Chapter 3: Market Segmentation & strategic positioning
ex Henry Ford’s Model T
Ex Gm’s a car for every purse and purpose (seamless transition between different life stages)
ex Chewing Gum based on flavor, with/ without sugar
social benefit & health related benefit
A success strategy will make the consumers believe that their products are different and therefore one is better than the other.
Identifying who your target market is, and and the best ways to attract that market. This means paying attention to the consumer and the current environment.
2) Sizable: Enough people (to make a profit)
3) Stable: lifestyles and consumption habits won’t change much
4) Accessible: find way(s) to get the message across without breaking the bank
5) Congruent with the company’s objectives and resources.
2. consumer-rooted/ consumption specific
ex Vals & prism
psychographics, geodemographics, etc.
2. cognitions indirect psychology
2) Social Class(income,education, occupation)
3) Zip code & location
ex green consumer, impulse buyer
2) Personality traits (self-confidence, open-minded, high achiever )
3) Sociocultural values- values measured through psychology.
ie gender specific, music is age specific, leisure activities vary with age
3. marital status
4. family life cycle
5. income, education, occupation
1) Baby boomers: likely to live longer, be more active, & consume more products
Generation X: skeptics
Y: Echo Boomers: green orientated, tech savvy
Men Tools & shaving
However gender roles are being blurred and now there is new potential for new segments & products
Including singles, single parents, dual income married couples (for high end products )
1. Marital status
2. employment status
3. presence or absence of children
ex young singles need basic furniture
older people without kids need more support for their backs (& can afford it)
ex affluent elderly
ex certain types of clothing depending on where you live.
sometimes an exotic location creates a unique market opportunity, tourism of doom, unique product for a specific location- Absolut Chicago
ex open-minded people like to try new things target to create positive word of mouth
ex Likert Scale & VALS (ideal achivement, self-expression)
Achievement : Showcase success to piers
Ideals: Knowledge & Principles
Self-expression: Desire social activity, risk, & variety
ex bike in asia for efficient transportation, in america for health
Some things are present amongst all age groups. Young people in different countries tend to want the same items.
2. Brand Loyalty & relationship
ex Usauge rate & usage situation
ex dog food, beer, etc
awareness status: degree of awareness, interest level, readiness to buy
level of involvement: differences between know of a product and product like purchases
weekend, birthday, holiday, business trip, whether its a gift
2) Value for the money
3) Social benefit
4) positive emotional benefits
5) negative emotional benefits
think of the ad, and think of the whole scene;
creating the triggered response while they are using the product as well
2) attitude – consumer’s feelings or commitment to the brand
-switchers & consumer innovators: Not loyal!
active consumers more loyal to brand than passive
functional features (have the products consumers want) + are active= the best customers.
1.large # and diverse origins of sources
2. Observing behaviors help marketers to get a good message to that person
3. Design formulas that place consumers in certain groups
4. Include online surfing patterns and purchases
market Segmentation breaks the people into different markets with a unique market to each.
ex beer, dog food
example include the toothpaste market
Get access to
Guarantee No Hidden