Appendix to Part 1 Consumer Behaviour and Marketing Strategy

Consumer Behaviour Canadian Edition Schiffman/Kanuk/Das

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Steps in Developing a Marketing Strategy

Segment the Market Choose a Target Market Decide on a Position for the Product Develop a Suitable Marketing Mix Find Ways to Satisfy And Retain Customers
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Appendix-2

Market Segmentation
The process of dividing a potential market into distinct subsets of consumers and selecting one or more segments as a target market to be reached with a distinct marketing mix.

Copyright 2006 Pearson Education Canada Inc.

Appendix-3

Best Customer Segmentation

High Current Share Low

High Consumption

Hi Highs (stroke)

Low Highs (chase)

Low

Hi Lows (tickle)

Lo Lows (starve)
Appendix-4

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Purposes of Segmentation Studies

To discover the needs of specific consumer groups to develop specialized products to satisfy specific group needs (e.g., Centrum http://www.centrum.ca) To guide the repositioning of a product (e.g., Nintendo http://www.nintendo.ca) To identify the most appropriate media for advertising (e.g., People and Teen People)
Copyright 2006 Pearson Education Canada Inc.

Appendix-5

Bases for Segmentation

Geographic Segmentation Demographic Segmentation Psychological Segmentation Psychographic Segmentation Socio-cultural Segmentation Use-Related Segmentation Usage-Situation Segmentation Benefit Segmentation Hybrid Segmentation Approaches
Appendix-6

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(continued)

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Appendix-7

Figure A-2 (continued)

(continued)

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Appendix-8

Figure A-2 (continued)

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Appendix-9

Geographic Segmentation
The division of a total potential market into smaller subgroups on the basis of geographic variables (e.g., region, province, or city).

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Appendix-10

Demographic Segmentation

Age Sex Marital Status

Income, Education, and Occupation

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Appendix-11

Marital Status

Households as a consuming unit

Singles Divorced Single parents Dual-income married

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Appendix-12

Psychological Segmentation

Motivations Personality Perceptions Learning Attitudes

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Appendix-13

AIOs

Psychographic (lifestyle) variables that focus on activities, interests, and opinions.

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Appendix-14

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Appendix-15

Socio-cultural Segmentation

Family Life Cycle Social Class Culture, Subculture, and Cross-Culture

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Appendix-16

Family Life Cycle

Phases families go 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
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Appendix-17

Use-Related Segmentation

Rate of Usage
Heavy vs. Light Convert light users to medium or heavy users
By identifying new uses for the product

Attempt to satisfy heavy users well

By making sure the product continues to meet their needs
continued

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Appendix-18

Use-Related Segmentation

Awareness Status
Aware vs. Unaware Convert unaware to aware

Brand Loyalty
Brand Loyal vs. Brand Switchers Satisfy and reward brand loyal users
By providing rewards for continued usage

Copyright 2006 Pearson Education Canada Inc.

Appendix-19

Usage-Situation Segmentation

Segmenting on the basis of special occasions or situations Example Statements:

Whenever I do well in a course, I treat myself with ------. When Im away on business, I try to stay at a suites hotel. I always take a bottle of French wine when I am invited to a friends house for dinner
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Appendix-20

Benefit Segmentation

Segmenting on the basis of the most important and meaningful benefit Crest Cavity prevention Sensodyne Gentle on sensitive teeth Topol removal of tobacco stains

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Appendix-21

Hybrid Segmentation Approaches

Psychographic-Demographic Profiles Geodemographic Segmentation SRI Consulting Groups Values and Lifestyle System (VALSTM)

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Appendix-22

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Appendix-23

Criteria For Effective Targeting of Market Segments

Identification Sufficiency Stability Accessibility

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Appendix-24

Segmentation Strategies

Concentrated Marketing
focusing on one target market alone Suitable for small or new companies

Differentiated Marketing
Focusing on several segments at the same time Suitable for financially strong companies with a several offerings in a product category
continued
Appendix-25

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Segmentation Strategies

Counter-segmentation Strategy
Merging two or more segments into one larger segment When target markets do not warrant separate strategies anymore When consumer needs become more similar over a period

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Appendix-26