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Consumer Behavior,Ninth Edition
Schiffman & Kanuk
Chapter 3Market Segmentation
Consumer Behavior,Ninth Edition
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Chapter Outline
• What Is Market Segmentation?
• Bases for Segmentation
• Criteria for Effective Targeting of Segments
• Implementing Segmentation Strategies
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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.
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Three Phases of Marketing Strategy
Phase 2Target Market and Marketing Mix Selection
Phase 3
Product/Brand Positioning
Phase 1Market Segmentation
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Ryka produces sneakers that
meet the special needs of
women’s feet.
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Discussion Question
• Considering the largest bank in your college’s city or town:– How might consumers’ needs differ?– What types of products might meet their
needs?– What advertising media makes sense for
the different segments of consumers?
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Bases for Segmentation
• Geographic
• Demographic
• Psychological
• Psychographic
• Sociocultural
• Use-Related
• Usage-Situation
• Benefit Sought
• Hybrid
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Geographic Segmentation
The division of a total potential market into smaller subgroups on the basis of geographic variables
(e.g., region, state, or city)
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Demographic Segmentation
• Age
• Sex
• Marital Status
• Income, Education, and Occupation
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Psychological Segmentation
• Motivations
• Personality
• Perceptions
• Learning
• AttitudesHarley-Davidson Video
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Two High-End Watches for Different Psychological Segments
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Psychographic Segmentation
• Also known as Lifestyle Analysis
• Psychographic variables include attitudes, interests, and opinions(AIOs)
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Instructions: Please read each statement and place an “x” in the box that best indicates how strongly you “agree” or “disagree” with the statement.
I feel that my life is moving faster and faster, sometimes just too fast.
If I could consider the “pluses” and “minuses,” technology has been good for me.
I find that I have to pull myself away from e-mail.
Given my lifestyle, I have more of a shortage of time than money.
I like the benefits of the Internet, but I often don’t have the time to take advantage of them.
[1] [2] [3] [4] [5] [6] [7]
[1] [2] [3] [4] [5] [6] [7]
[1] [2] [3] [4] [5] [6] [7]
[1] [2] [3] [4] [5] [6] [7]
[1] [2] [3] [4] [5] [6] [7]
Agree Completely
Disagree Completely
Table 3.6 Excerpts from AIO Inventory
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Sociocultural Segmentation
• Family Life Cycle
• Social Class
• Culture, Subculture, and Cross-Culture
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Family Life Cycle Advertising
Video cameras are often
purchased by young couples with children.
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Use-Related Segmentation
• Rate of Usage– Heavy vs. Light
• Awareness Status– Aware vs. Unaware
• Brand Loyalty– Brand Loyal vs. Brand Switchers
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Usage-Situation Segmentation
• Segmenting on the basis of special occasions or situations
• Example Statements:– Whenever our daughter Jamie gets a raise,
we always take her out to dinner.– When I’m away on business, I try to stay at
a suites hotel.– I always buy my wife flowers on
Valentine’s Day.
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Benefit Segmentation
Segmenting on the basis of the most important and meaningful benefit
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Band-aid offers “flex”
as a
benefit to consumers.
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VALS Framework Figure 3-7
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Implementing Segmentation Strategies
• Concentrated Marketing– One segment
• Differentiated– Several segments with individual
marketing mixes
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