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MARKET SEGMENTATION IMPLEMENTING SEGMENTATION STRATEGIES ENVIRONMENTAL INFLUENCES CULTURE

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Consumer Psychology (PSY - 514)
VU
Lesson17
MARKET SEGMENTATION
IMPLEMENTING SEGMENTATION STRATEGIES
ENVIRONMENTAL INFLUENCES
CULTURE
1. Criteria for Effective Targeting of Market Segments
To be an effective target market a segment should be:
Identifiable
Sufficient (in terms of size)
Stable or growing
Accessible in terms of both media and cost
To divide the market into separate segments on the basis of common or shared needs or characteristics that are
relevant to the product or service, a marketer must be able to identify the relevant characteristics. Variables such as
Geography (location) and Demography (age, gender, occupation, race) are easy to identify. Education, income and
marital status can be known through questionnaires. Other characteristics such as benefits sought and lifestyles are
more difficult to identify
Most marketers prefer to target segments that are relatively stable in terms of demographic and psychological
factors and are likely to grow larger over time. Teenagers are sizable and easily identifiable market, eager to buy,
able to spend and easily reachable, yet when a marketer produces merchandise for a popular teenage fad, interest in
it may have waned
2. Implementing Segmentation Strategies
Once an organization has identified it most promising segments it must decide whether to target one segment or
several segments.
Each targeted segment receives a specially designed marketing mix i.e. a specially tailored product, price,
distribution network and/or promotional campaign
Segmentation Implementing Strategies
Differentiated Marketing
Concentrated Marketing
Targeting several segments
Targeting just one segment
Differentiated Marketing is highly appropriate for:
Financially strong companies
Well established in a product category
Competitive with other firms that are also strong in the category (soft drinks, automobiles or detergents)
Concentrated Marketing is an appropriate strategy when:
A company is small or new to the field
A company can survive and prosper by filling a niche not occupied by stronger companies
Gum disease fighting toothpastes
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Consumer Psychology (PSY - 514)
VU
3. Countersegmentation
Some segments concentrate over time to a point where they don't warrant an individually designed marketing
program
In Countersegmentation a company seeks more generic needs or consumer characteristics that would apply to the
members of two or more segments into a larger single segment that could be targeted with individually tailored
product or promotional campaign
Example
Some business schools with wide course offerings in each department were forced to use Countersegmentation
strategy when they discovered that students simply did not have enough available credits to take a full spectrum of
in depth courses in their major areas of studies. They had to use Countersegmentation, e.g. by combining
advertising, publicity, sales promotion and selling course into a single course called promotion
Key Terms of Chapter 3
AIO's (activities, interests, opinions)
Market Segmentation
Benefit Segmentation
Positioning
Concentrated Marketing
Psychographic Inventory
Countersegmentation
Psychographic Segmentation
Demographic Characteristics
Sociocultural Variables
Demographic Segmentation
Use related segmentation
Differentiated Marketing
Usage situation
Geographic Segmentation
Hybrid Segmentation
Mass Marketing
Environmental Influences
Contents:
Culture
 What is Culture
 How Culture is Learnt
 Enculturation and Acculturation
 Language and Symbols
 Rituals
 Dynamic Culture
 Measurement of Culture
 Subculture
 Nationality subculture
 Age subculture
 Sex as subculture
Social Class
 What is Social Class
 Measurement of Social Class
 The Affluent Consumer
 Middle Class Consumers
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Consumer Psychology (PSY - 514)
VU
Working Class and other non-Affluent Consumers
Social Groups
 Consumer Related Reference Groups
 Groups
 Family
The study of culture
The study of culture is a challenging undertaking because its primary focus is the broadest component of social
behavior ­ an entire society
The Influence of Culture on Consumer Behavior
Culture is broad and pervasive and given its very nature It generally requires detailed examination of the character
of the total society. This includes factors that give a society its distinct flavor such as:
 Language
 Knowledge
 Laws religions
 Foods
 Customs
 Music
 Art
 Technology
 Work patterns
 Products
 Artifacts
Culture is a society's personality
Beliefs and Values
Beliefs and values component of our definition refers to accumulated feelings and priorities that individuals have
about "things" and possessions
The Belief Component
Beliefs consist of a very large number of verbal and mental statements. Beliefs reflect a person's particular:
 Knowledge or
 Assessment of something
 another person (people who come from the mountains are tough )
 A store (A certain chain of store)
 A product (a certain product, having a car is the sign of affluence)
 A brand (A certain brand is much better than the other)
The Values Component
Values are also beliefs. Values meet the following criteria:
 Relatively few in number
 Serve as guide for culturally appropriate behavior
 Enduring and difficult to change
 Not tied to specific objects or situations
 Widely accepted by the members of society
The Customs Component
Overt modes of behavior that constitute culturally approved or acceptable ways of behaving in specific situations.
Customs consist of everyday routine behavior of the consumer
 Diet sweetener for coffee
 Putting ketchup in a burger
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Consumer Psychology (PSY - 514)
VU
Eating sweet after the main course
Where beliefs and Values are guides for behavior, customs are usual and acceptable ways of behaving
Broad Sense
Values and beliefs are mental images that affect a wide range of specific attitudes that in turn influence the
way a person is likely to respond in a specific situation
xample: the criteria a person uses to evaluate alternative brands in a particular product category:
 Preference for one of these brands influenced by both a person's general values (what constitutes quality, the
meaning of a country of origin)
 Specific beliefs ­ perceptions about the quality of Chinese made products and the quality of American
products.
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Table of Contents:
  1. INTRODUCTION TO CONSUMER PSYCHOLOGY:Consumer Behavior
  2. INTRODUCTION TO CONSUMER PSYCHOLOGY:Consumer research
  3. INTRODUCTION TO CONSUMER PSYCHOLOGY:Marketing Mix, Product, Price
  4. INTRODUCTION TO CONSUMER PSYCHOLOGY:Customer Value, Perceived Value
  5. VALUE AND RETENTION FOCUSED MARKETING AND CONSUMER DECISION MAKING PROCESS
  6. CONSUMER RESEARCH:Quantitative Research, Qualitative Research
  7. MAJOR STEPS IN CONSUMER RESEARCH PROCESS:Design of Primary research
  8. QUANTITATIVE RESEARCH DESIGNS & DATA COLLECTION METHODS
  9. QUANTITATIVE RESEARCH DATA COLLECTION TECHNIQUES:ATTITUDE SCALES
  10. QUALITATIVE RESEARCH DESIGNS & DATA COLLECTION METHODS
  11. CUSTOMER SATISFACTION MEASUREMENT, SAMPLING, AND DATA ANALYSIS AND REPORTING
  12. MARKET SEGMENTATION AND ITS BASES:Geographical Segmentation
  13. BASES FOR SEGMENTATION: DEMOGRAPHIC SEGMENTATION PSYCHOGRAPHIC SEGMENTATION
  14. BASES FOR SEGMENTATION: SOCIOCULTURAL SEGMENTATION USE RELATED SEGMENTATION USAGE SITUATION SEGMENTATION
  15. BASES FOR SEGMENTATION: BENEFIT SEGMENTATION:Intrinsic Cues
  16. BASES FOR SEGMENTATION: HYBRID SEGMENTATION STRATEGIES
  17. MARKET SEGMENTATION IMPLEMENTING SEGMENTATION STRATEGIES ENVIRONMENTAL INFLUENCES CULTURE
  18. HOW CULTURE IS LEARNT ENVIRONMENTAL INFLUENCES:Formal Learning
  19. CULTURE AND ITS MEASUREMENT ENVIRONMENTAL INFLUENCES
  20. MEASUREMENT OF CULTURE ENVIRONMENTAL INFLUENCES:Consumer Fieldwork
  21. SUBCULTURE CHAPTER 4: ENVIRONMENTAL INFLUENCES
  22. AGE AND GENDER SUBCULTURE CHAPTER 4: ENVIRONMENTAL INFLUENCES
  23. BASES FOR SEGMENTATION: BENEFIT SEGMENTATION:Market Segmentation
  24. SOCIAL CLASS CHAPTER 4: ENVIRONMENTAL INFLUENCES:Occupation
  25. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Affluent Consumer
  26. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Membership Group
  27. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Shopping Groups
  28. UNDERSTANDING PERSONALITY CHAPTER 5: INDIVIDUAL DETERMINANTS OF CONSUMER BEHAVIOR
  29. CONSUMER PERSONALITY, TRAIT THEORY AND SELF IMAGES
  30. CONSUMER MOTIVATION:Needs, Goals, Generic Goals
  31. UNDERSTANDING LEARNING:Intentional and Incidental Learning, Implications for Marketers
  32. INSTRUMENTAL CONDITIONING, INFORMATION PROCESSING AND MEMORY
  33. ATTITUDES:Characteristics of Attitudes, Attitudes have consistency
  34. ATTITUDE FORMATION AND CHANGE:How attitudes are learned?
  35. ATTITUDE CHANGE STRATEGIES:Resolving two conflicting attitudes
  36. INTRODUCTION TO CONSUMER DECISION MAKING:Decision Complexity
  37. Problem Recognition, Search and Evaluation and Decision and Purchase
  38. Decision and Purchase:Consumer Decision Rules, Output, Relationship Marketing
  39. Decisions Related to Post Purchase:Product Set up and Use
  40. Marketing Implications of Decisions Related to Post Purchase:Understanding
  41. Post Purchase Evaluation:Determinants of Satisfaction, Consumer Complaint Behavior
  42. Post Purchase Dissonance:Dissonance Reduction, Marketing Implications
  43. Consumerism:Roots of Consumerism, The Nature of Consumerism
  44. Consumerism Issues and Responses:Environmental Concerns, Consumer Privacy
  45. Review Consumer Psychology Course:Consumer Research, Consumerism