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Segmenting Consumer Markets

Segmenting Consumer Markets. MKT 3850 Dr. Don Roy. Segmenting and Targeting: What’s the Difference?. Segmenting is grouping customers according to common characteristics, needs, wants, and/or desires.

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Segmenting Consumer Markets

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  1. Segmenting Consumer Markets MKT 3850 Dr. Don Roy

  2. Segmenting and Targeting: What’s the Difference? • Segmenting is grouping customers according to common characteristics, needs, wants, and/or desires. • Targeting is analyzing, evaluating, and prioritizing those market segments deemed most profitable to pursue. • TARGETING FOLLOWS SEGMENTING

  3. Demographics Age Income Ethnicity Education Gender Family Life Cycle

  4. Behavioristic Segmentation • Brand Users - Recognizes profitability of loyal customers; Tactics: • Suggest additional uses for a product • Encourage increased consumption • Provides opportunities for cross-selling and up-selling.

  5. Targeting Brand Users

  6. Behavioristic Segmentation • Competitors’ Users - Often utilizes comparative advertising; a somewhat risky strategy Examples: Apple has used against Microsoft (Mac vs. PC campaign); Comcast uses it (against satellite TV providers).

  7. Behavioristic Segmentation • Benefits Sought - Appeal to segments that value a particular benefit from consumption. Example- Airline industry: • Low price (Southwest Airlines) • Most destinations (Delta) • In-flight entertainment (Jet Blue)

  8. Psychographic Segmentation • Grouping consumers on the basis of similar: • Values • Personalities • Lifestyles (e.g. Hobbies, entertainment, vacations)

  9. Psychographic Segmentation

  10. Segmenting Consumer Markets • Demographics • Behaviors • Psychographics

  11. Segmentation Creates Focus • Man • 18-25 • Middle Tennessee area • Has job or career goal • Good sense of humor • Likes country music • Enjoys going to movies • Non-smoker

  12. Segmentation Challenge: What’s Old is New • High Roller is “adult size Big Wheel” • Price = $599.99 • First run of 300 sold out Challenge: Propose segmentation variables High Roller should use to build on the initial positive response

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