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THREE
Market
Segmentation
and Strategic
Targeting
Learning Objectives
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This Ad Targets Runners Who Are
Physically Active People and Also
Relish the Outdoors.
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Why Segmentation is
Necessary
Consumer needs
differs
Differentiation
helps products
compete
Segmentation
helps identify
media
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Positioning
The value
proposition,
expressed
through
promotion,
stating the
products or
services capacity
to deliver specific
benefits.
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Criteria for Effective
Targeting
Identifia
Sizeable
ble
Accessi
Stable
ble
Congruent with
the companys
objectives and
resources
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Which Distinct Benefit Does
Each of the Two Brands Shown
in This Figure Deliver?
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The Dentyne Ads Benefit is Fresh
Breath and the Nicorette Ad is
Whitening and Smoking Cessation
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Bases for Segmentation
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Discussion Questions
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Consumer-Rooted Segmentation
Bases
Demographics
Geodemograph
ic
Personality
Traits
Lifestyles
Sociocultural
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Write and discuss
Age Gender
Income,
Education,
and
Occupation
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Geodemographic
Segmentation
Based on geography and
demographics
People who live close to one another
are similar
Birds of a feather flock together
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Discussion
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Lifestyles
Psychographics
Includes
activities,
interests, and
opinions
They explain
buyers purchase
decisions and
choices
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Discussion Questions
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Two Views of Post-Retirement
Lifestyle
Table 3.6 (excerpt)
AS AN OPPORTUNITY TO MAKE A NEW START
This group regards retirement as an exciting time. Work
will have been largely unrewarding, so the transition is
seen as a freedom from the constraints of their former role.
Retirement will invigorate such people and inspire them
toward undertaking activities that work largely prevented
ASthem from pursuing.
A CONTINUATION OF THEIR PRE-RETIREMENT
LIFESTYLE
To such people, retirement is not perceived as signaling a
drastic change. Work life has not been as unsatisfying as
for others, hence its ending is not greeted with euphoria.
There is, however, some satisfaction that retirement
permits more opportunity to devote time to existing
activities outside of their working role. The future
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is likely
Chapter Three
to see an increase in such activities but no real 23
desire to
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VALS Figure 3.4
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Socio-Cultural Values and
Beliefs
Sociological = group
Anthropological = cultural
Include segments based on
Cultural values
Sub-cultural membership
Cross-cultural affiliations
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Consumption-Specific
Segmentation Bases
Usage rate
Usage situation
Benefit
segmentation
Perceived brand
loyalty
Brand relationship
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Consumption-Specific
Segmentation
Usage-Behavior
Usage rate
Awareness status
Level of involvement
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Consumption-Specific
Segmentation
Usage-Behavior
Usage-situation segmentation
Segmenting on the basis of special
occasions or situations
Example : When Im away on business, I
try to stay at a suites hotel.
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Which Consumption-
Related Segmentation Is
Featured in This Ad?
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This is an Example of a
Situational Special Usage
Segmentation.
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Benefits from visiting
dentist, hairdresser, and
travel agent
Benefits Visiting Tourists
Seek in National Park
Table 3.13 (excerpt)
Segment Description
Environmentalists Interested in an unpolluted, un-spoilt natural
environment
and in conservation. Not interested in socializing,
entertainment, or sports. Desire authenticity
and less man-made structures and vehicles
in the park.
Want-it-all Value socializing and entertainment more than
Tourists conservation. Interested in more activities and
opportunities for meeting other tourists. Do not
mind the urbanization of some park sections.
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Implementing Segmentation
Strategies
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Implementing Segmentation
Strategies
Concentrated Marketing
One segment
Differentiated
Several segments with individual
marketing mixes
Countersegmentation
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