Identifying Market Segments and Targets (Chapter 7)

Identifying market segments and targets
(Chapter 7)
• Basis for segmenting consumer markets
Geographic segmentation
Demographic
Psychographic
Behavior
Market segments: consist of group of customer
who share a similar needs and wants
Geographic segmentation
• Divide the market into geographical units such as state ,
nation regions , countries, cities and neighbourhood.
• grassroots marketing, marketers
concentrate on making such activities as personally relevant to
individual customers as possible
• Much of Nike’s initial success came from engaging target
consumers through
grassroots marketing efforts such as sponsorship of local school
teams, expertconducted
clinics, and provision of shoes, clothing, and equipment to
young athletes.
• Geographical marketers also vary in their product
preferences and requirements. For example in
arid region of south asian countries Dry and hot
weather AC will be used.
• Similarly food habits also vary across regions
Rural and urban markets segmentation come under
it as well . Its according to socio economic
conditions
Demographic segmentation
• Divide the market on variable such as age, family, family
size, gender, income, occupation, educatin, religion,
nationality and social class.
• Demographic segmentation helps marketers to better
satisfy consumer want and need
• Follwing things come under it
Age and life cycle stage
Life stage
Gender
Income
• Age and life cycle stage
Consumer wants and abilities change with age.
For exampke choclate, buscuit, candies for
younger. TV channels. Jewelery
• Life stage
Define the person major concern such as getting
married. Deciding to buy a home, retirement
and so on.
• Gender
Men and women have different prefernces
They are different in clothing , hairstyling. They
vary in their shopping behavior too.
• Income
Even if two consumer have same income their
purchasing patterns can be vary according to life
situations
Psychographic segmentation
• In it buyers are divided into different groups
on the baisis of personality traits, life style or
value
• People within the same demographic graphic
group may vary psychographic profiles
• The most popular available classification
system based on psychographic measurents is
strategic business insight’s. VALS Framework.
• The main dimensions of VALS are consumer
motivation and resources.
• Consumer are inspired by three of the
following motivation
• Idea
• Achievement
• Self- expression
• Different levels of resources enhance a person
expression of his’ her own resources
• The four group with higher resources
• Innovators (successful, sophistcated high self
esteem people
• Thinker (mature and satisfied )they seek
durability, functionality and value in product.
• Achievers (successful, goal-oriented people who
focus on carrer and family
• Experiencers : young, enthusiastic , impulsive
people who seek variety and excitement
• The four with less resources
• Believers (traditional people )
• Strivers (trendy and fun loving people)
• Makers (people who like to work with their
hands)
• Survivors (loyal to their favorable brand )
• It could be on cultre too.
• Religion coulsd also has an effect
• Macdonalds example
Behavioral segmentation
• Basis of their knowledge, attitude toward
product. Response to a product
• Needs and benefits
• Decision roles
• User and usage
• Buyer readiness stages
• Needs and benefits ( not everyone who uy the
product has same needs and wants ). For
example a sshampoo have different features
so buy it according to that need .
• Decision roles (people playe five roles initiator,
influence, decider, buyer , user )
• User and usage
1/ Occasion based (Week, month, year.)
Valentine eid, devali
2. User status (non user, ex user, potential user,
first time user and regular user )
3. Usage rate (Heavy , light and medium product
user)
• Buyer readiness stage
Some people are unaware of the product, aware,
some informed, some intersted.
Loyalty status has been checked
Hard core loyals (one brand all the time)
Split loyals (loyal to two or three brands)
Shifting loyals (who shift loyalty from one brand to
other )
Switchers (no loyalty to any brand )

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