Chapter 8: Segmentation, Targeting, and Positioning
Step 1: Establish Overall Strategy or Objectives (Segmentation)
the segmentation strategy must be consistent with and derived from the firms mission and objectives, as
well as its current situation
it's strengths, weaknesses, opportunities, and threats.
Step 2: Profile Segments
describe the different segments which helps firms better understand the profile of the customers in each
segment, as well as the customer similarities within a segment and dissimilarities across segments.
organize on the basis of where they life, country, province, region, climate.
groups consumers according to easily measured objective characteristics such as age, gender,
income, and education. Demographics can be poor predictors also, as Nike thought only young
active people buy their active wear, but that is in fact not true.
how consumers describe themselves. psychographics allow people to describe themselves using
those characteristics that help them choose how they occupy their time and what underlying
psychological reasons determine those choices. Determined psychographics involves knowing and
understanding three components
life goals, overriding desires that drive how a person lives his or her life including,
self respect, self fulfillment, or a sense of belonging.
the image people have of themselves. Wants to see himself as a fun, and hip. So
commercials show people having fun who look hip.
how we live our lives to achieve goals. Lululemon based on lifestyle, of healthy
balanced fun filled lifestyle.
Value and Lifestyle Survey
there are three universal primary motives are ideals, achievements, and self expression
are guided by knowledge and principles
look for products/services that demonstrate success to their peers
psychographic segmentation is often used in conjunction with other methods, cause it's difficult to
identify the segment.