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Learning Objectives1. To Understand Why Market Segmentation Is
Essential.2. To Understand the Criteria for Targeting
Selected Segments Effectively.3. To Understand the Bases for Segmenting
Consumers.4. To Understand How Segmentation and
Strategic Targeting Are Carried Out.
What Kind ofConsumer Does This Ad Target?
This Ad Targets youth Who Are Physically Active People and Also Relish the bisexual interactions.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 4
Chapter Three Slide
Which Distinct Benefit Does Each of the Two Brands Shown in This Figure Deliver?
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 5
Chapter Three Slide
The Idea Ad’s Benefit is use it in many ways and the Vodafone Ad is we are there for you, we customize
Why Segmentation is NecessaryConsumer needs
differsDifferentiation helps
products competeSegmentation helps
identify media
Bases for Segmentation
Consumer-Rooted Segmentation Bases
Demographic Segmentation
Geodemographic SegmentationBased on geography and demographicsPeople who live close to one another are
similar“Birds of a feather flock together”
Personality TraitsPeople often do not identify these traits
because they are guarded or not consciously recognized
Consumer innovatorsOpen mindedPerceive less risk in trying new things
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 12
Chapter Three Slide
LifestylesPsychographicsIncludes activities,
interests, and opinions
They explain buyer’s purchase decisions and choices
VALS – Figure 3.4
Socio-Cultural Values and BeliefsSociological = groupAnthropological = culturalInclude segments based on
Cultural valuesSub-cultural membershipCross-cultural affiliations
Consumption-Specific Segmentation Bases
Consumption-Specific SegmentationUsage-Behavior Usage rate
Awareness statusLevel of involvement
Consumption-Specific SegmentationUsage-Behavior Usage-situation segmentation
Segmenting on the basis of special occasions or situations
Example : When I’m away on business, I try to stay at a suites hotel.
Benefits SegmentationBenefits sought represent consumer needsImportant for positioningBenefits of media
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