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30 Cards in this Set

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  • Back
Segmenting, Targeting, and Positioning (STP)
-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
Segmenting Consumers by Demographics
-Describes who people are, not their underlying motivations
-Family Structure and Marital Status
-Race and Ethnicity
Segmenting Consumers by Psychographics
-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
Uses of Psychographics
-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
Segmenting Consumers by Lifestyle
-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
Segmenting Consumers by Values
-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
Western Cultural Values
Materialism, Home, Work and play, Importance of time, Individualism, Family and children, Health, Hedonism, Youth, Authenticity, Evironmentally friendly, and Technology Savvy
-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
-Consumers place a high value on the home and believe in making it attractive and as comfortable as possible
Work and Play
-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
Importance of Time
-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
-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
Family and Children
-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
-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
-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
-U.S. consumers place a high value on youth and looking good
-Contrast for striving for youth
---Ex. Wrinkle creams, plastic surgery, etc.
-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"
Environmentally Friendly
-Preventing depletion of environmental resources and pollution
-Support environmentally friendly products and services
*Green marketing: efforts to produce, promote, and reclaim environmentally sensitive products
Technology Savvy
-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
What Affect our Values?
-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)
Means-End Chain
-Attributes (concrete and abstract)
-Consequences or benefits (functional and psychological)
-Values (terminal, very broad goals)
*A---> C---> V
Segmenting Consumers by Personality
-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
Trait Theory of Personality
-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
"Big 5" Personality Traits
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
Brand Personality
-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
5 Dimensions of Brand Personality
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)
Segmenting Consumers by Lifestyles
-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)
Values and Life Style (VALS)
-Measures consumer activities, interests, and enduring attitudes and values
-Classifies consumers by their resources and primary motivation
VALS Framework
1.) Innovators
-Ideals: guided by knowledge and principles
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 VALS Group Segments
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