* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project
Chapter 3 – Analyzing Your Customers What You’ll Learn • Identifying customers • What market segmentation is and the four methods used to segment a market • Analyze a target market • Differentiate between mass marketing and market segmentation Identifying the Customer • • • • • Culture Social Class Community Family Gender Culture Culture: An integrated pattern of behavior, knowledge, and beliefs that are acquired from a group and passed on to future generations. Ex. Values, rituals Values & Rituals Values Ex. Cleanliness, individuality, honesty Ritual: A formalized act that is performed frequently. Ex. Holidays, brushing your teeth. Products & values that fit into an existing culture have a better chance of success than those that don’t. Social Class Social Class: A group sharing the same economic or social status. Ex. Income Education Occupation Members of a social class live in similar houses, think in similar ways, and purchase similar items. *Advertisers believe social class identifies potential customers most reliably. Community Community: A group of people with a common characteristic or interest living within a larger society. Ex. Neighborhoods Baseball card collectors Magazine/newspaper subscribers Family Family: A group of consumers. Brand loyalty can be passed from one generation to the next. Gender Advertisers present images that help to define the role of gender in purchasing their products, although differences in consumption are not well defined. Decision Making Process Step 1: Define the Problem. Step 2: Identify the Choices. Step 3: Evaluate the Choices. Step 4: Choose One. Step 5: Act on Your Choice. Step 6: Review Your Decision. Analyzing Markets Market segmentation is a way of analyzing a market by specific characteristics in order to create a target market Types of Segmentation: • • • • Demographics Psychographics Geographics Behavioral Demographics – statistics that describe a population in terms of personal characteristics. • Age – Baby Boom Generation – Generation X – Generation Y • Gender • Income – Disposable income – money left after taking out taxes – Discretionary income – money left after paying for basic living necessities such as food, shelter, and clothing • Marital Status • Ethnic Background U.S. Trend – The percentage of the Caucasian population is declining, while other ethnic populations increase. Psychographics • Involves grouping people with similar lifestyles, as well as shared attitudes, values, and opinions. – Activities – Attitudes – Personality & Values Music teachers, dancers, and other music lovers would be one category of people who share psychographic characteristics. Geographics – Segmentation based on where people live Behavioral Segmentation • Looking at the benefits desired by consumers, shopping patterns, and usage rate. Market benefits, not just the physical characteristics of a product Behavioral Segmentation • Many businesses find that the 80/20 rule applies. • 80 % of a company’s sales are generated by 20 % of its loyal customers. Mass Marketing Vs Segmentation • Mass marketing is not as popular as it once was. • Niche marketing (the current trend) – markets are narrowed down and defined with extreme precision. 5 Levels of Usage and Commitment 1. 2. 3. 4. 5. Nonuser Switcher New consumer Brand-loyal consumer Heavy user Essential Elements of a Positioning Strategy • Substance • Consistency • Simple, Distinctive theme Marketing Research Marketing Research: The thorough investigation of the planning, preparation, and placement of advertisements. Why? The advertiser can create an advertisement that will accurately reflect the target market’s world.