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12b.Demographic Segmentation (243): based on some objectivephysical (gender, race), measurable (age,income), or other classification attribute (birth era, occupation) of prospective customers. Ex: Household size.More
than half of all U.S. households are made up of only one or two persons, so Campbell packages meals with only one or two servings for this market segment.c.Geographic Segmentation (244): based on where prospective customers live or work (region, city size). Ex: Region.Campbell Soup Company found that its canned nacho cheese sauce, which could be heated and poured directly onto nacho chips, was too spicy for Americans in the East and not spicy enough for those in the Westand Southwest. The result: Campbell's plants in Texas and California now produce a hotter nacho cheese sauce to serve their regions better.d.Behavioral Segmentation (244): based on some observable actions or attitudes by prospective customers—such as where they buy, what benefits they seek, how frequently they buy, and why they buy. ExProduct features.Understanding what features are important to different customers is a useful way to segment markets because it can lead directly to specific marketing actions, such as a new product, an ad campaign, or a distribution channel. For example, college dorm residents frequently want to keep and prepare their own food to savemoney or have a late-night snack. However, their dorm rooms are often woefully short of space. MicroFridge understands this and markets a combination microwave, refrigerator, freezer, and charging station appliance targeted to these students.Ex: Usage rate: the quantity consumed or patronage—store visits—during a specific period. It variessignificantly among different customer groups. Airlines have developed frequent-flyer programs to encourage passengers to use the same airline repeatedly to create loyal customers. This technique, sometimes called frequency marketing,focuses on usage rate. One key conclusion emerges about usage: In market segmentation studies, some measurement of usage by, or sales obtained from, various segments is central to the analysis.The Aberdeen Group recently analyzed which segmentation bases were used by the 20 percent most profitable organizations of the 220 surveyed. From highest to lowest, these were the segmentation bases they used:Geographic bases—88 percent.Demographic bases—53 percent.Behavioral bases—65 percent.Psychographic bases—43 percent.2.Chapter 10:a.Product Line Extension (270): Successful organizations view newness and innovation in their products at three levels. The lowest level, which usually involves the least risk, is a product line extension. This is anincremental improvement of an existing product line the company already sells. For example, Purina added its “new”line of Elegant Medleys, a “restaurant-inspired food for cats,” to its existing line of 50 varieties of its Fancy Feast gourmet cat food. This has the potential benefit of adding new customers but the twin dangers of increasing expensesand cannibalizing products in its existing line.b.Continuous Innovation (270): With a dynamically continuous innovation, only minor changes in behavior are required. Procter & Gamble's Swiffer WetJet all-in-one mopping solution is a successful dynamically :