Segmentation Flashcards
What is Segmentation?
The process of partitioning the heterogeneous market into segments, allowing development of unique marketing programs that will be most effective for these specific segments.
What is Market Aggregation?
Offers a single product with a single marketing program (e.g. mass marketing, undifferentiated marketing, product differentiation).
What are the 4 criteria for effective segmentation?
- Measurability
- Substantiality
- Accessibility
- Responsiveness
What is Geographic Segmentation?
Divides the market into different geographical units (e.g. nations, states, regions, countries, cities or neighbourhoods).
What are the Pros/Cons of Geographical Segmentation?
Pros - Can identify cultural differences, climatic differences, language differences.
Cons - Can dismiss personality, age, consumer lifestyles and globalisation
What is Demographic Segmentation?
Divides the market into groups based on variables such as age, gender, family size, family lifecycle, income, occupation, religion, race, nationality and social class.
What are the Pros/Cons of Demographic Segmentation?
Pros - Much data available, Measures consumers’ preferences for brands, products and media.
Cons - Does not capture consumer motivations
What are the 4 variables of Family Lifecycle?
- Age
- Marital Status
- The Presence/Absence of children in the home
- Ages of these children
What are the 3 major components of Social Class?
- Occupation
- Income
- Education
What is Occupational Prestige?
A person’s occupation tends to be strongly linked to their use of leisure time, allocation of family resources and political orientation,
What is Geodemographic Segmentation?
Combines data on consumer expenditures and other socioeconomic factors with geographic information about the areas in which people live.
What is PRIZM (Potential Rating Index by Zip Market)?
Each US zip code is assigned one or more of 66 categories, based on the area’s shared socioeconomic characteristics.
What is ACORN (A Classification of Residential Neighbourhoods)?
Market Analysis Group. Uses 40 variables to identify what consumers within a specific neighbourhood ear and buy.
What is Psychographic Segmentation?
Attempts to answer the “Why’s” of purchasing behaviour, looking at lifestyle, personality and values.
What are the 3 variables of Lifestyle?
- Activities
- Interests
- Opinions
What does Lifestyle look into?
Discover how they spend their time, what they find interesting and important, and how they view themselves and the world around them.
What are Personality Traits?
The identifiable characteristics that define a person (e.g. extrovert, introvert, innovative, materialistic, self-conscious, etc)
What are the issues of using Personality Traits?
- Scales are not sufficiently valid/reliable, results are not stable
- Many trait scales measure overall tendencies (might not predict purchases of specific brands)
- Lack of train for the researchers
What is VALS Framework?
Lifestyle segmentation was developed by a research team at the Stanford Research Institute. Segments are based on whether people control abundant or minimal resources and their basic motivational self-orientations.
What are the 8 Segments of the VALS Framework?
- Innovators
- Thinkers
- Believers
- Achievers
- Strivers
- Experiencers
- Makers
- Survivors
What is Behavioural Segmentation?
Buyers are divided into groups on the basis of differences in their knowledge, attitude, use or response to a product.
What are the 4 variables for Behavioural Segmentation?
- Benefit Sought
- User Rate
- Occasions
- User Readiness
What is Micro-Level Segmentation?
Describes segments relative to specific behaviours. Small, intense subgroups such as:
- Social Geeks
- Office Romancers
- Young Knitters
