3. Chapter Objectives
1. Identify the steps in the target marketing process.
2. Understand the need for market segmentation and
the approaches available to do it.
3. Explain how marketers evaluate segments and
choose a targeting strategy.
4. Understand how marketers develop and implement a
positioning strategy.
5. Explain how marketers increase long-term success
and profits by practicing customer relationship
management.
12. Personal
preference
segments
Demographic
segments
Behavioral
Cultural Segments
segments
Lifestyle
segments
13. Personal
preference
segments
These do!!
Demographic
segments
Behavioral
Cultural Segments
segments
Lifestyle
segments
14. Personal
preference
segments
These do!!
Demographic
segments
Behavioral
Cultural Segments
segments
Lifestyle
segments
15. Personal
preference
segments
Demographic
These do!!
segments Behavioral
Cultural Segments
segments
Lifestyle
segments
16. Personal
preference
segments
Demographic
These do!!
Segmentation
Variables
segments Behavioral
Cultural Segments
segments
Lifestyle
segments
17. Personal
preference
segments
Demographic
These do!!
Segmentation
Variables 80/20 Rule
segments Behavioral
Cultural Segments
segments
Lifestyle
segments
18. Personal
preference
segments
Demographic
These do!!
Segmentation
Variables 80/20 Rule
segments Usage Behavioral
CulturalSituation Segments
segments
Lifestyle
segments
19. Target Marketing Strategy
Identify, describe
differences
Targeting
Evaluate and specify
attractive segments
Choose targeting
Positioning
strategy
Use the marketing
mix to create
competitive advantage
in consumers’ minds
20. Target Marketing Strategy
Segmentation
Identify, describe
differences
Targeting
Evaluate and specify
attractive segments
Choose targeting
Positioning
strategy
Use the marketing
mix to create
competitive advantage
in consumers’ minds
21. A segment: is a set of the market who share
meaningful similarities.
People who like People who like
chocolate and to eat candy at the
peanut butter. movies.
Kids like “fun” candy
Adults prefer “mature” Cultures with
indulgence different taste
preferences
People who are health
conscious, or diabetic
(lifestyle/psychographic)
22. Segmentation Variable: some characteristic
that divides the total market into homogenous
(similar) groups - each group having distinct needs or
preferences.
Prefer chocolate
and peanut butter. Need less messy
(or candy with candy, in a
“filling”) sealable
container.
Like to “play” with
their food & enjoy
novelty Like flavors that
are common in
their culture
Need lower calorie or
no sugar
44. Target Marketing Strategy
Segmentation
Identify, describe
differences
Evaluate and specify
attractive segments
Choose targeting
Positioning
strategy
Use the marketing
mix to create
competitive advantage
in consumers’ minds
45. Target Marketing Strategy
Segmentation
Identify, describe
differences
Targeting
Evaluate and specify
attractive segments
Choose targeting
Positioning
strategy
Use the marketing
mix to create
competitive advantage
in consumers’ minds
46. Target market strategy: developing products
(or messages) to meet the needs of specific
customer segments.
47. Target market strategy: developing products
(or messages) to meet the needs of specific
customer segments.
48. Target market strategy: developing products
(or messages) to meet the needs of specific
customer segments.
“More Milk, More
Achievement”
49. Target market strategy: developing products
(or messages) to meet the needs of specific
customer segments.
“Drink Well, Live Well.”
“More Milk, More
Achievement”
50. Target market strategy: developing products
(or messages) to meet the needs of specific
customer segments.
Dara speaks to
middle aged women who want to
be healthy.
“Drink Well, Live Well.”
“More Milk, More
Achievement”
51. Target market strategy: developing products
(or messages) to meet the needs of specific
customer segments.
Dara speaks to
middle aged women who want to
be healthy.
Who do I speak to?
“Drink Well, Live Well.”
“More Milk, More
Achievement”
52. Target market strategy: developing products
(or messages) to meet the needs of specific
customer segments.
Dara speaks to
middle aged women who want to
be healthy.
Who do I speak to?
“Drink Well, Live Well.”
“More Milk, More
Achievement”
53. Target market strategy: developing products
(or messages) to meet the needs of specific
customer segments.
Dara speaks to
middle aged women who want to
be healthy.
Who do I speak to?
“Drink Well, Live Well.”
“More Milk, More
Achievement”
54. Target marketing checklist
✓ Are the people in the segment similar to each other, but
different from other groups?
✓ Can we measure the segment: how large is it? What it is
worth in $$?
✓ Is it worth using? Can it be profitable if the strategy is
carried out?
✓ Can we reach the segment? Will they hear us, listen to
us, respond to us? Are they willing to?
✓ Can we actually meet their needs? Do we have the right
expertise?
55. Targeting Strategies
Undifferentiated Differentiated Concentrated Customized
Segmenting and
targeting is minimal. Develops one or
Appeals to a wide more products for Offering one or more Tailoring products and
variety of customers. several customer products to a single services to each
Easy to reach groups with different segment customer
promotional product needs.
economies of scale
L’Oreal sells a variety
Spearheaded by Dell
of shampoos and
conditioners based on
Wal-mart You can customize
hair type, and desired
Target Porshe, Rolex, Dickies your shoes at
style (reduce frizz,
Gasoline (work wear), Ryobi Nike.com and
volumize).
Kroger Reebok.com
Old Navy/Gap/Banana
Back to old school!
republic
60. Positioning: a marketing strategy that influences
how a specific market segment perceives a good/
service in comparison to competitors.
Sugar-free candy often tastes bad and
leaves a bad aftertaste because of sugar alcohols or
synthetic sugar substitutes
Challenge: understand evaluative criteria consumers use
(ingredient, usage, calories, etc...) and convince them that their
product meets those needs
61. What two main evaluative criteria
do you think this segment is using to
make their purchase decision??
Perceptual
map
62. What two main evaluative criteria
do you think this segment is using to
make their purchase decision??
Perceptual
map
63. What two main evaluative criteria
do you think this segment is using to
make their purchase decision??
Perceptual
map
64. What two main evaluative criteria
do you think this segment is using to
make their purchase decision??
Perceptual
map
65. What two main evaluative criteria
do you think this segment is using to
make their purchase decision??
Good Taste
Perceptual
map
66. What two main evaluative criteria
do you think this segment is using to
make their purchase decision??
Good Taste
No Sugar
Perceptual
map
67. What two main evaluative criteria
do you think this segment is using to
make their purchase decision??
Good Taste
No Sugar
Bad Taste
Perceptual
map
68. What two main evaluative criteria
do you think this segment is using to
make their purchase decision??
Good Taste
High Sugar No Sugar
Bad Taste
Perceptual
map
69. What two main evaluative criteria
do you think this segment is using to
make their purchase decision??
Good Taste
High Sugar No Sugar
Bad Taste
Perceptual
map
70. What two main evaluative criteria
do you think this segment is using to
make their purchase decision??
Good Taste
High Sugar No Sugar
Bad Taste
Perceptual
map
71. What two main evaluative criteria
do you think this segment is using to
make their purchase decision??
Good Taste
High Sugar No Sugar
Bad Taste
Perceptual
map
72. What two main evaluative criteria
do you think this segment is using to
make their purchase decision??
Good Taste
High Sugar No Sugar
Bad Taste
Perceptual
map
73. What two main evaluative criteria
do you think this segment is using to
make their purchase decision??
Good Taste
High Sugar No Sugar
Bad Taste
Perceptual
map
78. wheth er or
h ey can chose gment
T
y want the se
not the
79. wheth er or
h ey can chose gment
T
y want the se
not the
nds to that
Wh o respo
po sition
80. Steps in positioning
1. Analyze the competition - what are their
positions/competitive advantages?
2. Offer a product/service with competitive
advantage (fill an open spot on some kind of
evaluative matrix)
3. Create and finalize the marketing mix - match the
selected segment with the appropriate messages/
distribution/product/pricing
4. Evaluate - maybe reposition
81. BUT: Even good
positioning, insightful
research, and marketing
mix execution will not
guarantee success.
82. CRM & Mass
Customization
Firms are moving to one-one
marketing, allowing customers
to make their own products.
Caters to each customers
unique needs and wants.
Tailoring value propositions!!
Thriving via Internet
technologies & social media
touch-points.
Customized Targeting Strategy
83. CRM & Mass
Customization
Requires customer interaction &
cost efficiency
Firms are moving to one-one
marketing, allowing customers
to make their own products.
Caters to each customers
unique needs and wants.
Tailoring value propositions!!
Thriving via Internet
technologies & social media
touch-points.
Customized Targeting Strategy
84. Re-Cap
1. Segment your market
2. Choose a target & targeting stragety
3. Position your product/brand
NutriSystem experienced tremendous growth selling 28-day weight loss programs in 2005. The 28 day program provides dieters with all their breakfasts, lunches, dinners, and desserts. The program is designed to place people on a reduced-calorie program and is low on the Glycemic index—meaning customers could eat “good carbs” while on the program. By extending NutriSystem’s media presence beyond an e-commerce only\nstrategy into more traditional media such as direct response television, infomercials, and magazine advertising NutriSystem was able to significantly increase its customer count.\n\nThe majority of its $212,000,000 sales were to women aged 35–55. Sales to men accounted for 13 percent of revenues. When\nfaced with growth prospects for 2006, NutriSystem’s management was concerned that the company couldn’t sustain its triple digit growth rate if the company focused all its marketing activities towards its core group of female customers.\n\nNutriSystem’s research shows that some of the same drivers\nthat pushed women to go on the program resonated with men. These motivators included vanity, energy, and health concerns. Because these drivers were an intrinsic part of the product’s core promise, Tom felt there was a chance the company could grow by targeting male dieters in addition to its core female segment—although chances for success were by no means certain, given the historical resistance of men to diet programs. Also, if the\ncompany did enter this market it wasn’t clear what the best strategy would be to speak to potential male customers.\n\nTom considered three options:\n\n1.Dip a toe into the male market by using testimonials from actual men who had tried the program, and broadcast these spots on cable television stations.\n\n2.Stick with what works; don’t enter the men’s market.\n\n3.Develop a men’s program and launch it with a big splash on national television.\n\nhttp://www.nutrisystem.com/index.jsp\n
NutriSystem experienced tremendous growth selling 28-day weight loss programs in 2005. The 28 day program provides dieters with all their breakfasts, lunches, dinners, and desserts. The program is designed to place people on a reduced-calorie program and is low on the Glycemic index—meaning customers could eat “good carbs” while on the program. By extending NutriSystem’s media presence beyond an e-commerce only\nstrategy into more traditional media such as direct response television, infomercials, and magazine advertising NutriSystem was able to significantly increase its customer count.\n\nThe majority of its $212,000,000 sales were to women aged 35–55. Sales to men accounted for 13 percent of revenues. When\nfaced with growth prospects for 2006, NutriSystem’s management was concerned that the company couldn’t sustain its triple digit growth rate if the company focused all its marketing activities towards its core group of female customers.\n\nNutriSystem’s research shows that some of the same drivers\nthat pushed women to go on the program resonated with men. These motivators included vanity, energy, and health concerns. Because these drivers were an intrinsic part of the product’s core promise, Tom felt there was a chance the company could grow by targeting male dieters in addition to its core female segment—although chances for success were by no means certain, given the historical resistance of men to diet programs. Also, if the\ncompany did enter this market it wasn’t clear what the best strategy would be to speak to potential male customers.\n\nTom considered three options:\n\n1.Dip a toe into the male market by using testimonials from actual men who had tried the program, and broadcast these spots on cable television stations.\n\n2.Stick with what works; don’t enter the men’s market.\n\n3.Develop a men’s program and launch it with a big splash on national television.\n\nhttp://www.nutrisystem.com/index.jsp\n
target marketing strategy: Select and enter a market\nUnderstanding people’s needs is an even more complex task today because technological and cultural advances in modern society have created a condition of market fragmentation. This condition occurs when people’s diverse interests and backgrounds divide them into numerous different groups with distinct needs and wants. Because of this diversity, the same good or service will not appeal to everyone.\n\nMarketers must balance the efficiency of mass marketing, serving the same items to everyone, with the effectiveness of offering each individual exactly what they want. \n\n
target marketing strategy: Select and enter a market\nUnderstanding people’s needs is an even more complex task today because technological and cultural advances in modern society have created a condition of market fragmentation. This condition occurs when people’s diverse interests and backgrounds divide them into numerous different groups with distinct needs and wants. Because of this diversity, the same good or service will not appeal to everyone.\n\nMarketers must balance the efficiency of mass marketing, serving the same items to everyone, with the effectiveness of offering each individual exactly what they want. \n\n
target marketing strategy: Select and enter a market\nUnderstanding people’s needs is an even more complex task today because technological and cultural advances in modern society have created a condition of market fragmentation. This condition occurs when people’s diverse interests and backgrounds divide them into numerous different groups with distinct needs and wants. Because of this diversity, the same good or service will not appeal to everyone.\n\nMarketers must balance the efficiency of mass marketing, serving the same items to everyone, with the effectiveness of offering each individual exactly what they want. \n\n
\n
\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
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Step 1: Segmentation\nSegmentation is the process of dividing a larger market into smaller pieces based on one or more meaningful, shared characteristic. Segmentation is often necessary in both consumer and industrial markets. In each case, the marketer must decide on one or more useful segmentation variables, that is, dimensions that divide the total market into fairly homogenous groups, each with different needs and preferences.\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\n
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Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \nUse Web Site Here - PRIZM (geodemographic system): www.claritas.com\nWeb site that classifies zip codes into segments\n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \nUse Web Site Here - PRIZM (geodemographic system): www.claritas.com\nWeb site that classifies zip codes into segments\n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \nUse Web Site Here - PRIZM (geodemographic system): www.claritas.com\nWeb site that classifies zip codes into segments\n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \nUse Web Site Here - PRIZM (geodemographic system): www.claritas.com\nWeb site that classifies zip codes into segments\n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \nUse Web Site Here - PRIZM (geodemographic system): www.claritas.com\nWeb site that classifies zip codes into segments\n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \nUse Web Site Here - PRIZM (geodemographic system): www.claritas.com\nWeb site that classifies zip codes into segments\n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \nUse Web Site Here - PRIZM (geodemographic system): www.claritas.com\nWeb site that classifies zip codes into segments\n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \nUse Web Site Here - PRIZM (geodemographic system): www.claritas.com\nWeb site that classifies zip codes into segments\n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \nUse Web Site Here - PRIZM (geodemographic system): www.claritas.com\nWeb site that classifies zip codes into segments\n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \nUse Web Site Here - PRIZM (geodemographic system): www.claritas.com\nWeb site that classifies zip codes into segments\n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \nUse Web Site Here - PRIZM (geodemographic system): www.claritas.com\nWeb site that classifies zip codes into segments\n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \nUse Web Site Here - PRIZM (geodemographic system): www.claritas.com\nWeb site that classifies zip codes into segments\n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \nUse Web Site Here - PRIZM (geodemographic system): www.claritas.com\nWeb site that classifies zip codes into segments\n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \nUse Web Site Here - PRIZM (geodemographic system): www.claritas.com\nWeb site that classifies zip codes into segments\n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \nUse Web Site Here - PRIZM (geodemographic system): www.claritas.com\nWeb site that classifies zip codes into segments\n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \nUse Web Site Here - PRIZM (geodemographic system): www.claritas.com\nWeb site that classifies zip codes into segments\n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \nUse Web Site Here - PRIZM (geodemographic system): www.claritas.com\nWeb site that classifies zip codes into segments\n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \nUse Web Site Here - PRIZM (geodemographic system): www.claritas.com\nWeb site that classifies zip codes into segments\n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
Segment Consumer Markets\nA total market can be sliced into smaller pieces in a number of ways, including demographic, psychological, and behavioral differences. \nDemographics are measurable characteristics such as gender and age, family structure, income and social class, race and ethnicity, and geography.\n\nSegment by Demographics\nDemographics are vital to identify the best potential customers for a good or service. Consumers of different age groups have different needs and wants. A focus on such segments is called generational marketing.\n\nAge \nChildren are considered between the ages of 4 and 12. This group has a say in family-related purchases of more than $130 billion a year.\n\nTeens are between the ages of 12 and 17. This is an attractive market segment, spends an average of $3,000 per year and as a group is growing nearly twice as fast as the general population. Much of their money goes toward “feel-good” products such as cosmetics, posters, and fast food.\n\nGeneration Y includes those consumers born between the years 1977 and 1994. They also are known as the baby “boomlet.” Generation Y is made up of the 71 million children of the baby boomers. They are the first generation to grow up online and are more ethnically diverse than earlier generations. Generation Y is an attractive market for a host of consumer products because of their size (approximately 26 percent of the population) and because of their free spending nature. As a group they spend about $200 billion annually. Marketers have had to use creative methods to reach this group as they resist reading and turn off the TV regularly.\n\nGeneration X is the group of consumers born between 1965 and 1976, consisting of 46 million Americans. They are also known as slackers or busters and have a cynical attitude toward marketing. However, one study revealed that this group has mellowed with age and is responsible for 70 percent of new start-up business in the United States. Seven out of ten regularly save some portion of their income. The slacker name may be fading.\n\nBaby boomers are consumers born between 1946 and 1964. Baby boomers never age and invest a ton of money, time, and energy to maintain their youthful image. Because there are so many of them, baby boomers are clogging the upward mobility pipeline in employment. \n\nAmericans, 65 and older are 35 million in number. This is a 12 percent increase in this age segment since 1990. This group is enjoying leisure time and continued good health. More and more marketers are offering products that have strong appeal to active lifestyle seniors.\n\nGender\nStarting with diapers, segmenting by sex occurs at a very early age. Many products appeal to men or women either because of the nature of the product or because the marketer chose to appeal to one sex or the other. In some cases, manufacturers develop parallel products to appeal to each sex.\n\nMetrosexual describes a man who is heterosexual, sensitive, educated, and an urban dweller who is in touch with his feminine side.\n\nFamily Life Cycle\nBecause family needs and expenditures change over time, one way to segment consumers is to consider the stage of the family life cycle they occupy. Consumers in different life cycle segments are unlikely to need the same products, or at least they may not need these things in the same quantities. As family’s age and move into new life stages, different product categories ascend and descend in importance.\n\nIncome and Social Class\nThe distribution of wealth is of great interest to marketers because it determines which groups have the greatest buying power. Marketers, obviously, are often more interested in high-income consumers. In the past, it was popular for marketers to consider social class segments, such as upper class, lower class, and the like. However, many consumers buy not according to where they may fall in the schema but rather according to the image they wish to portray.\n\nEthnicity\nA consumer’s national origin is often a strong indicator of his preferences for specific magazines or TV shows, foods, apparel, and choice of leisure activities. Marketers need to be aware of these differences and sensitivities. Given the United States increasingly ethnically diverse culture, cultural/religious issues must be addressed. \n\nPlace of Residence\nRecognizing that people’s preferences often vary depending on where they live, many marketers tailor their offerings to appeal to different regions. \nUse Web Site Here - PRIZM (geodemographic system): www.claritas.com\nWeb site that classifies zip codes into segments\n\nSegment by Psychographics\nPsychographic data are useful to understand differences among consumers who may be statistically similar to one another but whose needs and wants vary. Web-based services such as GeoCities http://geocities.yahoo.com allow people to sort themselves into lifestyle communities based on shared interests. \n\nPsychographics segments market in terms of shared attitudes, interests, and opinions as well as lifestyles. \n\nSegment by Behavior\nBehavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product. One way to segment based on behavior is to divide the market into users and nonusers of a product. In addition, users can be segmented into heavy, moderate, and light users.\n\nMany marketers abide by a rule of thumb called the 80/20 rule: 20 percent of purchasers account for 80 percent of the product’s sales. This means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users.\n\n\n\n
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Marketers select a target marketing strategy in which they divide the total market into different segments based on customer characteristics, select one or more segments, and develop products to meet the needs of those specific segments. \n\nStep 2: Targeting\nIn targeting, the marketers evaluate the attractiveness of each potential segment and decide which of these groups they will invest resources against to try to turn them into customers. The customer group or groups selected are the firm’s target market.\n\nDevelop Segment Profiles\nA segment profile is a profile or description of a “typical” customer in that segment. A segment profile might include customer demographics, location, lifestyle information, and a description of how frequently the customer buys the product.\n\n
Marketers select a target marketing strategy in which they divide the total market into different segments based on customer characteristics, select one or more segments, and develop products to meet the needs of those specific segments. \n\nStep 2: Targeting\nIn targeting, the marketers evaluate the attractiveness of each potential segment and decide which of these groups they will invest resources against to try to turn them into customers. The customer group or groups selected are the firm’s target market.\n\nDevelop Segment Profiles\nA segment profile is a profile or description of a “typical” customer in that segment. A segment profile might include customer demographics, location, lifestyle information, and a description of how frequently the customer buys the product.\n\n
Marketers select a target marketing strategy in which they divide the total market into different segments based on customer characteristics, select one or more segments, and develop products to meet the needs of those specific segments. \n\nStep 2: Targeting\nIn targeting, the marketers evaluate the attractiveness of each potential segment and decide which of these groups they will invest resources against to try to turn them into customers. The customer group or groups selected are the firm’s target market.\n\nDevelop Segment Profiles\nA segment profile is a profile or description of a “typical” customer in that segment. A segment profile might include customer demographics, location, lifestyle information, and a description of how frequently the customer buys the product.\n\n
Marketers select a target marketing strategy in which they divide the total market into different segments based on customer characteristics, select one or more segments, and develop products to meet the needs of those specific segments. \n\nStep 2: Targeting\nIn targeting, the marketers evaluate the attractiveness of each potential segment and decide which of these groups they will invest resources against to try to turn them into customers. The customer group or groups selected are the firm’s target market.\n\nDevelop Segment Profiles\nA segment profile is a profile or description of a “typical” customer in that segment. A segment profile might include customer demographics, location, lifestyle information, and a description of how frequently the customer buys the product.\n\n
Marketers select a target marketing strategy in which they divide the total market into different segments based on customer characteristics, select one or more segments, and develop products to meet the needs of those specific segments. \n\nStep 2: Targeting\nIn targeting, the marketers evaluate the attractiveness of each potential segment and decide which of these groups they will invest resources against to try to turn them into customers. The customer group or groups selected are the firm’s target market.\n\nDevelop Segment Profiles\nA segment profile is a profile or description of a “typical” customer in that segment. A segment profile might include customer demographics, location, lifestyle information, and a description of how frequently the customer buys the product.\n\n
Marketers select a target marketing strategy in which they divide the total market into different segments based on customer characteristics, select one or more segments, and develop products to meet the needs of those specific segments. \n\nStep 2: Targeting\nIn targeting, the marketers evaluate the attractiveness of each potential segment and decide which of these groups they will invest resources against to try to turn them into customers. The customer group or groups selected are the firm’s target market.\n\nDevelop Segment Profiles\nA segment profile is a profile or description of a “typical” customer in that segment. A segment profile might include customer demographics, location, lifestyle information, and a description of how frequently the customer buys the product.\n\n
Marketers select a target marketing strategy in which they divide the total market into different segments based on customer characteristics, select one or more segments, and develop products to meet the needs of those specific segments. \n\nStep 2: Targeting\nIn targeting, the marketers evaluate the attractiveness of each potential segment and decide which of these groups they will invest resources against to try to turn them into customers. The customer group or groups selected are the firm’s target market.\n\nDevelop Segment Profiles\nA segment profile is a profile or description of a “typical” customer in that segment. A segment profile might include customer demographics, location, lifestyle information, and a description of how frequently the customer buys the product.\n\n
Marketers select a target marketing strategy in which they divide the total market into different segments based on customer characteristics, select one or more segments, and develop products to meet the needs of those specific segments. \n\nStep 2: Targeting\nIn targeting, the marketers evaluate the attractiveness of each potential segment and decide which of these groups they will invest resources against to try to turn them into customers. The customer group or groups selected are the firm’s target market.\n\nDevelop Segment Profiles\nA segment profile is a profile or description of a “typical” customer in that segment. A segment profile might include customer demographics, location, lifestyle information, and a description of how frequently the customer buys the product.\n\n
the criteria used for determining whether a segment may be a good candidate for targeting.\n\nJust because a marketer identifies a segment does not necessarily mean that it’s a useful one to target. A viable target segment should satisfy the following requirements:\n\n•Are members of the segment similar to each other in their product needs and wants and, at the same time, different from consumers in other segments? \n•Can marketers measure the segment?\n•Is the segment large enough to be profitable now and in the future?\n•Can marketing communications reach the segment?\n•Can the marketer adequately serve the needs of the segment?\n\n
Choose a Targeting Strategy\nA basic targeting decision is how finely tuned the target should be.\n\nUndifferentiated Marketing\nAn undifferentiated targeting strategy is one that appeals to a wide-spectrum of people. If successful, this type of operation can be very efficient, especially because production, research, and promotion costs benefit from economies of scale—it’s cheaper to develop one product or one advertising campaign than to choose several targets and create separate products or messages for each. The company must be willing to bet that people have similar needs or differences among them that are trivial.\n\nDifferentiated Marketing\nA company that chooses a differentiated targeting strategy develops one or more products for each of several customer groups with different product needs. A differentiated strategy is called for when consumers are choosing among brands that are well known in which each has a distinctive image in the marketplace and in which it’s possible to identify one or more segments that have distinct needs for different types of products.\n\nDifferentiated marketing can also involve connecting ones products with different segments by communicating differently to appeal to those segments.\n\nConcentrated Marketing\nWhen a firm focuses its efforts on offering one or more products to a single segment, it is using a concentrated targeting strategy. A concentrated strategy is often useful for smaller firms that do not have the resources or the desire to be all things to all people.\n\nCustomized Marketing\nIdeally, marketers should be able to define segments so precisely that they can offer products and services that exactly meet the unique needs of each individual or firm. A custom marketing strategy is common in industrial contexts in which a manufacturer often works with one or a few large clients and develops products and services that only these clients will use.\n\nIn most cases this level of segmentation is neither practical nor possible when mass-produced products are sold. However, advances in computer technology, coupled with the new emphasis on building solid relationships with customers, have focused managers’ attention on devising a new way to tailor specific products and the messages about them to individual customers.\n\nMass customization is the modification of a basic good or service to meet the needs of an individual.\n
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Step 3: Positioning\nPositioning means developing a marketing strategy aimed at influencing how a particular market segment perceives a good or service in comparison to the competition. Developing a positioning strategy entails gaining a clear understanding of the criteria target consumers use to evaluate competing products and then convincing them that your product will meet those needs. Positioning can be done in many ways. \n\nPositioning \nMarketers must devise a marketing mix that will effectively target the segment’s members by positioning their products to appeal to that segment. There are four steps marketers follow to develop a positioning strategy.\n \n1.Analyze competitor’s positions\n2.Offer a good or service with a competitive advantage\n3.Match elements of the marketing mix to the selected segment\n4.Evaluate the target market’s responses and modify if necessary\n\nMarketers must evaluate the target market’s responses so they can modify strategies as needed. Over time, the firm may find that it needs to change which segments it targets or even redo a product’s position to respond to marketplace changes. An example of such a makeover is called repositioning.\n\nRepositioning also occurs when brands once thought to be dead or near-dead get revived. Some brands may ride a wave of nostalgia and return to the marketplace as retro brands such as Oxydol, Breck Shampoo, and Tab.\n\n
Bring a Product to Life: The Brand Personality\nA positioning strategy often tries to create a brand personality for a good or service—a distinctive image that captures its character and benefits. Part of creating a brand personality is developing an identity for the product that the target market will prefer over competing brands. How do marketers determine where their product actually stands in the minds of consumers? One solution is to ask consumers what characteristics are important and how competing alternatives would rate on these attributes. Marketers use this information to construct a perceptual map, which is a vivid way to construct a picture of where products or brands are “located” in consumers’ minds.\n\nCreating a positioning strategy is the last step in the target marketing process. \n\n
Bring a Product to Life: The Brand Personality\nA positioning strategy often tries to create a brand personality for a good or service—a distinctive image that captures its character and benefits. Part of creating a brand personality is developing an identity for the product that the target market will prefer over competing brands. How do marketers determine where their product actually stands in the minds of consumers? One solution is to ask consumers what characteristics are important and how competing alternatives would rate on these attributes. Marketers use this information to construct a perceptual map, which is a vivid way to construct a picture of where products or brands are “located” in consumers’ minds.\n\nCreating a positioning strategy is the last step in the target marketing process. \n\n
Bring a Product to Life: The Brand Personality\nA positioning strategy often tries to create a brand personality for a good or service—a distinctive image that captures its character and benefits. Part of creating a brand personality is developing an identity for the product that the target market will prefer over competing brands. How do marketers determine where their product actually stands in the minds of consumers? One solution is to ask consumers what characteristics are important and how competing alternatives would rate on these attributes. Marketers use this information to construct a perceptual map, which is a vivid way to construct a picture of where products or brands are “located” in consumers’ minds.\n\nCreating a positioning strategy is the last step in the target marketing process. \n\n
Bring a Product to Life: The Brand Personality\nA positioning strategy often tries to create a brand personality for a good or service—a distinctive image that captures its character and benefits. Part of creating a brand personality is developing an identity for the product that the target market will prefer over competing brands. How do marketers determine where their product actually stands in the minds of consumers? One solution is to ask consumers what characteristics are important and how competing alternatives would rate on these attributes. Marketers use this information to construct a perceptual map, which is a vivid way to construct a picture of where products or brands are “located” in consumers’ minds.\n\nCreating a positioning strategy is the last step in the target marketing process. \n\n
Bring a Product to Life: The Brand Personality\nA positioning strategy often tries to create a brand personality for a good or service—a distinctive image that captures its character and benefits. Part of creating a brand personality is developing an identity for the product that the target market will prefer over competing brands. How do marketers determine where their product actually stands in the minds of consumers? One solution is to ask consumers what characteristics are important and how competing alternatives would rate on these attributes. Marketers use this information to construct a perceptual map, which is a vivid way to construct a picture of where products or brands are “located” in consumers’ minds.\n\nCreating a positioning strategy is the last step in the target marketing process. \n\n
Bring a Product to Life: The Brand Personality\nA positioning strategy often tries to create a brand personality for a good or service—a distinctive image that captures its character and benefits. Part of creating a brand personality is developing an identity for the product that the target market will prefer over competing brands. How do marketers determine where their product actually stands in the minds of consumers? One solution is to ask consumers what characteristics are important and how competing alternatives would rate on these attributes. Marketers use this information to construct a perceptual map, which is a vivid way to construct a picture of where products or brands are “located” in consumers’ minds.\n\nCreating a positioning strategy is the last step in the target marketing process. \n\n
Bring a Product to Life: The Brand Personality\nA positioning strategy often tries to create a brand personality for a good or service—a distinctive image that captures its character and benefits. Part of creating a brand personality is developing an identity for the product that the target market will prefer over competing brands. How do marketers determine where their product actually stands in the minds of consumers? One solution is to ask consumers what characteristics are important and how competing alternatives would rate on these attributes. Marketers use this information to construct a perceptual map, which is a vivid way to construct a picture of where products or brands are “located” in consumers’ minds.\n\nCreating a positioning strategy is the last step in the target marketing process. \n\n
Bring a Product to Life: The Brand Personality\nA positioning strategy often tries to create a brand personality for a good or service—a distinctive image that captures its character and benefits. Part of creating a brand personality is developing an identity for the product that the target market will prefer over competing brands. How do marketers determine where their product actually stands in the minds of consumers? One solution is to ask consumers what characteristics are important and how competing alternatives would rate on these attributes. Marketers use this information to construct a perceptual map, which is a vivid way to construct a picture of where products or brands are “located” in consumers’ minds.\n\nCreating a positioning strategy is the last step in the target marketing process. \n\n
Bring a Product to Life: The Brand Personality\nA positioning strategy often tries to create a brand personality for a good or service—a distinctive image that captures its character and benefits. Part of creating a brand personality is developing an identity for the product that the target market will prefer over competing brands. How do marketers determine where their product actually stands in the minds of consumers? One solution is to ask consumers what characteristics are important and how competing alternatives would rate on these attributes. Marketers use this information to construct a perceptual map, which is a vivid way to construct a picture of where products or brands are “located” in consumers’ minds.\n\nCreating a positioning strategy is the last step in the target marketing process. \n\n
Bring a Product to Life: The Brand Personality\nA positioning strategy often tries to create a brand personality for a good or service—a distinctive image that captures its character and benefits. Part of creating a brand personality is developing an identity for the product that the target market will prefer over competing brands. How do marketers determine where their product actually stands in the minds of consumers? One solution is to ask consumers what characteristics are important and how competing alternatives would rate on these attributes. Marketers use this information to construct a perceptual map, which is a vivid way to construct a picture of where products or brands are “located” in consumers’ minds.\n\nCreating a positioning strategy is the last step in the target marketing process. \n\n
Bring a Product to Life: The Brand Personality\nA positioning strategy often tries to create a brand personality for a good or service—a distinctive image that captures its character and benefits. Part of creating a brand personality is developing an identity for the product that the target market will prefer over competing brands. How do marketers determine where their product actually stands in the minds of consumers? One solution is to ask consumers what characteristics are important and how competing alternatives would rate on these attributes. Marketers use this information to construct a perceptual map, which is a vivid way to construct a picture of where products or brands are “located” in consumers’ minds.\n\nCreating a positioning strategy is the last step in the target marketing process. \n\n
Bring a Product to Life: The Brand Personality\nA positioning strategy often tries to create a brand personality for a good or service—a distinctive image that captures its character and benefits. Part of creating a brand personality is developing an identity for the product that the target market will prefer over competing brands. How do marketers determine where their product actually stands in the minds of consumers? One solution is to ask consumers what characteristics are important and how competing alternatives would rate on these attributes. Marketers use this information to construct a perceptual map, which is a vivid way to construct a picture of where products or brands are “located” in consumers’ minds.\n\nCreating a positioning strategy is the last step in the target marketing process. \n\n
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CRM: A New Perspective on An Old Problem\nCRM is about communicating with customers and about customers being able to communicate with a company one-to-one. CRM systems are applications that, through computers, CRM computer software, databases, and often the Internet, capture information at each touch point (or interaction) between customers and companies to allow for overall better customer care. CRM helps firms communicate with and serve customers by better understanding their needs. Firms that practice CRM have found that this level of individualized attention results in a much higher rate of customer retention and satisfaction, so CRM creates a win-win situation for everyone.\n\n6.Customer Relationship Management: Toward a Segment of One\nToday many highly successful marketing firms embrace customer relationship management (CRM) programs that allow companies to talk to individual customers and adjust elements of their marketing programs in light of how each customer reacts to elements of the marketing mix.\n\nDon Peppers and Martha Rogers popularized a term called one-to-one marketing. They identified four steps in one-to-one marketing:\n\n1.Identify customers and get to know them in as much detail as possible.\n2.Differentiate these customers in terms of both their needs and their value to the company.\n3.Interact with customers and find ways to improve cost efficiency and the effectiveness of the interaction.\n4.Customize some aspect of the products or services they offer to each customer.\n\nA CRM strategy allows a company to identify its best customers, stay on top of their needs, and increase their satisfaction. CRM has become a driving philosophy in many successful firms. It is a more efficient way to serve new customers who may have been overlooked by prior marketing efforts. CRM presents a new way of looking at how to effectively compete in the marketplace. This begins with looking at customers as partners. CRM proponents suggest that the traditional relationship between customers and marketers is an adversarial one where marketers try to sell their products to customers and customers seek to avoid buying.\n\nCRM is widely used to strengthen business-to-business relationships as well as end consumers. \n\n
