PART

4:Identifying
Market Segments
and Targets
Demographic Segmentation
5. GENERATION
• Each generation or cohort is influenced by the times in which it
grows up
U.S. Generation Cohorts:
Demographic Segmentation

6. RACE AND CUTURE

• Multicultural marketing is an approach recognizing that different
ethnic and cultural segments have sufficiently different needs
and wants to require targeted marketing activities, and that a
mass market approach is not refined enough for the diversity of
the marketplace.
Psychograpic Segmentation

Psychographics
• Is the science of using psychology and demographics to better
understand consumers.
• In psychographic segmentation, buyers are divided into different
groups on the basis of psychological/personality traits, lifestyle, or
values.
Psychograpic Segmentation

Four groups with HIGHER

resources:
• Innovators
• Thinkers
• Achievers
• Experiencers
Psychograpic Segmentation

Four groups with LOWER

resources:
• Believers
• Strivers
• Makers
• Survivors
Behavrioral Segmentation

• In behavioral segmentation, marketers divide buyers into groups

on the basis of their knowledge of, attitude toward, use of, or
response to a product.
 What influences Consumer Behavior?

2. Each culture consists of smaller

SUBCULTURES that provide more
specific identification and socialization for CULTUR
their members
• includes nationalities, religions, racial
AL
groups, and geographic regions

factors
 What influences Consumer Behavior?

3. Human societies also exhibit social

stratification, in the form of SOCIAL
CLASSES. CULTUR
Social classes in Social classes in the AL
the U.S.: Phils.:
a. lower lowers a. Upper class /
b. upper lowers Maharlika
c. working class b. Middle Class factors
d. middle class c. Lower Class
e. upper middles
f. lower uppers
g. upper uppers
SOCIA
L

factors
 What influences Consumer Behavior?

• Social factors such as reference groups, family,

and social roles and statuses affect our buying SOCIAL
behavior.
1. REFERENCE GROUPS are groups that
have a direct (face-to-face) or indirect
influence on their attitudes or behavior
a. Primary groups – family, friends,
neighbors, and co-workers
b. Secondary groups - religious, factors
professional, and trade-union groups,
etc.
 What influences Consumer Behavior?

SOCIAL
1. REFERENCE GROUPS are groups that
have a direct (face-to-face) or indirect
influence on their attitudes or behavior
c. Aspirational groups – those that a person
wishes to join
d. Dissociative groups – those whose values factors
or behavior an individual rejects
 What influences Consumer Behavior?

2. FAMILY is the most important consumer SOCIAL

buying organization in society, and family
members constitute the most influential
primary reference group.
2 Families in a Buyer’s Life:
a. Family of orientation – parents and
siblings
b. Family of pro-creation - spouse and factors
children
 What influences Consumer Behavior?
3. ROLES AND STATUS
• A role consists of the activities a person is SOCIAL
expected to perform. Each role in turn connotes
a status.
• People choose products that reflect and
communicate their role and their actual or
desired status in society.

factors
SOCIA
L

PERSON
AL
factors
 What influences Consumer Behavior?

• Personal characteristics that influence a

buyer’s decision include age and stage in the
life cycle, occupation and economic
circumstances, personality and self-concept,
and lifestyle and values. PERSON
AL
factors
 What influences Consumer Behavior?

1. AGE AND STAGE IN THE LIFE SOCIAL

CYCLE
• Our taste in food, clothes, furniture, and
recreation is often related to our age
• Psychological life-cycle stages (e.g., teenagers,
adulting, parenting
• critical life events or transitions—marriage,
childbirth, illness, relocation, divorce, first job, factors
career change, retirement, death of a spouse—
as giving rise to new needs.
 What influences Consumer Behavior?

SOCIAL
2. occupation and economic
circumstances
• influences consumption patterns; based on
spendable income, savings and assets

factors
 What influences Consumer Behavior?
Rappler: Income Classes in the Income Distribution,
Income Thresholds and Sizes of Income Classes in 2012
Income Class Range of Monthly Size of
SOCIAL
Family Income (In PhP) Class
Poor Less than 7,980 4.2M
Low income (but not poor) Bet. 7,980 to 15,780 7.1 M
Lower middle income Bet. P15,780 to P31,560 5.8 M
Middle class Bet. 31,560 to 78,900 3.6M
factors
Upper middle income Bet. 78,900 to 118,350 470K
Upper income (but not rich) Bet. 118,350 to 157,800 170K
Source:
https://www.rappler.com/tho
Rich At least 157,800 150K
ught-leaders/98624-who-are-
middle-class
 What influences Consumer Behavior?

3. PERSONALITY AND SELF- SOCIAL

CONCEPT
• Each person has personality characteristics that
influence his or her buying behavior.
• Traits such as selfconfidence, dominance,
autonomy, deference, sociability, defensiveness,
and adaptability factors
 What influences Consumer Behavior?

4. LIFESTYLE AND VALUES SOCIAL

• A lifestyle is a person’s pattern of living in the
world as expressed in activities, interests, and
opinions. a. Money-constrained
b. Time-constrained

factors
 What influences Consumer Behavior?

4. LIFESTYLE AND VALUES SOCIAL

• Core values are belief systems that underlie
attitudes and behaviors.
• Core values go much deeper than behavior or
attitude and determine, at a basic level,
people’s choices and desires over the long
term.
factors
 II.
What are the Three Theories of
Human Motivation?
What are the Three Theories of Human Motivation?
Biogenic
E.g. hunger, thirst, or discomfort. NEEDS ➡ MOTIVE
NEEDS When aroused to a sufficient
Psychogenic
E.g. need for recognition, esteem, level of intensity to drive us to
or belonging act.
 What are the Three Theories of Human Motivation?

freud’s theory OF HUMAN

MOTIVATION
• Behavior is guided by subconscious motivations
• Freudian motivation theory assumed that that PERSON
unconscious psychological forces, such as hidden
desires and motives, shape an individual's behavior, AL
like their purchasing patterns. Sigmund
• Less conscious cues can be the shape, size, weight, Freud
material, color and brand name
 What are the Three Theories of Human Motivation?

MASLOW’S
HIERARCHY OF
NEEDS
• Behavior is driven by
lowest, unmet need PERSON
AL
Abraham
Maslow
 What are the Three Theories of Human Motivation?
HERZBERG’S TWO-FACTOR
THEORY
• Behavior is guided by motivating and hygiene factors

Not dissatisfied Positive

Dissatisfaction
but satisfaction and
and demotivation
not motivated motivation
HYGIENE FACTORS MOTIVATIONAL FACTORS
• Company policies • Achievement
• Quality of • Career advancement Frederick
supervision • Personal growth
• Relations with others • Job interest Herzberg
• Personal life • Recognition
• Rate of pay • Responsibility
• Job security
• Working conditions
 III.
What are the Five Stages of
Consumer Buying Process?
What are the Five Stages of Consumer Buying Process?
the five stage model of The consumer Buying process:
 What are the Five Stages of Consumer Buying Process?
STAGE 1: PROBLEM
RECOGNITION
• The process starts when the buyer recognizes
a problem or a need
• Can be triggered by internal or external
stimuli.

Marketers must identify

circumstances that
trigger a particular need
to develop key
marketing strategies
 What are the Five Stages of Consumer Buying Process?
STAGE 2: information search
• Search state can be heightened attention or active
information state.
• Information sources: Personal, commercial, public
and experiential

Companies must
strategize to get its
brand into
consumer’s
awareness and choice
sets
 What are the Five Stages of Consumer Buying Process?

stage 3: EVALUATION OF
ALTERNATIVES
Some basic concepts to better understand the
1. Satisfy
consumer a need process:
evaluation
2. Looking for certain benefits
3. Product as a bundle of attributes Current models of
Example: evaluation see
Hotels—Location, cleanliness, atmosphere, consumers forming
judgments based on
price
a conscious and
Mouthwash—Color, effectiveness, germ-killing rational basis
capacity, taste/flavor, price
Tires—Safety, tread life, ride quality, price
 What are the Five Stages of Consumer Buying Process?

stage 3: EVALUATION OF
ALTERNATIVES
BELIEFS AND ATTITUDES
• influences people’s buying behavior (based
on likes and dislikes, feedbacks, comments)
Current models of
EXPECTANCY-VALUE MODEL evaluation see
• attribute evaluation procedure consumers forming
judgments based on
a conscious and
rational basis
 What are the Five Stages of Consumer Buying Process?
stage 3: EVALUATION OF
ALTERNATIVES
EXPECTANCY-VALUE MODEL

40% 30% 20% 10%

 What are the Five Stages of Consumer Buying Process?
stage 3: EVALUATION OF
ALTERNATIVES
EXPECTANCY-VALUE MODEL

•Redesign the laptop computer.

•Alter beliefs about the brand.
•Alter beliefs about competitors’ brands.
•Alter the importance weights.
•Call attention to neglected attributes
•Shift the buyer’s ideals.
 What are the Five Stages of Consumer Buying Process?

stage 4: Purchase decision

5 SUB-DECISIONS:
1. Brand
2. Dealer
3. Quantity
4. Timing
A consumer may
5. Payment method form an intention to
but the most
INTERVENING FACTORS: preferred brand in a
1. Attitude of others choice set
2. Unanticipated
situational factors
 What are the Five Stages of Consumer Buying Process?

stage 5: Postpurchase behavior

After purchase, marketers must monitor
post-purchase…
• Satisfaction
(disappointed, satisfied or delighted)
• Actions
If satisfied: repurchase, say good things about brand
If dissatisfied: may abandon, return the product, The Marketer’s job
complain, warn friends does not end with
• Uses and disposal the purchase.
 What are the Five Stages of Consumer Buying Process?

stage 5: Postpurchase behavior

After purchase, marketers must monitor
post-purchase…
• Uses and disposal

The Marketer’s job

does not end with
the purchase.
CONNECTING WITH
CUSTOMERS:
Analyzing
Consumer
Markets
By: Armi Niña A. Bacho
Marketing Management
Prof. Neil B. Gamus
02/08/2020