Segmentation Strategies - Consumer behavior
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Transcript of Segmentation Strategies - Consumer behavior
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8/6/2019 Segmentation Strategies - Consumer behavior
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TM 11-TM 11- 22Copyright 1999 Addison Wesley Longman, I nc.Copyright 1999 Addison Wesley Longman, Inc.
Segmen. & Aggreg. Strategies
Segmentation strategies: Divide and Conquer Aggregation strategies: One size fits all
When Should Use What???
1- Consumer preference heterogeneity (variability). Toyota2- Majority fallacy Spicy food
3- Sales-costs tradeoff
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TM 11-TM 11- 33Copyright 1999 Addison Wesley Longman, Inc.Copyright 1999 Addison Wesley Longman, Inc.
The Majority Fallacy
Preferences
Ladies Bikes
Low Medium
High S iciness/Sweetness/Sourness
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TM 11-TM 11- 44Copyright 1999 Addison Wesley Longman, I nc.Copyright 1999 Addison Wesley Longman, Inc.
THE MAJORITY FALLACY
CASE STUDY
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TM 11-TM 11- 55Copyright 1999 Addison Wesley Longman, Inc.Copyright 1999 Addison Wesley Longman, Inc.
The sales-costs trade-off of segmentation
Sales Costs
1 1000 1 1000Number of different brands Number of different brands
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TM 11-TM 11- 66Copyright 1999 Addison Wesley Longman, I nc.Copyright 1999 Addison Wesley Longman, Inc.
THE SALES-COST TRADE OFF
Increasing segments means increasing sales butincreasing cost!
Cost Factors:
1- Manufacturing cost2- Economy of Scale
3- Marketing cost
Solution is Cannibalization (Tissue papers. Corp TVC)
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7/14TM 11-TM 11- 77Copyright 1999 Addison Wesley Longman, Inc.Copyright 1999 Addison Wesley Longman, Inc.
Bases of segmentation
Bases Examples
GeographicGeographic
DemographicDemographic
PsychographicPsychographic
BehavioralBehavioral
Postal ZIP code districts, metropolitan
statistical areas, countries, states, provinces,regions, nations, continents
Postal ZIP code districts, metropolitanstatistical areas, countries, states, provinces,regions, nations, continents
Gender, age, education, occupation, incomemarital status, household size, ethnicbackground
Gender, age, education, occupation, incomemarital status, household size, ethnicbackground
Personality characteristics, attitudes,beliefs, lifestyles
Personality characteristics, attitudes,beliefs, lifestyles
Usage situations, usage frequencyUsage situations, usage frequency
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8/14TM 11-TM 11- 88Copyright 1999 Addison Wesley Longman, I nc.Copyright 1999 Addison Wesley Longman, Inc.
GEOGRAPHIC SEG.
ENGLISH LANGUAGE
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9/14TM 11-TM 11- 99Copyright 1999 Addison Wesley Longman, Inc.Copyright 1999 Addison Wesley Longman, Inc.
An ad targetedat women
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10/14TM 11-TM 11- 1010Copyright 1999 Addison Wesley Longman, Inc.Copyright 1999 Addison Wesley Longman, Inc.
The VALS 2 technique (Page 313)
Actualizers
Fullfilleds Achievers Experiencers
Believers Strivers Makers
Strugglers
Principle oriented Status oriented Action oriented
Abundant resources
Minimal resources
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11/14TM 11-TM 11- 1111Copyright 1999 Addison Wesley Longman, Inc.Copyright 1999 Addison Wesley Longman, Inc.
An appeal to action-oriented consumers whomay be achievers
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12/14TM 11-TM 11- 1212Copyright 1999 Addison Wesley Longman, I nc.Copyright 1999 Addison Wesley Longman, Inc.
BEHAVIOURIAL SEG. Usage situation and frequency
Non-users, light users and heavy users
Frequency Marketing Techniques ???
Who uses FMT?
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13/14TM 11-TM 11- 1313Copyright 1999 Addison Wesley Longman, Inc.Copyright 1999 Addison Wesley Longman, Inc.
The consumer x product x usagesituation matrix
Customer x productInteraction
Customer x productInteraction
Customer x productSituation Interaction
Customer x productSituation Interaction
Product x UsageSituation InteractionProduct x Usage
Situation Interaction
Customer x Product xUsage Situation Interaction
Customer x Product x
Usage Situation Interaction
Customer Customer
ProductProduct
Usage situationUsage situationDifferent groups of customers are loyal todifferent brands.
Different groups of customers are loyal todifferent brands.
Different groups of customers use the product indifferent usage situations.
Different groups of customers use the product indifferent usage situations.
Different brands are used in different usagesituations.
Different brands are used in different usagesituations.
Different groups of customers use different brandsin different usage situations.
Different groups of customers use different brandsin different usage situations.
Preference heterogeneity exists. Find a customer segment that currently is not served adequately.
Preference heterogeneity exists. Find a customer segment that currently is not served adequately.
Brand heterogeneity exists. Develop a new type of product.
Brand heterogeneity exists. Develop a new type of product.
Usage heterogeneity exists. Develop a newusage situation
Usage heterogeneity exists. Develop a newusage situation
h d
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14/14TM 11-TM 11- 1414Copyright 1999 Addison Wesley Longman, Inc.Copyright 1999 Addison Wesley Longman, Inc.
The consumer x product x usagesituation matrix
Dawlance MWO Case StudyDawlance MWO Case Study
Customers of various ages, visiting fast food restaurants in various timings.Customers of various ages, visiting fast food restaurants in various timings.