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Consumer
Behavior
Chapter
02
Market Segmentation
& Real-Time Bidding
Learning Objectives
2.1 To understand how to segment markets along
demographics, lifestyles, product benefits and usage, and
media exposure.
2.2 To understand how to identify, select, and reach target
markets.
2.3 To understand real-time bidding as compared with
market segmentation.
Usage-Occasion
Segmentation
Source: Mack’s® is a registered trademark of Mckeon Products, Inc.
Learning Objective 2.1
To understand how to segment
markets along demographics,
lifestyles, product benefits and
usage, and media exposure.
• Consumer-intrinsic
• Consumption-based
• Consumer-intrinsic
• Consumption-specific
Two Types of Shared
Characteristics
Quantitative factors
Cognitive factors
Marketers Combine Factors
Demographics determine needs for products
Psychographics explain buyers’ purchase decisions and choices
Demographic Segmentation
Geographical location
Income and Wealth;
Occupation
Household type and Size
Marital Status
Gender Age
Age
• Age influences buying priorities
• Marketers target age groups
• Example: movie studios compete for teens and young
adults each summer
Gender
• Gender roles have blurred
• Gender less accurate to distinguish among consumers
in some product categories than it used to be
• Some ads depict mean and women in roles traditionally
occupied by the opposite gender
• Some products (e.g. skin care and snacks) are marketed
differently to men and women
Households
• Family life cycle
• Important occasions change consumption
patterns
Social Standing
• Social class
• Fluctuations affect marketing
Ethnicity
• Members of the same culture often share the same values,
beliefs, and customs.
• Marketers may target culturally distinct segments with the same
product using different promotional appeals.
Psychographics
Consumers’ lifestyles, which include consumers’
activities, interests, and opinions.
Table 2.1 Psychographic Measures (1 of 2)
Psychographic Statements
Personal Values* I have a sense of belonging.
I seek fun and enjoyment in life.
I am self-fulfilled.
Financial security is important to me.
My greatest achievements are ahead of me.
I am more conventional than experimental.
My social status is an important part of my life.
Apparel and Fashion* I buy clothes I like regardless of current fashion.
My friends often ask me for advice on fashion.
Men do not notice women who do not dress well.
Table 2.1 Psychographic Measures (2 of 2)
Psychographic Statements
Gift Giving* I generally give gifts because people expect me to.
I try to give gifts that carry personal messages to recipients.
Gifts always communicate love and friendship.
Personal
Relationships*
I find it hard to speak in front of a group.
When I make friends I always try to make the relationships work.
I enjoy making my own decisions.
Others usually know what’s best for me.
Buying Online* It requires too much time to set up accounts with online stores.
The look of a website is an important factor in my buying decisions.
I tell others about my experiences in buying online.
At Leisure** Played adult games (e.g., cards or mahjong)
Visited art gallery or museum
Went hunting or shooting
Went to the movies
Attended a sporting event
V A L S ™
Geodemographic Segmentation
• P R I Z M ®
• Location, demographics, and consumer
behavior
• Life stage groups
• Urbanization and affluence
• ConneXions
• P $ Y C L E
Benefit Segmentation
Benefits sought represent
consumer needs
Important for positioning
Expectations of Service Providers
Social Benefits
• Recognized/known by staff
• Treated in a way that they feel
important/friendship
Special Treatment Benefits
• Helping when something goes wrong
• Receiving priority treatment
Confidence-Related Benefits
• Feel confident service will be provided
correctly
• Clear descriptions of services and what
to expect
Product Usage
• Usage-rate segmentation (heavy, medium, light)
• Lots of competition for heavy users
Learning Objective 2.2
To understand how to identify,
select, and reach target markets.
Airlines Example
• Coach
• Premium Economy (50% more than coach)
• Business Class (2+x Premium Economy)
• First Class (3-4x Business)
Segments Should Be…
Identifiable Profitable Reachable
Reachable Market
Segments
Mobile Targeting
• Showrooming
• Geofencing
• Websites are versatile
Learning Objective 2.3
To understand real-time bidding as compared
with market segmentation.
Real-Time Bidding (RTB)
A technique that allows advertisers to
reach the right user in the right place at
the right time, which also sets the price
advertisers pay per impression or action
Web Crawlers
Programs that capture content across
the internet and transmit it to the data
broker’s servers
Predictive Analytics
Measures that predict consumers’ future
purchases on the bases of past buying
information and other data, and also
evaluate the impact of personalized
promotions stemming from the
predictions.
Application:
Target
Ad Exchange
A big pool of ad impressions – websites
– paste their ad impressions into the
pool, hoping someone will buy them
CB Chapter 02.pptx

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CB Chapter 02.pptx

  • 2. Learning Objectives 2.1 To understand how to segment markets along demographics, lifestyles, product benefits and usage, and media exposure. 2.2 To understand how to identify, select, and reach target markets. 2.3 To understand real-time bidding as compared with market segmentation.
  • 3. Usage-Occasion Segmentation Source: Mack’s® is a registered trademark of Mckeon Products, Inc.
  • 4. Learning Objective 2.1 To understand how to segment markets along demographics, lifestyles, product benefits and usage, and media exposure.
  • 5. • Consumer-intrinsic • Consumption-based • Consumer-intrinsic • Consumption-specific Two Types of Shared Characteristics Quantitative factors Cognitive factors
  • 6. Marketers Combine Factors Demographics determine needs for products Psychographics explain buyers’ purchase decisions and choices
  • 7. Demographic Segmentation Geographical location Income and Wealth; Occupation Household type and Size Marital Status Gender Age
  • 8. Age • Age influences buying priorities • Marketers target age groups • Example: movie studios compete for teens and young adults each summer
  • 9. Gender • Gender roles have blurred • Gender less accurate to distinguish among consumers in some product categories than it used to be • Some ads depict mean and women in roles traditionally occupied by the opposite gender • Some products (e.g. skin care and snacks) are marketed differently to men and women
  • 10. Households • Family life cycle • Important occasions change consumption patterns
  • 11. Social Standing • Social class • Fluctuations affect marketing
  • 12. Ethnicity • Members of the same culture often share the same values, beliefs, and customs. • Marketers may target culturally distinct segments with the same product using different promotional appeals.
  • 13. Psychographics Consumers’ lifestyles, which include consumers’ activities, interests, and opinions.
  • 14. Table 2.1 Psychographic Measures (1 of 2) Psychographic Statements Personal Values* I have a sense of belonging. I seek fun and enjoyment in life. I am self-fulfilled. Financial security is important to me. My greatest achievements are ahead of me. I am more conventional than experimental. My social status is an important part of my life. Apparel and Fashion* I buy clothes I like regardless of current fashion. My friends often ask me for advice on fashion. Men do not notice women who do not dress well.
  • 15. Table 2.1 Psychographic Measures (2 of 2) Psychographic Statements Gift Giving* I generally give gifts because people expect me to. I try to give gifts that carry personal messages to recipients. Gifts always communicate love and friendship. Personal Relationships* I find it hard to speak in front of a group. When I make friends I always try to make the relationships work. I enjoy making my own decisions. Others usually know what’s best for me. Buying Online* It requires too much time to set up accounts with online stores. The look of a website is an important factor in my buying decisions. I tell others about my experiences in buying online. At Leisure** Played adult games (e.g., cards or mahjong) Visited art gallery or museum Went hunting or shooting Went to the movies Attended a sporting event
  • 16. V A L S ™
  • 17. Geodemographic Segmentation • P R I Z M ® • Location, demographics, and consumer behavior • Life stage groups • Urbanization and affluence • ConneXions • P $ Y C L E
  • 18. Benefit Segmentation Benefits sought represent consumer needs Important for positioning
  • 19. Expectations of Service Providers Social Benefits • Recognized/known by staff • Treated in a way that they feel important/friendship Special Treatment Benefits • Helping when something goes wrong • Receiving priority treatment Confidence-Related Benefits • Feel confident service will be provided correctly • Clear descriptions of services and what to expect
  • 20. Product Usage • Usage-rate segmentation (heavy, medium, light) • Lots of competition for heavy users
  • 21. Learning Objective 2.2 To understand how to identify, select, and reach target markets.
  • 22. Airlines Example • Coach • Premium Economy (50% more than coach) • Business Class (2+x Premium Economy) • First Class (3-4x Business)
  • 23. Segments Should Be… Identifiable Profitable Reachable
  • 25. Mobile Targeting • Showrooming • Geofencing • Websites are versatile
  • 26. Learning Objective 2.3 To understand real-time bidding as compared with market segmentation.
  • 27. Real-Time Bidding (RTB) A technique that allows advertisers to reach the right user in the right place at the right time, which also sets the price advertisers pay per impression or action
  • 28. Web Crawlers Programs that capture content across the internet and transmit it to the data broker’s servers
  • 29. Predictive Analytics Measures that predict consumers’ future purchases on the bases of past buying information and other data, and also evaluate the impact of personalized promotions stemming from the predictions.
  • 31. Ad Exchange A big pool of ad impressions – websites – paste their ad impressions into the pool, hoping someone will buy them