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Copyright 2007 by Prentice Hall Consumer Behavior, Ninth Edition Schiffman & Kanuk Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

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Page 1: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall

Consumer Behavior,Ninth Edition

Schiffman & Kanuk

Chapter 3Market Segmentation

Consumer Behavior,Ninth Edition

Page 2: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall 3 - 2

Chapter Outline

• What Is Market Segmentation?

• Bases for Segmentation

• Criteria for Effective Targeting of Segments

• Implementing Segmentation Strategies

Page 3: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall 3 - 3

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.

Page 4: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall 3 - 4

Three Phases of Marketing Strategy

Phase 2Target Market and Marketing Mix Selection

Phase 3

Product/Brand Positioning

Phase 1Market Segmentation

Page 5: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall 3 - 6

Ryka produces sneakers that

meet the special needs of

women’s feet.

Page 6: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall 3 - 7

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?

Page 7: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall 3 - 8

Bases for Segmentation

• Geographic

• Demographic

• Psychological

• Psychographic

• Sociocultural

• Use-Related

• Usage-Situation

• Benefit Sought

• Hybrid

Page 8: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall 3 - 12

Geographic Segmentation

The division of a total potential market into smaller subgroups on the basis of geographic variables

(e.g., region, state, or city)

Page 9: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall 3 - 13

Demographic Segmentation

• Age

• Sex

• Marital Status

• Income, Education, and Occupation

Page 10: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall 3 - 15

Psychological Segmentation

• Motivations

• Personality

• Perceptions

• Learning

• AttitudesHarley-Davidson Video

Page 11: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall 3 - 16

Two High-End Watches for Different Psychological Segments

Page 12: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall 3 - 17

Psychographic Segmentation

• Also known as Lifestyle Analysis

• Psychographic variables include attitudes, interests, and opinions(AIOs)

Page 13: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall 3 - 18

Instructions: Please read each statement and place an “x” in the box that best indicates how strongly you “agree” or “disagree” with the statement.

I feel that my life is moving faster and faster, sometimes just too fast.

If I could consider the “pluses” and “minuses,” technology has been good for me.

I find that I have to pull myself away from e-mail.

Given my lifestyle, I have more of a shortage of time than money.

I like the benefits of the Internet, but I often don’t have the time to take advantage of them.

[1] [2] [3] [4] [5] [6] [7]

[1] [2] [3] [4] [5] [6] [7]

[1] [2] [3] [4] [5] [6] [7]

[1] [2] [3] [4] [5] [6] [7]

[1] [2] [3] [4] [5] [6] [7]

Agree Completely

Disagree Completely

Table 3.6 Excerpts from AIO Inventory

Page 14: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall 3 - 20

Sociocultural Segmentation

• Family Life Cycle

• Social Class

• Culture, Subculture, and Cross-Culture

Page 15: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall 3 - 21

Family Life Cycle Advertising

Video cameras are often

purchased by young couples with children.

Page 16: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall 3 - 24

Use-Related Segmentation

• Rate of Usage– Heavy vs. Light

• Awareness Status– Aware vs. Unaware

• Brand Loyalty– Brand Loyal vs. Brand Switchers

Page 17: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall 3 - 26

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.

Page 18: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall 3 - 27

Benefit Segmentation

Segmenting on the basis of the most important and meaningful benefit

Page 19: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall 3 - 28

Band-aid offers “flex”

as a

benefit to consumers.

Page 20: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall 3 - 32

VALS Framework Figure 3-7

Page 21: Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 3 Market Segmentation Consumer Behavior, Ninth Edition

Copyright 2007 by Prentice Hall 3 - 35

Implementing Segmentation Strategies

• Concentrated Marketing– One segment

• Differentiated– Several segments with individual

marketing mixes