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Segmentation
Process of dividing a market into meaningful, relatively similar, and identifiable segments or groups.
Target Market
A group of people or organizations for which an organization designs, implements, and maintains a marketing mix.
Positioning
The place that a brand occupies in the mind of the customer and how it is distinguished from competitors' products.
Repositioning
Changing consumers' perceptions of a brand in relation to competing brands.
Marketing Mix
The 4 Ps: Price, Place, Product, Promotion.
Consumer Behavior
The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products.
External Influences
Factors such as culture, subculture, demographics, social status, reference groups, and family that affect consumer behavior.
Norms
Specify ranges of appropriate behavior.
Values
Enduring beliefs upon which a person acts.
Sanctions
Penalties for violating norms.
Nonverbal communication
Time:
• Monochronic – linear and fixed
• Polychronic – less discrete and subject to detailed scheduling
Space: your personal space (and its size)
Symbols: hand gestures, color meaning, beauty standards/expectations
Relationships: power distance, norms
Agreements: formality of contracts, expectations
Things: gift giving, materialism
Etiquette: what is rude vs not (such as Americans being very loud in public
Monochronic Time
A time orientation that is linear and fixed, where time is seen as set and to be strictly followed.
Polychronic Time
A time orientation that is less discrete and subject to detailed scheduling, where time is seen as flexible.
Myths
Stories that express a culture’s values and include symbolic elements representing shared emotions or ideals.
Rituals
Symbolic behaviors that occur in a fixed sequence and are repeated periodically.
Grooming
Gift-giving
Holidays
Cultural Appropriation
The act of taking or using things from a culture that is not your own without showing understanding or respect for that culture.
Cultural Shifts
Significant changes in societal values, beliefs, norms, and practices.
Other-oriented
Individual/collective
Do we value individualism, or do we prefer to stick with a group?
Competition/Cooperation
Do we encourage working together, or standing out?
Self-oriented
Sensual gratification/abstinence
Do we want people to indulge, or abstain?
Cause-related Marketing
Marketing that ties a company and its products to an issue or cause to improve sales or corporate image.
Fit
Refers to how well the nonprofit and the for profit organizations go together, seem like the partnership makes sense, or "fit" together.
So, Chevrolet and American Cancer Society has low fit or bad fit, Apple and (RED) has low/bad fit, but Home Depot and Habitat for Humanity have good or high fit
Social Marketing
An approach that uses marketing techniques to influence behavior for the benefit of individuals and society.
Things to consider when doing LGBTQ+/gender-based marketing
LGBTQ+ cares about what the product/company supports
65% of LGBTQ+ consumers buy from brands that support causes they care about
Gender roles
Ascribed role: little control over
Achievement role: based on performance and individuals can control (somewhat)
Women are more likely to do the shopping for the home and everyone in the home
Women influence more than 85% of car purchases
And 62% of cars sold were bought by women
Demographics
Describes a population in terms of its size, distribution, and structure.
Occupation
Education
Income
Age
Cognitive Age
Changes in the ability to think, learn, and remember that occur as individuals age.
Pre-depression (greatest) Generation
Individuals born prior to 1930
Remember: WWII, and may have served
Products: Health services, single-serving prepared foods
Depression (silent) generation
Born between 1930-1945
Products: Travel, active lifestyle products, financial services
Baby boom generation
Born between 1946-1964
Remember: Vietnam War (but may have been too young to be drafted
Products: Gifts for grandkids, travel, school supplies, anti-aging products
Generation X (forgotten)
Individuals born between 1965 and 1976, known for their entrepreneurial spirit and emphasis on career advancement.
Products: food at home, housing, healthcare, entertainment, transportation
Generation Y (Millennials)
Individuals born between 1977 and 1994, characterized by independence and diversity.
Remember: 9/11, Great Recession, climate change
Products: Brand names, customizable products, have stared buying houses, building families
Generation Z
Individuals born between 1995 and 2009, known as digital natives and open to diversity.
Products:
Want constantly updated offerings and variety
Omnichannel shoppers
Generation Alpha
Born 2009 and on
Social Classes
a hierarchical division of a society into relatively distinct and homogeneous groups with respect to attitudes, values, and lifestyles
Upper-upper class
old money - inherited wealth
Buy: luxury cars, original art, travel
Lower-upper class
“Nouveaux-riche”
Conspicuous consumption
Buy: Yachts, clothes, homes, automobiles
Upper-middle class
Occupation and education is key identifier
Typically college grads
Buy: Financial services, furniture, travel
Middle class
White-collar and high-paid blue-collar workers
Sensitive to shifts in the economy
Buy: Modest homes, DIY projects, retirement planning
Working class
Skilled and semiskilled factory, service, and sales workers
Live in somewhat undesirable neighborhoods
Buy: Fewer experiences (vacations, concert tickets) and more physical products (a nicer TV, products for hobbies or home improvement)
Upper-lower class
Poorly educated and often have minimum-wage jobs
Buy: What they need, Walmart and Dollar General
Lower-lower class
Very low incomes, very little education
Buy: Rent to own goods, Often taken advantage of: “sin” product marketing
Subcultures
A segment of a larger culture whose members share distinguishing values and patterns of behavior.
African Americans
In general:
Buying power is expected to increase
Products should consider their unique needs
Communication should target the sub-subculture and income level
Cultural shift:
Consumers are expecting more from brands that are targeting minority groups
Consumers expect brands to include other groups
Hispanics
In general:
Also, have an expected growth in buying power that is greater than whites’
Are the fastest growing ethnic subculture in the US
Communication should include Spanish-language media
McDonald's Example
Consider level of acculturation
Asian Americans
In general:
Highest-educated and highest-income subculture
Also has higher expected growth than whites
Most diverse group
In-language communication is great – but be sure to choose the right language!
Native Americans
In general:
Also expected to have higher growth rate of buying power
Have been taking increasing pride in heritage and less tolerant of stereotypes
Land O’Lakes
Typically geographically concentrated
Marketing efforts should focus on long-run support and involvement
Asian-Indian Americans
In general:
Value education and financial security
Range of religious subcultures
Hinduism
Buddhism
Jainism
Sikhism
Islam
Judaism
Christianity
Zoroastrianism
Arab Americans
In general:
Most live in urban areas (LA, NYC, Detroit, Chicago, and DC)
Tend to be stereotyped
Religion:
63% Christian
24% Muslim
13% other or no affiliation
Religion
Roman Catholic
Protestant
Born-Again Christian
Jewish
Muslim
Buddhist
Acculturation
The degree to which an immigrant has adapted to his or her new culture.
Generational differences in ethnic subcultures
Income, education, language, and identification with the culture change over generations
Japanese Americans:
Issei: first generation
Nisei: second generation
Sansei: third generation
Regional subcultures
variations in consumer preferences and behaviors based on geographic locations
Example: Marketing strategies for products in Quebec may emphasize French language and culture, reflecting the distinct regional identity within Canada
Standardization
Creating a uniform marketing approach across different markets. When you keep your product the same regardless of your target market
EX: the iPhone itself and its features will be the same
