Segmentation Flashcards
What are the 5 segmentation strategies?
Geographical Psychographic Geodemographic Demographic Behavioural
What is geographical segmentation?
Divides segments based on geographical location, E.G town, regional, county, country
What is psychographic segmentation?
Divides segments based on:
- lifestyle (opinions, attitudes, interests)
- Personality (traits, BIG 5
- Vals
What is behaviour segmentation and each category?
Buyers divided based on difference in knowledge, attitude, use rate
- Benefit sought = benefits seeked from product
- User rate = (heavy, medium, low usage) Amount purchased / consumed
- Occasion = when an individual acquires / uses a product
- User readiness = how ready consumers are to purchase
What is geodemographical segmentation? Examples?
Combination of data on expenditures, other socioeconomic factors and geographic information
Prizm = USA post codes are assigned 1 of 66 categories in relation to socioeconomic characteristics
ACORN = consumer classification
What is micro-level segmentation?
Describe segments relevant to specific behaviour
Small intense subgroups, E.G vegan children, video-game grown ups
In terms of psychographic segmentation, what is personality segmentation? What are the associated issues?
Traits
- An individuals defining characteristics
E.G introvert, innovation, materialism, self-consciousness
Big 5
- Will to experience, extroversion, neuroticism, conscientiousness, agreeableness
Issues
- unstable results, cannot predict purchase of specific brands, lack of resources available for researchers
In terms of psychographic segmentation, what is lifestyle segmentation?
- Understanding lifestyle segmentation through investigating AIO (activities, interests, opinions)
What are the advantages and disadvantages of demographic segmentation?
Advantages - lots of data available, measures consumer brand / product preference
Disadvantages - Does not capture consumer motivations
What are the big 5?
Will to experience extroversion neuroticism conscientiousness agreeableness
In relation to demographic segmentation, what is life cycle and how does it affect effective segmentation?
Life cycle is made up of = age, martial status, children in the home and age of the children
Affects:
Age and status affects purchase behaviour; E.G newly weds without children will purchase in different ways in comparison to young families.
What are the associated disadvantages with life cycle segmentation?
Changing role of women
- Alternatives life style
- Single - parent households
In relation to demographic segmentation, what is social class and how does it affect effective segmentation?
Social class is a combination of occupation, income, education
Affects:
Occupation is generally linked to availability of leisure time, political orientation etc..
What are VALS?
8 segments based on an individuals control, resources, motivational self-orientations
What is effective segmentation criteria?
Measurability = can the size / power of segment be measure? Sustaintiality = how large / profitable is the segment? Accessibility = can you reach / serve the segment? Responsiveness = Do they respond to elements of the marketing mix?
