M2 rest of segmentation

Question 1

remaining subtypes of segmentation (3)

Answer 1

market segmentation

niche segmentation

ultimate segmentation: individualized marketing

Question 2

bases of market segmentation (2 dif lists, 6 total between them but each have 5)

Answer 2

demographic, geographic, GEO-DEMOGRAPHIC, psychographic, behavioral

demographic, geographic, psychographic, behavioral, BENEFITS SOUGHT

Question 3

Age as a demographic segment

Answer 3

ages have defined behaviors, attitudes, norms –> direct and indirect impact on consumption

Question 4

psychographic segmentation - dimensions and categories

Answer 4

• can use VALS to classify US adults into 8 categories
• 2 dimensions, 4 categories each –> 8 total categories

dimensions: resources and motivation
- motivations: ideals, achievement, self-expression
- resources: low, high

Question 5

what allows companies to identify global segments/see if same ad can be used globally

Answer 5

Roper starch worldwide identified 6 global lifestyle segments (universal)

Question 6

geographic segmentation makes the assumption that…

Answer 6

consumers who live near each other have similar preferences

Question 7

geodemographic segmentation assumes that…

Answer 7

people with similar cultural backgrounds/preferences gravitate towards e/o

Question 8

company that identifies geodemographic segments

Answer 8

PRIZM
- divides people into social (urban, suburban, rural, second city) and life stage groups (younger years, family years, mature years)

Question 9

why would a company use PRIZM to identify segments?

Answer 9

identify potential new segment that is similar enough to current segments

Question 10

how did subaru expand its consumer base?

Answer 10

marketing to lesbians without alienating straight consumers
- horizontal signaling (inconspicuous-only noticeable to ingroup)
- gay vague

Question 11

Behavioral segments

Answer 11

• by preference for a pdt benefit, their usage rate, usage occasion, user status, loyalty
• useful because behavior is easy to identify; core benefit is that you can emphasize a single attribute (price, pdt use, pdt uder)

Question 12

behavior segmentation based on price

Answer 12

2 dimensions (price resistance and quality desired) create 4 groups

• low price resistance, low quality –> convenience segment (bottom line: what’s easiest)
• low price resistance, high quality –> loyal segment (willing to pay more for highest quality)
• high price resistance, low quality –> price segment (bottom line: what’s cheapest)
• high price resistance, high quality –> value segment (want best brand but at lowest price; shop at outlets/sales)

Question 13

behavior segmentation based on pdt use

Answer 13

patterns of use
- seasons, holidays, time of day, etc
- identify by frequency or time since last use

Question 14

niche segmentation

Answer 14

specialized, focusing on 1 narrow segment; 1 product

Question 15

pros of niche segmentation

Answer 15

“in niches there are riches”
- more tailored –> more satisfied –> more loyalty
- smaller segment –> maybe save money on research
- opportunity for you to be the first

Question 16

cons of niche segmentation

Answer 16

“all eggs in one basket”
- risk small market drying up
- company growth limited by small market
- segment growth can attract competition
- may acquire a very specific image/identity –> limit future opportunities

Question 17

ultimate segmentation/individualized marketing

Answer 17

examples: fitness trainers, bespoke clothing, financial advisors

• not the same as mass customization which has a low cost of manufacturing and targets a large segment rather than an individual person