The contextual behavioral includes benefits sought

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includes benefits sought, purchase usage, intent, occasion, buyer stage, user status, life cycle stage, and engagement, otherwise known as digital body language.Segmentation ExamplesGeographic segmentation– many multi-national corporations segment global markets according to geography. IBM, Accenture, Oracle, Cisco, and Adobe have North America, Europe, Middle East, South Asia, Asia Pacific, and Latin American segments.Apparel manufacturerstypically segment markets based on gender and age. It is also possible to segment based on income – Nordstrom, Saks, and Burberry aim to attract customers who don’tmind high prices.Insurance providerstailor their offerings based on family life cycles.PC manufacturerssegment markets based on use – students, executives, home makers, gaming enthusiasts, and professionals (accountants, lawyers, and physicians).Personal care productsand fashion accessoriesmost commonly use psychographic segmentation. L'Oréal, P & G, Unilever, Estee Lauder, Neutrogena, Nivea, Lancôme, and Avon use psychographic segmentation.Segmentationbased on usageand loyaltyis the most common method in airlines, hotels, credit cards, and retailing.Effective Segmentation RequirementsTo be useful, a market segment should be: Measurable, Accessible, Substantial, Differentiable, and Actionable.Measurableattributes include the size, purchasing power, and profiles of the segments.Accessiblerefers to the fact that you can effectively reach and serve the chosen market.
Substantialrefers to the fact that the markets are large and profitable enough to serve.Differentiablerefers to the fact that the markets are conceptually distinguishable and respond differently to marketing mix programs and elements.Actionablerefers to the fact that effective programs can be designed (product, price, promotion, and distribution) for attracting and serving the segments.Selecting Target Market SegmentsUndifferentiated Strategy (mass marketing)– treats entire markets as one and tries to address the market with one offering, one price, one type of promotion, and one type of distribution. Traditionally, commodities such as salt and sugar belong to this category. Changing lifestyles andcustomer expectations have meant that even with commodities some differentiation is sought. For example, low-sodium salt and packaged goods containing lower levels of salt, brown sugar, and sugar cubes are meant to create a kind of artificial differentiation.Differentiated Strategy (multiple segments)– or multi-segment strategy is the most widely used segmentation approach. Most products and services today use multiple segments to cater to different classes of customers. Laptops range from $100 to $3000 based on function, speed, display, and other characteristics. Mobile phones range from a low of $50 to a high of $1000 based on features. You can have food for $10 in a fast food outlet or spend $250 in a fancy restaurant. Airlines have configurations such as first class, business class, premium economy, andeconomy. Automobiles range from $12000 to a few million dollars. Apparel ranges from a few

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