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Segmentation, Targeting, and Positioning
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Slide1

Segmentation, Targeting, and PositioningSlide2

Chapter Objectives

After

reading this chapter you should be able

to:Appreciate the importance of market segmentation for specific consumer groups and realize that the targeting decision is the initial and most fundamental of all marcom decisions.Understand the role of behavior segmentation in targeting consumer groups.Describe the nature of psychographic segmentation.Appreciate major demographic developments such as changes in the age structure of the population and ethnic population growth.

2Slide3

Chapter Objectives (cont’d)

Explain

the meaning of

geodemographics

and understand the role for this form of

targeting.

Recognize

that any single characteristic of consumers—whether their age, ethnicity, or income level—likely is not solely sufficient for sophisticated marcom targeting.Appreciate the concept and practice of brand positioning.

3Slide4

Positioning McDonald’s versus Starbucks

4Slide5

Major Steps in the Market Segmentation Process

Following a consideration of

customer needs

and benefits sought, the following are the major steps in the market segmentation process:Market segmentation:Identify bases (e.g., behavior, demographics) to segment the marketDevelop profiles of resulting segmentsMarket targeting:

Develop measures of segment attractiveness

Select the target segment(s

)

Market positioning:Develop positioning for each target segmentDevelop marketing mix for each target segment5Slide6

Segmentation Bases

Behavior Segmentation

Demographics

Psychographics

Geodemographics

Measurable

Consumer

Characteristics

6Slide7

Figure 5.1: Classification of Four General Targeting Characteristics

7Slide8

Behavior Segmentation Issues

Behavior Segmentation

Describe how people behave with respect to a particular product category or class of related products

Assume that the best predictor of future behavior is past behaviorOnline Behavioral TargetingTracks the online site-selection behavior of users so as to enable advertisers to serve targeted adsPrivacy ConcernsTechnological advances increase the ability to serve consumers at the risk of invading their privacy8Slide9

Figure 5.2: An Illustration of the Online Ad Process

9Slide10

Psychographic Segmentation

Psychographics

Describe aspects of consumers’ psychological make-ups and lifestyles as they relate to buying behavior in a particular product category

AttitudesValuesMotivations10Slide11

Types of Psychographic Profiles

Customized Psychographic Profiles

Are typically customized to the client’s specific product category

Contain questionnaire items related to the unique characteristics of the product categoryGeneral Purpose Psychographic ProfilesCan be purchased as “off-the-shelf” psychographic data from services that develop psychographic profiles of people independently of any particular product or service11Slide12

Illustrative Statements Used In a Customized Banking-Related Psychographic Study

12Slide13

Psychographic Study of Consumers’ Banking Practices

Worried

Traditionalists

Bank

Loyalists

Secured

Investors

Thrifty

Bankers

Psychographic Segments

of Banking Behaviors

13Slide14

MindBase Segments

14Slide15

MindBase Segments (Table 15.2 cont’d)

15Slide16

Figure 5.2:

The 8 VALS

Segments

16Slide17

VALS Psychographic Segments

17Slide18

VALS Psychographic Segments

18Slide19

Geodemographic Segmentation

Geodemographics

Consumers who reside within geographic clusters such as zip codes or neighborhoods and also share demographic and lifestyle similarities

Typical Clusters (PRIZM NE)Bohemian MixWhite Picket FencesSuburban Pioneers19Slide20

Demographic Segmentation

Age structure

of the population

Change in

household

composition

Ethnic population

developments

Major Demographic

Aspects

20Slide21

Demographic Trends

World Population Growth

6.95 billion (2012) to 8 billion (2025)

to 9.5 billion (2050)Changing Age Structure in United StatesMedian age will increase to 38 by 2025More middle-aged Baby BoomersFewer children, teenagers, and young adults due to decreased birthrates21Slide22

World’s 25 Largest Countries as of 2011

22Slide23

Population of the United States by Age Group, as of 2010

23Slide24

Demographic Segments by Age Group

Preschoolers (5 years or younger)

Elementary-school-age children (6-11 years)

Tweens (8-12 years)Teenagers (13-19 years)Millennial Generation or Generation YHighly conformist, narcissistic, and fickle consumersYoung adults (20-34 years)Generation X (Baby Busters)Yup & Comers, Bystanders, Playboys, and Drifters24Slide25

Figure 5.4: An Appeal to Preschoolers’Parents

25Slide26

Figure 5.5:

An Appeal to

Teenagers

26Slide27

Demographic Segments: Age

Middle-Aged (35-54 years)

Younger baby boomers and older Gen

XersTarget category for luxury goods and youthMature Consumers (55 years or older)Are 25% of the total U.S. populationHave highest discretionary income and most assetsCensus Bureau classification: Olders (55 to 64); Elders (65 to 74); and the Very Old (75 and over)Descriptive groups: Healthy Hermits, Ailing Outgoers, Frail Recluses, and Healthy Indulgers27Slide28

The Ever-Changing American Household

Household Defined

An independent housing entity, either rental property or owned property.

U.S. HouseholdsGrowing in number, shrinking in size, and changing in character.Married couples with children younger than 18 now represent less than one-third of all households.Single-person and unrelated-person households are a growing market.28Slide29

Ethnic Population Developments

Changes in the U.S. Melting Pot

More diversity in the overall population

Growth in all ethnic groupsImplication for MarketersNeed to devise marcom strategies to meet ethnic groups’ unique wants/needs29Slide30

Ethnic Groups’ Population Representation in the United States, 2000–2050 (in millions

)

30Slide31

Ethnic Population Developments

African Americans

Are of an average age that is considerably younger than that for Caucasians

Are geographically-concentrated, with three-fourths of all African-Americans living in 16 statesTend to purchase prestige and name-brand products in greater proportion than do CaucasiansHave spending power that totals nearly $1.1 trillion annually31Slide32

Figure 5.6:

African-American Models

Appeal to

African American Consumers

32Slide33

Ethnic Population Developments (cont’d)

Hispanic Americans (Latinos)

Are the largest U.S. minority population segment

Are not a single unified marketAre underserved by current marketing effortsAre responsive to advertising in their dominant language

33Slide34

Top 10 U.S. Hispanic Markets (estimates as of 2010)

34Slide35

Ethnic Population Developments (cont’d)

Asian-Americans

Represent many nationalities

Are the newest “hot” ethnic marketAre better educated than averageHave higher incomes than averageOccupy more prestigious jobsSpeak a variety of languagesAre heavy users of the InternetRespond to marketing programs that reflect their values and lifestyles35Slide36

Market Targeting

The 5 Criteria for Effective Segmentation:

Measurable

SubstantialAccessibleDifferentiableActionableTarget Market Selection Strategies:Undifferentiated marketingDifferentiated marketingConcentrated marketing

36Slide37

Figure 5.7: A Framework for Brand Positioning

37Slide38

Benefit Positioning

Functional

Needs

Symbolic

Needs

Experiential

Needs

Appealing to

Consumer Needs

38Slide39

Categories of Appeals to Consumer Needs

39Slide40

Figure 5.8:

Croc

Advertisement Illustrating Appeal to Functional Needs

40Slide41

Figure 5.9:

Dove

Advertisement Illustrating

Appeal to Experiential Needs41Slide42

Attribute Positioning

Product-Related

Non-Product Related:

Usage and User Imagery

Attribute

Positioning

42Slide43

Figure 5.10:

Highlander

Advertisement Illustrating

Product-Related Attribute Positioning43Slide44

Figure 5.11: Ralph Lauren Advertisement Illustrating User Imagery Positioning

44

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Segmentation, Targeting, and Positioning - Description


Chapter Objectives After reading this chapter you should be able to Appreciate the importance of market segmentation for specific consumer groups and realize that the targeting decision is the initial and most fundamental of all ID: 556376 Download Presentation

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