Market Segmentation Flashcards
Role Theory = consumer behaviour resembles action in a play.
May modify consumption decisions based on play theory.
Evaluative criteria may vary with role.
Involved in communication system through consumption activities.
Sometimes searching to construct identity through consumption.
Market segmentation: very heart of marketing (Wright, 2006)
In most cases, can’t sell same product in same way to all customers.
Increasingly so, as consumers are more aware of choice.
Segmentation levels
- mass marketing = product everyone will want.
- minimises costs. - mass segmentation = divided into large segments.
- compromise for consumer and producer. - niche marketing/narrow segmentation = focus on one subgroup.
- micro-marketing/mass customisation = catering for individuals.
Ways of segmenting
Demo/geographic = where people live.
Socioeconomic = social class, occupation, age, gender etc.
Personal factors = psychometrics, lifestyle.
- psychographic personality types - eg. extrovert, sensitive, secure, leaders, compulsive (and opposites).
- psychometric activities, interests and opinions (AIO) - eg. (A) shopping, sports, home; (I) family, home, fashion, music; (O) social issues, politics, education etc.
Values = experiences and emotions.
Ways of segmenting: Ideal vs reality
Cahoto, Clark & Fennemore (2013) - “Practice of grouping customers is well established in marketing theory and practice”.
Why?
- if you have something to sell, you can work out which segment is best likely to target.
- need to evaluate segment attractiveness.
- segments need to be big enough to be cost effective but have sufficient homo-geneity.
But….
- segmentation is based on ideal models and techniques which may not fit reality.
Positives
Broad range of online social platforms.
Need to be “in tune”.
Dynamic - can respond quickly but markets can move and change quickly.
Highly targeted market - need to ensure selling to big enough group.
