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ABSTRACT: The market is made up of a variety of types of consumers, each with different tastes, demands and
expectations. Market segmentation designates the process of identifying and determining the various groups of
customers that place a demand on a specific market, who have common features of consumption and meet certain
conditions of classification according to various criteria. The segmentation criteria represent the variables used for
the delimitation of the segments that form the internal structure of a global market. According to Philip Kotler’s
approach, there are four main segmentation criteria for the goods market: demographic criteria, geographic,
behavioural and psychographic criteria. Our paper employs the typological analysis by accumulation in order to
identify certain types of consumers, based on their similar characteristics, and to draw up focussed strategies
tailored to each market segment.
KEYWORDS: market segmentation; segmentation criteria; the typological analysis by accumulation; types of
consumers.
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Size of 1-2 members; 3-4 members; > 5 among the marketing guidelines of contemporary
family members. enterprises.
Single youngsters; married Although theoretically the staging seems logical and
youngsters, without children; easy to implement, choosing the appropriate
married youngsters, with children; segmentation criterion is not easily achieved in practice,
Family life married old people, without especially in situations where several variables seem to
span children; married mature with have an approximately equal value. In such situations it
children (under 18, and above 80 is necessary, as a rule, to conduct a sample survey,
respectively); single seniors; other followed by the use of some methods for segmentation
categories purposes. The methods and techniques for structuring
Income Low; Medium; High. (segmentation) the market can be summarized into two
main categories [12]: methods of market typology and
II. Geographic
methods of market segmentation, respectively. In the
Transylvania, Moldavia, Banat- first category we come across the typological analysis
Region
Crişana, Muntenia, Maramureş, through accumulation and typological analysis through
(area)
Oltenia, Dobrogea etc. concentration, while the second category includes the
Country
Romania, Hungary, USA, France, most commonly applied χ2 test, the Belson method and
Italy, Great Britain etc. multiple linear discriminator.
Less than 5000 inhabitants; 5000-
City (size) 20.000; 20.000-50.000; 50.000- 3. SPECIFIC MARKETING STRATEGIES
100.000 etc.
Medium Urban; Rural There are two extreme approaches of the market
Climate Warm; Cold; Dry; Wet. (applicable, however, in quite rare cases) - mass
marketing and differentiated marketing, among which
Landforms Mountain; Plain; Hill.
we may find a third approach prefigured by the content
III. Psychographic of this paragraph - target marketing.
Introvert; Extrovert; Phlegmatic; Mass marketing (undifferentiated) deliberately
Personality Sorrowful; Impulsive; Bossy; ignores the differences between clients; therefore the
and temper Passionate; Conservative; Anxious offer is addressed to an "average consumer". The market
etc. is considered to be homogeneous, and the product is
Lower class; Middle class; Higher designed to meet the requirements expressed at an
Social class
class. acceptable level. For example, at some point Henry
Implementer; Egotist; Pragmatic; Ford sold all its purchasers the same model of black car.
Life style
Fighter; Ecologist; Whimsical etc. Mc Donald's restaurants offer almost identical fast food
IV. Behavioural menus worldwide.
Attitude The main advantage of non-differentiated marketing
Enthusiastic; Positive; Indifference; orientation is that it enables a substantial reduction in
towards the
Hostile the level of production costs through the exploitation of
product
scale economies. Therefore the costs of logistics
Loyalty Absolute; Medium; Random; Weak
activities, marketing researches or promotional
Usage Rate Reduced; Medium; Intense campaigns are distributed on a high volume of goods of
Quality; Prestige; Comfort; Utility; the same type. Accordingly, the average cost decreases,
Advantages
Price; Services; Economies etc. and the profits are likely to increase.
Non-consumer (absolute or relative); The disadvantage of this strategy is the risk of
Status of Ex-consumer; Potential consumer; penetration of new competitors on the market using a
user Regular consumer; Casual consumer differentiated marketing approach and adapting the offer
etc. so as to meet the requirements at a higher level of some
Importance market segments that can be attracted this way.
Great; Medium; Reduced
of shopping Differentiated (individualized) marketing provides a
Decision of Unconscious; Conscious; Informed; wide and broad range of products targeted to meet
purchasing Interested; Intentional etc. consumer requirements, identifying the distinct market
Time segments. This alternative is extremely expensive and
Rushed customers; in transit; difficult to carry out, due to increased complexity of
allotted to
Available. administrative and coordination activities, and as a
purchasing
result of the proliferation of distribution channels and
Of course, the inventory of possible segmentation promotion actions. There are still economic sectors
criteria and "typical" categories of clients is far from where the peculiarity of the activity requires the
being exhausted in the columns of the table above. production of custom made goods and services: tailor
Without claiming an exhaustive approach, we were made clothing, building of houses, manufacturing
limited to presenting those criteria and market segments luxury cars, production and deliveries of complex
that make their presence felt ever more frequently industrial equipment with outstanding performances etc.
This is the strategy that best satisfies customers,
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although the high costs needed for its implementation the structural characteristics of the market, the company
increase prices that consumers must be able to pay. carried out a survey upon a sample consisting of
Target marketing represents the modern optics of consumers of five of the most popular products
enterprises, which are concerned with the delimitation (symbolized M1, M2, M3, M4, M5). The survey is
of distinct and relatively homogeneous segments of the conducted based on a questionnaire that includes a
global market, as well as with the adjustment of supply series of questions about the essential features of
and marketing policies to each distinct group. The consumers, thus forming the actual typology criteria
advantages of this marketing guideline are as follows established in a previous stage of the market research. It
[9]: is desirable to identify four distinct types of consumers,
effective use of marketing resources, which so that marketers should be able to develop
focuses on a limited number of market areas; differentiated strategies for each segment individually.
diversification of risks generated by the loss of The questionnaire included the following questions
some traditional market segments; and choices:
deeper knowledge of customer needs, marketing 1) The monthly net revenues of consumers fall into one
researches being carried out on a smaller number of of the following categories:
consumers organized in relatively homogeneous a) below 1500 lei;
subsets; b) between 1500-2500 lei;
retaining the clientele due to the possibility of c) between 2500-5000 lei;
meeting the requirements of buyers at a higher level; d) more than 5000 lei.
raising awareness with regard to the actions of 2) The age of consumers ranges:
competitors; they are easier to monitor on relevant a) between 18-35 years;
market segments as compared to global markets; b) 36-50 years;
ability to establish and achieve levels of c) over 50 years.
objectives and performances that are more realistic and 3) The preferred distribution channel is represented
easier to put into practice. by:
The target marketing strategy presents several a) classical shops;
disadvantages as well: b) Internet (e-shops);
there is a possibility to neglect some consumer c) supermarkets and hypermarkets.
segments as a result of targeting other sectors of the 4) The chosen type of clothing:
market, potentially more profitable; a) M1;
high level of production and marketing costs, as b) M2;
a consequence of differentiated treatments applied to the c) M3;
targeted market segments in terms of product policy, d) M4.
price, promotion and distribution policies. The answers to the first 12 questionnaires are those
Despite these drawbacks, however, outweighed by listed in the table below (the encoding of the table of
the numerous benefits reported, target marketing is responses is based on the following agreement: "1"
currently the strategy and approach of the market that is symbolizes an affirmative response to one of the choices
most often used by businesses in most areas of activity. of the question and “0” symbolizes a negative
response).
4. MARKET SEGMENTATION USING THE Table 2: Responses of consumers of “Style” to the
TYPOLOGICAL ANALYSIS BY questionnaire
ACCUMULATION
1 2 3 4
This method is aimed at dividing a community of a b c a b c a b c a b c d e
consumers into categories which bring together 1 0 0 1 1 0 0 1 0 0 0 1 0 0 0
individuals of the same type, with common or very 2 0 0 1 0 1 0 0 0 1 0 0 0 1 0
similar features. Therefore the typology groups 3 1 0 0 1 0 0 0 1 0 1 0 0 0 0
marketing phenomena into categories (classes), starting 4 0 1 0 0 0 1 1 0 0 0 1 0 0 0
from the discovery of similarities in the behavior of 5 1 0 0 0 1 0 1 0 0 0 1 0 0 0
consumers included in the same subdivision. The 6 1 0 0 0 1 0 0 0 1 0 0 0 0 1
particularities of each class are highlighted through the 7 0 0 1 1 0 0 0 0 1 0 0 1 0 0
initiation of a quantitative marketing research based on 8 0 1 0 1 0 0 0 1 0 1 0 0 0 0
a selective survey, applied to a sample of consumers, 9 1 0 0 0 1 0 0 0 1 0 0 0 1 0
representative for the total population. The
10 0 0 1 0 1 0 0 1 0 0 1 0 0 0
questionnaires which help carry out the market survey,
11 0 1 0 0 1 0 1 0 0 1 0 0 0 0
include questions that capture the essential
12 1 0 0 0 1 0 0 1 0 1 0 0 0 0
characteristics of consumers in accordance with the
established typology criteria.
In order to illustrate the procedure for applying the We shall determine, gradually, the types of
method of typological analysis by accumulation in consumers starting from the first one. There are some
practice, we shall consider the case of "Style" company, steps that must be followed:
producing women’s clothing. With the aim of knowing
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1. the maximum typological distance between two - Dab > F , in which case the two consumers fall into
elements of the sample can be determined using the separate categories.
following relation: In our case, D1,2 > F, as a consequence consumers 1
2n
D= (1) and 2 are of different types.
N During this phase of the survey one can notice two
where: D – the maximum typological distance; n – different types of consumers: type t1 consisting of client
the number of questions within the survey ; 2n - the no. 1; type t2 consisting of client no. 2
maximum number of possible non-coincidences in the 5. The responses to the following questionnaires
answers of two consumers (in case their answers to are then analyzed, repeating steps 3 and 4 for each of
each question are different); N – the total number of them, until the number of acceptable types (Nt) is
possible choices to every question of the questionnaire exhausted.
n
N= ∑k
i =1
i
(2) If a type is made up of p elements (p≥2), it is
necessary to recalculate the coordinates of this type of
ki – the number of possible choices to question i. composite using the relation:
p
We’ve mentioned previously that the managers of
‘Style’ wish to identify four distinct types of consumers, ∑ cr ij
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6. After determining the acceptable number of ∆t2,t4 = n · Dt2,t4 = 4 · 0,570 = 2,28
categories, the responses to the following ∆t3,t4 = n · Dt3,t4 = 4 · 0,570 = 2,28
questionnaire are then analyzed, calculating the 2o. between consumer 5 and the types t1 and t4,,
typological distance towards each type: respectively:
1 n k ∆t1, 5 = n · Dt1, 5 = 4 · 0,285 = 1,14
∑∑
i
0,5
0,5
t41
0
0
1
0
0
0
1
0
0
0
type towards which the minimum typological distance is
registered: 7. The acceptable exigency threshold must be
( ∆tk ,h ) min = n ⋅ ( Dtk ,h ) min (7) reevaluated based on exponential smoothing. The
2. the movable variables between the types of formula used in this respect is the following:
consumers distinguished so far: F 1 = α ⋅ F + ( 1 − α ) ⋅ ∆min (9)
∆tk ,tm = n ⋅ Dtk ,tm ; k ≠ m (8) where: α - smoothing coefficient (0<α<1);
If ( ∆tk ,h ) min ≤ ( ∆tk ,tm ) min , then consumer h belongs ∆min = min{( ∆tk ,h ) min;( ∆tk ,tm ) min} (10)
to type tk; if ( ∆tk ,h ) min > ( ∆tk ,tm ) min, then the types of In our case study, the new exigency threshold shall
be:
consumers tk and tm blend together, and consumer h will
F1 = α·F +(1- α)·∆ min=0,8·0,1425 +(1- 0,8) ·1,14 =
form a distinct type.
0,342
- Questionnaire no. 5:
Further on, we shall analyze the questionnaires filled
As opposed to the previous four types, the
out by the other consumers:
typological distances of the responses in questionnaire 5
can be determined based on the relation (4) and they can - Questionnaire no. 6:
8 4
be compared with the exigency threshold: Dt , 6 = = 0 ,57 F 1 Dt , 6 = = 0 ,285 F 1
4 6
1
14 14 2
Dt ,5 = = 0 ,285 F Dt ,5 = = 0 ,428 F 6 6
14 14 Dt , 6 = = 0 ,428 F 1 Dt , 6 = = 0 ,428 F 1
1 2
6 4
3
14 14 4
0,5
0,5
0,5
t21
0
0
1
0
0
0
1
0
0
0
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Steps 3-7 are successive, until exhausting all the 12 questionnaires, the structure and the coordinates
responses of consumers in table 2. Thus, after analyzing of the types already formed is presented as follows:
Table 5: Coordinates of the four types of consumers
Consu- 1 2 3 4
Type
mer a b c a b c a b c a b c d e
T1( t11) 1,7 0 0 1 1 0 0 0,5 0 0,5 0 0,5 0,5 0 0
T2 (t22) 2,6,9 0,67 0 0,33 0 1 0 0 0 1 0 0 0 0,67 0,33
T3 (t22) 3,8,12 0,67 0,33 0 0,67 0,25 0 0 1 0 1 0 0 0 0
T4 (t43) 4,5,10,11 0,25 0,50 0,25 0 0,75 0,25 0,75 0,25 0 0,25 0,75 0 0 0
Analyzing the four types of consumers and their advertisers conceived target commercials in order to
coordinates, one can draw the following conclusions: attract a certain group of viewers which identify with
- Type T1 – consists exclusively of people with their slogans.
monthly incomes over 5000 lei, between 18 and 35 In our way of thinking, segmentation should
years of age. This type of consumers equally uses the remain a valuable tool both for companies and
Internet and classic shops for purchasing “Style” consumers, supporting at the same time, the
products. The types of clothing demanded by this identification of clusters which feed the company’s
category are M2 and M3; profits and the features of product and service
- Type T2 – is made up mostly of people with low offerings which tailor the very group of clients
income (below 2500 lei/month), with ages between 36 interested in buying them.
and 50 years. The method of purchasing products is
through classic shops, while the preferred models are
M4 and M5; 4. REFERENCES:
- Type T3 – groups mainly people with incomes below
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known by modern marketers, responsible of drawing
product development strategies or pricing and
promotion policies. Instead of directing companies in
suiting their products and services to the categories of
consumers most likely to purchase them, marketing
segmentation has become an old technique with a new
focus: media advertising and message. Thus, many
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