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30 Cards in this Set
- Front
- Back
Segmenting, Targeting, and Positioning (STP)
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-Segmenting: break-down the entire market
-Targeting: appeal to different segments -Positioning: how your target audience sees your marketing strategy *Look at the market as a whole, develop segments and then pick which market segment you would like to appeal to |
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Segmenting Consumers by Demographics
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-Describes who people are, not their underlying motivations
-Age -Gender -Family Structure and Marital Status -Race and Ethnicity -Geography |
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Segmenting Consumers by Psychographics
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-Describes people's motivations for buying a particular product
-Consumers can share the same demographics and still be very different -Demographics tell us "who" buys, but psychographics tells us "why" they buy |
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Uses of Psychographics
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-Determine market segments
-Determine consumers' reasonings for choosing certain products -Fine-tune offerings to meet needs of different segments -Determine how to most effectively communicated with segments *VALS explains conumer buying behavior by measuring the psychology that drives behavior, attitudes, and interests |
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Segmenting Consumers by Lifestyle
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-The way we feel about ourselves
-The things we value -The things we do in our spare time -Ex. Best Buy has 5 different consumer types and they train their employees to recognize these different types of consumers in order to meet that particular customer's needs and wants |
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Segmenting Consumers by Values
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-Enduring beliefs that a given behavior or outcome is desirable/good
-Guide our behavior across situations and over time -Usually nonconscious (valuing your friends and family) -Value system: total set of values and their relative importance -Ex. Valuing the environment |
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Western Cultural Values
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Materialism, Home, Work and play, Importance of time, Individualism, Family and children, Health, Hedonism, Youth, Authenticity, Evironmentally friendly, and Technology Savvy
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Materialism
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-People gauge satisfaction in terms of what they have or have not acquired in life and in terms of desired possessions
-Implication: materialistic people can be particularly susceptible to marketing tactics and are interested in luxury brands |
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Home
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-Consumers place a high value on the home and believe in making it attractive and as comfortable as possible
---Cocooning |
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Work and Play
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-Americans work harder and longer than ever before
---Protestant Work Ethic: the value placed on work itself and on the delay of gratification to the exclusion of leisure and pleasure -As Americans work harder they value leisure time more ---Pay for services (i.e. housekeeper) as they value free-time |
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Importance of Time
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-Consumers used to spend time to save money. Now they spend money to save time
-Time has become a valuable currency in consumer's lives -70% of US consumers don't have enough time to do all the things they need to do -Half of US consumers now say that a lack of time is a bigger problem in their lives than a lack of money |
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Individualism
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-Emphasis on individualism--> mass customization
---People like to customize thier products to reflect their individualistic taste -U.S. is very individualistic in that we conquered the west coast |
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Family and Children
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-Cultures differ in the values they place on their families and children
---European and Asian parents tend to value education more than American parents ---American parents: childhood= fun ---American consumers place a high value on children *Implication: American parents are highly receptive to any child-related products |
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Health
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-Consumers are placing more value on their health
---Tied to self-esteem ---Consumers see Health as a holistic concept: looking good, feeling good, body in good condition, etc. ---Values not always reflected in behavior |
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Hedonism
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-Pleasure seeking
-Desire for products and services that simply make consumers feel good ---Ex. Luxury cars, home entertainment centers, vacations, etc. *Health and hedonism conflict |
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Youth
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-U.S. consumers place a high value on youth and looking good
-Contrast for striving for youth ---Ex. Wrinkle creams, plastic surgery, etc. |
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Authenticity
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-Some consumers place special value on products/experiences they consider "authentic"
-Local "farm-to-table" restaurant vs. chain restaurant ---Ex. Wendy's advertising campaign: "You know when it's real" |
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Environmentally Friendly
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-Preventing depletion of environmental resources and pollution
-Support environmentally friendly products and services *Green marketing: efforts to produce, promote, and reclaim environmentally sensitive products |
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Technology Savvy
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-Consumers believe in power of computers, DVRs, ATMs, the Internet, etc.
-BUT sometimes technology moves so fast that we cannot keep up! -Paradox: chaos vs control |
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What Affect our Values?
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-Culture: shaped by interactions
-Ethnicity: subcultures -Social class: amount of income you make -Age cohort: cultural messages vary among generations (i.e. effects of 9/11 on our generation) |
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Means-End Chain
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-Attributes (concrete and abstract)
-Consequences or benefits (functional and psychological) -Values (terminal, very broad goals) *A---> C---> V |
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Segmenting Consumers by Personality
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-A person's unique psychological makeup and how it consistently influences the way a person responds to his or her environment
-How a person interacts and consistently reacts/responds in different situations ---Introverted vs. Extroverted -Reflected in consumption choices |
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Trait Theory of Personality
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-Internal characteristics of individuals
-Individuals differ on these characteristics in a consistent way -Can be measured (using a survey?) -Formed at an early age, relatively unchanging -Can a personality change? ---Somewhat, but mostly consistent throughout your life depending on the amount of traumatic events that take place in your life |
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"Big 5" Personality Traits
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1.) Neuroticism: a tendency to easily experience unpleasant emotions such as anxiety, anger, or depression
2.) Extroversion: energy, surgency, and the tendency to seek stimulation and the company of others 3.) Agreeableness: a tendency to be compassionate and cooperative rather than suspicious and antagonistic towards others 4.) Conscientiousness: a tendency to show self-discipline, act dutifully, and aim for achievement 5.) Openness to experience: appreciation for art, emotion, adventure, and unusual ideas; imaginative and curious |
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Brand Personality
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-Like people, brands have personalities
-Our feelings about a brand's personality is an important part of brand equity ---Brand equity: a brand's integrity -Brand personalities help firms differentiate their products from the competition and build brand equity -Consumers don't buy products, they buy the peronsalities associated with those products -Brand personalities help consumers define their own self concepts and express their own personalities to others |
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5 Dimensions of Brand Personality
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1.) Sincerity: down to earth, honest, wholesome, and cheerful (i.e. Coke)
2.) Competence: reliable, hard working, intelligence, confident, and successful (i.e. Volkswagon, Dell/Microsoft, Honda) 3.) Ruggedness: outdoorsy, masculine, tough (i.e. Eddie Bauer, Wolverine Boots, The NorthFace) 4.) Sophistication: upper class, glamorous, good looking, and charming (i.e. Boliva, Rolex, Polo Ralph Lauren, Marc Jacobs, Gucci, BMW, David Yurman) 5.) Excitement: exciting, spirited, imaginative, and up-to-date (i.e. Apple, BMW, Cedar Point, Gatorade, Pepsi) |
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Segmenting Consumers by Lifestyles
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-People's patterns of behavior vs internal characteristics like values and personality
---Highly related to values and personality -What people actually do (hobbies, interests, behaviors, etc.) -What people have a strong opinion about (politics, religion, environment, etc.) *Represented by a consumer's activities, interests, and opinions (AIOs) |
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Values and Life Style (VALS)
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-Measures consumer activities, interests, and enduring attitudes and values
-Classifies consumers by their resources and primary motivation |
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VALS Framework
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1.) Innovators
___________________________ -Ideals: guided by knowledge and principles 2.)Thinkers 3.) Believers -Achievement: look for products/services that demonstrate success to peers 4.) Achievers 5.) Strivers -Self-expression: desire variety, social/physical activity, and risk 6.) Experiencers 7.) Makers ___________________________ 8.)Survivors |
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8 VALS Group Segments
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1.) Innovators: sophisticated, change leading, active, take charge
2.) Thinkers: information seeking, sophisticated, reflective 3.) Believers: conservative, conventional, traditional 4.) Achievers: successful, carrer and family oriented, moderate 5.) Strivers: trendy, approval seeking, disenfranchised 6.) Experiencers: risk seeking, enthusiastic, impulsive 7.) Makers: homegrown, self-sufficient, moncho, family oriented 8.) Survivors: passive, risk averse, constrained |