2 Market SegmentationDefinition of a Target Market: A sub-group of a larger market chosen as the focal point for a marketing or advertising campaign.
3 Market SegmentationThe identification of specific portions of a market and targeting them with specific advertising messages is called market segmentation.Market segmentation divides the pool of potential customers into segments.
4 The STP Marketing Process (Segmenting, Targeting, Positioning) Break the market into smaller, more homogenous segmentsSpecifically target the discrete market segmentsPosition the product or service to appeal to the targeted segments
12 Self Orientation--What gives shape, substance, character to consumers’ identities Resources--Physical, psychological, material, social means at consumers’ disposal
13 MAKERSpractical; self-sufficient; like to work with their hands; value things with a functional purpose such as tools and utility vehicles; tend to hunt and fish more than the general population.
14 ACHIEVERSconventional; politically conservative; social lives revolve around family, church and career; work provides status, material success and sense of duty; tend to own swimming pools.
15 EXPERIENCERSyoung, enthusiastic, seek variety and excitement; into sports and social activities; spend money on fast food, clothes, movies, music; likely to have attended rock concert in past year.
16 STRIVERSmoney defines success; concerned about opinions of others; trying to find their place in life but may feel unsure of themselves; want to be stylish and own high-status possessions.
17 ACTUALIZERSsuccessful, affluent, active, high self-esteem, interested in expressing themselves in different ways; often leaders yet seek new challenges; tendency for foreign travel, dinner parties and the arts.
18 STRUGGLERSpoor, elderly, low education, concerned about health, cautious; may feel resigned and passive about life; worried about security and safety; may not buy much but are loyal to their favorite brands.
19 BELIEVERSconventional, conservative, predictable; strong, fixed beliefs and rules of conduct about church, family, community and nation; modest incomes and education but sufficient to meet their needs.
20 FULFILLEDmature, reflective; well educated, well informed and value knowledge; professional occupations; while respecting order, also open to new ideas and change in society; want durability and functionality in what they buy.
21 Segmenting by Usage and Commitment Advertising targeted to:Heavy usersNonusersBrand-loyal usersSwitchers/Variety seekersEmergent Consumers
28 PART 2: CONSUMER BEHAVIOR WE NOW KNOW WHO THEY ARE.BUT WHAT MOTIVATES THEM?
29 CONSUMER BEHAVIORTO INFLUENCE CONSUMERS, WE NEED TO KNOW WHAT MOTIVATES THEM-PSYCHOLOGICAL FACTORSNEEDS AND WANTSPERCEPTIONSATTITUDES, VALUES-SOCIAL FACTORSCULTURESUB-CULTUREFAMILY, PEERS
30 Different Views of What Causes Motivation Biological Vs. Learned NeedsDrive Theory (degree of push)Expectancy Theory(degree of pull)Focuses on Biological Needs that Produce Unpleasant States of Arousal, i.e. Hunger.Homeostasis: Behavior Which Tries to Reduce or Eliminate This Unpleasant State and Return to Balance.Behavior is Largely Pulled by Expectations of Achieving Desirable Outcomes (a Positive Outcome or Absence of Negative) - Pulled Toward the Outcome
31 Two Dimensions of Motivation Motivational Intensity or Strength:The amount of push or pull that motivation exerts on an individual (e.g., amount of tension, consequences, immediacy). The Degree to Which a Person is Willing to Expend Energy to Reach One Goal as Opposed to Another.Motivational Direction:Particular way a consumer attempts to reduce motivational tension (eg. how to become wealthy)
32 Motivational Direction: Goal Directed Behavior PositiveApproache.g., Work out to look and feel healthyNegativeAvoidancee.g., Work out to avoid being stigmatized socially
33 Motivational Direction: Needs vs. Wants The specific Way a Need is Satisfied, depends onIndividual’s Unique History, Learning Experiencesand Cultural Environment.NeedsNeeds are more fundamental than wantse.g., How to satisfy hunger? How to relieve boredom? How toget interest of sexually attractive person?Motivational Direction: Needs vs. Wants
34 Motivational Direction Four Types of NeedsMotivational DirectionBiogenicPsychogenicUtilitarianHedonic
35 Marketers Tend to Focus on Psychogenic Needs Need for AchievementValue personal accomplishmentNeed for AffiliationDesire being in the company of other peopleNeed for PowerControl one’s environmentNeed for UniquenessDesire to assert one’s individual identityExamples of products focused on these needs?
36 Another Model of Needs: Maslow’s Hierarchy - Holds that Needs Evolve as Society or a Consumer DevelopsSelfActualizationEsteemSocialSafetyPhysiological
37 Values--Identify What is Good and Desirable Values are higher level motives that tell us how desirable a given goal is (e.g., beautify the world, comfortable life, self respect).Cultural values – values common to one’s culture (e.g., achievement, autonomy, interdependence)Consumption-specific values – values related to the process of buying (e.g., convenience, friendly service)Product-specific values – values related to a particular product (e.g., flexibility, speed, natural materials, creative)
38 POSITIONINGWhere is product positioned in the minds of target market with respect to other products?Head-on (Duracell vs. Energizer)Brand Dominance (Coke: the real thing)Product Differentiation (Jolt Cola)Technical Innovation (Gillette Mach 3)Lifestyle (any beer, soft drink aimed at you)
39 Types of Involvement Rational and emotional involvement Rational involvement would be devoid of any affect e.g. Choice of steam iron , the consumer would try to optimise a cost-benefit ration with no emotion or interest toward product category - pleasure is absentEmotional involvement might include hedonic pleasure eg. Choice of restaurant (Hirschman and Holbrook, 1982)7