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Targeting Research: Segmentation Birds of a feather flock together, i.e. people with similar characteristics tend to exhibit similar behaviors Characteristics on which to segment include: Demographics Geographics Psychographics Attitudes and behaviors relevant to a brand of product category Demographic Segmentation Age: only useful when appropriate ranges are used to define age group segments Too broad (18-45) blurs differences between segments Too narrow (18-20) results in too many small segments Gender Household characteristics Life stage: combination of all of the above (see page 447) Race and Ethnicity Social Class: comprised of education, occupation, and income Geographic Segmentation Region East, North, West, South Pacific, Mountain, West North Central, West South Central, East North Central, East South Central, South Atlantic, Middle Atlantic, New England Population Size MSA, PMSA, CMSA Population Density Climate Psychographic Segmentation Attitudes and Values Different attitudinal segments typically require different advertising messages Different attitudinal segments often have different media habits, requiring different media plans Motivations Reasons for purchase, i.e. pregnancy tests Lifestyle Category and Brand Related Attitudes and Behaviors Product Usage Brand usage Product usage Quantity of consumption Situation of consumption Brand Loyalty Benefit Performing Segmentation Research (figure 19.2, p. 456) Determine basis for segmentation and descriptive variables Segmentation variables are the variables used to create subgroups, or market segments Descriptive variables are used to describe differences between the subgroups Identify range of segmentation and descriptive variables Collect data Form groups using cluster analysis Describe each cluster or segment using descriptive variables Radar charts are very useful for this Name and describe each segment Relate segments to particular brand behaviors Select a segment to target Determine the Basis for Segm
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