feb 19th Flashcards
Segmentation:
grouping people based on demographic, psychographic or behavioral
Targeting:
assess the attractiveness of each segment and choose which
positioning
deciding how you will position and differentiate the offering and create value
Psychographic segmentation
segment the market based in consumers’ psychological characteristics
Use psychographic→ personality traits, values & lifestyles, opinions, interests
issue with demographic
people who are the same age for example might have different interests . consumers can share the same demographics and still be very different
Let’s say you send a survey out and your analzying 100 coscto shoppers
Can segment your sample based on who people are shopping for (family vs business)
Evaluate segments
Should be identifiable and substantial
Identifiable: for two or more segment, could tier needs to be met with the same set of 4 ps?. If yes, then combine them into one segment. If no, keep them separate
Substantial: is the segment large enough?
For identifiability, ensure the segment can be distinguished based on needs, and if those needs can be met by the same 4 Ps, combine them; otherwise, keep them separate.
For substantiality, assess the segment’s size and potential profitability—if it’s large and/or growing, it’s worth targeting.
Psychographic characters
Psychogenic needs are culture related needs
Ex: we all have survival needs and upper level needs which are psychogenic needs (need for autonomy, need for achievement, etc)
We have to identify which needs are important
cluster
segment or group of consumers that share similarities based on specified segmentation attributes (can be demographic, psychographic)
what is cluster analysis
data driven partuining techniques designed to group consumers into clusters such tat: groups are internally homogenous and groups are externally heterogenous
what is internally homogenous
minimize differences in segmentation attributes among members of a group
( the people within each group will be all similar like all share high need for uniqueness→ no differences in the cluster of low need for uniqueness)
Minimizing differences within a group means you focus on one group where everyone is as similar as possible (e.g., all fitness enthusiasts with the same goal).
what is externally heterogeneous
maximize differences between different groups
no overlap between groups, different samples, different needs for uniqueness (high vs low between groups)
Maximizing differences between groups means you compare multiple groups that are as different as possible from each other (e.g., muscle builders vs. weight loss seekers).
