Chapter 4 Market Segmentation and Target Marketing

Criteria for Segmentation n Identifiable n Measurable n Adequate size n Accessible

Types of Segments n Geographic –Political –Census

U.S. Census Regions  New England  Middle Atlantic  South Atlantic  East North Central  East South Central  West North Central  West South Central  Mountain  Pacific

Types of Segments n Geographic –Political –Census –Postal Zones –Media Coverage Area of dominant influence (ADI)

Types of Segments n Demographic –Age –Gender –Family size –Income –Ethnic background n Psychographic –AIO

Psychographics ActivitiesInterestsOpinions WorkFamilyThemselves HobbiesHomeSocial issues Social eventsJobPolitics VacationCommunityBusiness EntertainmentRecreationEconomics ClubsFashionEducation CommunityFoodProducts ShoppingMediaFuture SportsAchievementsCulture

High Low Resources VAL 2 (Value and Lifestyle)

Types of Segments n Geographic n Demographic n Psychographic n Benefit n Behavioral

Behavior Segmentation n User status n Usage frequency n Usage occasion –When –How –Why

Where food is consumed Segmentation Matrix a. rank order of importance

Geodemographic Segmentation n ACORN n ClusterPLUS 2000 n MicroVision 50 n PRIZM

Census Demographics and Demographic Updates Neighborhood Geography Consumer Behavior Data u Social rank u Household composition u Housing u Ethnicity u Urbanization u Mobility u Census tracts u Block groups u Zip codes (9-digit) u Carrier routes u Automobiles owned u Magazine readership u Direct marketing data u Real estate u Credit u Expenditures DATA ANALYSIS PRIZM Lifestyle Clusters

Buying Center Member Roles n Users n Influencers n Buyers n Deciders n Gatekeepers

Lodging Organizational Customer Segments n Individual business travelers n Group markets –Corporate meetings –Business and professional associations –Group tours –Incentive travel n Other organizational markets –Airline crews –Government –SMERF

Contract Foodservice Organizational Customers n Business and industry n Colleges and universities n Schools n Health care facilities n Other institutional segments