Ch. 2 - Market Segmentation and Real-Time Bidding Flashcards
Market Segmentaiton
Dividing a market into subsets of consumers with common needs or characteristics. Each subset represents a consumer group with shared needs that are different from those shared by other groups.
Product positioning
The process by which a company creates a distinct image and identity for its products, services, and brands in consumers’ minds
Product repositiong
The process by which a company strategically changes, refreshes, the distinct image and identity of that its products, services, and brands.
Usage-occasion segmentation
A segmentation strategy based on the fact that many products are purchased and used in the context of specific occasions
Marketers segment consumers along what factors?
Quantitative and cognative factors
Quantitative factors
Numerical
Consumer intrinsic attributes (demographics like gender, age, income, and education)
Consumption-based factors (product volume bought, rate of purchasing, and frequency of engaging in leisure activities)
Cognitive factors
Psychological abstracts that reside in consumers’ minds and cannot be determined numerically
Consumer-intrinsic factors (personality traits, cultural values, and attitudes towards politics and social issues)
Consumption-specific attitudes and preferences (benefits sought in products and attitudes towards shopping)
Demographic segmentation
Dividing consumers according to age, gender, ethnicity, income and wealth, occupation, marital status, household type and size, and geographical location. These variables are objective, empirical, and can easily be determined through questioning or observation.
Why are demographics the most fundamental factors to classify populations?
easiest way, most cost effective (census), can identify new segments created by shifts, determine many consumption behaviors, attitudes and exposure patterns.
The family life cycle
Details the phases that most families go through—each representing a viable target segment to marketers of many products
A composite variable that includes marital status, size of family, age of family members (focusing on the age of the oldest or youngest child), and employment status of the head of household classifies the family into a “typical” stage.
Social Class
The division of members of a society into a hierarchy of distinct status classes, so that members of each class have relatively the same status and members of all other classes have either higher or lower status.
Psychographics
Segmenting consumers according to their lifestyles, which consist of consumers’ activities, interests, and opinions (AOI)
What is AOI
Activities, interests, and opinions
Personal values (psychographic measures)
I have a sense of belonging
My social status is an important part of
VALS tm
A widely used segmentation method that classifies America’s adult population into eight distinctive subgroups
Innovators (high resources)
Thinkers (ideals motivation, high resources)
Achievers (achievement motivation, high resources)
Experiencers (self-expression motivation, high resources)
Believers (ideals motivation, low resources)
Strivers (achievement motivation, low resources)
Makers (self-expression motivation, low resources)
Survivors (low resources)
What are the 3 primary motivations VALS identifies
Ideals (motivations guided by knowledge and principles)
Achievement (motivation to enhance personal position)
Self-Expression (motivations for activity, variety, and independence)
Geodemographics
A hybrid segmentation scheme based on the premise that people who live close to one another are likely to have similar financial means, tastes, preferences, lifestyles, and consumption habits (as an old adage states, “Birds of a feather flock together”).
