10. Identifying the Target Market Flashcards
Define SEGMENTATION:
What are the 4 sets of variables used?
SEGMENTATION: dividing the market into distinct subgroups, characterized by specific tastes and requiring specific marketing strategies.
- GEOGRAPHIC
- DEMOGRAPHIC
- PSYCHOGRAPHIC
- BEHAVIORAL
What is the purpose of Market Segmentation?
Purpose of Market Segmentation :
- To identify the types of consumers who might be interested in their product.
- To make sure they’re targeting the correct consumers with their product.
- Because it’s not profitable to design and produce a specific product for every individual consumer.
- To understand the behaviours of the consumers who are likely to be interested in their product.
GEOGRAPHIC variables of segmentation :
GEOGRAPHIC variables of segmentation :
- Where the consumers live.
- Country / Region / City
- Urban / Rural
DEMOGRAPHIC variables of segmentation :
DEMOGRAPHIC variables of segmentation :
- Age
- Gender
- Ethnicity
- Fam. status (single/married/children)
- Education => Occupation => Income
- Socioeconomic status (position in society based on income/education/occupation).
PSYCHOGRAPHIC variables of segmentation :
PSYCHOGRAPHIC variables of segmentation :
- Lifestyle (going out, health-conscious).
- Personality (showing off wealth or knowledge of wine)
- Values/beliefs (vegetarians, prefs for organic, environmentally friendly/Fairtrade)
- Interests (wine from particular regions/countries).
BEHAVIORAL variables of segmentation :
BEHAVIORAL variables of segmentation :
- What benefit do they want from wine (e.g. quality, value for money, prestige)?
- When do they buy wine (e.g. regularly, only on special occasions)?
- Where do they buy wine (e.g. supermarkets, specialist wine retailers)?
- How often do they buy wine and in what volume?
- What is their level of brand loyalty?
- What is their level of interest in wine (e.g. enthusiast, moderate interest, indifferent)?
- Are they keen to buy new products when they come on to the market or late adopters?
People from which segments are more/less likely to behave in a similar way?
People who share :
- Psychological and behavioral characteristics = MORE likely
- Geographical and Age group characteristics = LESS likely
Difference btw/ HIGH-INVOLVEMENT and LOW-INVOLVEMENT consumers :
HIGH:
- Deep interest in the wine they drink.
- Keen to try new products.
- Tend to spend more $$ on wine.
LOW:
- Little interest in wine details.
- Stick to a few products.
- Unlikely to spend much $$ on their wine.
What 3 groups did C.M. Hall split wine consumers into in 1997?
- wine lovers: great interest in, knowledge of wine; higher income/level of education.
- wine-interested: great interest in, mod. knowledge of wine; uni educated, mod. income.
- wine curious: mod. interest in, limited knowledge of wine; mod. income/education, wine mainly seen as social.
What is Wine Intelligence?
What do they provide?
Specific e.g.?
A specialist market research company for the wine industry.
They provide a range of information to help companies understand market segments, breaking them down into demographic groups, levels of involvement, wine-buying habits and motivations/behaviors.
- created a series of models, or ‘Portraits’, for various markets, inc. the UK, USA and China.
What are the 6 segments of Wine Intelligence’s 2018 US Portraits study?
2S
PECK
- Engaged Explorers.
- Premium Brand Suburbans.
- Contented Treaters.
- Social Newbies.
- Senior Bargain Hunters
- Kitchen Casuals
Who are KITCHEN CASUALS?
Why do they drink wine?
Where do they buy wine?
What do they drink?
One of the oldest, very infrequently drinking segments, they have little interest in the category.
Mostly drinking at home for informal occasions.
Primarily supermarkets, rarely branching out.
Narrow repertoire, stick to what they know.
Who are SOCIAL NEWBIES?
Why do they drink wine?
Where do they buy wine?
What do they drink?
The youngest segment, drinking fairly frequently and rely on recommendations due to lack of knowledge.
On-premise, social situations w/friends and fam.
Convenience = main factor, so many channels used.
Enjoy exploring niche regions and varieties.
Who are ENGAGED EXPLORERS?
Why do they drink wine?
Where do they buy wine?
What do they drink?
Younger, confident wine drinkers who enjoy discovering new wines.
Wine = significant part of lifestyle/social life, time and money spent on it.
Wine shops, Wineries, highest spenders in on- and off-premise.
V. broad repertoire, enjoy all regions, styles, varietals.
Who are PREMIUM BRAND SUBURBANS?
Why do they drink wine?
Where do they buy wine?
What do they drink?
Mid to older aged, frequent wine drinkers, lower spending but very knowledgeable.
Enjoyed in social situations, on-premise casual situations.
Supermarkets, previous known wineries, bulk-purchasing to save $.
Broad repertoire, but know what they like, preference for domestic wines.
