Chapter 6.2 Flashcards
Psychographic segmentation
-It examines how a person thinks, feels and behaves, using personality, lifestyle and values as segmenting variables
-It gives marketers a deeper look at the market they’re dealing with and assists in the development of a more comprehensive description of the segment
Behavioral segmentation
-It determines the principal benefits that customers seek in a product, the kind of people who look for each benefit and benefits delivered by each brand
Consumers can be segmented on the bases of their buying behavior
-B-U-P-A B-A-L-U
-Benefit sought
-User status
-Purchase occasions
-Attitude to product
-Buyer readiness stage
-Attitude towards the product
-Loyalty status
-Usage rate
Benefit sought
Certain market segments may be specific in the benefits that they seek when buying a product
Usage status
Consumers can be segmented into groups- nonusers, ex users, regular users or potential users
Purchase occasions
Some buyers may use the product regularly while others may use it only on special occasions
Attitude to product
Positive, Neutral or Negative
Buyer readiness stage
Different marketing approaches have to be followed, depending in the customer’s readiness to buy
Attitude towards the products
Market segments that are negative towards a product can be avoided, while those who are positive can be encouraged to support the product in future
Loyalty status
-Consumers vary in their loyalty towards the organisation
-Loyalty customers are those who are loyal buyers and should be retained
Usage rate
Consumers can be segmented according to the frequency that they buy their products
3 Distinct types of social characterization and behaviour
-T-O-I
-Traditional directed behaviour
-Other directedness
-Inner directedness
Traditional directed behaviour
Its easy to predict and use since it changes very little over time
Other directedness
An individual attempts to fit in and adapt to the behaviour of his / her peer group
Inner directedness
Individuals are seemingly indifferent to the behaviour of others
Every segment considered by the organisation must be fully described in terms of
L-I-P-P-B-D
-Lifestyle
-Its size
-Psychological details
-Product usage
-Demographic
-Behaviour patterns
Popular bases for segmenting industrial markets
D-O-P-P-S
-Demographic dimensions
-Operating variables
-Purchasing approaches
-Personal characteristics
-Situational factors
Demographic dimensions
The company size as reflected in the sales volume, number of employees and ect
Operating variables
Companies can be classified according to their operational characteristics
Purchasing approaches
-Marketers of industrial products often have to negotiate with the purchasing departments of other businesses
-Most important variables to be used:
- Degree of centralisation/decentralisation of the purchasing function
- The power structure of the companies,
-The nature of the existing relationship with the customer
Situational factors
The delivery requirements of customers, the product application or the order size can be used as criteria
