1 / 19

Market Segmentation

Market Segmentation. Special Topic Mktg 633. Objectives. Definition Reasons for segmentation Bases of segmentation Applications Product Positioning. Definition. The process of dividing all possible users of a product into groups that have similar needs the products might satisfy.

vlora
Télécharger la présentation

Market Segmentation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Market Segmentation Special Topic Mktg 633

  2. Objectives • Definition • Reasons for segmentation • Bases of segmentation • Applications • Product Positioning

  3. Definition • The process of dividing all possible users of a product into groups that have similar needs the products might satisfy.

  4. Historical Development • 50s & 60s: Mass Marketing • 90s: Breaking Up Into Smaller Groups • Extensive Segmentation and targeting smaller consumer groups necessarily produces higher marketing costs

  5. Criteria for Segmentation • Know Your Customers (Scanner Data) • Make What Customers Want. Offer many variations on a single product. • Reach Target Customers. Ex: “smart” cash registers.

  6. Segmentation Approaches • A Priori Approach • Post Hoc Approach

  7. Market Segmentation • Analyze the Consumer/Product Relationship • Essence of developing effective marketing strategies is understanding the special relationship that consumers have with products and/or brands. Concerns how consumers perceive a product as relevant for their lifestyle, salient consequences and values, and self-concepts.

  8. Market Segmentation • Determine Segmentation Bases • Geographic • Demographic • Sociocultural • Affective and Cognitive • Behavioral

  9. Using VALS 2 in Marketing • Who your consumers are? • What are they buying? • Where are they? (geodemographic) • How to effectively communicate with customers? • Why? Relate consumers underlying psychological values to their lifestyles and buying behavior • http://www.sric-bi.com/VALS/l

  10. Sample Questions from VALS 2 • I am often interested in theories • I like outrageous people and things • I like a lot of variety in my life • I love to make things I can use everyday • I follow the latest trends and fashions • Just as the Bible says, the world literally was created in six days • I like being in charge of a group • I have more ability than most people • I must admit that I like to show off • I like trying new things Measured on a 4-point scale from Mostly Disagree to Mostly Agree.

  11. VALS I Typology

  12. VALS 1 • Classifies the American population into 4 general consumer groups • Need-Driven (Sustainers and Survivors) • The poor and uneducated (11%) • Outer-Directed (Achievers, Emulators and Belongers) • Lifestyles directed by external criteria (67%) • Inner-Directed (Societally Conscious, Exeriential and I-Am-Me) • Motivated by personal needs than by expectations of others (20%) • Integrated • Those who are able to combine the best of both outer- and inner-directed values (2%)

  13. VALS 2 • Classifies the American population into 3 general consumer groups and then subdivides into 8 distinctive subgroups • Principle-Oriented • motivated in their choice by their beliefs, rather than by desire for approval • Status-Oriented • guided by actions, approval, and opinions of others • Action-Oriented • propelled by a desire for social or physical, variety, and risk-taking

  14. Example of VALS 2 Segment: Principled • 35-64 years, Married • College graduate • 11% of U.S. adult • Well informed, “info junkie” • Value education and travel • Practical consumers • Prestige, image unimportant • Watch TV news

  15. Market Segmentation • Select Segmentation Strategy • Do not enter • Mass market (mass market strategy) • One segment (concentrated strategy • More than one segment, separate marketing mix for each (differentiated strategy)

  16. Product Positioning • Determining how to differentiate one’s product from those of competitors in the minds of consumers • 1. Position on product attributes • Ex: price (Budget Car Rental) • 2. Position on benefits • Ex: Close-Up’s benefit of fresh breath • 3. Position on usage • Ex: Michelob: special occasion beer • 4. Position on user category • Ex: Wheaties as the “breakfast of champions”

More Related