Marketing Session 5

Buying behaviour and Marketing Strategy- Segmentation

A. INTRODUCTION TO SEGMENTATION
B. SEGMENTATION-BASED AND DESCRIPTORS
C. SEGMENTATION-TECHNIQUES

A. INTRODUCTION TO SEGMENTATION
- A market is usually heterogeneous and is segmented into buying
behaviours
- Segmentation is the process of dividing such heterogeneous markets into
smaller segments and these segments are homogeneous within.
1. Analyse buying behaviours and find the variables that define different
buying behaviours
2. Identify the factors that influence buying behaviour and find indicators
3. Define segments

B. SEGMENTATION-BASED AND DESCRIPTORS

1. Geographic: nations, regions, state, neighbourhoods
2. Socio-demographic: age, gender, family size, you compare what happen
within a segment and then relate it to the overall market. These are
known as concentration index. Close to 100 means they are very
representative. Demographic: easy to segment but not necessary accurate
the Prince Charles Osborn example.
3. Lifestyle variables: psychographic segmentation
- Palmolive Target example, as one look at personal for hygiene and
one for beauty lifestyle.
- The Vals Psychographic Inventory:

More resources

Less resources

Primary Motivation: Ideals, Achievement, Self Expression.

First Idea: The size of the segment. Percentage using Internet, in this graph you
should spot out the biggest difference in the segments.

Innovators: lot of resources driven by a different primary motivation

Survivors: narrow focused life, they tend to be cautious consumers, very modest
and loyal to brands especially at discount.

Generations:

Harley Davidson Segments:

- Tour Gliders, Dream Riders, Hard core, the differing types of people to ride each
bike according to life styles. S

Social Techno-graphics by Forrester: Participation in Internet activities.

Types of Gasoline Buyers:
Shopping Segments: time stressed, explorer, trip planner, and bargain hunter.

C. SEGMENTATION-TECHNIQUES
a) Questions for determining segmentation bases or need variable
b) Cluster analysis: DATA REDUCTION technique, simplifying the market by
putting together individuals with a vey similar profile.
- Cluster features: 1,2,3 and 4, in the example, users, us messaging
services, higher propensity to work in remote areas, innovators
who use cell phones a lot.