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Session 5 - Market Segmentation

The document provides an introduction to consumer behavior, outlining the key stages in a consumer's decision-making process: awareness, interest, evaluation, trial, and purchase. It then lists some of the factors that influence consumer behavior, such as personal characteristics and situational factors. Finally, it discusses the importance and advantages of studying consumer behavior, such as helping companies formulate effective marketing strategies.

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Subhadeep Paul
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2K views

Session 5 - Market Segmentation

The document provides an introduction to consumer behavior, outlining the key stages in a consumer's decision-making process: awareness, interest, evaluation, trial, and purchase. It then lists some of the factors that influence consumer behavior, such as personal characteristics and situational factors. Finally, it discusses the importance and advantages of studying consumer behavior, such as helping companies formulate effective marketing strategies.

Uploaded by

Subhadeep Paul
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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A quick Recap

Introduction to Consumer Behavior


Consumer Search
Dated : 11.09.2008
Consumer behavior  definition

• It is the behavior Consumer displays in


searching for, purchasing, using,
evaluating and disposing of products and
services that they expect would satisfy
their needs and wants
• Personal Consumer
• Organisational consumer
Awareness

Interest
Evaluation

Trial
Rejection / Purchase

Direct Experience
Product Evaluation

Final Adoption / Rejection

No future purchase Repeat purchase


Need to study Consumer
Behavior

Saves from Disaster

Helps formulating the right strategy

Helps in Sales promotion

Helps in market segmentation

Helps in product orientation

Helps in reorientation of the packaging


Some Questions

• Define Consumer Behavior ?


• Why is consumer Behavior studied ?
• What are the factors that influence
Consumer Behavior ?
• What are the advantages of Studying
Consumer Behavior ?
• What are the disadvantages of Studying
Consumer Behavior ?
Need Recognition

• State of Affairs
– Actual Stage
– Desired state
• Discrepancy
• If discrepancy meets or exceeds the level – Need is
recognised
• If discrepancy is below a certain level – Need is not
there
Factors Influencing the State

• Time
• Product acquisition
• Product Consumption
• Marketing Influence
• Individual Differences
– Actual State Types
– Desired State Types
Factors Influencing Search

• Situational
• Product Category
• Retail
• Consumer
Information Processing

• Definition
• Information processing refers to the process
by which a stimulus is received interpreted
stored in memory and later retrieved
MARKET SEGMENTATION
Customer Role

• User  Neither payer nor buyer


• User  Payer but not buyer
• User  Buyer but not payer
• User  Buyer and payer
Role Specialization

• Lack of expertise
• Lack of time
• Lack of buying power
• Lack of access
• Lack of affordability
Segmentation Base
• Geographic Segmentation
– Region
– City Size
– Density of Area
– Climate
• Demographic Segmentation
– Age / Sex / Marital Status /
– Income / Occupation
– Education
Psychological Segmentation

• Need Motivation
– Shelter
– Safety / Security
– Affection
– Esteem / Ego
– Sense of self worth
Satisfying Customer’s Esteem Needs
Psychological Segmentation

• Personality
– Extroverts
– Introverts
– Novelty seekers
– Aggressive
– Low dogmatic
Psychological Segmentation

• Perception
– Low Risk
– Moderate Risk
– High Risk
Psychological Segmentation

• Learning involvement
– Low involvement
– High Involvement

• Attitudes
– Positive attitude
– Negative attitude
Psychographic

• Life style Segmentation


– Economy minded
– Couch potatoes
– Outside enthusiasts
– Status seekers
AIO  Activities / Interests /
Opinions
• Activities
– Measures how the consumer or family members spend time –
Games, voluntary activities, etc.
• Interests
– Measures the consumer’s preferences and priorities – Home,
fashion, food, etc.
• Opinions
– Measures how the consumer feels about a wide variety of events,
political issues , social issues, the state of the economy, ecology,
etc.
A place not only for shopping 
• AIO psychographics
– Use a battery of statements designed to identify
a relevant aspect of a consumer
• Personality
• Buying motives
• Interests
• Attitudes
• Beliefs
• Values
Friendly neighbourhood
Common choice
Retail stores attract customers through sheer variety
and the choice to choose
AIO Study

• I feel that my life is moving faster and


faster
• I feel that I have to pull myself out of the
human resource meeting
Strongly Strongly
Agree Disagree
Hypothetical psychographics
profile
• Prepares food for the child
• Gets the house ready for the day
• Serves food to the husband
• Gets herself ready for the office
• Travels in public transport
• Spends the day in office
• Tutors the child
Socio cultural Segmentation

• Cultures
• Religion
• Subcultures (race / ethics)
• Social class
• Lower / Middle / Upper
• Family life cycle
• Bachelors / Young married / Full nesters
Use Related Segmentation

• Usage rate / level


– Heavy Users
– Medium Users
– Light Users

– Non Users
Use Related Segmentation
• Awareness status / level
– Unaware
– Aware
– Interests
– Enthusiasts
• Brand loyalty [ degree of ]
– Strong
– Some
– None
Use situation Segmentation

• Time
– Leisure
– Work
– Rush
– Morning
– Night
Use situation Segmentation
• Objective
– Personal
– Gift
– Snack
– Fun
– Achievement
• Location
– Home
– Work
– Instore
Use situation Segmentation

• Person
– Self
– Family members
– Friends
– Boss
– Peer
Benefit Segmentation
– Convenience
– Social acceptance
– Long lasting
– Economy
– Value for money
Hybrid Segmentation

• Demographic / Psychographic
Geo Demographic
• SRI Vals
Most resources
Actualizers

Principle oriented Status Oriented Action Oriented

Fulfilled Achiever Experiencers

Believer Strivers Makers

Least Resources
Strugglers
Bread Spreads

                                

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