Identifying Market Segments and Targets The Three Major

Identifying Market Segments and Targets

The Three Major Steps in Target Marketing

Bases for Segmenting Consumer Market l l Geographic Segmentation Demographic Segmentation Psychographic Segmentation Behavioral Segmentation

Geographic Segmentation l Localize 4 P to fit the needs of individual regions l l l Starbucks, Home Depot, and Wal-Mart KFC in Japan: mash potatoes, fried fish and smoked chicken. Mc. Donald’s in Taiwan – 米堡 南部：搏感情、俗擱大碗；北部：愛嚐鮮、感時髦。 World region or country, country region, city or metro size, density, or climate Cultivate as-yet untapped geographic territory, e. g. Hampton Inns, IS Coffee → 科學園區廠商.

Local Marketing l l l The marketing programs are tailored to the needs and wants of local customer groups. Local marketing is particularly important in countries with strong regional differences, e. g. China. Drawbacks l l l Reduce economics of scale Logistical problems Dilute a brand’s overall image, e. g. Matsushita (松 下).

Interesting Local Marketing

Demographic Segmentation l l l l l Age and life-cycle stage Gender Income Race Occupation Education Religion Nationality Social class

Demographic Segmentation – Age and Life-Cycle l l l Consumer needs and wants change with age, e. g. Sony → walkman for children, Coca Cola → Qoo, 克寧 → 銀養奶粉, 善存 → 銀寶善存. Companies marketing to mature consumers usually employ positive images and appeals, e. g. Olay Pro. Vital. Generation, e. g. Generation X, 草莓族. Age is often a poor predictor of a person’s life cycle. Life stage, e. g. marriage, the first child, or the first job etc. .

Demographic Segmentation – Gender l l Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines. Examples l l Mandom → men’s cosmetics 克補, 普拿疼舒經熱飲, 台新銀行玫瑰卡(Lady’s Card), 雀巢奶粉

Demographic Segmentation – 女性市場 l NFL’s Super Bowl l l The 30 million or more women who watch the average Super Bowl make up more than 36% of the game’s audience. Advertisers know that these women influence 80% of all household consumer purchase. Women now account for almost half of all NFLlicensed merchandise purchase. A growing number of Web sites also target women, e. g. Pay. Easy.

Demographic Segmentation – Income Automobiles, boats, clothing, cosmetics, financial services, and travel Examples – L’Oreal, Dell → Smart PC $575. Many companies sell products to consumers spanning several income levels. l l l Shiseido: (1) Ettusais (艾杜莎); (2) IPSA, and (3) cle de peau (肌膚之鑰). Levi Strauss: (1) Levi Strauss Signature ($23) → Wal-Mart; (2) Type 1 ($65) → Macy’s; (3) Levi Red ($150) → Barneys.

Demographic Segmentation – 低所得市場 l l Despite their lower spending power, the nearly 1/3 of the nation’s households that earn less than $25, 000 per year offer an attractive market. Examples – Greyhound Lines, Dollar General, Family Dollar.

Demographic Segmentation – Race l l l Mattel’s Barbie: Christie (1968) – African, Theresa (1988) – Latina, and Kira (1990) – Asian. Hallmark’s Mahogany 客家人, 原住民, 新住民.

An easily identifiable demographic group which is often targeted by marketers is college students. Do you think this is influenced more by a common economic status of the target group, geographic concentration of a specific age group, or some other factor(s)?

Psychographic Segmentation l Lifestyle l l A person’s pattern of living in the world as expressed in activities, interests, and opinions. E. g. LOHAS, SOHO族, 雅痞, 夜貓族. IKEA – 北歐、鄉村或現代等風格；HOLA – 新古典、 異國、自然鄉村、當代奢華等風格；B&Q – DIY。 Kroger supermarket – “Meals in Minutes”, “Cookin’ Lite”, “Kids love this stuff”, and “I Like to Cook. ”

Psychographic Segmentation l Personality l l E. g. 鑽石設計：沈穩內斂、浪漫多情、青春活潑、 前衛酷炫等。 Levi’s: youthful, rebellious, rugged, authentic, and American. Sanrio’s Hello Kitty: sincere. Honda’s Reflex and Elite

Psychographic Segmentation l Values (價值觀) l l l The belief systems that underlie consumer attitudes and behaviors Determine, at basic level, people’s choices and desires over the long-term. E. g. 是否應與父母同住？ → 銀髮族居住市場：三 代同堂的大坪數房屋、提供優質服務的銀髮族社區、 養老院等。

Companies making cosmetics, alcoholic beverages, and furniture always seeking opportunities in lifestyle segmentation. However, lifestyle segmentation does not always work. Nestle introduced a special brand of decaffeinated coffee for “late nighters, ” and it failed. Can you identify some problems or issues that might be associated with the use of lifestyle as a basis for market segmentation?

Behavioral Segmentation l Occasions (購買時機 or 使用時機) l l l Airlines Orange juice, Milo, Coca-Cola Anniversaries in Japan l l l 3. 14 – 白色情人節; 6. 22 – 保齡球節; 12. 1 – 電影節 Hershey Kisses Chocolate Nike → 籃球鞋, 足球鞋, 慢跑鞋

Behavioral Segmentation l Benefits l l l Wacoal: Tokyo and Jakarta → feminine; Seoul and Bangkok → good on them; Taipei → confidence. ASUS notebook – digital home, portability, or personal entertainment center. 沐浴乳: 080抗痘美背, MAN-Q, 澎澎Man激酷.

Behavior Segmentation Breakdown

Behavioral Segmentation l User status l l Nonusers, ex-users, potential users, first-time users, and regular users Callaway Golf → Big Bertha Leader → potential users, follower → current users. Usage rate l l l Light, medium, and heavy E. g. HP printer → 分離式 or 三合一. Fast-food companies often target light users with their ads and promotions.

Behavioral Segmentation l Loyalty status l l Buyer-readiness stage l l l Hard-core loyals, split loyals, shifting loyals, and switchers Response Process E. g. Annual Pap test Attitude l l Enthusiastic, positive, indifferent, negative, and hostile E. g. Election.

Effective Segmentation l l l Measurable (可衡量的) Substantial (足量的) Accessible (可接近的) Differentiable (可區別的) Actionable (可實踐的)