AIOs
Psychographic (lifestyle) variables that
focus on activities, interests, and opinions.
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Copyright 2006 Pearson Education Canada Inc. Appendix-15
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Copyright 2006 Pearson Education Canada Inc. Appendix-16
Socio-cultural Segmentation
Family Life Cycle
Social Class
Culture, Subculture, and Cross-Culture
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Copyright 2006 Pearson Education Canada Inc. Appendix-17
Family Life Cycle
Phases families go through in their formation,growth, and final dissolution
Bachelorhood
Honeymooners
Parenthood
Post-parenthood
Dissolution
Explicit basis: marital status, family status
Implicit basis: age, income, employment
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Copyright 2006 Pearson Education Canada Inc. Appendix-18
Use-Related Segmentation
Rate of UsageHeavy vs. Light
Convert light users to medium or heavy users
Byidentifying new uses for the productAttempt to satisfy heavy users well
By making sure the product continues to meettheir needs
continued
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Copyright 2006 Pearson Education Canada Inc. Appendix-19
Use-Related Segmentation
Awareness Status
Aware vs. Unaware
Convert unaware to aware Brand Loyalty
Brand Loyal vs. Brand Switchers
Satisfy and reward brand loyal users By providing rewards for continued usage
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Copyright 2006 Pearson Education Canada Inc. Appendix-20
Usage-Situation Segmentation
Segmenting on the basis of special
occasions or situations
Example Statements: Whenever I do well in a course, I treat myself with --
-----.
When Im away on business, I try to stay at a suites
hotel.
I always take a bottle of French wine when I am
invited to a friends house for dinner
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Copyright 2006 Pearson Education Canada Inc. Appendix-21
Benefit Segmentation
Segmenting on the basis of the mostimportant and meaningful benefit
CrestCavity preventionSensodyneGentle on sensitive teeth
Topolremoval of tobacco stains
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Copyright 2006 Pearson Education Canada Inc. Appendix-22
Hybrid Segmentation Approaches
Psychographic-Demographic Profiles
Geodemographic Segmentation
SRI Consulting Groups Values andLifestyle System (VALSTM)
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Copyright 2006 Pearson Education Canada Inc. Appendix-23
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Copyright 2006 Pearson Education Canada Inc. Appendix-24
Criteria For Effective Targeting of
Market Segments
Identification
Sufficiency
Stability Accessibility
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Copyright 2006 Pearson Education Canada Inc. Appendix-25
Segmentation Strategies
Concentrated Marketing
focusing on one target market alone
Suitable for small or new companies
Differentiated Marketing
Focusing on several segments at the same
time
Suitable for financially strong companies witha several offerings in a product category
continued
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Copyright 2006 Pearson Education Canada Inc. Appendix-26
Segmentation Strategies
Counter-segmentation Strategy
Merging two or more segments into one larger
segmentWhen target markets do not warrant separate
strategies anymore
When consumer needs become more similarover a period