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 the product.
- To understand the behaviors of the consumers who are likely to be interested in the product.
- To make sure company is targeting the correct consumers with the product.
- Because it’s not profitable to design and produce a specific product for every individual consumer.
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
- Family 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, preferences for organic, environmentally friendly, Fair trade)
- 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 between HIGH-INVOLVEMENT and LOW-INVOLVEMENT consumers :
HIGH INVOLVEMENT:
- Deep interest in the wine they drink.
- Keen to try new products.
- Tend to spend more on wine.
LOW INVOLVEMENT:
- Little interest in wine details.
- Stick to a few products.
- Tend to spend less on wine.
What 3 groups did C.M. Hall split wine consumers into in 1997?
- wine lovers: great interest in, knowledge of wine; higher income, high level of education.
- wine-interested: great interest in, moderate knowledge of wine, university educated, moderate income.
- wine curious: moderate interest in, limited knowledge of wine; moderate income/education, wine mainly seen as social.
What is Wine Intelligence?
What do they provide?
Specific examples?
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, including the UK, USA and China.
What are the 6 segments of Wine Intelligence’s 2018 US Portraits study?
- 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?
KITCHEN CASUALS:
- 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?
SOCIAL NEWBIES:
- The youngest segment, drinking fairly frequently and rely on recommendations due to lack of knowledge.
- On-premise, social situations with friends and family.
- 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?
ENGAGED EXPLORERS:
- 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.
- Very 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?
PREMIUM BRAND SUBURBANS:
- Mid to older aged, frequent wine drinkers, lower spending but very knowledgeable.
- Enjoyed in social situations, on-premise casual situations.
- Supermarkets, previously known wineries, bulk-purchasing to save $.
- Broad repertoire, but know what they like.
- Preference for domestic wines.
