chapter 3

1. Chapter 3 Market Segmentation

3. Three Phases of Marketing Strategy Phase 1: Market Segmentation Phase 2: Target Market and Marketing Mix Selection Phase 3: Product/Brand Positioning

4. Table 3.1: Sodexho�s Segmentation of College-age Eating Patterns Star Gazers Light, healthy foods Price insensitive Brand conscious Employed full-time over summer Active, out-going Family income > 100,000 Fun Express Variety, taste, and nutrition Price conscious Work part-time over summer Value leisure time Family income $30,000 - 60,000

5. �Best� Customer Segmentation

6. Segmentation Studies Designed to discover the needs and wants of specific groups of consumers in order to develop specialized products to satisfy specific group needs (e.g., Centrum) Designed to guide the repositioning of a product (e.g., Nintendo) Used to identify the most appropriate media for advertising (e.g., People and Teen People)

7. Bases for Segmentation Geographic Segmentation Demographic Segmentation Psychological Segmentation Psychographic Segmentation Sociocultural Segmentation Use-Related Segmentation Usage-Situation Segmentation Benefit Segmentation Hybrid Segmentation Approaches

12. Demographic Segmentation Age Sex Marital Status Income, Education, and Occupation

13. Age: Segmentation by Age Effects and Cohort Effects Seven Life Development Stages (Table 3.3) Provisional Adulthood Pulling up roots First Adulthood Reaching out, Questions/questions, Mid-life explosion Second Adulthood Settling Down, Mellowing, Retirement

14. Marital Status Households as a consuming unit Singles Divorced Single parents Dual-income married

15. Psychological Segmentation Motivations Personality Perceptions Learning Attitudes

19. Figure 3.1 Centrum Targets Lifestyle

20. Sociocultural Segmentation Family Life Cycle Social Class Culture, Subculture, and Cross-Culture

21. Family Life Cycle Phases a family goes 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

22. Use-Related Segmentation Rate of Usage Heavy vs. Light Awareness Status Aware vs. Unaware Brand Loyalty Brand Loyal vs. Brand Switchers

23. Figure 3.2Campbell�sSeeks to CreateAwareness and Interest

24. Usage-Situation Segmentation Segmenting on the basis of special occasions or situations Example Statements: Whenever our daughter, Jamie, gets a raise, we always take her out to dinner. When I�m away on business, I try to stay at a suites hotel. I always buy my wife flowers on Valentine�s Day.

25. Figure 3.3Ad Designed to Spell OutRewards of Consumer Loyalty

26. Figure 3.4Occasion-SpecificAd

27. Benefit Segmentation Segmenting on the basis of the most important and meaningful benefit Prudential - financial security Iomega - data protection Wheaties - good health Eclipse - fresh breath

28. Figure 3.5Ad OfferingCombined Benefits

29. Hybrid Segmentation Approaches Psychographic-Demographic Profiles Geodemographic Segmentation SRI Consulting�s Values and Lifestyle System (VALSTM)

30. Table 3.8 Demographic-Psychographic Profile of Newsweek Total adult readers 19,593,000 Men Professionals/ Managers Age 35-49 Household income >$100,000 Married Own laptop PC Spent $3000+ on vacation last year

31. Table 3.9 Demographic-Psychographic Internet Shopping Styles E-bivalent Newbies Time-Sensitive Materialists Clicks & Mortar Hooked, Online, & Single Hunter-Gatherers Brand Loyalists

32. Figure 3.6TargetingAn ActiveLifestyle

33. Table 3.10 Sample Claritas Geodemographic Clusters Blue Blood Estates .8% of U.S. households Professional Elite super-rich College graduate 35-44, 45-54, 55-64 Country club members, own mutual phones, play golf Young Influentials 1.1% of U.S. households Professional College graduate Under 24, 25-34 Yuppies, drink imported beer, read fashion magazines

34. Figure 3.8 VALS

37. Mindbase Segmentation Monitor Mindbase based on Yankelovich�s Monitor Survey of American Values and Attitudes Table 3.12

38. Table 3.12 Eight Major Mindbase Segments Up and Comers Young Materialists Stressed by Life New Traditionalists Family Limited Detached Introverts Renaissance Elders Retired from Life

39. Criteria For Effective Targeting of Market Segments Identification Sufficiency Stability Accessibility