Chapter 9 Smart-book marketing

STP analysis occurs during which step of the marketing planning process

Third

Marketing segmentation approaches

Benefits, Geographic, Psychographic

Geographic segmentation

organizes customers into groups on the basis of where they live

Demographic segmentation

groups consumers according to easily measured, objective characteristics such as age, gender, income, and education

Not a market segmentation approach

Political

Psychographic segmentation

is the one that delves into how consumers actually describe themselves

Psychographics

studies how people self-select (describe), as it were, based on the characteristics of how they choose to occupy their time

Self-values

are goals for life, not just the goals one wants to accomplish in a day. Self-respect, sense of belonging, self-fulfillment

Self concept / self image

is the image people ideally have of themselves

Lifestyles

they way we live

Vals is a

psychographic segmentation tool

Benefit segmentation

the basis of the benefits they derive from products or services (communication)

Behavioral Segmentation

groups on the basis of how they use the product or service

occasion segmentation

based on when a product or service is purchased or consumed (specific form of behavioral)

geodemographic segmentation

uses a combination of geographic, demographic, and lifestyle characteristics to classify consumers

Third step of the market segmentation process is to evaluate segment

attractiveness

When marketers combine segmentation methods they typically use

Benefits and Lifestyles

Loyalty Segmentation

investing in retention and loyalty initiatives to retain their most profitable customers

Used by marketers to evaluate whether a segment is worth pursuing or not

identifiable, substantial, reachable, responsive, profitable

1) undifferentiated

2) differentiated

3) concentrated

4) micromarketing

1) sugar, milk, packaged ice

2) Proctor and Gamble offers Pantene, Head and Shoulders and well shampoos

3) an infomercial firm sells a gadget to better fry and flip eggs in cooking

4) a florist designs the brides and five attendants bouquets

Firms position products based on

Value, symbols, and salient attributes

Perceptual map

displays in two or more dimensions, the position of products or brands in the consumers mind