CB-10 SESSION 4

SESSION – 4 & 5 of CONSUMER BEHAVIOUR:

SESSION – 4 & 5 of CONSUMER BEHAVIOUR MARKET SEGMENTATION PROF. K. K. VELURI

Market Segmentation:

Market Segmentation The process of dividing a potential market into distinct subsets of consumers and selecting one or more segments as a target market to be reached with a distinct marketing mix . PROF. K. K. VELURI

Three Phases of Marketing Strategy:

Three Phases of Marketing Strategy Phase 2 Target Market and Marketing Mix Selection Phase 3 Product/Brand Positioning Phase 1 Market Segmentation PROF. K. K. VELURI

What Kind of Consumer Does This Ad Target?:

What Kind of Consumer Does This Ad Target? 4 PROF. K. K. VELURI

This Ad Targets Runners Who Are Physically Active People and Also Relish the Outdoors.:

This Ad Targets Runners Who Are Physically Active People and Also Relish the Outdoors. 5 PROF. K. K. VELURI

Segmentation is Necessary:

Segmentation is Necessary Consumer needs differs Differentiation helps products compete Segmentation helps identify media 6 PROF. K. K. VELURI

Positioning:

Positioning The value proposition, expressed through promotion, stating the product’s or service’s capacity to deliver specific benefits. 7 PROF. K. K. VELURI

Criteria for Effective Targeting:

Criteria for Effective Targeting 8 PROF. K. K. VELURI

Bases for Segmentation:

Bases for Segmentation 9 PROF. K. K. VELURI

Discussion Question:

Discussion Question Considering the Union Bank of India in our University : How might consumers’ needs differ? What types of products might meet their needs? What advertising media makes sense for the different segments of consumers? PROF. K. K. VELURI

Consumer-Rooted Segmentation Bases:

Consumer-Rooted Segmentation Bases 11 PROF. K. K. VELURI

Demographic Segmentation:

Demographic Segmentation 12 PROF. K. K. VELURI

Discussion Questions:

Discussion Questions What types of marketers might segment according to social class ? 13 PROF. K. K. VELURI

Geo-demographic Segmentation:

Geo-demographic Segmentation Based on geography and demographics People who live close to one another are similar 14 PROF. K. K. VELURI

Personality Traits:

Personality Traits People often do not identify these traits because they are guarded or not consciously recognized Consumer innovators Open minded Perceive less risk in trying new things 15 PROF. K. K. VELURI

Lifestyles:

Lifestyles Psychographics Includes activities, interests, and opinions They explain buyer’s purchase decisions and choices 16 PROF. K. K. VELURI

VALS Framework (SRI consulting business intelligence’s – SRIC-BI’s) :

VALS Framework (SRI consulting business intelligence’s – SRIC-BI’s) PROF. K. K. VELURI

Strategic Application of VALS:

Strategic Application of VALS Commercialization Positioning Communications

Socio-Cultural Values and Beliefs:

Socio-Cultural Values and Beliefs Sociological = group Anthropological = cultural Include segments based on Cultural values Sub-cultural membership Cross-cultural affiliations 19 PROF. K. K. VELURI

Consumption-Specific Segmentation Bases:

Consumption-Specific Segmentation Bases 20

Use-Related Segmentation:

Use-Related Segmentation Rate of Usage Heavy vs. Light Awareness Status Aware vs. Unaware Brand Loyalty Brand Loyal vs. Brand Switchers PROF. K. K. VELURI

Segmenting Customers by Usage :

High Low Consumption High Low LoLows (starve) HiHighs (stroke) LowHighs (chase) HiLows (tickle) Segmenting Customers by Usage Current Share PROF. K. K. VELURI

Consumption-Specific Segmentation Usage-Behavior :

Consumption-Specific Segmentation Usage-Behavior Usage-situation segmentation Segmenting on the basis of special occasions or situations Example : When I’m away on business, I try to stay at a suites hotel. 23

Benefits Segmentation:

Benefits Segmentation Benefits sought represent consumer needs Important for positioning Benefits of media Segmenting on the basis of the most important and meaningful benefit

Slide 25:

Band-aid offers “flex” as a benefit to consumers.

Slide 26:

Benefit segmentation of toothpaste market Segment name Sensory segment The sociable The workers Independent segment Principle benefits sought Flavour, product appearance Brightness of teeth Decay prevention Price Demographic strengths children Teens, young people Large families Men Special behaviour characters Users of spearmint flavoured toothpaste smokers Heavy users Heavy users Brands disproportionately flavoured Colgate Closeup Crest Brands on sale Personality characteristics High self involvement High sociability High hypochon-driasis High autonomy Lifestyle characteristics Hedonistic Active conservative Value oriented PROF. K. K. VELURI

Discussion Question:

Discussion Question How would you classify yourself according to VALS? Your parents? Do you think this represents you as a consumer? If so, for what products does this fit you as a consumer? Copy down the URL below to take the VALS survey tonight. See if you were right in your classification… http://www.sric-bi.com/VALS/presurvey.shtml weblink