ch5 - BUSI 1004 Marketing Instructor: QIU Cheng 5...

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Segmenting, Targeting, and Positioning 5 BUSI 1004 Marketing Instructor: QIU Cheng 2 Think about the mobile phone you use… What does it have that makes you choose to buy it? 3 Example: Mobile Phone 4 Segmentation Market segmentation Dividing a market into smaller groups with distinct needs, characteristics, or behaviors who might require separate products or marketing mixes there are different bases for segmentation Behavioral Segmentation Behavioral Segmentation Psychographic Segmentation Psychographic Segmentation Demographic Segmentation Demographic Segmentation Geographic Segmentation Geographic Segmentation Can be used in combination
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5 Benefit segmentation s Dividing a market into groups according to the different benefits that consumers seek from the product, e.g., the mobile phone example s A good starting point for building market segments Directly related to product benefits and company competence Behavioral Segmentation: Benefit 6 s Possible sources of benefits? __________________________________ __________________________________ __________________________________ Behavioral Segmentation: Benefit and more… Focus on the ___________ benefits 7 Psychographic Segmentation Psychographic segmentation s Dividing the market into groups based on variables such as lifestyle s People buy products to reflect their lifestyles 8 Demographic segmentation s Dividing the market into groups based on variables such as age, life-cycle stage, gender, income, family size, race, occupation. s Assumption: the benefits consumers seek and the consumer responses to the marketing mix vary closely with demographic variables s Easy to estimate segment size Demographic Segmentation
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9 Geographic Segmentation Geographic segmentation s Dividing the market into different geographical units such as regions, counties, cities, or neighbourhoods. s Assumption: the benefits consumers seek and the consumer responses to the marketing mix vary closely with geographic variables s Easy to estimate segment size 10 Linking Segmentation Bases Is There a “Right” Basis for Segmentation? b Behavioral and psychographic segmentations: c Represent consumer needs and wants x Difficult to estimate market size or depict user image b Demographic and geographic segmentations: c Easy to estimate market size and depict user image x Not the causes of buying behavior – effective only when they are correlated with consumer needs and wants Link them! 11
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This note was uploaded on 02/22/2010 for the course FBE BUSI1004 taught by Professor Qiu. during the Winter '09 term at HKU.

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ch5 - BUSI 1004 Marketing Instructor: QIU Cheng 5...

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