2. 2
Segmentation &
Consumer Behavior
Segmentation defined:
Dividing a large, heterogeneous market into
more homogenous groups of people who
have similar interests or desires, have
similar demographic characteristics or
profiles or behave in similar fashion
THINK small
3. 3
Segmentation &
Consumer Behavior
When should the market be segmented?
IF THE SEGMENT CAN:
Be identified or measured in terms of its size
and purchasing power
Be accessed or reached by the marketer
Be presumed to be responsive
4. 4
Segmentation &
Consumer Behavior
Responsiveness refers to :
Whether or not the product will match the
needs and wants of the consumer
Whether or not the segment is significant
enough (size and potential ROI) to merit the
effort
5. 5
Segmentation &
Consumer Behavior
Types of Segmentation:
1. Consumer’s State of Being
(Demographics)
Geography
Income
Gender
Age
Ethnicity
Education
6. 6
Segmentation &
Consumer Behavior
Types of Segmentation:
1.Consumer’s State of Being (Demographics)
Marital status
Sexual orientation
Household size
7. 7
Segmentation &
Consumer Behavior
Types of Segmentation:
2. Consumer’s State of Mind (Psychographics)
Consumers may be divided by personality traits
(Values and Life Style Options – VALS),
attitudes, opinions, preferences, and perceptions
9. 9
Segmentation &
Consumer Behavior
4. Benefits Segmentation
What does the consumer expect to receive
in exchange for his choice/purchase?
Access
Location/proximity
Durability
Premiums
Miles
Value
10. 10
Segmentation &
Consumer Behavior
4. Benefits Segmentation
What does the consumer expect to receive
in exchange for his choice/purchase?
Enjoyment
Validation
Status
Recognition
Reciprocity
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11. 11
Segmentation &
Consumer Behavior
Do we always act like we look?
Do our values reflect who we are?
NFL season-ticket holders vs. NBA
season ticket holders
Pro sport fans vs. college sports fans
Trading-Up