Consumer Behavior 11th Edition Schiffman Solutions Manual Download:http://testbanklive.com/download/consumer-behavior-11th-editionschiffman-solutions-manual/ Consumer Behavior 11th Edition Schiffman Test Bank Download:http://testbanklive.com/download/consumer-behavior-11th-editionschiffman-test-bank/ CHAPTER 2 S egmen tation , T argetin g an d Position in g
L E ARNING OB JE CTIVE S After r eadin g, stud yin g a nd anal yz in g thi s chapte r , students shoul d be able to understand : 2.1 The int errel ati onshi p among mark et se gmentati on , targeti ng , and posi ti oning, and ho w to sel ect t he best t ar get m ar kets. 2.2 The bases used to s e gme nt consumers, includi ng demogr aphics, ps ycho gra phics, product benefits so u ght and prod uct usage -r elated factors. 2.3 Behavio ral t ar geti ng and it s ke y role in t oda y’ s ma rketi ng. 2.4 How to pos it ion, di fferen ti ate and reposi ti on prod ucts.
CHAPT E R SUM MAR Y L earn in g Ob jecti ve 2.1: To understand the inter r elations hip among ma rke t segmentati on, targeti ng and posi ti oning and how to select t he b e st t arget m arkets. S egmentati on is defin ed as the proc ess of divi ding a potential market i nto d ist inct subsets of consum ers wit h a comm on need or ch ar acterist ic and selecti n g one o r mor e se gments t o tar get with a speciall y desi gned marketi ng mi x . Besides aidi ng in t he dev elopm en t of new products, segment ati on st udies assi st i n the redesign and r ep osit ioni ng of ex ist ing products, i n the cre ati on of promot ional appeals, a nd the selecti on of adv ert isi ng media. In ord er to b e a viable ta r get market, a se gm ent m ust be identi fiable (b y som e criteria such as demo gr a phics, li fest yles, or ot hers), siz eable (i.e., la r ge enou gh to be pro fitable), stable or growin g, ac c essi ble (i.e., can b e reach ed e conomi call y), a nd congruent wit h the ma rketer’s obj ecti ves and re sources.
L earn in g Ob ject ive 2.2: To understand the bas es used to s egm ent cons umers, includi ng demogr aphics, ps ycho gra phics, product bene fits c onsum ers seek, and oth er product usa ge relat ed factors. A se gmentati on st rate g y begins b y divi ding th e market for a produ ct i nto groups that are rel ati vel y homogeneous and share char acte rist ics that are diff er ent from t h ose of other groups. S uch chara cterist ics inclu de factu al and classifie d as follows: behavioral an d cognit ive v ariables, consum er-int rinsic f eatur es, and consum pti on -rel a ted data. The b ases for s e gmentati on include demogr aphics, pe rsonali ty and ps yc ho graphi cs, ge odemogr aphics, produ ct benefits, m edia ex p osure, usage rat e and occasion and lev el of br a nd lo yalt y. All s e gmentat ion st rategi es in t he “real wo rld� stem from mul ti ple segmentati on ba ses. L earn in g Ob jective 2.3: To understand beh aviora l t argeti ng and it s ke y rol e in t oda y’ s market ing.
Behavio ral Ta r geti n g is sending consum ers pe rson ali z ed and prompt offers and promot ional messages based on m ark eters’ tr ackin g of one o r more of the followin g f ac tors: onl ine navig ati on , curr ent geo gr aphic locati on and pur ch ase behavio r. The obje cti ve of behavio ral targeti ng is t o r each th e r ight consumers and deli v er to them hi ghl y r elevan t m essages at t he ri ght t im e more accu ratel y tha n when usi ng conventi on al segm entation techniqu es . Trackin g onli ne navigation i ncludes identi f yin g the sit es consum e r s’ visi t, t heir enga gement with t he sit e s, and their int erests , li fest yl es a nd personali ti es as ex pre ssed b y the contents of th eir blogs, twit s and Fac ebook profiles. M an y marketers us e predictive anal yti cs , which consi sts of methods predicting consum ers’ fu ture purch ases on t he bas es of past bu yin g informa ti on and other data, and evaluatin g the i m pac t of personali z ed promot ions s temmi ng from t he p redictions. C oll ecti ng the right dat a and an al yz i ng it strate gic all y are ess enti al t o effe cti ve behavi oral t ar geti n g. Marketers ’ goal i s to a nti cipate oc curr ences in you r life event t hat i mpact your shopping behavior and us e these in sights t o get you to s p end your mon e y on their pro ducts. In addit ion , the y are ea ge r to discove r info rmation about your int erests and person al dat a and the social networks with whi ch you connect onl ine. L earn in g Ob jective 2.4: To understand how to p osit ion, di fferenti ate and reposi ti on products. After se gmentin g the m a rket and sele cti ng t ar geti ng prosp ects, m ark eters must persuade prospecti ve bu ye rs to buy the pro ducts t hat t he y o ffer, rather th an competin g produ cts. P osit ioni ng is t he process b y which a compan y cre ates a dist inct im age and identit y for it s products, s ervic es, or br a nds i n consum ers’ mi nds. The im age and unique id enti t y ar e c all ed a “posi ti on.” The “pos i ti on” in i ntangibl e, ex ist s in the consum er’s mi nd, and repres ents ho w consum ers per ceive th e p roduct. P osit ioni ng is m ore im portant t o the ulti mate suc cess of a product t han ar e it s actua l chara cterist ics, alt hou gh products t hat are poo rl y mad e will not succeed on th e basis of i mage alone. Th e result of effe cti ve posi ti oning is a unique posit ion t hat the product occupi es in t he mi nd of the consum er. Most new products fail because consum ers perceiv e them as “me too ” offe rs that do not provide an y adv anta ges or uni que benefits ove r competit ive products. Th e p osit ioni ng strate gies u sed mos t often are: um br ell a posi ti oning, premi er positi on, posi ti oning a gain st competi ti on, ke y att ribute, and findin g an “un -own ed” perceptu al posi ti on. These strate gies a re not m utua ll y ex clusi ve, and often o verlap. R eposi ti oning is t he process b y which a co m pan y int enti onall y c hanges the dist inct im age and identit y that it s products, s ervic es, and br ands occup y in consume r s’ minds . There a re sev er al reasons t hat fo rce marketers to r eposi ti on pro ducts, s uch as man y co mpetit ors focusing on the same product att ribute in pos it ioni ng their offe rin gs.
P erceptual mappin g is a const ructi ng a map-li ke d iagr am rep resenti n g cons umers’ per ce pti ons of competing br ands alon g r elevant product att ributes. P erceptual maps show marketers: (1 ) how consum ers per ceive th eir brand in relation t o com peti ti on; (2) determi ne th e directi on for alt erin g undesirable consum e rs’ p ercepti on of th eir brands; and (3) find gaps, i n the form of “un -o wned” perceptu al posi ti ons t hat repres ent opportuni ti es f or developi n g new b rand s or products.
CHAPT E R OUTL INE INTRODUCT ION 1. Mark et s eg men ta tion is the proc ess of d ivi din g a mark et int o dist inct subsets with
comm on needs and ch ar acterist ics that are diff er ent from t h ose shared b y oth er grou ps . 2. T argetin g consi sts of selecti ng the se gments that the compan y vi e ws as prospe cti ve custom ers and pursuin g t hem. 3. Position in g i s the process b y which a compan y creat es a dist inct im age and identit y for it s products, s ervic es and br ands i n consum ers’ mi nd s . *****Use Discu ssi on Qu estion s #2.1 an d #2.2 Here; Us e K ey T erm s mark et seg men tation , targetin g , an d p osition in g Here; Use F i gu re # 2.1 Here***** Mark et Seg men tation an d Ef f ective T argetin g 1. S egmentati on and tar geti ng enable produ cers to avoid head -on competit ion in the marketpl
ac e b y di ffe rent iating their off erin gs on the basis of such fe ature s as pri ce,styling, packaging,promotionala ppeal, m ethod of dist ributi on, and level of servic e. 2. This approach is gen erall y more p rofit able. 3. S ervices also s e gment their markets and tar ge t different o ffe rin gs to differ ent mark et segments. 4. Marketers use s e gmentati on rese arch to i denti f y t h e most approp riate medi a in which to pla ce advertisements. *****Use Learn in g Objecti ve # 2.1 Her e; Use Ta ble 2.1 Here***** 5. C riteria for E ffe cti ve T ar geti n g: To be an ef fe cti ve tar get, a market s egm ent shoul d be:
identifiable,sizeable,stableorgro wing, a cces sibl e, and congru ent with the marketer’s objecti ves and r esourc es. a) Id enti fiable: If s e gment s are sepa rated b y com mon or shar ed ne eds or chara cterist ics thatarerelevanttotheproductor servi ce, a ma rketer must be abl e to identifythese characteristics.Some se gmentati on variables such as demo graphicsareeasytoidentify, while others such as b ene fits so ught, m ore diffi cult . b) S iz eable: In ord er to be a viable market, a segmen t must consi st of enough consum ers to make tar geti n g it profit ab le. c) St able and Growin g: M a rketers p ref er se gm ents t hat are stable in t erms o f li fest ylesand consumptionpatternsandthat are li kel y to grown larger and more viable i n the future.
d) R eachable: To be tar gete d, a segment must be accessi ble, which means that market ers
mustbeabletoreachthatmarketse gment in an e conomi cal wa y. e) C ongruent with the C o mpan y’s Objecti ves andResources:Noteverycompanyis int erested or has th e mea ns to rea ch ever y m arket se gment, ev en if th at se gment me ets the four pre cedin g c riter i a.
***** Use Discu ssi on Questi on # 2.3 Here ***** 6. Appl yin g the C rite ria: P err y & S wift, and invest ment mana gement firm, used 2011 P
$YC LE S egments. *****Use Table #2.2 He re *****
B ases f or S egmen ta tion 1. C haracte risti cs used for segment ati on can gen era ll y be classifi ed int o two t ypes: beh avioral and co gnit ive. a. B eh avioral d ata is evidence-bas ed and can be d et ermined from di r ect ques ti oning. i. C onsumer -int rins ic factors include age, gende r, marit al status, income and educati on ii. C onsumpti on -based factors include quanti t y of p roduct purch ased, f reque nc y of leisure a cti vit ies, or fr equenc y of bu yin g a give n product b. Cogni tive f actors are ab stracts reside in the cons umer’s mi nd, do not have universal definiti ons, and can onl y be determi ned via ps yc h ological and at ti tudi nal questi oning. i. C onsumer -int rins ic factors include person ali t y trait s, cult ural valu es, and att it udes towards polit ics and social iss ues ii. C onsumpti on -based factors include att it udes and prefe renc es, such as ben efits sought from produ cts an d att it udes re gardin g sho pping *****Use Learn in g Objecti ve # 2.2 Her e; Use K e y Term s b eh avioral d ata an d cogn itive f actors Here***** 2. De mograp h ic seg men ta tion divi des consum ers accordin g to a ge, gender, ethni cit y, income and wealt h, oc cupati on, marit al st atus, h ouseh old t ype and si z e, and geo gr a phic locati on. a. The cor e of alm ost all se gmentati ons i s demo grap hics becaus e: i. Demographics a re the e a siest and most logical wa y to classif y people andcan bemeasuredmoreprecisely than oth er se gment ati on bases . ii. Demographics o f fer the most cost -effecti ve w a y to locate and reach specific segmentsbecausemostof the se conda r y data co mpi led about an ypopulation stemsfrom demographic s . iii. Demographics enable m arkete rs to identif y busi ness opportuni ti es in theform ofshiftsinage,incomed ist ributi on, and populations of various re gions .
iv. Man y consum pti on beh aviors, att it udes, and m edia ex posure p att erns are directlyrelatedtod emographics . *****Use R eview an d D iscus sion Questi on # 2. 4 Here; Use K e y Term d emog rap h ic seg men tation Here**** *
b. Age: product n eeds often var y with consum ers’ a ge, and ma rketers comm onl y tar get age groups. c. Gender is a fa ctual dist inguishi ng se gmentati on variabl e, and man y pr oducts and servicesareinherentlydesigned for eit he r males o r femal es . How ever, sex roles hav e become blurr ed. d. Famil ies and Households : segm entation is based on the premi se that man y f ami li es passthroughsimilarphasesintheir formation, growth, and final diss olut ion.Ateach phase,thefamilyunitne eds di ffer ent products an d services . i. Fa mil y li f e cycle is a cla ssi ficati on stemmi ng fro m factual variables including maritalstatus,emplo yme nt status, and the pr esen ce o r abs ence of chil dre n in the household. ii. Each sta ge in the tr adit ional fami l y li fe c yc le re presents an im portant t a rget segment to m an y ma rket ers. ***** Use K ey T erm f amil y li f e cycle Her e**** * e. Social class can indi cate an abil it y or inabili t y to pa y for a product mode l or and cobrand, nsum ers of differ e nt social classes var y in terms of values, product and buprefe yin g hrenc abitess. i. In come is combi ned w it h other demographic variables to de fine tar ge t markets. ii. In come, edu cati on, and o ccupati on tend to be closel y corr elated . iii. S ocial class can be mea sured as a wei ghted ind ex of educati on, occupat ion and income f. Ethni cit y: M arkete rs se gment some populations on the basis o f cult ural heritageand ethnicityduetoshared values, beli efs, and cust oms. African Americans,Hispanic Americansand Asian A mericans a re im portant subcult ural market s e gments in the U.S. 3. Geod e mograp h ics : W here a p erson li ves dete rmines some aspe cts of cons umpt ion behavior, somarketersfrequentlyuse geod emo graphics , a h ybrid se gmentati on schemebasedonthe premisethatpeoplewho li ve close to one another are li kel y to hav e similarfinancialmeans, tastes,pref eren ces, li fest yl es, and consum pti on ha bit s , in st rategic ta r geti ng . a. The primar y comm erci al app li cati on of thi s technique is PRI ZM, offer ed b y Nielsen’s M yB estS e gme nts . This s ystem uses the ZIP + 4 post al s ystem to classif y all of the nati on’s ho useh olds i nto 66 s egments. b. Nielsen also us es P $YC LE (bas ed on hous ehold wealt h) and C onn eXion s (based on household rec epti vit y to new technolo gies. ***** Use R eview an d Discu ssi on Questi on # 2.9 Here; Use Tabl e # 2.3 Here; Use K e y Term
geod e mograp h ics Here ***** 4. Green C onsum ers: E cologic all y-mi nded consum er s have been s e gmented in several w a ys.
a. One stud y identified t hree t ypes of gre en c onsum ers: Environmental acti vist s, Or ganic e aters, and Econ omi z ers. b. Another stud y identified four t ypes o f gr een cons umers: True Gr eens, Do nor Gr eens, LearningGreens,andNon-Gre ens. c. Another stud y divi ded co nsum ers acco rding to a s pectrum of gre en, wher e the darkest greenswerewillingtopaya premi um for eco - friendl y products to reduceglobal warming,whiletheligh test gre ens wer e most l y concern ed about savingmoneyon energybills,not saving the planet. (Table 2.4 describes five se gments along the spectrum.) *****Use Table #2.4 He re ***** 5. P erso al it y trai ts shape att it udes and consum pti on behavior. a. P s ycho gr aphic f actors oft en overlap with pe rsonali t y trait s. b. P ersonali t y tests – whi ch ar e gene rall y in the form of questi ons or statements presented to the respo ndent – can be used b y r esea rche rs to deter mi ne one’s personali t y and use it in segm entation. c. C onsum ers who a re op e n-mi nded and p erc eive l ess risk than othe rs in t r yin g n thi ngs ar e li kel y to b e in n ovators . ew d. Table 2.5 includ es desc riptio ns of three groups of onli ne shoppe rs se gmented b y personali t y tr ait s and att it udes about bu yin g onli ne . *****Use Table #2.5 He re; Use K e y Term in n ovators Here ***** 6. L if estyles , also known as p sych ograp h ics , consi st of acti vit ies, int erests , and opini ons (A IOS ). a. The int erests and opini ons portions are cognit ive const ructs , which can be measured viasurveysbutarenote vidence -b ased. b. A ps ycho graphic study in cludes a batt er yofstatementsselectedfroma psycho graphic inv entor y a nd usuall y a ccomp anied b y Likert s cales on which respondents a re ask ed to indi cate their lev el of a gr eement or d isa gre emen t with each statement (Table 2.6 ) c. Bec ause of their vers ati li t y, ps yc ho graphi cs are w idel y used in segm entationandare partofalmostanyh ybrid segment ati on frame work . d. VAL S (an ac ron ym for “values and li f est yles ”) is the most popular segmentati on s ystem combi nin g li fest yles and values . e. VA LS fo cuses ex pli cit l y on ex plaining consum er purchasin g beh avior. i. VA LS includes thre e primar y mot ivations: ideals mot ivated, achieve ment mot ivated and self -ex pre ssi on mot ivated. ii. VA LS also re flects a c onti nuum in terms of r esources and innovative ness (Fi gure 2 .5 )
*****Use Han ds -on A ssi gnm en ts #2.19 an d # 2.21 Here; Us e R e view an d Discu ssi on Questi on s #2.7 an d # 2.8 Here; Use Tabl es #2.6, 2.7 an d 2.8 Here; Use F igu re # 2.5 Here; Use K ey Term s p sych ograp hics and VAL S Here ***** 7. B en ef it segmen tation is based on th e ben efits con sumers seek f rom produc ts and services. a. M an y b eli eve ben efits so ught ar e the co re of all se gmentati on st rat e gies. b. S ought ben efits rep resent unfill ed consum e r ne eds wher eas bu ye rs’ per cept ions that a given br and deli ve rs a un ique and promi ne nt bene fit result in l o yalt y to t he brand. *****Use Han ds -on A ssignm en t #2.18 Here; Use R eview an d Discu ssi on Questi on #2.6 Here; Use F igu re 2.6 Here; Us e Table #2.9 Here; Use K ey Term b en ef it segme n tation Here ***** 8. Media -based seg mentat ion consi ders t he be nefits consum ers se ek from adopti n g comm unicati on tool s. ***** Use Tables #2.10 an d 2.11 Here ***** 9. Usage rat e s eg men ta tio n stems from differenc es among he av y, medium a nd li ght users, and nonusers of a sp ecific p r oduct, service, o r brand. a. Marketers h ave found that withi n some produc t cate gories that a rel ati vel y small groupofheavyusersaccountfora disproport ionatel y lar ge perc enta ge of tot al product usa ge. b. Tar geti n g h eav y us ers is a comm on ma rketi n g str ate g y, and it can be mor e profitable thantargetingotheruser cate gories. c. Howeve r, since all competit ors are li kel y to ta r get the sam e he av y us er s, tr yingto attractthesebuyersrequiresa lot of ex pensive adv ertisi ng. d. S ome marketers pre fer to target li ght and medium users with products that a re distinct fromthosepreferredbyheavy users. e. A sophi sti cated approa c h to usage rate invol ves identif yin g the f actors t hat directl y im pact t he usa ge beh avio r. f. Understandin g nonusers i s essential . g. C onsum ers can also be segm ented in terms of their aw aren ess statu s and also level of in volvemen t . h. Prod u ct in volve men t is also a se gmentati on fa cto r.
10. The occasion or sit uati on often determi nes what consum ers will purchase or consum e,so marketerssometimesuseusagesitu ation seg men tation . Man y produ cts are p romo ted fo r special usa ge o cc asions . *****Use R evi ew an d Discu ssi on Questi on # 2.5 Here;UseFigure2.7Here;UseKeyTerms usage rate seg men tatio n , p rodu ct aw aren ess statu s,productinvolvement,usagesituation seg men tation Here **** *
B eh avioral T argetin g 1. B eh avioral targetin g c onsi sts of sending cons umers personali z ed and prompt offers and promotionalmessagesdesignedtorea ch the ri ght consum ers and deli v er to them highly relevantmessagesattherighttime and more accur atel y th an when using conventi on al segment ati on techniques. a. Trackin g Online N avi gat ion Includ es: i. R ecordin g the websit es t hat consumers visi t. ii. Measurin g consum ers’ levels of en ga gement with the sit es (i. e., whic h pages the y look at, the le ngth of their visi ts, and h ow often the y r eturn). iii. R ecordin g the visi tors’ li fest yles and pe rsonal it ies (derived f rom the contents of consum ers ’ b logs, twe ets, and Facebo ok profiles). iv. Keepin g track o f consu mer’ purch ases, alm ost purchases (i. e., abandon e d shoppi ng c arts), and retur ns or ex changes. b. Geo grap hic loc ati on and mobi le tar geti ng have b een us ed e ffe cti vel y due to the prevalen ce of sma rtphon es and GPS devices. 2. Marketers are usin g p re d ictive an alytics : m easures that predict consum e r s’ future purchases onthebasesofpastbuying information and ot her data, and also evalu atetheimpactof personalizedpromotions s temmi ng from t he pr edi cti ons. *****Use Learn in g Obj ecti ve 2.3 Here ; Us e R e v iew an d Discu ssi on Questi on s #2.10, 2.11 an d 2.17 Here; Use F igu re 2. 8 Here; Use K ey Term s b eh avioral targetin g and p red ictive an alytics Here *****
Position in g an d Rep osition in g 1. Position in g is t he proces s b y which a compan y cr eates a dist inct im a ge fo r it s products, services or b rands i n con sumers’ minds . 2. Marketers h ave to pe rsua de their tar get audienc es to choose t heir products vs. competit ive products. 3. The posi ti oning proc ess i ncludes the followin g ste ps: a. Defining th e mark et i n which the product or br and competes, who the r elev ant bu ye rs ar e, and the o ffe ring’s competit ion. b. Id enti f yin g th e product’s ke y att ributes and r esea rc hing consum e rs’ pe rcepti on re gardin g each o f the r ele vant attribut es.
c. R esearchin g ho w consu mers perc eive the compe ti ng off erin gs on t he rel e vant att ributes. d. Determi ning th e tar get m arket’s pr efe rred combi nati on of att ributes. e. Developi n g a dist in cti ve, differenti ati n g, and v alu e -based posi ti oning conc ept t hat comm unicates the appli c able att ributes as ben efits . f. C reati ng a posi ti oning st atement focus ed on the b enefits and valu e that the product provides and usi ng it to communi cate wit h the tar get au dien ces. 4. P osit ioni ng is especiall y difficult among comm odit ies, where the ph ysic al c haract eristi cs of all the brands ar e identic al, such as wat er. N evert heless, markete rs off er m an y b rands of
mi neral wate r that ran ge in price and a re posi ti one d differentl y. T able 2.12 describes the posi ti oning claims , unique benefits, and p rices of s everal b rands of bottl ed water. *****Use Learn in g Objecti ve 2. 4 Her e; Use R ev iew an d Discu ssi on Questi on # 2.12 Here; Use Table 2.12 Here; Us e K e y Term p ositionin g Here ***** 5. U mb rell a p osition in g is a statement or slogan that describes the universal benefit of the compan y’s off erin g. At ti mes, thi s st atement does no t refer to sp ecific p rod ucts. (Fi gur e 2.9) 6. P remi er positi oning focu ses on t he brand’s ex clusi vit y. 7. P osit ioni ng agai nst t he c ompetit ion acknowled ge s competing br ands. ( Figure 2.10) 8. Ke y att ribute posi ti oning is based on a b rand’s superiorit y on r elevant att ributes. (Fi gure 2.11) 9. Un-owned posi ti oning is when a posi ti on is not a ssociated with a p roduct from the c ate gor y. (Fi gure 2.12 ) ***** Use R eview an d Discu ssi on Questi ons #2.1 3 an d 2.14 Here; Use F igu res 2.9 – 2.12 Here; Use K e y Term u mb rell a p osition in g Here ***** 10. Rep osition in g is the process b y which a compan y str ate gicall y ch an ges t he dist inct im age and identit y th at i ts prod uct or brand o ccupies in consum ers’ mi nds. a. C ompanies do so when consum ers get used to the original posi ti oning a nd it no longer st ands out in t heir mi nds. b. S im il arl y, wh en consum ers be gin to view the ol d posi ti oning as dull , markete rs must fres hen up their br a nds’ identi ti es. ***** Use R eview an d Discu ssi on Questi on # 2.15 Here; Use Tabl e 2.13 Here; Use K e y Term rep osition in g Here ***** 11. Pe rc ep tual map p in g is const ructi n g a ma p -li ke dia gr am rep rese nti ng consum ers’ percepti ons of competin g brands alon g relev ant product att ributes. P erceptual maps show marketers: a. How consum ers p erc eive their brand in rel ati on to competi ti on
b. How to d etermi ne th e di recti on fo r alt erin g unde sirable consum er p erc ept ions of their brands c. Gaps in the form or un - owned per ceptual posi ti ons that offer opportuni t ies for developi ng n ew br ands o r products ***** Use R eview an d Discu ssi on Questi on # 2.16 Here; Use F igu re 2.1 3 Here; Use K e y Term p ercep tual map p in g Here *****
REVIE W AND DISCU S S ION Q UEST IONS 2.1 Wh at is mark et s e g men tation ? How is the p ractice of mark et s eg men tation related to the mark etin g con c ep t? Mark et seg men tation is the process of divi ding a potential market int o dist inct subsetsof consumerswithcommonneedsor char acte risti cs and sele cti ng on e or more segmentsto targetwithadistinctmarketi ng mi x . Befor e the widespread adopti on of themarketing concept,mostcompanies practi ced mass mark et ing, that is, offerin gthesameproductand marketingmixtoall consum ers. The ma rketi ng concept states th atacompanymust determinetheneedsand wants of spe cific ma r ket se gments and sati sfythembetterthan competition.Thus, comp anies who adopt the mar keti ng conc ept mustsegmenttheirmarkets anddevelop products or services tar geti ng dif fer e nt consum er groups. F or ex ampl e, Marriot t operates F airfield Inns (s hort sta y) and R esiden ce Inns ( apa rtment -li ke a cc omm odationsfor extendedstays)forthevalue - or bud get -ori ented traveler, C ourt ya rd forthepriceconscious businessperson, Marriot t Hotel for full -servic e bu siness travelers, Mar riott R esorts for leisure and vac ati on gu ests , and Marriot t S enior Livi n g e nvironments for elderl y p eople. Indivi dual, E as y, 3 -5 mi nutes Objecti ve 2.1: Understa nd the int errelations hips among ma rket se gment ati on,targetingand positioningandhowto select t he best t ar get m ark ets Le arnin g Outcom e 1: De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces AAC S B: R eflecti ve thi n king 2.2 How are mark et s e gmen tation , targe tin g, an d p osition in g in terre lated ? Ill u strate how thesethreeconceptscanbeusedtod evelop a ma rk etin g strat egy f or a p rod u ct of your ch oice. Mark et seg men tatio n consi sts of subdi vidi ng the market int o homogeneous clust ers, andit isthefirststepinathree-phasem arket str ate g y. After se g m enti ng the m arket,themarketer mustselectoneormore segments to tar get ( ta r getin g ) with a specificmarketingmix.The thirdstepis to positi on (p osition in g ) the product so thatitisperceivedbythetargetmarket to sati sf y it s needs bet ter than oth er competit ive offerin gs. For ex a mpl e, a toot hpaste manufacturercansegmentthe market acco rdin g to the benefits that consu merslookforinthe product.Thefirmmay select one segm ent, such as those consum ers whoareprimarily concernedwithplaquep reve nti on, as it s tar get m arket. Then, the companymustpositionthe
productsothat it is per ceived as providin g b ett er plaqu e preventionthanothertoothpaste brands on t he mark et. Indivi dual, Mode rate, 5 - 7 mi nutes Objecti ve 2.1: Understa nd the int errelatio nshi ps among ma rket se gment ati on,targetingand positioningandhowto select t he best t ar get m ark ets Le arnin g Outcom e 1: De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces
AAC S B: Anal yti cal thi nking 2.3 App ly th e f ive criteria f or ef f ective targe tin g to mark etin g a p rod u ct of you r ch oice to coll ege stud en ts. To be an effe cti ve tar get, a market se gment shoul d be: 1) identifiable, 2) siz able, 3) stableor growing,4)accessible(reach able), and (5 ) congru ent with the marke ter’sobjectivesand resources.Marketi ng c re dit cards to coll e ge stude nts provides a good il lus trati on of uti li z ing the five crite ria. Thus, a bank offe rin g it s credit c ard to students has app ar entl y identifieda commonneedfortheservice among students , det ermined that there is a sufficientnumberof consumersinthis segme nt to make it profit able for the compan y,thatthesegmentisstable (i.e.,not fickle, ea ge r to bu y, and able to spend ), that it is accessi ble (i.e., can be rea ched in aneconomicalway)andthattheproduct and s erv ice is con gruent with the bank’s objectives andresourcestoservethe market. Indivi dual, Mode rate, 5 - 7 mi nutes Objecti ve 2.1: Understa nd the int errelations hips among ma rket se gment ati on, targeti ng and posi ti oning and h ow to select t he best t ar get m ark ets Le arnin g Outcom e 1: De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces AAC S B: Appli cati on of knowledge 2.4 Discu ss the ad van tages an d d isad van tages ofusingdemographicsasabasisfor segmen tation . Can d emog rap h ics an d p sychograp h icsbeusedtogethertosegment markets? Ill u strate you r an sw er w ith a sp ecif ic exa mp le . Demographic inform ati on is the most accessi ble and cost effecti ve w a y to identifyatarget market.Demographics are easi er to measure than other segmentati onvariables.Most secondarydata(e.g., ce nsus data) ar e ex presse d in demogr aphic termsandmostmedia developdemographic pr ofiles of th eir audienc es. Also, demo gr aphictrendsrevealshiftsin ageand income that si gnal b usiness opportuni ti es for mark eters. Demo gr aphics, how ever, tend to be one-dim ension al becaus e it provides inf ormati on on the potential for usagebutnot onwhyaparticularbrandis used o r ex actl y who uses it . Thus, d emo grap hicshelplocatea targetmarket,although p s ycholo gic al and sociocu lt ural chara cteristicshelpdescribewhoits members ar e, how the y t hink, feel, and beh ave. Indivi dual, Mode rate, 7 - 10 mi nutes
Objecti ve 2.2: Und ersta nd the bases us ed to se gment consum ers, includi ng d emographics, ps ycho graphics, produ ct benefits so u ght and prod uct usage -r elated factors Le arnin g Outcom e 1: De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces AAC S B: R eflecti ve thi n king; Anal yti cal thi nking ; Appli cati on of knowled ge
2.5 S elect at le ast tw o seg men tation b ases that sh ou ld b e u sed join tly to segmen t the market foreachofthefollowingproducts an d exp lain you r ch oices: (1 ) men ’s d en im p ants;(2) women’scocktaildresses;(3)h yb rid cars; (4) e -read ers. S tudent responses will var y. T he bas es of segment ati on ma y incl ude demographics, geod emo graphics, “ gr ee n” -ness, p ersonali t y trait s, ps ycho graphics/l ifestyles,benefits,media usage,usage rate, and us age oc casion. Indivi dual, Mode rate, 10 -15 mi nutes Objecti ve 2.2: Und ersta nd the base s us ed to se gment consum ers, includi ng d emographics, psychographics,product benefits so u ght and prod uct usage -r elated factors Le arnin g Outcom e 1: De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces AAC S B: Appli cati on of knowledge 2.6 S ome ma rk ete rs con sid er b en ef it segmen tati on as the segmen tatio n ap p roach most con sis ten t w ith the mar k etin g con cep t. Do you agree o r d isagree w ith thi s vi ew ? Wh y? Bene fit se gmentati on is buil t upon the premi se that consum ers ar e basic all y pur ch asingneeds, wants,andsatisfactions. Thus, it is enti rel y cons ist ent with the marketingconcept.Benefit segmentation all ows ma rketers to posi ti on variou s brandswithinthesameproductcategory by stressi n g those bene fits/ desired sati sfacti ons appropria te to each se gment serv ed.For example,inthetoothpastemarket, C lose -up is ma rketed b y using a social a ppealthatstresses brightteethandis targe ted to youn g people; Ai m is targeted to parentsasagoodtasting toothpastethat will enc oura ge chil dren to brush longe r; Viadentistargetedtoadultsasa meansto remove ta rtar ( c osmeti c benefit) and pl aq ue (healt h ben efit). Indivi dual, E as y, 3 -5 mi nutes Objecti ve 2.2: Und ersta nd the bases us ed to se gment consum ers, includi ng d emographics, psychographics,product benefits so u ght and prod uct usage -r elated factors Le arnin g Outcom e 1: De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces AAC S B: R eflecti ve thi n king
2.7 Regen t S even S eas Cr u ises an d Royal Caribb eanInternationalaretwocompaniesin the vacation an d travel in du stry. Af ter look ing at their w eb sites, d escrib e the k in d of con su me rs that ea ch co mp an y is seek in g to att ract. Also, d esc rib e h ow eith er co mp an y can u se d e mog rap h ics an d p sych ograp h ics to identifyTVshowsandmagazinesin whichto place its ad ver tise men ts. R egent S ev en S eas C rui ses is owned b y P resti ge C ruise Holdings. A cco rding to their w eb sit e, P resti ge i s the m ark et leade r in the Uppe r P r emi um and Lux ur y se gments of the cruise industry.Thecompanyistryingtoa tt r act w ealt h y, ups cale consum e rs wh o can affordluxury andpersonalizedcruiseiti neraries. R o yal C aribbe an makes it clear thattheircruisesarefor everyone,from fami li es, couples, fami l y reunio ns to corporate events. R o yal C aribbean
offers acti vit ies that ra nge from “mi ld to wild.” Obviousl y, b oth co mpanies rel y on demogr aphics in se gme nti ng their markets. W it hin each of the demo gr aphic groups li sted above,thecompaniesshouldidentify addit ional socioeconomi c fa ctors (i.e., income, education,occupation)ofconsum ers to whom their cruises ma y appea l. Both companies shouldidentifythepsycho graphics o f consu mers in the diff erent segments,combine demographicsandpsych ogr aphics, and cr eate se veral profil es of itslikelycustomers.Then, bothRegentS even S ea s C ruises and R o yal C aribbean Inte rnationalshouldidentifyTV showsandma gaz ines that have “audien ce profil es” matchin g it s custom ers’ pr ofiles, and place it s adve rtisements i n such media. Indivi dual, Mode rate, 7 - 10 mi nutes Objecti ve 2.2: Und ers ta nd the bases us ed to se gment consum ers, includi ng d emographics, ps ycho graphics, produ ct benefits so u ght and prod uct usage -r elated factors Le arnin g Outcom e 1: De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces AAC S B: Appli cati on o f knowledge 2.8 How can a ma rk et er f o r a ch ain of h ealth clu bsusetheVALS™segmentationprofiles tod evelop an ad vertisi n g ca mp aign ? Wh ich seg mentsshouldbetargeted?Howshould theh ealth clu b b e p osition ed to each of these se gmen ts? The best prospects (note that opini ons on the following ma y var y) for hea lt h clubs appearto betheActualizersandAchievers b ecaus e membe rs of these groups ar e int erestedingrowth, controloftheirlives, self -discover y, and self -ex pressi on. Man yofthemareprobablyalready involvedin some form of ph ysical acti vit y; howe ver, a he alt h club that is posi ti oned as, sa y, “for peopl e who ar e in the best shape the y h ave ever be en in but sti ll aren't sati sfied ” will appealtothem.Thehealthclubshould be portra ye d as a me chani sm which will help these peoplecontrolanadditionalaspect of their li ves —their healt h and ph ysical well-being— throughexercise.Normally, the Exp erienc ers and Makers a re not good pro spectsforahealth clubbecausetheyarei nterested in outdoor sp orts and rec re ati on.If,however,seasonal weatherpr events such e ndeavors, the healt h club could be presented as an alt ernati ve. The Beli evers are p robabl y t oo set in their wa ys to joi n a healt h club, and the Stri vers and Strug glers do not have the financial resour ces to joi n one. The Fulfi ll ed repres ent a good targetmarketbecausetheyare mature, educ ate d, and financi all y s ecur e individualswho mightwanttobroadent heir horiz ons. To them, the healt h club shouldbepositionedasa new,highly fulfil li ng, a nd benefi cial ex perien ce ; value shoul d b e stresse d in the promoti on because thes e consum e rs are pr acti cal and c oncerned with the fun cti onali t y o f their purchases.
Indivi dual or Group, Mo derate, 7 -10 mi nutes Objecti ve 2.2: Und ersta nd the bases us ed to se g ment consum ers, includi ng d emographics, ps ycho graphics, produ ct benefits so u ght and prod uct usage -r elated factors Le arnin g Outcom e 1: De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces AAC S B: Appli cati on of knowledge
2.9 Usin g on e of t h e f rame w ork s d escrib ed in T able 2.3, f ind at least tw o su itab le segmen ts foroneofthefollowingproducts:(1)S UVs; ( 2) f in an cial retire men t p lan s; or (3) LED TVs.UsingNielsen’sonlineZipCodeL ook -Up, id en tif y the closest location of con su me r clu s ters b elo n gin g to these segmen t s to you r h ome. Descr ib e the segmen ts youchoseandwhy,andthelocationsyou look ed u p . S tudent responses will var y. W hen students des cribe the s e gments, the y shoul d make sure theyarediscussingissuesrelatedto both d e mographi cs and b ehavi ors. Look for the responsestoincludewhytheyselected the s e gmen ts. Indivi dual, Mode rate, 10 -15 mi nutes, Out of class Objecti ve 2.2: Und ersta nd the bases us ed to se gment consum ers, includi ng d emographics, ps ycho graphics, produ ct benefits so u ght and prod uct usage-r elated factors Le arnin g Outcom e 1: De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces AAC S B: Appli cati on of knowledge; Info rmati on technolo gy 2.10 E xp lai n h ow mark e ters can u se each of the f ollow in g in to d ata p red ictive an alytics: (1) the w eb sites con sumers visi t; (2) con su mers’levelsofengagementwithvisited w eb sites (i.e. the p ages view ed , lengths of visits, return to site f req u e n cy); (3) visi tors’ interests,lifestylesandperson ali ties e.g. f r om the con ten ts of their b logs,twitsand Facebookprofiles;(4) visi tors’ p u rch ases, almos t p u rch ases an d abandonedcarts,and productreturnsand exch an ges. P redictive anal yti cs are m easures that predict co nsum ers’ future purch as es on the basesof pastbuyinginformationandother data, and also evaluat e the im pa ct of p ersonalized promotionsstemmingfromthe pr edictions. R e cording th e websit es th a t consumersvisit, measuringconsumers’le vels of enga gement with the sit es (i.e., whichpagestheylookat,the lengthof their vis it s, a nd how often the y retu rn), r ecordin g th e visi tors’ li fest yles and personali ti es (de rived fro m the contents of consu mers’ blo gs, tweets, and Fac ebook profiles), andkeepingtrackofconsumer’ pur chases, alm ost pu rchas es (i.e., abandonedshoppingcarts), andreturnsor ex chan ges can be us ed in models a nd t urned int o measur es that predict futur e behavior that a re use ful f or se gmenting and dev elopi ng strate gi es. Indivi dual, E as y, 5 -7 mi nutes
Objecti ve 2.3: Underst a nd behavioral ta r geti n g a nd it s ke y role in t oda y’ s marketi ng Le arnin g Outcom e 1: De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces AAC S B: Information t e chnolog y 2.11 How w ou ld you segme n t the ma rk et of con su merswhowouldliketoorderOakley sung lass es on lin e? E xplai n you r an sw er. R esponses will var y, but students shoul d consi der the bases for s e gmentati o n (demo gr aphics, geod emo graphics, “ gr ee n” -ness, p ersonali t y trait s, ps ycho graphics/l ifest yl es, bene fits, media
usage, usa ge rate, and us age occ asion) and the inf ormati on refe renc e d in 2.10 that is usedto gaininsightsonline((1)the websit es consum ers visi t; (2) consum ers’ levelsofengagement withvisitedwebsit es (i.e. the pa ges viewed, len gths of visi ts,returntositefrequency);(3) visito rs’ int erests , li fest yles and personali ti es e.g. from the contents of their blogs, twitsand Facebookprofiles;(4)visi tors’ purchases, alm ost purchases and ab an donedcarts,and productreturnsandex changes ). Indivi dual, Mode rate, 5 - 7 mi nutes Objecti ve 2.2: Und ersta nd the bases us ed to se gment consum ers, includi ng d emographics, ps ycho graphics, produ ct benefits so u ght and prod uct usage -r elated factors Objecti ve 2.3: Underst a nd behavioral t a r geti n g a nd it s ke y role in t oda y’ s marketi ng Le arnin g Outcom e 1 : De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces AAC S B: Information t e chnolog y; Appli c ati on of knowledge 2.12 Describ e the stag es in the p osition in g p rocess an d app ly them to p osition in g a p rod u ct of you r ch oice. The posi ti oning p roc ess i ncludes the followin g ste ps: 1. Definin g the mark et i n which the product or b ra nd competes, who the r el evant bu yers are, and the off erin g’s compe ti ti on. 2. Id enti f yin g th e product ’s ke y att ributes and r ese archin g consum e rs’ pe rc epti on re gardin g each of th e rel evant attrib utes. 3. R esearchin g ho w cons umers perc eive the competing of ferin gs on t he r el evant attribut es. 4. Determi ning th e tar get m arket’s pr efe rred combi nati on of att ributes. 5. Developi n g a dist inctive, differ enti ati ng, and v alue -bas ed po sit ioni ng co ncept t hat comm unicates the appli c able att ributes as ben efits . 6. C reati ng a posi ti oning statement focused on the benefits and valu e that the product provides and usi n g it to communi cate wit h the tar get audienc es. S tudents ma y sele ct from a tre mendous number o f products. Look for eac h of the six steps in t he process t o be cov er ed in t he descriptio n. Indivi dual, Mode rate, 10 -15 mi nutes Objecti ve 2.4: Underst a nd how to posi ti on, differenti ate and r eposi ti on products Le arnin g Outcom e 1: De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces AAC S B: Appli cati on of knowledge
2.13 How is the u n d erstand in g of con su mers’ p er ce p tion s of a p rod u ct’s attrib u tes u sed to posi tion a b ran d w ithin that produ ct categor y? Ke y att ribute posi ti o ning i s based on a br and’s su periorit y on relev ant attribut es. Beli evin g that consum ers use br and s to ex press t heir identi ties, som e market ers hav e reposi ti oned their products from fo cusing o n functi onal attribut es to focusing on ho w the prod ucts fit int o a consum er’s li fest yle.
Indivi dual, E as y, 3 -5 mi nutes Objecti ve 2.4: Underst a nd how to posi ti on, differenti ate and r eposi ti on products Le arnin g Outcom e 1: De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces AAC S B: R eflecti ve thi n k ing 2.14 Wh at is th e relation sh ip b etw een b en ef it segmen tation an d p osition ing? Bene fit se gmentati on is based on the ben efits t hat consumers seek from pro ducts and services. Th e bene fits t hat consumers look for r epr esent unfil led needs, wh e reas bu ye rs’ percepti ons t hat a giv en brand deli vers a unique a nd promi nent benefit res ult in l o yalt y to that brand. P osit ioni ng is t he process b y which a compan y cr eates a dist inct im age and identit y for it s products, services, or b rands i n con sumers’ minds . The im a ge and unique identit y ar e call ed a “posi ti on.” The posi ti on, which is i ntangibl e and ex ist s onl y in t he consum er’s mi nd, rep res ents ho w markete rs want consum ers to perc eive pr oducts and brands. The r esult of ef f ecti ve posi ti oning is a un ique perc epti on of the p r oduct i n consum ers’ mi nds relativ e to competi ng o ffe rings. If that uni que posi ti on is based on an abil it y to deliver ben efits sought i n a supe rior wa y, the product i s li kel y to have gre ater success. Indivi dual, E as y, 3 -5 mi nutes Objecti ve 2.4: Underst a nd how to posi ti on, differenti ate and r eposi ti on products Le arnin g Outcom e 1: De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces AAC S B: R eflecti ve thi n king 2.15 Wh y d o mark et ers h av e to rep osition their b ra n d s? Il lu strate w ith examp le s. R eposi ti oning is t he proc ess b y whi ch a comp an y strate gicall y chan ges the dist inct im age and identit y that it s product or brand oc cupies in consu mers’ minds . C ompanies do so when consum ers get used to t h e origin al posi ti oning an d it no longer stands ou t i n their mi nds. S im il arl y, wh en consum e rs be gin t o view the old p osit ioni ng as dul l, m arket ers must freshen up their brands’ identi ti e s. Ex ampl es are include d in Table 2.13, or stude nts m a y come up with t heir own. Indivi dual, Mode rate, 7 - 10 mi nutes Objecti ve 2.4: Underst a nd how to posi ti on, differenti ate and r eposi ti on products Le arnin g Outcom e 1: De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces AAC S B: R eflecti ve thi n king; Appli cati on of kno wledge
2.16 Wh at are p erc ep tual map s an d h ow are they u sedinpositioningbrandswithinthe samep rod u ct category ? Ill ustrate you r an sw er w iththechapter’sdiscussionofeye drops an d tooth p aste.
Pe rc ep tual map p in g is constructi ng a map -li ke d iagr am rep resenti n g cons umers’ percepti ons of com peti ng brands alon g r elevant pr oduct attribut es. P erceptu al m aps show marketers: 1. How consum ers p erc eive their brand in r elation to competi ti on. 2. How to determine the directi on for alt e rin g und esirable consum e r per cep ti on of their brands. 3. Gaps, i n t he form of u n -owned pe rceptu al posi ti ons, t hat represent oppor tuni ti es for developi ng n ew br ands o r products. The aim of per ceptual m apping is t o develop repo sit ioni ng strate gies and fi ne -tune the im ages (i.e., consum e rs’ percepti ons) o f products and servi c es. The mark e ters of Crest and Visi ne studi ed custom ers and dis cover ed which att ributes (or their combi nat ions) repres ent benefits t hat consumers s eek from su ch products. B y off erin g produ ct versi ons t hat provide dist inct benefits and fil li ng as ma n y pos it ions as possi ble, the makers of V isi ne and C rest made it virtuall y im possi ble for other companies t o penetrate th eir resp ecti ve markets. Indivi dual, Mode rate, 10 -15 mi nutes Objecti ve 2.4: Underst a nd how to posi ti on, differenti ate and r eposi ti on product s Le arnin g Outcom e 1: De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces AAC S B: R eflecti ve thi n king; Appli cati on of kno wledge
2.17 Describ e the relation sh ip b etw een b eh avioral targetin g an d p red ictive anal ytics. Behavio ral t ar geti ng con sis ts of sending consum e rs personali z ed and prom pt offers and promoti onal m essages ba sed on markete rs’ tra ckin g of on e or mor e of the f oll owing fa ctors: onli ne navigation, curr en t geo gr aphic loc ati on, an d purchase b ehavior. Th e idea is t o re ach the right custom e rs at t he right t im e. P redictive an al yti cs a re methods fo r pr edicting consum ers’ futur e pur cha ses on t he bases of p ast bu yin g information and ot her data, and evaluatin g the impact of personali z ed promot ions s temmi ng from t he pr edi cti ons. C oll ect ing the right dat a and an al yz i ng it strate gic all y are ess enti al t o effe cti ve behavi oral t ar geti n g. Indivi dual, Mode rate, 5 - 7 mi nutes Objecti ve 2.3: Underst a nd behavioral t a r geti n g a nd it s ke y role in t oda y’ s marketi ng Le arnin g Outcom e 1: De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces AAC S B: Information t e chnolog y; An al yti c al t hinki ng HANDS -ON ASS IGN ME NTS
2.18 S elect a p rod u ct a n d b ran d that you u se f req u en tly an d list the b en ef its you receive f rom u sin g it. With ou t d isclosin g you r list, ask a f ell ow stud en t who u ses a d iff erent brandinthisproductcategory(pref e rab ly, a f riend of the op p osite sex) to mak e a similarlistforhisorherbrand.Compare the t w o li sts and id en tif y the imp li cation s for usingbenefitsegmentationtomarket th e tw o b ran d s.
Instru ctor’s Discussi on This ex ercise is designed to illust rate the variabil ity of the benefits that con sumers seekinthe sameproductandthatknowledge of desir ed bene f it s can be used to posi ti on differentbrands withinthesameproduct cate gor y. This project can also be done betweensmallteamsor groups.Iftimeisa pr oblem, select the indi viduals or small groupsthatseemtohave performedtheex ercise th e best and hav e the stude nt’s present result s to cla ss as a who le. Group, Moder ate, 20-25 mi nutes Objecti ve 2.2: Und ersta nd the bases us ed to se gment consum ers, includi ng d emographics, ps ycho graphics, produ ct benefits so u ght and prod uct usage -r elated factors Le arnin g Outcom e 1: De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces AAC S B: Appli cati on of knowledge 2.19 Does you r li f estyle d iff er sign ifican tly f rom you r p aren ts’ li f estyl e? If so, h ow are the tw o lif estyles d iff eren t? Wh at f actors cau se thes e d iff eren ces? Instru ctor’s Discussi on This is an int e resti ng wa y to il lust rate sim il a rities and dif fer enc es be tween the a cti vities, interests,andopinionsoftwo dist inct groups, as the f actors that det ermineone’slifestyle. Withrespectto presenti ng or discussi ng the r esult s (if ti meisaproblem),selectthe individuals that seem to have pe rformed the ex er cise the bestandhavethestudentspresent results to class as a who le. Be su re to probe students astomechanismsusedtodetermine their parents ( and their o wn) li fest yl es. H ow coul d marketers us e thi s information? Indivi dual, Mode rate, 20 -25 mi nutes Objecti ve 2.2: Und ersta nd the bases us ed to se gment consum ers, includi ng d emographics, ps ycho graphics, produ ct benefits so u ght and prod uct usage -r elated factors Le arnin g Outcom e 1: De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces AAC S B: Anal yti cal t hinki ng; Appli cati on of kno wledge
2.20 Visi t tw o w eb sites that you are f amil iar w ithandwritedowneveryclickthatyou mak e, an d the p at tern s an d time p eriod s corr es p ondingtoyoursurfing.Then,describe how a mark ete r —of a p rod u ct of you r ch oice —w h o h adtrackedyourwebvisitstothe sites,can u se the ob servation of you r su rfing in d esign in g a cu stomiz ed ad vertisin g message di re cted at you . Inst ru ctor’s Discussio n The answ ers to thi s questi on will be pe rsonal t o ea ch student. Ho weve r , you shoul d expectto readcommentssuggestingtheadv ertiser mi ght achiev e a gre ater awa r eness oftheweb surfer’svalues,income,lifest yl e , li fec ycl e, occ upa ti on, educati on levelandsoon.Allof thesevariableshelp t he a dvertiser deli ve r a custo mi z ed message to t he sur fer.
Indivi dual, E as y, 5 -7 mi nutes Objecti ve 2.3: Underst a nd behavioral t a r geti n g a nd it s ke y role in t oda y’ s marketi ng Le arnin g Outcom e 1 : De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces AAC S B: Information t e chnolog y 2.21 T h e owners of a local h ealth -f ood restauranthaveaskedyoutopreparea p sych ograp h ic p rof il e of f amil ies li vin g in the commu n ity su rrou n d in g the restaurant's location.Constructa10-qu estion p sych ograph ic in ven tory ap p rop riateforsegmenting familiesonthebasis of their di n in g -ou t pref eren ces. Instru ctor’s Discussi on The ps yc ho gr aphic it ems developed b y the st udents can f all i nto an y of a lar ge number o f dini ng-out and meal - rela ted cate gories (p rice co nsciousn ess, food ventur esomeness,social dimensionsofeating, ho me -orientation, et c.). Th e inst ructor shouldmaintainaninventoryof student responses to thi s questi on and use them to demons trate good and b ad ps ycho gr aphic statements when thi s ex ercise is di scussed. Indivi dual, Mode rate, 20 -25 mi nutes Objecti ve 2.2: Und ersta nd the bases us ed to se gment consum ers, includi ng d emographics, ps ycho graphics, produ ct benefits so u ght and prod uct usage-r elated factors Le arnin g Outcom e 1: De fine consum er b ehavior a nd describe it s influenc e on marketi ng practi ces AAC S B: Appli cati on of knowledge 2.22 Fin d three p rin t ad vertise men ts d ire cted at on e clu sters of the three f ra mew ork s listed inTable2.3:PRIZM,P$YCLEandConn eXions. E xp lain you r ch oices. Instru ctor’s Discussio n As students consi der the effecti ven ess of each ad, the discussi on shoul d focus on the following iss ues : W hen discussi ng the ad b ased on a P R IZM clust e r, students shoul d make suretheyarediscussingissues related to both demogr aphics and behaviors..PRIZM classifiesthenati on’s h ouseholds int o one o f 6 6 se gments. ACX IOMconsistsofseventy segmentsthatare classifi ed int o twent y-on e li fe st age groups.
Indivi dual, Mode rate, 20 -25 mi nutes Objecti ve 2.2: Und ersta nd the bases us ed to se gment consum ers, includi ng d emographics, ps ycho graphics, produ ct benefits so u ght and prod uct usage -r elated factors Le arnin g Outcom e 1: De fine consum er b ehavior a nd describ e it s influenc e on marketi ng practi ces AAC S B: Appli cati on of knowledge
S .T .A.R. PROJE CTS E thical Iss u es in Consumer B eh avior S .T.A.R . Project #1 One of the best and easi est wa ys to segm ent a market is on the basis of a ge. As markete rs have discovered, ho weve r, thi s is a form o f se gmentat ion that can b ecome a v er y sti ck y proposition. Considerthenumberofmarketi ng efforts dire ct ed toward the elde rl y. In thi scase,marketers mustbeawarethat,even though the y a re deali n g with ex perienced cons umers,thissegmentis consideredtobesusce pti ble to decepti ve mar keti ng pr acti ces. A dilemmaexists—howto aggressivelymarket to a segment that often has subst anti al income withouttakingadvantageof thesegment’s vulnerabil it y? Visi t the Ame rican Association of R eti red P ersons ( AAR P ) W eb sit e at www.a arp.or g fo r information and guidanc e in accompl ishi ng th e fo ll owing assi gnment: a. C onst ruct a list of f ive (5) ethi c al t aboos t hat a markete r should avoid when marketi n g to thi s market segm e nt . Ex plain the taboos. b. Find an ill ustrati on of a compan y that you b eli eve mark ets t o the elde rl y in an ethi cal manner. Discuss w h y you pick ed the compa n y and wh y you consi der it s practi ces to b e ethi cal. Instru ctor’s Discussi on S tudents will be able to observe a variet y of iss ues that im pact and affe ct the elderl y mark et segmentviatheAARPWebsite.Tobegina discussi on of taboos, consi der the following proposit ions —thou shall not steal, thou shall not harm, thou shall info rm, thou shall notdeceive, andthoushallnotpressure. From thi s sim ple li st, students shoul d be able tocreateandconstruct alistofethical don’ts. B e sure the students consid er the Inte rnet when cons tructi ng their li st. S tudents are free to sele ct an y compan y the y wi sh for ex cell ent elderl y busi ness practi ces. A goodillustrationtobeginwithwouldbe McDonald’s. This compan y of ten designates special discountsandcoffeetimesfor seniors. S .T.A.R . Project #2 Few subj ects a re as contr oversial in t he United S ta tes toda y as gun control. Given the violencein oursociety,thenumberof incidents in which gu ns are w eapons of destru ction,andthegrowing voidbetweenthose that demand the right to own guns and those that wantallgunsdestroyed,the NationalRifle Associati on is at the c enter of a whirlwind of controversy.TheNRA(see www.nra.org)has been s ingled out as an organiz ati on that is eit heradefenderoftheConstitution
orevil (dep endin g on on e’s point of vie w). Ethi c a l si tuation —assum ing t ha t you h ave b een giv en the task of evaluating a request from the NRA to sponsor a local civi c event in your a rea ( for ex ampl e, a 10K run bene fiting can ce r pati ents), co nduct t he following acti v it ies: a. W hat evidence do yo u find on the NRA W eb si te that it is concerned about publ ic welfar e? b. W hat evidence do yo u find on the Web sit e that the NR A is an eff ect ive markete r? c. W hat ethical i ssues mi ght be pres ent sho uld t he NRA request t o spon sor you r civi c event be gr anted? How would you d eal wit h these iss ues? d. W hat m arket se gments would be im pacted b y yo ur evaluation of the NRA request?
e. W hat would you p ersonall y do in t his i ll ustrati on? Ex plain wh y? Instru ctor’s Discussion This is a controversial a ssi gnment that is desi gn ed to get students to thi nk about an iss uefrom severalperspectives.Certainlythe amount of viol ence ( and the use of gun s with respecttothis violence)willtemperdecisi ons and comm ents in thi s area. If students lear ntodealwithdifficult issuesnow,however, the y will be bett er prepa red to address difficultissuesinthefuture.Noone can disa gr ee that thi s or ganiz ati on is an ef fecti ve marketer to a select gro up of people. S tudents canlearnaboutthisparticularmark et se gme nt b y ex ami ning th e openin g pa ge of the Website andthevariousfolderspresent.The ethi cal dil em ma is more difficult to d eal with.TheNRAhas deeppocketsandmanycivic projects mi ght nee d thi s support. S ome will feeluncomfortable acceptingthesupport. Is acc eptanc e an y diff e rent, howeve r, than a c ceptingsupportfrom cigarette,alcohol,or ot her controv ersial produc t manufactur ers? Thatistherealissuetobe discussed.Please fe el f re e to ch an ge thi s assi gnm ent to fit circumstancesandpreferences.Please be fore warn ed that thi s a ssi gnment ma y not be fo r ever yone. S mall Group Pro jec ts S .T.A.R . Project #3 One of th e ha rdest assi gnments for a mark eti ng mana ger is how to r einvi gor ate a br and that ha s been around for a lon g ti me. Time -tested brands h ave met the ne eds of thei r consum ers butoften forgettokeeppacewithchangesint h e mark etpl a ce and new mark et se gm ents t hat ar econstantly forming.Onesuchtime-tested brand is R it D ye (s ee www. ritd ye .com). Yo ur group’sassignment istolearnaboutRitDye and p ropose a ne w se gmentati on str ate g y fo r theorganizationthat wouldboostsales.C onsi der ex ist ing se gments a nd look for new on es.Besuretojustifyyour ideas.Visitthe compan y’s W eb sit e to learn ti ps about of d yein g,viewprojectsuggestions,learn about color formul as and watch video tut orials in the R it S tudi o . W rite a short report about your ex perience and you r se gmentati on st rate g y for th e compan y. Instru Discussion
ctor’s
R it D ye has be en an ex cell ent marketer throu gh the ye ars and has p rovided products that have met a real need. W hen, however, is the last ti me youdyedsomething?ThatisthecruxofRit Dye ’s problem. H ave st udents ex ami ne how the brandisusedtodayandhowitsusemightbe ex panded in the future. Notice the segments on the W eb page devoted t o ti e -d yein g ( yes, the same ti e-d ye
in g that was done in the Flower P ower ’60s). This mi ght give students a clue as to potential segments fo r th e future. S .T.A.R . Project #4 Given the busi ness chall enges of the last few yea rs, compan ies must always look for new wa ys to retain custom ers and enhanc e the value ex per ience brou ght to them. One compan y that has specializ ed in thi s art is C arnival C ruise Lines. C arnival has learned how to target potential customers,providefunandexcit emen t for cur re nt custom ers, and brin g lo yal customersback againandagain.Personalatt enti on, e -mail r emi nders, and an int e racti ve Websitehaveaidedthe companyinbuilding and maintaining r elations hips with custom ers. Your group ’s assi gnment is
to const ruct a se gment ati on profil e of C arnival’s first ti me custom e rs, c urrent customers,and pastcustomers.Though information specifics wi ll be be yond you r grasp,generalinformation aboutthese groups can b e obtained via the compan y’ s W eb sit e (see ww w.carnival. com ). Your profil es shoul d consi der age, income, li fest yle, and other va riables fou nd in the chapter. Be creati ve (or contact a tr avel a gent). P resent you r profil es to the class. How did your group ’s profilesmatchthoseofothergroups? Based on yo ur p rofil es, comm ent on an y n ew pe rceived opportunitiesforCarnivalbasedon your se gmenta ti on work. Instru ctor’s Discussion The C arnival W eb sit e provides a wealt h of infor mation about it self and its custom ers. S omeof theinformationisstraightforward and some must be presumed. S tudents are encour agedto createwiththisexercise.Theex perien ce will ai d them in understandin g how to usedifferent basesofsegmentationand const ru ct se gmenta ti on profil es. This ex er cisecanalsobea springboardtothelifest yle informati on present ed in t he chapter.
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