Market segmentation

Содержание

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Marketing chain producer -> product -> consumer

Marketing chain

producer ->
product ->
consumer

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Segmentation definition Market segmentation is the market fragmentation process based on

Segmentation definition

Market segmentation is the market fragmentation process based on specific

criteria for possible homogeneous groups of customers (market segments), requiring different marketing strategies to influence the purchases made ​​by buyers.
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Segmentation functions Helps to choose the market in which the company's

Segmentation functions

Helps to choose the market in which the company's operations

will be profitable.
Allows the company to better adapt to customers' needs.
Makes it easier to monitor market changes and adapt to them.
Isolating segments facilitates communication between the manufacturer and the customer.
Helps to reach those consumers whose preferences were taken into account when designing marketing activities.
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Segmentation results Segmentation indicates how many segments of the market there

Segmentation results

Segmentation indicates how many segments of the market there are

and what is the size of the individual segments.
Each segment represents a different type of buyer, such as belonging to a different income group, social, occupational, demographic, or control in their decisions to purchase other attitudes, preferences and consumption patterns.
Segmentation is not only a tool for a better understanding of the market, but also one of the main instruments of a market strategy that allows efficient adaptation of the product or other item to the Marketing Mix requirements.
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Consumer segmentation criteria socio-economic (income, education, place of residence), demographic (age,

Consumer segmentation criteria

socio-economic (income, education, place of residence),
demographic (age, gender, household

size)
geographic (place to live, place to work)
psychographic (lifestyle, activity, interests, personality).
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Product criteria patterns of consumption (frequency of use of the product,

Product criteria

patterns of consumption (frequency of use of the product, brand

loyalty),
conditions of purchase (store type, time of purchase, the size of a single purchase, frequency of purchase)
offered benefits (consumer knowledge about the product, the perceived benefits of a purchase, the consumer predisposition)
ranking of brands in the product group and individual associations triggered by the brand.
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Segmentation procedures A priori segmentation - determines in advance dependent variables

Segmentation procedures

A priori segmentation - determines in advance dependent variables (criteria),

assuming their relationship with the intentions and acts of shopping, preferences, etc.
Post hoc segmentation – criteria are identified in the reduction of the large number of variables, the most common method of factor analysis.
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Features of a segment Measurability Extent Availability Sensitivity

Features of a segment

Measurability
Extent
Availability
Sensitivity

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Polish psychographic segmentation Success-oriented. 38% of the adult population of Poles,

Polish psychographic segmentation

Success-oriented. 38% of the adult population of Poles, the

share of the urban population of 72%. Mainly men <50 years old - willing to risk, open to change, valuing branded products.
Pragmatics. Moderate group, 30% of the population, especially women over 30 years of age.
Traditional. About 32% of the population, the share of the rural population - 48%.
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AIO segmentation In 1971, William Wells and Douglas Tigert introduced the

AIO segmentation

In 1971, William Wells and Douglas Tigert introduced the concept

of attitudes, interests and opinions (AIO) as a basis for market segmentation.
An attempt to sketch easily recognizable portraits of consumers.
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VALS Segmentation The Values ​​and Lifestyles System - VALS), created in

VALS Segmentation

The Values ​​and Lifestyles System - VALS), created in 1978

by SRI International, combined with distinctive demographic characteristics of consumers' lifestyles in order to describe their habits, related to the acquisition of products. Formula VALS analyzed three main categories of consumer: the need driven (11 percent of the adult U.S. population), driven by external factors (67 percent) and led by internal factors (22 percent), which reflects the psychological motivations of consumers.
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VALS 2 At the end of the 80's VALS 2 was

VALS 2

At the end of the 80's VALS 2 was created

in order to better reflect the psychological motivation of decision making by consumers, by introducing categories due to the self-esteem, defined as "a set of attitudes and actions that strengthen, sustain, or even change the consumer's own image."
Modification of the classification was based on the assumption that the expression of their attitudes can be done not only by the choice of career, build relationships with other people and shaping role in the community, but also through the acquisition of products complying with its own image.
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VALS 2 self-evaluation criteria Self-evaluation based on the principles of: consumer

VALS 2 self-evaluation criteria

Self-evaluation based on the principles of: consumer behavior

is consistent with their views on how the world looks or should look like (realists, idealists)
Self-evaluation based on status: consumers looking for a safe place in a specific social environment; compare themselves with others in terms of its activities and its position (winners, seekers)
Self-evaluation based on performance: Consumers like to have an impact on their environment, engaging in various activities at home and in the workplace (experimenting, creating)
+ Dynamic, fighting
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PRISM In the 70's Claritas Corporation of Alexandria developed a market

PRISM

In the 70's Claritas Corporation of Alexandria developed a market segmentation

system based on the theory of "geodemography," which argues that people with similar interests, income, origin and purchasing patterns tend to settle and hold the clusters together in the neighborhood .
Although the PRIZM system is based on geography and demography, the signs applied to individual groups and their descriptions can also refer to a lifestyle characteristics and scale of values.