Types of Segmentation

Demographic Geographic Psychographic Behavioral

Age

Gender

Income

Marital status

Ethnic background

Local

State

Regiona

l

National

Global

Attitudes

Opinions

Interests

Activities

Personality

Values

Shopping Patterns

Decision-making process

demographic

Statistics that describe a population in terms of personal characteristics such as age, gender, income, marital status, and ethnic background.

If

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ma

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m

or

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mo

ne

y,

wh

at

c

an

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ou

b

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?

Do people with children at home buy the same products as people

who have kids in college?

What do teenagers buy that retired people may not?

❖Gender

❖Age

❖Origin or heritage

❖Religion

❖Social or economic status

❖Life stage

What kind of products

do girls buy that guys

don’t?

Are their products that Jewish people buy that

Christians do not?

I am Czech…what foods

do I like for holidays?

⦿Parenting Trends “children are to be seen and not heard” or “I want an easier life for my child”⦿Technology and our relationship with it⦿Economics is there affluence or are times

tough?⦿Life Span experiencing social and cultural

events at relatively the same time in their maturation… for example 9/11, Challenger Explosion, Berlin Wall, Gulf War

THIS IS THE FIRST TIME IN HISTORY THAT FOUR GENERATIONS ARE WORKING

TOGETHER!!

⦿Traditionalists—◼Born 1900-1945; believe age=seniority◼Grew up during Great Depression, World

Wars◼Hardworking and self-sacrificing; okay with

delayed gratification because of hard times◼Use coupons, eat leftovers, pay cash◼Influenced by John Wayne, Bob Hope,

Betty Crocker and Joe DiMaggio.◼Could be retired; could start having health

problems.

Classification by generation; they share common bonds because of their collectively shared experiences.

➢Born 1946-1964➢Believe in hard work, strong work ethic➢Have over half of wealth in country; they are do-ers, when they retire they will work a lifestyle job (hobbies)➢Identity is what they do for a living➢Enjoy luxury products➢Influenced by Nixon, Kennedy, Beaver Cleaver, Partridge Family, The Beatles➢Top Movies—The Big Chill, The Graduate, American Grafitti, Saturday Night Fever➢TV Shows: Howdy Doody (40’s), I love Lucy, Gunsmoke, American Bandstand(50’s), Twilight Zone, The Beverly Hillbillies, The Jetsons, The Andy Griffith Show (60’s)

⦿Born 1965-76; Era of Challenger explosion, Persian Gulf war⦿Skeptical attitude, “prove it to me”⦿Have higher education than any other

generation; career oriented; want to have many job options⦿Experienced first generation of divorces⦿Consumers of cosmetics, fashion and

electronics⦿Influenced by Bill Clinton, Beavis and

Butthead, OJ Simpson, Madonna, Michael Jordan⦿Representative movie—The Breakfast Club⦿Popular movie—Star Wars

⦿Born 1977-1997; most targeted demo⦿Kids of boomers; value lifestyle and relationships

over job, lots of influence on parents⦿Grew up in computer age, Internet, TOTALLY

TECH DEPENDENT! ⦿Poor communication skills (interviewing, on-the-

job, texting without vowels, writing skills, etc.)⦿Marketers try building brand loyalty⦿Things that used to be luxuries are now

necessities (cars, computers, etc)⦿Era of Clinton impeachment and

school violence⦿Reward and recognition driven⦿Want managers they can admire

⦿Gen Y has NO EXPECTATION OF LIFETIME EMPLOYMENT… but they value VACATION. Life expectancy will be close to 80; will have to work 60 years!⦿Gen Y has a STRONG FEELING OF

ENTITLEMENT. 50% of Gen Y’s move back home after college.⦿Gen Y has listened to the advice— “Don’t

follow the money, follow your dream”⦿Gen Y’s think being adult is age 30. ⦿Gen Y’s are into INSTANT GRATIFICATION.

i.e. video games, cheating, calculators, etc.

White population is declining while ethnic populations are increasing.

⦿White is largest “ethnic” market⦿African Americans spend $350 billion annually;

appreciate community support for projects like Black History Month.⦿Hispanics—Marketers in Puerto Rico, Mexico and

Cuba are following population to U.S. Hispanics watch 3.6 hours of TV a day, many speak only Spanish, many Roman- Catholics, have large families and are family-centered.⦿Asian Americans have higher median household

income than any other ethnic group, including white. Have professional jobs and higher education. Live in suburbs surrounding major metropolitan areas such as LA, NY and Honolulu.

Toyota Wins Back Hispanic Drivers With 259,000 Decals

1.There are six different ways a market can be segmented DEMOGRAPHICALLY. List as many as you can.

2.There are four factors that shape a GENERATION. List as many as you can.

3.There are four major generations—name and give a short description of each.

4.What is the most significant thing you learned about the Hispanic or Asian-American market?

1.DEMOGRAPHICS: Age, gender, life stage, socio-economic status/income, race/ethnicity, religion.

2. SHAPE A GENERATION: Parenting trends, economics, cultural/social events or life span, technology

3.GENERATIONS: Traditionalists, Baby Boomers, Gen X, Gen Y, Gen Z

4.Hispanics—fastest growing market; Asian— most affluent market

•Includes people's lifestyles, interests, hobbies and behaviors — where they like to vacation, the kinds of interests they have, the values they hold, and how they behave.•People respond to cultural and social trends http://www.faithpopcorn.com/

Top 20 Trends  

Sorting customers by where they live, the population of the area they live in, the climate of the region they live in, and what

city, state and/or country someone is from.

Market identification:▪Most outdoor pools are in north and west part of

the city.▪Most retired residents live in southwest▪The city’s center has very little residential housing▪The northeast and east side of city is industrial▪The south and southeast has dormitory college

housing.

X X X X

X

XX

XX X

▪ The northwest and north sides have many families with young kids.▪ The west side has high income couples with older children

Juan needs help identify the right market. He needs to gather behavioral and psychographic information as well. Which 3 question should Juan definitely ask outdoor-pool owners in his city?

1.Do you swim in your pool often?

2.Do you generate a lot of dust or dirt near your pool?

3.Do you plan to keep your pool for the next three years?

4.Does the pool’s chlorine sting your eyes?

5.Do you have time to clean your pool regularly?

6.Do your pets swim in your pool too?

7.How do you feel about swimming in an unclean pool?

8.Do you clean your pool only when you see it’s dirty?

9.Do you already pay for cleaning services from another company?

10.Do the neighbors’ kids swim in your pool?

Types of Segmentation

Demographic Geographic Psychographic Behavioral

Age

Gender

Income

Marital status

Ethnic background

Local

State

Regiona

l

National

Global

Attitudes

Opinions

Interests

Activities

Personality

Values

Shopping Patterns

Decision-making process

⦿Sorting customers by how they respond to a product and how often they use it.⦿How do customers use the product?

❖Benefits sought--What benefits do the customer get from the product?

❖Usage rate

❖User status: potential, first-time, regular, etc.❖Occasions: holidays and events that stimulate purchases

Market Segmentation: Geographic, Demographic, Psychographic & More

Segmentation, Targeting, and Positioning - McDonald's

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