session 3
TRANSCRIPT
Consumer Behavior,
Ninth Edition
Schiffman & Kanuk
Copyright 2007 by Prentice Hall
Chapter 3
Market Segmentation
Consumer Behavior,Ninth Edition
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Exercise 1
• For each of the following products, identify
the segmentation base that you consider to
be the best one for targeting consumers:
(a) coffee
(b) soups
(c) home exercise equipment
(d) portable telephones
(e) nonfat frozen yogurt.
Explain your choices
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Exercise 2
• Find three advertisements that you
believe are targeted at a particular
psychographic segment. How effective
do you think each ad is in terms of
achieving its objective? Why?
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Exercise 3
• Given the business challenges of the last few years, companiesmust always look for new ways to retain customers andenhance the value experience brought to them. One companythat has specialized in this art is Carnival Cruise Lines. Carnivalhas learned how to target potential customers, provide fun andexcitement for current customers, and bring loyal customersback again and again. Personal attention, e-mail reminders, andan interactive Web site have aided the company in building andmaintaining relationships with customers. Your group’sassignment is to construct a segmentation profile of Carnival’sfirst time customers, current customers, and past customers.Though information specifics will be beyond your grasp,general information about these groups can be obtained via thecompany’s Web site (see www.carnival.com).
• Your profiles should consider age, income, lifestyle, and othervariables in chapter 3.
• Based on your profiles, comment on any new perceivedopportunities for Carnival based on your segmentation work.
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Chapter Outline
• What Is Market Segmentation?
• Bases for Segmentation
• Criteria for Effective Targeting of
Segments
• Implementing Segmentation Strategies
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Market Segmentation
The process of dividing a
potential market into
distinct subsets of
consumers and selecting
one or more segments as
a target market to be
reached with a distinct
marketing mix.
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Three Phases of Marketing
Strategy
Phase 2
Target Market and Marketing Mix Selection
Phase 3
Product/Brand Positioning
Phase 1
Market Segmentation
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Ryka produces
sneakers that
meet the special
needs of
women’s feet.
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Discussion Question
• Considering the largest bank in your
college’s city or town:
– How might consumers’ needs differ?
– What types of products might meet their
needs?
– What advertising media makes sense for
the different segments of consumers?
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Bases for Segmentation
• Geographic
• Demographic
• Psychological
• Psychographic
• Sociocultural
• Use-Related
• Usage-Situation
• Benefit Sought
• Hybrid
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Market Segmentation
Occupation
SEGMENTATION BASE SELECTED SEGMENTATION VARIABLES
Geographic Segmentation
Climate
Density of area
City Size
Region Southwest, Mountain States, Western
Major metropolitan areas, small cities, towns
Urban, suburban, rural
Hot, humid, rainy
Demographic Segmentation
Income
Marital status
Gender
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
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Market SegmentationSEGMENTATION 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
Religion
Cultures
(Lifestyle) Segmentation Economy-minded, outdoors enthusiasts, status seekers
French, South Indian
Hindu, Catholic, Muslim, other
Family life cycle
Social class Lower, middle, upper
Bachelors, young married, empty nesters
Attitudes Positive attitude, negative attitude
Sociocultural Segmentation
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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
Time Leisure, work, rush, morning, night
Person Self, family members, friends, boss, peers
Benefit Segmentation Convenience, social acceptance, long lasting, economy,
value-for-the-money
Demographic/
Psychographics
Combination of demographic and psychographic profiles
of consumer segments profiles
Hybrid Segmentation
Market Segmentation
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Geographic Segmentation
The division of a total potential
market into smaller subgroups on
the basis of geographic variables
(e.g., region, state, or city)
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Demographic Segmentation
• Age
• Gender
• Marital Status
• Income, Education, and Occupation
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Web sites for Singles
Looking for a Match
Match.com targets all
singlesThe Right Stuff
targets only Ivy
League graduates
weblink weblink
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Psychological Segmentation
• Personality
• Perceptions
• Attitudes
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Two High-End Watches for Different
Psychological Segments
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Psychographic Segmentation
• Also known as Lifestyle Analysis
• Psychographic variables include
attitudes, interests, and opinions
(AIOs)
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weblink
Opinions
and Attitudes
ADBUSTERS
Web site is
targeted to
consumers
with a certain
attitude toward
advertisers
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Sociocultural Segmentation
• Family Life Cycle
• Social Class
• Culture
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Family Life Cycle Advertising
Video cameras
are often
purchased by
young couples
with children.
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Use-Related Segmentation
• Rate of Usage
– Heavy vs. Light
• Awareness Status
– Aware vs. Unaware
• Brand Loyalty
– Brand Loyal vs. Brand Switchers
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Usage-Situation Segmentation
• Segmenting on the basis of special
occasions or situations
• Example Statements:
– Whenever our daughter Jamie gets a raise,
we always take her out to dinner.
– When I’m away on business, I try to stay at
a suites hotel.
– I always buy my wife flowers on
Valentine’s Day.
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Benefit Segmentation
Segmenting on the basis of the most
important and meaningful benefit
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Band-aid
offers “flex”
as a
benefit to
consumers.
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Hybrid Segmentation
Approaches
• Psychographic-Demographic Profiles
• Geodemographic Segmentation
• SRI Consulting’s VALS
– http://www.strategicbusinessinsights.com/
vals/presurvey.shtml#start
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Criteria for Effective Targeting of
Market Segments
• Identification
• Sufficiency
• Stability
• Accessibility
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Implementing Segmentation
Strategies
• Concentrated Marketing
– One segment
• Differentiated
– Several segments with individual
marketing mizes
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Exercise
• SRI Consulting’s VALS
– http://www.strategicbusinessinsights.com/
vals/presurvey.shtml#start
Copyright 2007 by Prentice Hall