Marketing Notes Essay

1737 Words Mar 3rd, 2014 7 Pages
Chapter Eight: Segmentation, Targeting, and Positioning

Segmenting, Targeting, and Positioning Process

Step 1: Establish Overall Strategy or Objectives

* The segmentation strategy must be consistent with and derived from the firm’s mission statement and strategic objectives, as well as it’s current state * Current state involves SWOT Analysis (internal strengths and weaknesses, external opportunities and threats)

Step 2: Profile Segments

* The second step in the segmentation process is to describe the different segments (needs, wants, characteristics), which helps firms better understand the profile of the customers in each segment

Segmentation Method | Sample Segments | 1. Geographic | Country,
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Psychographic Segmentation – used in segmentation; delves into how consumers describe themselves, allows people to describe themselves using characteristics that help them choose how they occupy their time and what underlying psychological reasons determine those choices * Determining psychographics involves understanding the three ways consumers describe themselves: * Self Values – goals for life, they refer to overriding desires that dive how a person lives his or her life * Self Concept – the image people have of themselves, a component of psychographics * Lifestyles – how we live our lives to achieve goals * The most widely used psychographic system is VALS * On the basis of their answers to the VALS Questionnaire, consumers are classified into the eight segments on the two dimensions * On the vertical dimension, segments are described by their resources, including their income, education, health, energy, level, and degree of innovativeness * The horizontal dimension shows the segment’s primary motivation * The three universal primary motives are ideals, achievement and self expression * People are finding that psychographics are more useful for predicting consumer

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