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CONSUMER

BEHAVIOR
TUTORIAL 1

Segmentation, Targeting,
and Positioning

Bases for Segmentation

No single best way to segment a


market
Geography

Bases
Used to
Segment
Consumer
Markets

Demographics
Psychographics
Behavioral
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Demographic Segmentation

Age,
Gender,
Family size or life cycle,
Income,
Occupation,
Education,
Religion,
Race,
Nationality
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Psychographic Segmentation

Dividing a market into different groups


based on:
Social class.
Lifestyle.
Personality characteristics.

Behavioral Segmentation

Dividing market into groups based on their knowledge of,


attitude towards, uses for and response to a product.

Occasions

When buyers get the idea, make purchase or use the product

Valentines day, mothers day

Benefits sought.

Different segments desire different benefits from products.

e.g. Colgate

Economic (low price)

Medicinal (decay prevention)

Cosmetic (bright teeth)

Taste (good tasting)

Behavioral Segmentation

User status.

Nonusers
ex-users.
Potential users.
First-time users.
Regular users.

Usage rate.

Light.
Medium.
Heavy.

Positioning

Positioning:

The place the


product occupies in
consumers minds
relative to competing
products.
Typically defined by
consumers on the
basis of important
attributes.
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Customer Value

The difference between all the benefits


derived from the total product and all
the cost of acquiring these benefits

Marketing mix

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Consumer behaviour and marketing


strategy

Market segmentation
Positioning strategy
New products
New market applications
Marketing mix
Consumerism

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New Market Applications

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Consumerism

Set
of
activities
by
individuals,
independent organizations, government
agencies and businesses designed to
protect the consumers from unethical
market conduct.

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Tutorials
Why would someone shop on the internet?
Buy a motor bike? An expensive meal?

1.

a.

b.

2.

Why would someone else not make those


purchases?
How would you choose one outlet, brand or
model over the others? Would others make the
same choice in the same way?

Do you follow the consumer decision


making process described? How would you
explain any differences?
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