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Marketing Research

Segmentation Research
Market Segmentation
The process of dividing a total market for a
product into several smaller, internally
homogenous groups.
Why go for Segmentation?
Provides focus
More efficient use of (scarce) resources,
especially for small and medium sized
firms
Consistent with the Marketing Concept
The Process of Market
Segmentation
Identify the current and potential wants
that exist in a market
Identify the characteristics that distinguish
the segments
Determine the size of the segments and
how well their wants are being satisfied
Conditions for Segmentation
Data (on distinguishing characteristics of
different segments) must be measurable
and obtainable
The identified segments should be
accessible
Each segment should be sizeable
Two Broad Segments
Consumer Markets
Business Markets
Segmenting Consumer Markets
Four bases:
Geographic
Demographic
Psychographic
Behavioral
Geographic Segmentation
Advantage Disadvantage
Simple, Measurable, Segments may not be
& Obtainable totally homogenous
Demographic Segmentation
Most commonly used
Measurable and obtainable in most cases
Highly effective
No limitations to the number and variety of
factors
Psychographic Segmentation
Analyzing different consumer attributes to
understand how they think, feel and
behave; consists of:
Personality attributes
Life Style
Values
Personality Characteristics
Difficult to study and apply as a basis for
segmentation except for highly customized
products
Life Style
Activities
Interests
Opinions
Values
Terminal Instrumental
Security Hard work
Excitement Education
Relationships Learning
Accomplishment Persistence
Being respected Consistency
Etc. Etc.
Marketing Research on
Values & Life Styles
A study titled VALS was carried out by
SRI, a USA based organization, in 1999
Updated in 2001 and re-named VALS 2
Aims to identify consumer segments
based on values and lifestyles at a global
level
Took sample from 88 countries
representing different regions/cultures
VALS Segments
Primary Motivation
Ideals
Achievement
Self-Expression
Contingency Variable
Resources
Dependent Variable
Consumer Behavior
VALS Segments
Innovators (High Resources)
Avg. Age = 43
All three motives
Successful, sophisticated
High self-esteem
Change leaders
Refined, cultivated taste
Image is important as a means of self-
expression
VALS Segments
Thinkers (High Resources)
Avg. Age = 45
Motivated by ideals
Mature, satisfied & reflective
Well-educated & well-informed
Open to new ideas
Practical consumers looking for
functionality and durability
VALS Segments
Achievers (High Resources)
Avg. Age = 36
Motivated by achievement
Committed to career & family
Value consistency and stability
Active consumers
Image is very important to them
Favor brands that display their success
VALS Segments
Strivers (Moderate Resources)
Avg. Age = 34
Motivated by Achievement
Concerned about others opinion
Emulate the behavior of achievers in their
choices for products
Active consumers restrained by financial
constraints
VALS Segments
Experiencers (Moderate to High Resources)
Avg. Age = 24
Motivated by self-expression
Young, enthusiastic and impulsive
Rapid switchers
Seek variety and excitement
Avid consumers
Emphasis on entertainment & looking good
VALS Segments
Believers (Moderate to High Resources)
Avg. Age = 54
Motivated by ideals
Conventional and conservative
Value family, religion, community and
nation
Follow established routines
Predictable consumers
VALS Segments
Makers (Moderate to High Resources)
Avg. Age = 32
Motivated by self-expression
Practical, constructive people
Prefer value over luxury
Seek physical rather than intellectual
recreation
Value consistency and self-sufficiency
VALS Segments
Survivors (Low Resources)
Avg. Age = 61
No clear motivation
Comfortable with the familiar and
predictable
Seek safety & security
Cautious consumers
Look for discounts and bargains
Behavioral Segmentation
Desired benefits
Manner of usage
Usage rate