8 Chapter 9 Market Segmentation Targeting and Positioning Geographic

8 chapter 9 market segmentation targeting and

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Chapter 9 Market Segmentation, Targeting, and Positioning Geographic Segmentation (2 of 2) Marketers focus on core regions , those from which they draw 40-80% of sales Human populations - Residence location within a region is an important variable Provides useful distinctions when regional preferences or needs exist 9
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Chapter 9 Market Segmentation, Targeting, and Positioning Demographic Segmentation Division of overall market into homogenous groups based on (top groupings): Gender Age Income range Income and Expenditure Household size Stage in family lifecycle Ethnicity/race 10
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Chapter 9 Market Segmentation, Targeting, and Positioning A. Segmenting by Gender Lines blurring in recent years Example: Men buying skin-care products and women buying power tools and trucks Female consumers who regularly use the Internet make most of the decisions about retail items 11
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Chapter 9 Market Segmentation, Targeting, and Positioning B. Segmenting by Age Tweens and Teens - Influence billions spent on family purchases; marketers describe as being interactive Generation X - Born 1968 and 1979; family, education, optimistic; TV is marketing tool Baby Boomers - Born 1946 and 1964; popular because high numbers and income levels Seniors - High discretionary income; high rates of home ownership; spend money conservatively, but indulge in luxury. 12
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Chapter 9 Market Segmentation, Targeting, and Positioning C. Segmenting by Income & Expenditure Patterns Engel’s laws - As household income increases : A. Smaller percentage of expenditures for food B. Same percentage spent on housing and household operations (not clothing) C. Higher percentage spent on recreational and educational items 13
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Chapter 9 Market Segmentation, Targeting, and Positioning D. Segmenting by Family Life Cycle Stages Family lifecycle - Process of family formation and dissolution Life stage, not age, is primary concern of marketer Empty nesters may have higher disposable incomes and spend more on premium items Increase in "boomerangs"—grown children who have returned home to live with their parents 14
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Chapter 9 Market Segmentation, Targeting, and Positioning E. Segmenting by Household Type Average household size in U.S. has decreased from 5.8 in 1790 to less than three today. U.S. households embody a wide range of diversity Growing number of same-sex couples who share households 15
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Chapter 9 Market Segmentation, Targeting, and Positioning F. Ethnicity Hispanic and African Americans are largest ethnic and minority groups in U.S.
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