Download Chapter 3:Consumer Motivation and Involvement

Appendix to Part 1
Consumer Behaviour and
Marketing Strategy
Consumer Behaviour
Canadian Edition
Schiffman/Kanuk/Das
Copyright © 2006
Pearson Education Canada Inc.
Steps in Developing a
Marketing Strategy
Segment the Market
Choose a Target Market
Decide on a
Position for the Product
Develop a Suitable
Marketing Mix
Find Ways to Satisfy
And Retain Customers
Copyright © 2006 Pearson Education Canada Inc.
Appendix-2
Market Segmentation
The process of dividing a potential market
into distinct subsets of consumers and
selecting one or more segments as a target
market to be reached with a distinct
marketing mix.
Copyright © 2006 Pearson Education Canada Inc.
Appendix-3
“Best” Customer Segmentation
“
High
High
Current Share
Hi Highs
(stroke)
Low Highs
(chase)
Hi Lows
(tickle)
Lo Lows
(starve)
Low
Consumption
Low
Copyright © 2006 Pearson Education Canada Inc.
Appendix-4
Purposes of Segmentation
Studies

To discover the needs of specific
consumer groups to develop specialized
products to satisfy specific group needs
(e.g., Centrum http://www.centrum.ca)
 To guide the repositioning of a product
(e.g., Nintendo http://www.nintendo.ca)
 To identify the most appropriate media for
advertising (e.g., People and Teen
People)
Copyright © 2006 Pearson Education Canada Inc.
Appendix-5
Bases for Segmentation









Geographic Segmentation
Demographic Segmentation
Psychological Segmentation
Psychographic Segmentation
Socio-cultural Segmentation
Use-Related Segmentation
Usage-Situation Segmentation
Benefit Segmentation
Hybrid Segmentation Approaches
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Appendix-6
(continued)
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Appendix-7
Figure A-2 (continued)
(continued)
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Appendix-8
Figure A-2 (continued)
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Appendix-9
Geographic Segmentation
The division of a total potential market into
smaller subgroups on the basis of
geographic variables (e.g., region, province,
or city).
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Appendix-10
Demographic Segmentation

Age

Sex

Marital Status

Income, Education, and Occupation
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Appendix-11
Marital Status

Households as a consuming unit
–
–
–
–
Singles
Divorced
Single parents
Dual-income married
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Appendix-12
Psychological Segmentation

Motivations
 Personality
 Perceptions
 Learning
 Attitudes
Copyright © 2006 Pearson Education Canada Inc.
Appendix-13
AIOs
Psychographic (lifestyle) variables that
focus on activities, interests, and opinions.
Copyright © 2006 Pearson Education Canada Inc.
Appendix-14
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Appendix-15
Socio-cultural Segmentation

Family Life Cycle
 Social Class
 Culture, Subculture, and Cross-Culture
Copyright © 2006 Pearson Education Canada Inc.
Appendix-16
Family Life Cycle

Phases families go through in their formation,
growth, and final dissolution
–
–
–
–
–
Bachelorhood
Honeymooners
Parenthood
Post-parenthood
Dissolution

Explicit basis: marital status, family status
 Implicit basis: age, income, employment
Copyright © 2006 Pearson Education Canada Inc.
Appendix-17
Use-Related Segmentation

Rate of Usage
– Heavy vs. Light
– Convert light users to medium or heavy users
• By identifying new uses for the product
– Attempt to satisfy heavy users well
• By making sure the product continues to meet
their needs
» continued
Copyright © 2006 Pearson Education Canada Inc.
Appendix-18
Use-Related Segmentation

Awareness Status
– Aware vs. Unaware
– Convert ‘unaware’ to ‘aware’

Brand Loyalty
– Brand Loyal vs. Brand Switchers
– Satisfy and reward brand loyal users
• By providing rewards for continued usage
Copyright © 2006 Pearson Education Canada Inc.
Appendix-19
Usage-Situation Segmentation

Segmenting on the basis of special
occasions or situations
 Example Statements:
– Whenever I do well in a course, I treat myself with ------.
– When I’m away on business, I try to stay at a suites
hotel.
– I always take a bottle of French wine when I am
invited to a friend’s house for dinner
Copyright © 2006 Pearson Education Canada Inc.
Appendix-20
Benefit Segmentation

Segmenting on the basis of the most
important and meaningful benefit
– Crest – Cavity prevention
– Sensodyne – Gentle on sensitive teeth
– Topol – removal of tobacco stains
Copyright © 2006 Pearson Education Canada Inc.
Appendix-21
Hybrid Segmentation Approaches

Psychographic-Demographic Profiles
 Geodemographic Segmentation
 SRI Consulting Group’s Values and
Lifestyle System (VALSTM)
Copyright © 2006 Pearson Education Canada Inc.
Appendix-22
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Appendix-23
Criteria For Effective Targeting of
Market Segments

Identification
 Sufficiency
 Stability
 Accessibility
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Appendix-24
Segmentation Strategies

Concentrated Marketing
– focusing on one target market alone
– Suitable for small or new companies

Differentiated Marketing
– Focusing on several segments at the same
time
– Suitable for financially strong companies with
a several offerings in a product category
» continued
Copyright © 2006 Pearson Education Canada Inc.
Appendix-25
Segmentation Strategies

Counter-segmentation Strategy
– Merging two or more segments into one larger
segment
– When target markets do not warrant separate
strategies anymore
– When consumer needs become more similar
over a period
Copyright © 2006 Pearson Education Canada Inc.
Appendix-26