Bases For Consumer Market Segmentation Behavioristic .

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Our Strategy Race:Leg 2 - From Lisbon to Cape Town. SegmentationBases for ConsumerMarket SegmentationBehavioristicSegmentationPicture source: Volvooceanrace.comEleonora Escalante MBA-MEng, Strategic Corporate Advisory Services 2017 Eleonora Escalante-all rights reserved

Leg 2. From Lisbon to Cape Town. Segmentation Road MapTHEME 1. Segmentation Consumer MarketsBases for Consumer Market Segmentation.5.Why to segment markets?Bases for ConsumerSegmentation: geographic,demographic, psychographicand behavioral.Source: Kotler-Keller, Marketing Management 15th Edition,Arens W. Contemporary Advertising. Needs-benefitssought Decision Roles User Status Usage Rate Purchase Occasion Buyer ReadinessStage Loyalty Status Multiple bases Nielsen-PRIZM(Claritas) Each country andmarketingcompany shouldhave an tion Age and Life cyclestage Income Gender Life Stage Generation Race and CultureEleonora Escalante MBA-MEng, Strategic Corporate Advisory Services 2017 Eleonora Escalante-all rights reserved VALS System(Values andLifestyles) Anticipated Changein Europe (ACE) Other Systems

Leg 2. From Lisbon to Cape Town. Segmentation Road MapTHEME 1. Segmentation Consumer MarketsBases for Consumer Market Segmentation.5.Why to segment markets?Bases for ConsumerSegmentation: geographic,demographic, psychographicand behavioral.Needs-based or benefit-based segmentation is a widely used approach becauseit identifies distinct market segments with clear marketing implications. Example:What type of wine drinker you are? ( US Premium Wine Segmentation, By Constellation Brands)BehavioristicSegmentation Enthusiasts:SkewingfemaleIncome 75KNeeds-benefitssought Decision RolesUser StatusUsage RatePurchase OccasionBuyer ReadinessStage Loyalty Status Multiple basesTraditionalistsBuy traditionalwine brandsSavvyShoppersLove to shop,happy to usebargain binSatisfiedSippersDon t knowabout wineImageSeekersWine as ngSource: Kotler-Keller, Marketing Management 15th EditionEleonora Escalante MBA-MEng, Strategic Corporate Advisory Services 2017 Eleonora Escalante-all rights reserved1

Leg 2. From Lisbon to Cape Town. Segmentation Road MapTHEME 1. Segmentation Consumer MarketsBases for Consumer Market Segmentation.5.Why to segment markets?Bases for ConsumerSegmentation: geographic,demographic, psychographicand behavioral.Decision Roles: Who is the decision maker when buying? It’s easy to identifythe buyer for many products. In the majority of countries men normally choosethe car tires and women choose their lingerie; but even for these products, buyingroles can change.BehavioristicSegmentation Needs-benefits soughtDecision RolesPeople play five roles in a buying decision: Initiator, Influencer, Decider, Buyer, andUser.User StatusUsage RatePurchase OccasionBuyer ReadinessStage Loyalty Status Multiple basesSource: Kotler-Keller, Marketing Management 15th EditionWho decides when buying tires? Or Lingerie?Eleonora Escalante MBA-MEng, Strategic Corporate Advisory Services 2017 Eleonora Escalante-all rights reserved2

Leg 2. From Lisbon to Cape Town. Segmentation Road MapTHEME 1. Segmentation Consumer MarketsBases for Consumer Market Segmentation.5.Why to segment markets?Bases for ConsumerSegmentation: geographic,demographic, psychographicand behavioral.User Status: Each company has to attract potential users, or even possiblynonusers. Also the company wish to keep the regular users.BehavioristicSegmentation Needs-benefits sought Decision RolesNon sers User Status Usage Rate Purchase Occasion Buyer ReadinessStage Loyalty Status Multiple basesKotex pads areused regularlyevery monthMoms-to-beare potentialusers of DoveBaby productsSource: Kotler-Keller, Marketing Management 15th EditionSwitch fromHair salon tohighlights athome?Eleonora Escalante MBA-MEng, Strategic Corporate Advisory Services 2017 Eleonora Escalante-all rights reservedBlood DonationCampaignsattract first-timedonorsFormerBlackberryUsers attractedto BB KeyOneand BB PassportModels3

Leg 2. From Lisbon to Cape Town. Segmentation Road MapTHEME 1. Segmentation Consumer MarketsBases for Consumer Market Segmentation.5.Why to segment markets?Bases for ConsumerSegmentation: geographic,demographic, psychographicand behavioral.Usage Rate: We measure usage rates to define consumers as light, medium orheavy users of products.Heavy users are often small in volume but account a high percentage of totalconsumption. Often 20% of the population consumes 80% of the product.BehavioristicSegmentation Needs-benefits sought Decision Roles User Status Usage RateHeavy Purchase Occasion Buyer ReadinessStage Loyalty Status Multiple basesMediumLightA Café BaristaRegular-mediumclient one timeper week,GuatemalaSource: Kotler-Keller, Marketing Management 15th EditionHeavy beerdrinkersaccountmore 80%market.Eleonora Escalante MBA-MEng, Strategic Corporate Advisory Services 2017 Eleonora Escalante-all rights reservedA family whichoccasionallyeats out atfancyrestaurants4

Leg 2. From Lisbon to Cape Town. Segmentation Road MapTHEME 1. Segmentation Consumer MarketsBases for Consumer Market Segmentation.5.Why to segment markets?Bases for ConsumerSegmentation: geographic,demographic, psychographicand behavioral.Purchase Occasion: Occasions mark a frequency of the need (time of day, week,BehavioristicSegmentationmonth, year), or other well-defined temporal aspects of a consumer’s life such asseasons or fads. For example, air travel is triggered by occasions related to business,vacation, or family. Occasion segmentation can help expand product usage. Needs-benefits sought Decision Roles User Status Usage Rate PurchaseOccasion Buyer ReadinessStage Loyalty Status Multiple basesClimateSeasonsFrequencyRegular weekendRafting oroccasional buyer forvacations only?Source: Kotler-Keller, Marketing Management 15th EditionFadsFidget Spinnersa Fad purchase?Summer: Swimwear,sunshades, Skin protectionmoisturizersWinter: coats, boots,sweaters, gloves.Eleonora Escalante MBA-MEng, Strategic Corporate Advisory Services 2017 Eleonora Escalante-all rights reserved5

Leg 2. From Lisbon to Cape Town. Segmentation Road MapTHEME 1. Segmentation Consumer MarketsBases for Consumer Market Segmentation.5.Why to segment markets?Bases for ConsumerSegmentation: geographic,demographic, psychographicand behavioral.Buyer Readiness-stage: There are progressive stages when analyzing the buyerreadiness process. The tool employed to breakdown these stages is called marketingfunnel. Some people are unaware of the product, some are aware, some are informed,some are interested, some desire the product, and some intend to buy.BehavioristicSegmentation Needs-benefits sought Decision Roles User Status Usage Rate Purchase Occasion Buyer Readiness-Stage Loyalty Status Multiple basesSource: Kotler-Keller, Marketing Management 15th EditionEleonora Escalante MBA-MEng, Strategic Corporate Advisory Services 2017 Eleonora Escalante-all rights reserved6

Leg 2. From Lisbon to Cape Town. Segmentation Road MapTHEME 1. Segmentation Consumer MarketsBases for Consumer Market Segmentation.5.Why to segment markets?Bases for ConsumerSegmentation: geographic,demographic, psychographicand behavioral.BehavioristicSegmentationLoyalty Status: Marketers usually envisionfour groups based on brand loyalty status: Needs-benefits sought Decision Roles User Status Usage Rate Purchase Occasion Buyer ReadinessStage Loyalty Status 1.Hard-core loyals—Consumers who buy only onebrand all the time2.Split loyals—Consumers who are loyal to two orthree brands3.Shifting loyals—Consumers who shift loyaltyfrom one brand to another4.Switchers—Consumers who show no loyalty toany brandMultiple basesMultiple Bases: Combining different behavioral bases can provide a morecomprehensive and cohesive view of a market and its segments.Source: Kotler-Keller, Marketing Management 15th EditionEleonora Escalante MBA-MEng, Strategic Corporate Advisory Services 2017 Eleonora Escalante-all rights reserved7

readiness process. The tool employed to breakdown these stages is called marketing funnel. Some people are unaware of the product, some are aware, some are informed, some are interested, some desire the product, and some intend to buy. Source: Ko

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