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Unformatted text preview: ps, or organizations that
marketers use to divide a total market into segments. Consumer goods marketers commonly use
one or more of the following characteristics to segment markets:
geography––by region, market size, market
density, or climate
demographics––such as age, gender, ethnic
background, income, or family life cycle stage
psychographics––such as motives, lifestyles,
benefits sought––such as less filling or great
taste usage rate––heavy, medium, or light
KEY: CB&E Model Strategy OBJ: 08-4 TOP: AACSB MSC: BLOOMS Synthesis 8. Marketers use demographic information to segment markets because it is widely available and
often related to consumers’ purchasing and consumption behavior. List five common bases used
by marketers for demographic segmentation. For each base listed, give an example of a product
specifically targeted to the needs and wants of the segment identified within the base.
Common bases used in demographic segmentation include:
family life cycle
AGE. Cell phones, magazines, and clothing marketed to teens, beer, wine, and spirits marketed to
people 20 to 40 years of age, and retirement properties, health and wellness products, and Vespa
scooters marketed to baby boomers are examples of products/services targeted at specific age
GENDER. Marketers of clothing, cosmetics, personal-care items, magazines, jewelry, and gifts
commonly use gender as a segmentation variable.
INCOME. The housing, clothing, automobile, and food markets are often segmented by income.
Sam’s Club is aimed at lower-income consumers, while Costco attracts more upscale consumers.
ETHNIC BACKGROUND. Many products are targeted specifically to various ethnic groups,
especially African Americans, Hispanics, and Asian Americans.
FAMILY LIFE CYCLE. Marketers target people in different stages of the family life cycle by
noting spending needs. Young singles and marrieds buy more cars, furniture, appliances, and
vacations. Marrieds with children buy more toys and baby products. Those middle-aged buy more
luxury items and home improvements. The elderly focus spending on medical care.
KEY: CB&E Model Strategy OBJ: 08-4 TOP: AACSB MSC: BLOOMS Synthesis 9. What is the family life cycle (FLC)? Briefly describe the lifestyle and purchasing needs of
consumers in the following FLC stages: (1) young single, (2) young married without children, (3)
young married with children, (4) middle-aged married without children, and (5) older unmarried.
The family life cycle (FLC) is a series of stages determined by a combination of age, marital
status, and the presence or absence of children. The FLC is a valuable basis for segmenting
markets, because families’ needs, income, resources, and expenditures are different in each life
YOUNG SINGLE. Members of this group have few financial burdens, are fashion opinion
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This document was uploaded on 09/29/2013.
- Fall '13