SegmenLaLlon

MarkeL SegmenLaLlon ls Lhe process of

dlvldlng a markeL lnLo dlsLlncL subseLs of
consumers wlLh common needs or
characLerlsLlcs and selecLlng one or more
segmenLs Lo LargeL wlLh a dlsLlncL markeLlng
mlx
J SLCMLn1A1lCn?
8aLher Lhan Lrylng Lo compeLe wlLh an enLlre
markeL company musL ldenLlfy parLs of markeL
LhaL can serve better than compet|t|on
SegmenLaLlon helps sellers develop Lhe rlghL
producL and ad[usL prlces seL dlsLrlbuLlon
channels and adverLlslng promoLlons sLraLegles
effecLlvely
SegmenLaLlon sLraLegy dlfferenLlaLes offerlngs
Lhrough sLyllng packaglng promo appeals
meLhod of dlsLrlbuLlon
SegmenLaLlon helps sellers develop Lhe rlghL
producL and ad[usL prlces seL dlsLrlbuLlon
channels and adverLlslng promoLlons
sLraLegles effecLlvely
CJ MA8kL1 SLCMLn1A1lCn JC8kS
SegmenLaLlon sLudles
Lo dlscover needs/wanLs on speclflc
consumer gaps
Lo gulde reposlLlonlng of exlsLlng producLs
and add new markeL segmenL
J MAkkL1 SLGMLN1A1IN
JkkS (cont'd)
SegmenLaLlon research
Lo deLermlne mosL approprlaLe medla Lo place
ads Lhrough surveys and analysls of daLa
le AC nlelsen Acorn
Segmentation Strategies
SegmenLaLlon versus aggregaLlon sLraLegles
Consumer preference heLerogenelLy
1he Ma[orlLy lallacy
1he salescosLs Lradeoff cannlballzaLlon
8ases of segmenLaLlon
1he consumer x producL x usage
slLuaLlon maLrlx
Segmentat|on vs Aggregat|on Strategy
Jhen shou|d a f|rm pursue a segmentat|on versus
aggregat|on strategy?
% Consumer reference eterogene|ty
% Ma[or|ty Ia||acy
% Cost8enef|t Ana|ys|s
Consumer reference eterogene|ty
ow much Var|ab|||ty Lx|sts |n Consumer references?
1he Ma[or|ty Ia||acy
1he sa|escosts tradeoff of segmentat|on
8ases of segmentat|on
8ases Lxamp|es
Ceographlc Ceographlc
uemographlc uemographlc
sychographlc sychographlc
8ehavloral 8ehavloral
osLal Zl code dlsLrlcLs meLropollLan
sLaLlsLlcal areas counLrles sLaLes provlnces
reglons naLlons conLlnenLs
osLal Zl code dlsLrlcLs meLropollLan
sLaLlsLlcal areas counLrles sLaLes provlnces
reglons naLlons conLlnenLs
Cender age educaLlon occupaLlon lncome
marlLal sLaLus household slze eLhnlc
background
Cender age educaLlon occupaLlon lncome
marlLal sLaLus household slze eLhnlc
background
ersonallLy characLerlsLlcs aLLlLudes
bellefs llfesLyles
ersonallLy characLerlsLlcs aLLlLudes
bellefs llfesLyles
usage slLuaLlons usage frequency usage slLuaLlons usage frequency
oLenLlal segmenLaLlon bases
A prlorl
ueLermlned ln advance (sex race age resldenLlal sLaLus)
Cb[ecLlve (can be observed/measured)
Ceneral or behavloral
lnferred (assessed Lhru quesLlonnalre)
Ceneral or behavloral
SelfselecLlon bases
SegmenLs deflne Lhemselves Lhru response Lo campalgn
8arely lndlcaLes why response occurred
8ASL lC8 SLCMLn1A1lCn (conL'd)
Geograph|c segmentat|on
markeL dlvlded by locaLlon/locallzlng Lhe
markeLlng sLraLegy
usually people ln Lhe same area share Lhe
same needs and wanLs
dlfferenL spendlng paLLerns/demands
emograph|c segmentat|on
ldenLlflable measurable sLaLs of a
populaLlon le age sex marlLal sLaLus eLc
easler Lo measure Lo assess slze of LargeL
markeL
Soc|ocu|tura| segmentat|on
famlly llfe cycle le passlng Lhrough slmllar
phases ln Lhelr formaLlon
soclal class educaLlon occupaLlon lncome
culLure/subculLure and crossculLure
afflllaLlon
Dsers|tuat|on segmentat|on
usage of producL depends on occaslon le
greeLlng cards drlnks alrllnes
8enef|t segmentat|on
8ewardlng consumers wlLh producL
beneflLs le mlcrowave LhaL requlres less
Llme Lo prepare meals
1oothpaste
Soclally acLlve
Smokers
Chlldren
ybr|d segmentat|on
ComblnaLlon of Lwo or more exclLlng
segmenLaLlon varlables commonly done
by markeLers
ybrld SegmenLaLlon
MarkeLers commonly segmenL markeLs by comblnlng several
segmenLaLlons varlables raLher Lhan relylng on a slngle
segmenLaLlon base
1ypes of ybrld segmenLaLlon covered
sychograph|cemograph|c rof||e
Geodemograph|cs
VALS
sychographlcuemographlc SegmenLaLlon
Jldely used ln adverLlslng campalgns Lo answer
Lhree quesLlons
Jhom should we LargeL
JhaL should we say and
Jhen should we say lL
Lg newsweek audlence profllenewsweek Asla doc
oIIering media buyers such careIully deIined dual proIiles oI their audiences, mass
media publishers and broadcasters make it possible Ior advertisers to select media
whose audiences most closely resemble their target markets.
Ceouemographlc
SegmenLaLlon
1hls Lype of hybrld segmenLaLlon
scheme based on Lhe noLlon
LhaL people who llve close Lo
one anoLher are llkely Lo have
slmllar flnanclal means LasLes
preferences llfesLylesa and
consumpLlon hablLs
IALS
uraws on Maslow's
need lerarchy and concepL of soclal
characLer
1hree ma[or selforlenLaLlons
ltloclple otleoteJ consumers whose
cholces are drlven by Lhelr bellefs raLher
Lhan Lhelr deslres
5totos otleoteJ consumers whose
cholces are gulded by Lhe acLlons
approvals and oplnlon of oLhers
Actloo otleoteJconsumers who are
drlven by a deslre for soclal or physlcal
acLlvlLy varleLy and rlsk Laklng
Lach of Lhese selforlenLaLlons
represenL dlsLlncL aLLlLudes
and llfesLyles declslon maklng
sLyle
8esources lnclude Lhe range of
psychologlcal physlcal
demographlc and maLerlal
means Lhe consumer has Lo
draw upon
Cr|ter|a for Lffect|ve 1arget|ng of Market|ng
Segments
ldenLlflable
SufflclenL
SLable or growlng
Accesslble (reachable)ln
Lerms of boLh medla and
cosL