Flashcards
Consumer Behaviour Chapter 2 Market Segmentation
Cards in this deck (10)
- 1Market SegmentationIt is the process of dividing a market into distinct subsets of consumers with common needs and selecting one or more to target with a distinct marketing strategy. Many people develop same or similar biological or acquired needs, allowing for targeting and positioning
- 2Criteria for Effective Targeting of Market Segments (Basis for Segmentation)Not every segment that can be identified is viable or profitable. Hence to be an effective target, a market segment should be:
1. Identifiable
2. Sizeable
3. Stable
4. Accessible
5. Congruent with the marketer's objectives and resources - 3Criteria for Effective Targeting: IdentificationMarketers must be able to identify and measure the relevant common need or characteristic such as geography, demographics, education, marital status, and lifestyle
- 4Criteria for Effective Targeting: Sufficiency (sizeable)A market segment must have a sufficient number of people to be profitable in terms of warrant tailoring a product or promotional campaign to its specific needs or interests
- 5Criteria for Effective Targeting: StabilitySegments need to be stable in terms of needs, demographic and psychological factors, and are likely to grow over time. Marketers should avoid fickle segments that are unpredictable in embracing fads as trends will not last
- 6Criteria for Effective Targeting: AccessibilityMarketers must be able to reach the target segments in an economical way
- 7Criteria for Effective Targeting: Congruent with the Company's Objectives and ResourcesTarget segment must be align with company's objectives and resources. Eg, Jetstar offers only one class of service because its objective is to provide uniform, inexpensive and no-frills air transportation
- 8Bases for SegmentationConsumer-rooted/Facts: Demographics, geographic
Consumer-rooted/Cognitive: Personality, Lifestyle, Values and Beliefs
Consumption-Specific/Facts: Usage and Purchase behaviour (usage rate, situation & psychographic eg hobbies)
Consumption-Specific/Cognitions: Attitudes and Preference (eg benefits wanted, level of involvement, awareness) - 9Segmentation StrategiesBehavioural Targeting: describe segment based on usage behaviour
Microtargeting (direct marketing): Use of hybrid segmentation to narrow segmentation
Countersegmentation: Used when segments display signs of converging to combine the segments into one to discover generic needs
Concentrated Marketing: Target one segment with a unique marketing mix (one product for one segment)
Differentiated Marketing: Targeting several segments with one product using individualized marketing mixes - 10Types of SegmentationGeographic Segmentation
Demographic Segmentation
Psychographic Segmentation
Sociocultural Segmentation
User-related Segmentation
User-situation Segmentation
Benefit Segmentation
Hybrid Segmentation: (Demographic/Psychographic Segmentation, Geodemographic Segmentation, VALs: values and lifestyle)
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- Flashcards on Consumer Behaviour Chapter 2 Market Segmentation, created by IngIng Hon on 28/11/2014.
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- IngIng Hon
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