ch5 - categories of consumers based on user status: (a)...

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I. The Market Segmentation Process A. A two-step strategy of: 1. Identifying groups of people (or organizations) with certain shared characteristics within the broad markets for consumer or business products. 2. Aggregating (combining) these groups into larger market segments according to their mutual interest in the product's utility. B. The concept of shared characteristics is critical to market segmentation. Marketing and advertising people try to find a particular "niche"- or space in the market - where the advertiser's product or service will fit. Marketers group variable characteristics into a several categories to identify and segment consumer markets. The purpose is to identify those likely to respond and to create rich descriptions of them so as to be able to design effective messages. 1. The four categories are: a) Behavioristic Segmentation - consumer grouping by their purchase behavior. Behavioral segments are determined by many variables, but the most important are: (1) User-status variables - Stephan and Tannenholz identified six
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Unformatted text preview: categories of consumers based on user status: (a) Sole users are the most brand loyal and require the least amount of advertising and promotion. (b) Semisole users typically use brand A, but have an alternate selection if it is not available or if the alternate is promoted with a discount. (c) Discount users are the semisole users of competing brand B. They don't buy brand A at full price, but perceive it well enough to buy it at a discount. (d) Aware non-triers are category users, but haven't bought into brand A's message. (e) Trial/rejecters bought brand A's advertising message, but didn't like the product. (f) Repertoire users perceive two or more brands to have superior attributes and will buy at full price. These are the primary brand switchers; therefore, the primary target for brand advertising. (2) Usage-Rate variables (volume segmentation) - In volume segmentation, marketers measure usage rates to define consumers as light, medium, or heavy users of products....
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This note was uploaded on 03/18/2008 for the course ADV 205 taught by Professor Bukovac during the Spring '08 term at Michigan State University.

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ch5 - categories of consumers based on user status: (a)...

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