CB Segmentation 2

8/11/2019 CB Segmentation 2

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What Kind of

Consumer Does This Ad Target?

1Chapter Three Slide9/2/2014


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This Ad Targets Runners Who Are Physically

Active People and Also Relish the Outdoors.



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Why Segmentation is Necessary

Consumer needs

differs

Differentiation helpsproducts compete

Segmentation helps

identify media



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Positioning

The value

proposition,

expressed through

promotion, statingthe products or

services capacity

to deliver specificbenefits.



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Criteria for Effective Targeting

Identifiable Sizeable

Stable Accessible

Congruent with the

companys objectives

and resources



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Bases for Segmentation



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Consumer-Rooted Segmentation Bases

Demographics

Geodemographic

Personality Traits

Lifestyles

Sociocultural



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Demographic Segmentation

Age Gender

Marital StatusFamily Life-

cycle

Income,Education, and

Occupation



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Geodemographic Segmentation

Based on geography and demographics

People who live close to one another are

similar Birds of a feather flock together

http://www.claritas.com/MyBestSegments/Default.jsp?ID=20&SubID=&pageName=ZIP+Code+Look-up


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One PRIZM Segment - Table 3.4 (excerpt)

MOVERS & SHAKERS

1.59 of U.S. households, Median household income: $95,372, Predominant employment:Professional

Social group: Elite suburbs, Life stage group: Midlife success, Key education level: Collegegrad+

Adult age range: 3564

CHARACTERISTICS

Movers & Shakers is home to Americas up-and-coming business class: a wealthy suburbanworld of dual-income couples who are highly educated, typically between the ages of 35and 54 and often with children. Given its high percentage of executives and white-collarprofessionals, theres a decided business bent to this segment: Movers & Shakers rank

number-one for owning a small business and having a home office.

LIFESTYLE TRAITS:

Go scuba diving/snorkeling, Plan travel on the Internet

Read PC Magazine, Listen to adult contemporary radio

Drive a Porsche



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Personality Traits

People often do not identify these traits

because they are guarded or not consciously

recognized Consumer innovators

Open minded

Perceive less risk in trying new things



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Lifestyles

Psychographics

Includes activities,

interests, andopinions

They explain buyers

purchase decisionsand choices



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Discussion Questions

How might you differ from a person with

similar demographics to yourself?

How would this be important for marketers?



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VALS

http://www.sric-bi.com/VALS/presurvey.shtml


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Socio-Cultural Values and Beliefs

Sociological = group

Anthropological = cultural

Include segments based on Cultural values

Sub-cultural membership

Cross-cultural affiliations



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Consumption-Specific

Segmentation Bases

Usage rate

Usage situation

Benefit segmentation

Perceived brandloyalty

Brand relationship



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Consumption-Specific Segmentation

Usage-Behavior

Usage rate

Awareness status

Level of involvement



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Consumption-Specific Segmentation

Usage-Behavior

Usage-situation segmentation

Segmenting on the basis of special occasions or

situations

Example : When Im away on business, I try to

stay at a suites hotel.



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Brand Loyalty and Relationships

Brand loyalty includes: Behavior

Attitude

Frequency award programs are popular Customer relationships can be active or passive

Retail customers seek: Personal connections vs. functional features

Banking customers seek: Special treatment

Confidence benefits

Social benefits



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Implementing Segmentation Strategies

Micro- and behavioral targeting

Personalized advertising messages

Narrowcasting Email

Mobile

Use of many data sources

http://www.google.com/prdhp?hl=en&tab=wf

Documents

CB Segmentation 2