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Chapter 6

MKT 100 Chapter Notes - Chapter 6: Shampoo, Psychographic, Target Market


Department
Marketing
Course Code
MKT 100
Professor
Fathima Saleem
Chapter
6

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Chapter 6: Segmentation, Targeting and Positioning
Segmentation
Identify and profile distinct groups of buyers who differ in their needs and
preferences
For Example: Different shampoo needs (colour treated hair, hair
type, smell, price, treatment, dandruff)
Targeting
Select one or more market segments to enter
For Example: The segment selected will be colour treated hair
Positioning
Establish and communicate the distinctive benefits of the market offering
by getting customers to form a mental picture
For Example: We will communicate how our shampoo is better for colour
treated hair than competitors
Difference between Market and Market Segment
Market: Refers to a group of buyers
People who has hair
Market Segment: Subgroup of buyers within the market that have a common need
Female students who are on a budget and likes to have rose garden scent hair
Segmentation: Understanding and Grouping Different Needs and Wants in Overall Market
Market segments are:
Identified not created
The role of the marketer is not to create the segment, but to identify the market segments
and determine which to target
Starts with a common need
Begin with understanding common need and layer in geographic, demographic,
psychographic and behavioural characteristics
Layer in Other Segmentation Variables
Geographic
Region, city or metro side density, climate, province, country
Demographic
Age, cohort generation, gender, family size, life-stage, education, income, occupation,
nationality, ethnicity, tribal identity, family identity, religion, political party membership,
nationality, social class
Psychographic
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Lifestyle, passions, interest, hobbies, personality, sociability, social class, values
Behavioural
Product usage rate, brand loyalty, product benefits sought, usage occasion characteristics,
user status, buyer’s readiness to purchase, buy attitudes
Demographic Segmentation
Most common method because easily identified; groups consumers according to easily measured,
objective characteristics
Divide market into groups based on:
Gender
Age
Income
Family stage
Household type
Occupation, education, religion
Geographic Segmentation
Grouping segments based on geographic location
Groups in particular areas consume in a similar pattern
Psychographic Segmentation
How consumers describe themselves:
Self-values: Component of psychographics that refers to overriding desires that drive
how a person lives his/her life
Self-concept: Image a person has of himself or herself; a component of psychographics
Lifestyles: How we live our lives to achieve goals
Behavioural Segmentation
Behavioural: Behaviours people engage in
Observe behaviours to infer attitudes and psychological states
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How behavioural segmentation is broken down:
Benefits Derived
Occasion: Based on how you consume products
Usage Rate: How much you consume a particular product
Loyalty: Retains to a specific brand
Geo-Demographic Segmentation Variable
Hybrid form of segmentation
Combines geographic, demographic and psychographic segmentation
Segmentation Example (BMW)
Market: Car buying market
Demographics: Young, middle income
car buyers
Segment Needs:
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