What Kind of

Consumer Does This Ad Target?

1 Chapter Three Slide
9/2/2014
This Ad Targets Runners Who Are Physically
Active People and Also Relish the Outdoors.
2 Chapter Three Slide
9/2/2014
Why Segmentation is Necessary
Consumer needs
differs
Differentiation helps
products compete
Segmentation helps
identify media
3 Chapter Three Slide
9/2/2014
Positioning
The value
proposition,
expressed through
promotion, stating
the products or
services capacity
to deliver specific
benefits.
4 Chapter Three Slide
9/2/2014
Criteria for Effective Targeting
Identifiable Sizeable
Stable Accessible
Congruent with the
companys objectives
and resources
5 Chapter Three Slide
9/2/2014
Bases for Segmentation
6 Chapter Three Slide
9/2/2014
Consumer-Rooted Segmentation Bases
Demographics
Geodemographic
Personality Traits
Lifestyles
Sociocultural
7 Chapter Three Slide
9/2/2014
Demographic Segmentation
Age Gender
Marital Status
Family Life-
cycle
Income,
Education, and
Occupation
8 Chapter Three Slide
9/2/2014
Geodemographic Segmentation
Based on geography and demographics
People who live close to one another are
similar
Birds of a feather flock together
9 Chapter Three Slide
9/2/2014
One PRIZM Segment - Table 3.4 (excerpt)
MOVERS & SHAKERS
1.59 of U.S. households, Median household income: $95,372, Predominant employment:
Professional
Social group: Elite suburbs, Life stage group: Midlife success, Key education level: College
grad+
Adult age range: 3564
CHARACTERISTICS
Movers & Shakers is home to Americas up-and-coming business class: a wealthy suburban
world of dual-income couples who are highly educated, typically between the ages of 35
and 54 and often with children. Given its high percentage of executives and white-collar
professionals, theres a decided business bent to this segment: Movers & Shakers rank
number-one for owning a small business and having a home office.
LIFESTYLE TRAITS:
Go scuba diving/snorkeling, Plan travel on the Internet
Read PC Magazine, Listen to adult contemporary radio
Drive a Porsche
10 Chapter Three Slide
9/2/2014
Personality Traits
People often do not identify these traits
because they are guarded or not consciously
recognized
Consumer innovators
Open minded
Perceive less risk in trying new things
11 Chapter Three Slide
9/2/2014
Lifestyles
Psychographics
Includes activities,
interests, and
opinions
They explain buyers
purchase decisions
and choices
12 Chapter Three Slide
9/2/2014
Discussion Questions
How might you differ from a person with
similar demographics to yourself?
How would this be important for marketers?
13 Chapter Three Slide
9/2/2014
VALS
14 Chapter Three Slide
9/2/2014
Socio-Cultural Values and Beliefs
Sociological = group
Anthropological = cultural
Include segments based on
Cultural values
Sub-cultural membership
Cross-cultural affiliations
15 Chapter Three Slide
9/2/2014
Consumption-Specific
Segmentation Bases
Usage rate
Usage situation
Benefit segmentation
Perceived brand
loyalty
Brand relationship
16 Chapter Three Slide
9/2/2014
Consumption-Specific Segmentation
Usage-Behavior
Usage rate
Awareness status
Level of involvement

17 Chapter Three Slide
9/2/2014
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.

18 Chapter Three Slide
9/2/2014
Benefits Segmentation
Benefits sought represent consumer needs
Important for positioning
Benefits of media

Chapter Three Slide 28
9/2/2014 19
Brand Loyalty and Relationships
Brand loyalty includes:
Behavior
Attitude
Frequency award programs are popular
Customer relationships can be active or passive
Retail customers seek:
Personal connections vs. functional features
Banking customers seek:
Special treatment
Confidence benefits
Social benefits
20 Chapter Three Slide
9/2/2014
Implementing Segmentation Strategies
Micro- and behavioral targeting
Personalized advertising messages
Narrowcasting
Email
Mobile
Use of many data sources

21 Chapter Three Slide
9/2/2014