Consumer Behavior Marketing 410 Chapter 3 Book Notes
Consumer Behavior Marketing 410 Chapter 3 Book Notes Marketing 410
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This 5 page Class Notes was uploaded by Stephanie Marie on Wednesday February 24, 2016. The Class Notes belongs to Marketing 410 at University of Massachusetts taught by Iyer Earswar in Winter 2016. Since its upload, it has received 36 views. For similar materials see Consumer Behavior in Marketing at University of Massachusetts.
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Date Created: 02/24/16
Marketing 410 Chapter 3 Marketing Segmentation and Strategic Targeting Why is Market Segmentation Necessary? ● enable producers to avoid head on competition in the marketplace by differentiating their offerings on the basis of such features as price, styling, packaging, etc. ● more profitable than mass marketing ● to identify the most appropriate media in which to place advertisements Criteria for Effective Targeting ● Identifiable ○ marketer must be able to identify characteristics that are relevant to the product or service ■ examples: demographics, lifestyle, etc. ● Sizeable ○ must consist of enough consumers to make targeting profitable ● Stable ○ avoid fickle segments that are unpredictable ● Accessible ○ marketers must be able to reach that market segment in an economical way ● Congruent with The Company’s Objectives and Resources Bases for Segmentation ● hybrid segmentation includes attributes from two or more of the four quadrants ● the four groupings stem from dividing consumers’ characteristics along two criteria ○ facts which can be determined from direct questioning and categorized by a single objective measure vs. cognitions which are abstract, can be determined only through more complex questioning ○ consumer rooted features stemming from the consumer’s physical, social, psychological characteristics vs. consumption specific usage behaviors or attitudes/ preferences toward specific products or buying situations ● Consumer Rooted Segmentation Bases ○ includes facts and cognitions ○ demographics, social class facts ○ psychographics (lifestyles) cognitions ○ Demographic Segmentation ■ easiest and most logical way to classify people and can be measured more precisely than other segmentation bases ■ offer the most cost effective way to locate and reach specific segments ■ demographics enable marketers to identify business opportunities enabled by shifts in populations’ ages, income, or geographic location ■ many consumption behaviors. attitudes, media exposure patterns are directly related to demographics ○ Age ■ ages influences our buying priorities ■ marketplace decision difficulty (MPDD) more typical of older, less educated female consumers ○ Gender ■ women mainly use hair coloring ■ sex roles have blurred and gender is no longer an accurate way to distinguish consumers in these and other product categories ○ Marital Status ■ singles, divorced individuals, single parents, and dual income married couples ○ Family Life Cycle ■ for example young single people need basic furniture for their apt. whereas their parents finally free of children often refurnish their homes with more elaborate pieces ■ classification stemming from factual variables including marital status, employment status, and the presence or absence of children in the household ■ traditional family life cycle bachelorhood, honeymooners, parenthood, post parenthood, dissolution ○ Income, Education, and Occupation ■ ability to pay for a product or specific version of a given offering ■ all corelated ■ high level occupations that product high incomes usually require advanced education and are more prestigious than occupations requiring less education ● Geographic Segmentation ○ climates determine the type of clothing most people own ○ geodemographics hybrid segmentation scheme based on the premise that people who live close to one another are likely to have similar financial means,tastes, preferences, lifestyles, consumption habits ■ PRIZM ● Personality Traits ○ example: people who are more open minded and perceive less risk are more likely to be consumer innovators more likely to buy new products when it is first introduced ● Lifestyles ○ psychographics ○ activities, interests, and opinions AIOS ○ Likert scales ○ psychographics explain buyers’ purchase decisions and the choices they make within the buying options available to them ○ VALS values and lifestyles the most popular segmentation system combining lifestyles and values ○ 3 primary motivations ■ ideals motivated guided by knowledge and principles ■ achievement motivated looking for products and services that demonstrate success to their peers ■ self expression motivated desire social or physical activity, variety, and risk ■ see pg 68 for table ● Sociocultural Values and Beliefs ○ Culture and Subculture ■ members of the same culture tend to share the same values, beliefs, and customs ■ within a larger culture exist subcultures who are often united by a certain characteristic associated with specific values and beliefs ○ Cross Cultural or Global Marketing ■ global sameness allows for example a sneaker marketer to launch styles appealing to segments in different countries using the same global advertising campaign ■ example: McDonald's in India serves different food than in the US ● Consumption Specific Segmentation Bases ○ Usage Rate Segmentation ■ stems from differences among heavy, medium, light users and nonusers ■ ex: about 25 percent of all beer drinkers account for about 75 percent of all beer produced ■ targeting heavy users is a common marketing strategy ○ Usage Situation Segmentation ■ whether it is a weekday or weekend ■ whether there is sufficient time ■ florist and candy industry promote for valentines ○ Benefit Segmentation ■ used to develop a positioning approach ■ brand benefits: functional, value for the money, social benefit, positive emotional benefits, negative emotional benefits ○ Media Benefits ■ immediacy, accessibility and ree cost digital newspapers ■ writing style, depth, and details traditional newspaper ● Brand Loyalty and Relationship ○ behavior the frequency and consistency of buying a given brand ○ attitude the consumer’s feeling of commitment to the brand ○ application of brand loyalty frequency award programs ● Implementing Segmentation Strategies ○ Behavioral Targeting ■ enables marketers to deliver personalized advertising messages to buyers ■ segmentation based on behavior ○ Microtargeting ■ aggregating individual consumers into relatively small groups, based on data available about them from many diff. databases, and targeting them with tailor made messages ■ narrowcasting opposite of broadcasting, consisting of using email, mobile devices, and even door to door presentation to deliver personalized messages to individuals ○ Concentrated Vs. Differentiated Marketing ■ targeting several segments using individual marketing mixes differentiated marketing ■ target just one segment with a unique marketing mix concentrated ■ concentrated small company or new to the field, and when ○ Counter Segmentation ■ if a more generic need or characteristic is identified, two or more segments can be combined and targeted
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