3-Segmentation

Dr Zhiyong Yang

International Marketing

Action PlanAction Plan

segmentationndashtargetingndashpositioningsegmentationndashtargetingndashpositioning

Marketing ObjectivesMarketing Objectives

Marketing Strategy

ProductProduct

Marketing Mix

PromotionPromotion PricePrice

DistributionDistribution

ControlControl

International Marketing

Plan

Market AnalysisMarket Analysis

Audiences

General Public

Market Segmentation

Market segmentation is a portion of a larger market whose needs differ from the larger market

Market Segmentation

Market Segmentation Involves Four Steps

1 Identifying Product-Related Need Sets

2 Grouping Customers with Similar Need Sets

3 Describing Each Group

4 Selecting an Attractive Segment(s) to Serve

The PURPOSE OF MARKETING is to help the consumer experience the proverbial Tattoo that is already within himher

The desire of having tattoo is already inside the consumer

The desire to wear a shoe like this is already inside the consumer

To satisfy the consumer you have to bring that tattoo out

Do we always know our NampWs

What is the relationship between customer satisfaction and market share

Differentiating Customers According to Value

How can you determine which customers need to be ldquofiredrdquo

This requires a historical analysis of an individual customerrsquos revenues and costs

Costs must include all expenses involved in servicing this customer

Very few companies capture transaction-specific data at the individual customer level over extended time periods

Caution What are the costs of ldquofiringrdquo unwanted customers

Understanding Customersrsquo Needs and WantsInternational Marketing Research

The marketing concept is universal but customer wants are not

IMR helps firms understand consumers across national borders Think globally learn locally

Nestle approach

Latent and Manifest Motives

Researching Consumer Motives

Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response

(Unconscious Projection) (see Table 10-2 for details)

1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique

Case 3-1 The Sure Thing That Flopped

Whatrsquos wrong with market research

IMR Objectives

Diagnostic

Predictive

Descriptive Gathering and presenting

factual statements

Explaining data

Attempting to estimate the results of a planned marketing decision

IMR ChallengesAccess to information

Secondary data availability and reliability Primary data issues

Data collection ndash eg respondents access to Internet reliability of postal service

Language barriers Is 100 accuracy in translation possible

High-context vs low-context cultures Some concepts are not universal Back-translation

Cultural norm barriers Response to incentives

3-2 Understanding Markets Through International Market Research

17

Geography

Demographics

Psychographics

Behavior

Market Segmentation Bases for Segmentation

18

By Region

City vs Rural

By Climate By Density

Bases for Geographic Segmentation

19

Bases for Demographic Segmentation

Age Gender Income Ethnic background Family Life Cycle Occupation education religion race

and nationality

20

Lifestyle

Personality

Bases for Psychographics Segmentation

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

Action PlanAction Plan

segmentationndashtargetingndashpositioningsegmentationndashtargetingndashpositioning

Marketing ObjectivesMarketing Objectives

Marketing Strategy

ProductProduct

Marketing Mix

PromotionPromotion PricePrice

DistributionDistribution

ControlControl

International Marketing

Plan

Market AnalysisMarket Analysis

Audiences

General Public

Market Segmentation

Market segmentation is a portion of a larger market whose needs differ from the larger market

Market Segmentation

Market Segmentation Involves Four Steps

1 Identifying Product-Related Need Sets

2 Grouping Customers with Similar Need Sets

3 Describing Each Group

4 Selecting an Attractive Segment(s) to Serve

The PURPOSE OF MARKETING is to help the consumer experience the proverbial Tattoo that is already within himher

The desire of having tattoo is already inside the consumer

The desire to wear a shoe like this is already inside the consumer

To satisfy the consumer you have to bring that tattoo out

Do we always know our NampWs

What is the relationship between customer satisfaction and market share

Differentiating Customers According to Value

How can you determine which customers need to be ldquofiredrdquo

This requires a historical analysis of an individual customerrsquos revenues and costs

Costs must include all expenses involved in servicing this customer

Very few companies capture transaction-specific data at the individual customer level over extended time periods

Caution What are the costs of ldquofiringrdquo unwanted customers

Understanding Customersrsquo Needs and WantsInternational Marketing Research

The marketing concept is universal but customer wants are not

IMR helps firms understand consumers across national borders Think globally learn locally

Nestle approach

Latent and Manifest Motives

Researching Consumer Motives

Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response

(Unconscious Projection) (see Table 10-2 for details)

1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique

Case 3-1 The Sure Thing That Flopped

Whatrsquos wrong with market research

IMR Objectives

Diagnostic

Predictive

Descriptive Gathering and presenting

factual statements

Explaining data

Attempting to estimate the results of a planned marketing decision

IMR ChallengesAccess to information

Secondary data availability and reliability Primary data issues

Data collection ndash eg respondents access to Internet reliability of postal service

Language barriers Is 100 accuracy in translation possible

High-context vs low-context cultures Some concepts are not universal Back-translation

Cultural norm barriers Response to incentives

3-2 Understanding Markets Through International Market Research

17

Geography

Demographics

Psychographics

Behavior

Market Segmentation Bases for Segmentation

18

By Region

City vs Rural

By Climate By Density

Bases for Geographic Segmentation

19

Bases for Demographic Segmentation

Age Gender Income Ethnic background Family Life Cycle Occupation education religion race

and nationality

20

Lifestyle

Personality

Bases for Psychographics Segmentation

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

Audiences

General Public

Market Segmentation

Market segmentation is a portion of a larger market whose needs differ from the larger market

Market Segmentation

Market Segmentation Involves Four Steps

1 Identifying Product-Related Need Sets

2 Grouping Customers with Similar Need Sets

3 Describing Each Group

4 Selecting an Attractive Segment(s) to Serve

The PURPOSE OF MARKETING is to help the consumer experience the proverbial Tattoo that is already within himher

The desire of having tattoo is already inside the consumer

The desire to wear a shoe like this is already inside the consumer

To satisfy the consumer you have to bring that tattoo out

Do we always know our NampWs

What is the relationship between customer satisfaction and market share

Differentiating Customers According to Value

How can you determine which customers need to be ldquofiredrdquo

This requires a historical analysis of an individual customerrsquos revenues and costs

Costs must include all expenses involved in servicing this customer

Very few companies capture transaction-specific data at the individual customer level over extended time periods

Caution What are the costs of ldquofiringrdquo unwanted customers

Understanding Customersrsquo Needs and WantsInternational Marketing Research

The marketing concept is universal but customer wants are not

IMR helps firms understand consumers across national borders Think globally learn locally

Nestle approach

Latent and Manifest Motives

Researching Consumer Motives

Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response

(Unconscious Projection) (see Table 10-2 for details)

1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique

Case 3-1 The Sure Thing That Flopped

Whatrsquos wrong with market research

IMR Objectives

Diagnostic

Predictive

Descriptive Gathering and presenting

factual statements

Explaining data

Attempting to estimate the results of a planned marketing decision

IMR ChallengesAccess to information

Secondary data availability and reliability Primary data issues

Data collection ndash eg respondents access to Internet reliability of postal service

Language barriers Is 100 accuracy in translation possible

High-context vs low-context cultures Some concepts are not universal Back-translation

Cultural norm barriers Response to incentives

3-2 Understanding Markets Through International Market Research

17

Geography

Demographics

Psychographics

Behavior

Market Segmentation Bases for Segmentation

18

By Region

City vs Rural

By Climate By Density

Bases for Geographic Segmentation

19

Bases for Demographic Segmentation

Age Gender Income Ethnic background Family Life Cycle Occupation education religion race

and nationality

20

Lifestyle

Personality

Bases for Psychographics Segmentation

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

Market Segmentation

Market segmentation is a portion of a larger market whose needs differ from the larger market

Market Segmentation

Market Segmentation Involves Four Steps

1 Identifying Product-Related Need Sets

2 Grouping Customers with Similar Need Sets

3 Describing Each Group

4 Selecting an Attractive Segment(s) to Serve

The PURPOSE OF MARKETING is to help the consumer experience the proverbial Tattoo that is already within himher

The desire of having tattoo is already inside the consumer

The desire to wear a shoe like this is already inside the consumer

To satisfy the consumer you have to bring that tattoo out

Do we always know our NampWs

What is the relationship between customer satisfaction and market share

Differentiating Customers According to Value

How can you determine which customers need to be ldquofiredrdquo

This requires a historical analysis of an individual customerrsquos revenues and costs

Costs must include all expenses involved in servicing this customer

Very few companies capture transaction-specific data at the individual customer level over extended time periods

Caution What are the costs of ldquofiringrdquo unwanted customers

Understanding Customersrsquo Needs and WantsInternational Marketing Research

The marketing concept is universal but customer wants are not

IMR helps firms understand consumers across national borders Think globally learn locally

Nestle approach

Latent and Manifest Motives

Researching Consumer Motives

Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response

(Unconscious Projection) (see Table 10-2 for details)

1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique

Case 3-1 The Sure Thing That Flopped

Whatrsquos wrong with market research

IMR Objectives

Diagnostic

Predictive

Descriptive Gathering and presenting

factual statements

Explaining data

Attempting to estimate the results of a planned marketing decision

IMR ChallengesAccess to information

Secondary data availability and reliability Primary data issues

Data collection ndash eg respondents access to Internet reliability of postal service

Language barriers Is 100 accuracy in translation possible

High-context vs low-context cultures Some concepts are not universal Back-translation

Cultural norm barriers Response to incentives

3-2 Understanding Markets Through International Market Research

17

Geography

Demographics

Psychographics

Behavior

Market Segmentation Bases for Segmentation

18

By Region

City vs Rural

By Climate By Density

Bases for Geographic Segmentation

19

Bases for Demographic Segmentation

Age Gender Income Ethnic background Family Life Cycle Occupation education religion race

and nationality

20

Lifestyle

Personality

Bases for Psychographics Segmentation

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

Market Segmentation

Market Segmentation Involves Four Steps

1 Identifying Product-Related Need Sets

2 Grouping Customers with Similar Need Sets

3 Describing Each Group

4 Selecting an Attractive Segment(s) to Serve

The PURPOSE OF MARKETING is to help the consumer experience the proverbial Tattoo that is already within himher

The desire of having tattoo is already inside the consumer

The desire to wear a shoe like this is already inside the consumer

To satisfy the consumer you have to bring that tattoo out

Do we always know our NampWs

What is the relationship between customer satisfaction and market share

Differentiating Customers According to Value

How can you determine which customers need to be ldquofiredrdquo

This requires a historical analysis of an individual customerrsquos revenues and costs

Costs must include all expenses involved in servicing this customer

Very few companies capture transaction-specific data at the individual customer level over extended time periods

Caution What are the costs of ldquofiringrdquo unwanted customers

Understanding Customersrsquo Needs and WantsInternational Marketing Research

The marketing concept is universal but customer wants are not

IMR helps firms understand consumers across national borders Think globally learn locally

Nestle approach

Latent and Manifest Motives

Researching Consumer Motives

Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response

(Unconscious Projection) (see Table 10-2 for details)

1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique

Case 3-1 The Sure Thing That Flopped

Whatrsquos wrong with market research

IMR Objectives

Diagnostic

Predictive

Descriptive Gathering and presenting

factual statements

Explaining data

Attempting to estimate the results of a planned marketing decision

IMR ChallengesAccess to information

Secondary data availability and reliability Primary data issues

Data collection ndash eg respondents access to Internet reliability of postal service

Language barriers Is 100 accuracy in translation possible

High-context vs low-context cultures Some concepts are not universal Back-translation

Cultural norm barriers Response to incentives

3-2 Understanding Markets Through International Market Research

17

Geography

Demographics

Psychographics

Behavior

Market Segmentation Bases for Segmentation

18

By Region

City vs Rural

By Climate By Density

Bases for Geographic Segmentation

19

Bases for Demographic Segmentation

Age Gender Income Ethnic background Family Life Cycle Occupation education religion race

and nationality

20

Lifestyle

Personality

Bases for Psychographics Segmentation

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

The PURPOSE OF MARKETING is to help the consumer experience the proverbial Tattoo that is already within himher

The desire of having tattoo is already inside the consumer

The desire to wear a shoe like this is already inside the consumer

To satisfy the consumer you have to bring that tattoo out

Do we always know our NampWs

What is the relationship between customer satisfaction and market share

Differentiating Customers According to Value

How can you determine which customers need to be ldquofiredrdquo

This requires a historical analysis of an individual customerrsquos revenues and costs

Costs must include all expenses involved in servicing this customer

Very few companies capture transaction-specific data at the individual customer level over extended time periods

Caution What are the costs of ldquofiringrdquo unwanted customers

Understanding Customersrsquo Needs and WantsInternational Marketing Research

The marketing concept is universal but customer wants are not

IMR helps firms understand consumers across national borders Think globally learn locally

Nestle approach

Latent and Manifest Motives

Researching Consumer Motives

Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response

(Unconscious Projection) (see Table 10-2 for details)

1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique

Case 3-1 The Sure Thing That Flopped

Whatrsquos wrong with market research

IMR Objectives

Diagnostic

Predictive

Descriptive Gathering and presenting

factual statements

Explaining data

Attempting to estimate the results of a planned marketing decision

IMR ChallengesAccess to information

Secondary data availability and reliability Primary data issues

Data collection ndash eg respondents access to Internet reliability of postal service

Language barriers Is 100 accuracy in translation possible

High-context vs low-context cultures Some concepts are not universal Back-translation

Cultural norm barriers Response to incentives

3-2 Understanding Markets Through International Market Research

17

Geography

Demographics

Psychographics

Behavior

Market Segmentation Bases for Segmentation

18

By Region

City vs Rural

By Climate By Density

Bases for Geographic Segmentation

19

Bases for Demographic Segmentation

Age Gender Income Ethnic background Family Life Cycle Occupation education religion race

and nationality

20

Lifestyle

Personality

Bases for Psychographics Segmentation

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

What is the relationship between customer satisfaction and market share

Differentiating Customers According to Value

How can you determine which customers need to be ldquofiredrdquo

This requires a historical analysis of an individual customerrsquos revenues and costs

Costs must include all expenses involved in servicing this customer

Very few companies capture transaction-specific data at the individual customer level over extended time periods

Caution What are the costs of ldquofiringrdquo unwanted customers

Understanding Customersrsquo Needs and WantsInternational Marketing Research

The marketing concept is universal but customer wants are not

IMR helps firms understand consumers across national borders Think globally learn locally

Nestle approach

Latent and Manifest Motives

Researching Consumer Motives

Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response

(Unconscious Projection) (see Table 10-2 for details)

1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique

Case 3-1 The Sure Thing That Flopped

Whatrsquos wrong with market research

IMR Objectives

Diagnostic

Predictive

Descriptive Gathering and presenting

factual statements

Explaining data

Attempting to estimate the results of a planned marketing decision

IMR ChallengesAccess to information

Secondary data availability and reliability Primary data issues

Data collection ndash eg respondents access to Internet reliability of postal service

Language barriers Is 100 accuracy in translation possible

High-context vs low-context cultures Some concepts are not universal Back-translation

Cultural norm barriers Response to incentives

3-2 Understanding Markets Through International Market Research

17

Geography

Demographics

Psychographics

Behavior

Market Segmentation Bases for Segmentation

18

By Region

City vs Rural

By Climate By Density

Bases for Geographic Segmentation

19

Bases for Demographic Segmentation

Age Gender Income Ethnic background Family Life Cycle Occupation education religion race

and nationality

20

Lifestyle

Personality

Bases for Psychographics Segmentation

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

Differentiating Customers According to Value

How can you determine which customers need to be ldquofiredrdquo

This requires a historical analysis of an individual customerrsquos revenues and costs

Costs must include all expenses involved in servicing this customer

Very few companies capture transaction-specific data at the individual customer level over extended time periods

Caution What are the costs of ldquofiringrdquo unwanted customers

Understanding Customersrsquo Needs and WantsInternational Marketing Research

The marketing concept is universal but customer wants are not

IMR helps firms understand consumers across national borders Think globally learn locally

Nestle approach

Latent and Manifest Motives

Researching Consumer Motives

Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response

(Unconscious Projection) (see Table 10-2 for details)

1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique

Case 3-1 The Sure Thing That Flopped

Whatrsquos wrong with market research

IMR Objectives

Diagnostic

Predictive

Descriptive Gathering and presenting

factual statements

Explaining data

Attempting to estimate the results of a planned marketing decision

IMR ChallengesAccess to information

Secondary data availability and reliability Primary data issues

Data collection ndash eg respondents access to Internet reliability of postal service

Language barriers Is 100 accuracy in translation possible

High-context vs low-context cultures Some concepts are not universal Back-translation

Cultural norm barriers Response to incentives

3-2 Understanding Markets Through International Market Research

17

Geography

Demographics

Psychographics

Behavior

Market Segmentation Bases for Segmentation

18

By Region

City vs Rural

By Climate By Density

Bases for Geographic Segmentation

19

Bases for Demographic Segmentation

Age Gender Income Ethnic background Family Life Cycle Occupation education religion race

and nationality

20

Lifestyle

Personality

Bases for Psychographics Segmentation

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

How can you determine which customers need to be ldquofiredrdquo

This requires a historical analysis of an individual customerrsquos revenues and costs

Costs must include all expenses involved in servicing this customer

Very few companies capture transaction-specific data at the individual customer level over extended time periods

Caution What are the costs of ldquofiringrdquo unwanted customers

Understanding Customersrsquo Needs and WantsInternational Marketing Research

The marketing concept is universal but customer wants are not

IMR helps firms understand consumers across national borders Think globally learn locally

Nestle approach

Latent and Manifest Motives

Researching Consumer Motives

Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response

(Unconscious Projection) (see Table 10-2 for details)

1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique

Case 3-1 The Sure Thing That Flopped

Whatrsquos wrong with market research

IMR Objectives

Diagnostic

Predictive

Descriptive Gathering and presenting

factual statements

Explaining data

Attempting to estimate the results of a planned marketing decision

IMR ChallengesAccess to information

Secondary data availability and reliability Primary data issues

Data collection ndash eg respondents access to Internet reliability of postal service

Language barriers Is 100 accuracy in translation possible

High-context vs low-context cultures Some concepts are not universal Back-translation

Cultural norm barriers Response to incentives

3-2 Understanding Markets Through International Market Research

17

Geography

Demographics

Psychographics

Behavior

Market Segmentation Bases for Segmentation

18

By Region

City vs Rural

By Climate By Density

Bases for Geographic Segmentation

19

Bases for Demographic Segmentation

Age Gender Income Ethnic background Family Life Cycle Occupation education religion race

and nationality

20

Lifestyle

Personality

Bases for Psychographics Segmentation

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

Understanding Customersrsquo Needs and WantsInternational Marketing Research

The marketing concept is universal but customer wants are not

IMR helps firms understand consumers across national borders Think globally learn locally

Nestle approach

Latent and Manifest Motives

Researching Consumer Motives

Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response

(Unconscious Projection) (see Table 10-2 for details)

1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique

Case 3-1 The Sure Thing That Flopped

Whatrsquos wrong with market research

IMR Objectives

Diagnostic

Predictive

Descriptive Gathering and presenting

factual statements

Explaining data

Attempting to estimate the results of a planned marketing decision

IMR ChallengesAccess to information

Secondary data availability and reliability Primary data issues

Data collection ndash eg respondents access to Internet reliability of postal service

Language barriers Is 100 accuracy in translation possible

High-context vs low-context cultures Some concepts are not universal Back-translation

Cultural norm barriers Response to incentives

3-2 Understanding Markets Through International Market Research

17

Geography

Demographics

Psychographics

Behavior

Market Segmentation Bases for Segmentation

18

By Region

City vs Rural

By Climate By Density

Bases for Geographic Segmentation

19

Bases for Demographic Segmentation

Age Gender Income Ethnic background Family Life Cycle Occupation education religion race

and nationality

20

Lifestyle

Personality

Bases for Psychographics Segmentation

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

Latent and Manifest Motives

Researching Consumer Motives

Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response

(Unconscious Projection) (see Table 10-2 for details)

1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique

Case 3-1 The Sure Thing That Flopped

Whatrsquos wrong with market research

IMR Objectives

Diagnostic

Predictive

Descriptive Gathering and presenting

factual statements

Explaining data

Attempting to estimate the results of a planned marketing decision

IMR ChallengesAccess to information

Secondary data availability and reliability Primary data issues

Data collection ndash eg respondents access to Internet reliability of postal service

Language barriers Is 100 accuracy in translation possible

High-context vs low-context cultures Some concepts are not universal Back-translation

Cultural norm barriers Response to incentives

3-2 Understanding Markets Through International Market Research

17

Geography

Demographics

Psychographics

Behavior

Market Segmentation Bases for Segmentation

18

By Region

City vs Rural

By Climate By Density

Bases for Geographic Segmentation

19

Bases for Demographic Segmentation

Age Gender Income Ethnic background Family Life Cycle Occupation education religion race

and nationality

20

Lifestyle

Personality

Bases for Psychographics Segmentation

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

Researching Consumer Motives

Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response

(Unconscious Projection) (see Table 10-2 for details)

1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique

Case 3-1 The Sure Thing That Flopped

Whatrsquos wrong with market research

IMR Objectives

Diagnostic

Predictive

Descriptive Gathering and presenting

factual statements

Explaining data

Attempting to estimate the results of a planned marketing decision

IMR ChallengesAccess to information

Secondary data availability and reliability Primary data issues

Data collection ndash eg respondents access to Internet reliability of postal service

Language barriers Is 100 accuracy in translation possible

High-context vs low-context cultures Some concepts are not universal Back-translation

Cultural norm barriers Response to incentives

3-2 Understanding Markets Through International Market Research

17

Geography

Demographics

Psychographics

Behavior

Market Segmentation Bases for Segmentation

18

By Region

City vs Rural

By Climate By Density

Bases for Geographic Segmentation

19

Bases for Demographic Segmentation

Age Gender Income Ethnic background Family Life Cycle Occupation education religion race

and nationality

20

Lifestyle

Personality

Bases for Psychographics Segmentation

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

Case 3-1 The Sure Thing That Flopped

Whatrsquos wrong with market research

IMR Objectives

Diagnostic

Predictive

Descriptive Gathering and presenting

factual statements

Explaining data

Attempting to estimate the results of a planned marketing decision

IMR ChallengesAccess to information

Secondary data availability and reliability Primary data issues

Data collection ndash eg respondents access to Internet reliability of postal service

Language barriers Is 100 accuracy in translation possible

High-context vs low-context cultures Some concepts are not universal Back-translation

Cultural norm barriers Response to incentives

3-2 Understanding Markets Through International Market Research

17

Geography

Demographics

Psychographics

Behavior

Market Segmentation Bases for Segmentation

18

By Region

City vs Rural

By Climate By Density

Bases for Geographic Segmentation

19

Bases for Demographic Segmentation

Age Gender Income Ethnic background Family Life Cycle Occupation education religion race

and nationality

20

Lifestyle

Personality

Bases for Psychographics Segmentation

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

IMR Objectives

Diagnostic

Predictive

Descriptive Gathering and presenting

factual statements

Explaining data

Attempting to estimate the results of a planned marketing decision

IMR ChallengesAccess to information

Secondary data availability and reliability Primary data issues

Data collection ndash eg respondents access to Internet reliability of postal service

Language barriers Is 100 accuracy in translation possible

High-context vs low-context cultures Some concepts are not universal Back-translation

Cultural norm barriers Response to incentives

3-2 Understanding Markets Through International Market Research

17

Geography

Demographics

Psychographics

Behavior

Market Segmentation Bases for Segmentation

18

By Region

City vs Rural

By Climate By Density

Bases for Geographic Segmentation

19

Bases for Demographic Segmentation

Age Gender Income Ethnic background Family Life Cycle Occupation education religion race

and nationality

20

Lifestyle

Personality

Bases for Psychographics Segmentation

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

IMR ChallengesAccess to information

Secondary data availability and reliability Primary data issues

Data collection ndash eg respondents access to Internet reliability of postal service

Language barriers Is 100 accuracy in translation possible

High-context vs low-context cultures Some concepts are not universal Back-translation

Cultural norm barriers Response to incentives

3-2 Understanding Markets Through International Market Research

17

Geography

Demographics

Psychographics

Behavior

Market Segmentation Bases for Segmentation

18

By Region

City vs Rural

By Climate By Density

Bases for Geographic Segmentation

19

Bases for Demographic Segmentation

Age Gender Income Ethnic background Family Life Cycle Occupation education religion race

and nationality

20

Lifestyle

Personality

Bases for Psychographics Segmentation

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

3-2 Understanding Markets Through International Market Research

17

Geography

Demographics

Psychographics

Behavior

Market Segmentation Bases for Segmentation

18

By Region

City vs Rural

By Climate By Density

Bases for Geographic Segmentation

19

Bases for Demographic Segmentation

Age Gender Income Ethnic background Family Life Cycle Occupation education religion race

and nationality

20

Lifestyle

Personality

Bases for Psychographics Segmentation

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

17

Geography

Demographics

Psychographics

Behavior

Market Segmentation Bases for Segmentation

18

By Region

City vs Rural

By Climate By Density

Bases for Geographic Segmentation

19

Bases for Demographic Segmentation

Age Gender Income Ethnic background Family Life Cycle Occupation education religion race

and nationality

20

Lifestyle

Personality

Bases for Psychographics Segmentation

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

18

By Region

City vs Rural

By Climate By Density

Bases for Geographic Segmentation

19

Bases for Demographic Segmentation

Age Gender Income Ethnic background Family Life Cycle Occupation education religion race

and nationality

20

Lifestyle

Personality

Bases for Psychographics Segmentation

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

19

Bases for Demographic Segmentation

Age Gender Income Ethnic background Family Life Cycle Occupation education religion race

and nationality

20

Lifestyle

Personality

Bases for Psychographics Segmentation

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

20

Lifestyle

Personality

Bases for Psychographics Segmentation

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

21

Occasions

Benefits

User Status

Usage Rate

Loyalty Status

Bases for Behavior Segmentation

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

22

Occupational Influences on Consumption

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

23

Education Level Influences on Consumption

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

24

Age Influences on Consumption

Age Influences on Consumption

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

25

Social Class and Leisure

Lower-class bowling hunting visiting casinos TV and bingo

Middle-class team sports (eg volleyball) cards shopping

visiting friends

Upper-class golf polo operas symphonies and plays

Budweiser Busch Michelob

26

Discussion

You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos

product lines and styles

advertising media selection

the copy and communication style used in the ads

payment policies

27

Case 3-4 Groupon

• Slide 1
• Slide 2
• Audiences
• Slide 4
• Slide 5
• Slide 6
• What is the relationship between customer satisfaction and mark
• Differentiating Customers According to Value
• How can you determine which customers need to be ldquofiredrdquo
• Understanding Customersrsquo Needs and Wants International Marketi
• Latent and Manifest Motives
• Researching Consumer Motives
• Slide 13
• IMR Objectives
• IMR Challenges
• Slide 16
• Slide 17
• Slide 18
• Bases for Demographic Segmentation
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Social Class and Leisure
• Discussion
• Case 3-4 Groupon

27

Case 3-4 Groupon

• Slide 1
• Slide 2
• Audiences
• Slide 4
• Slide 5
• Slide 6
• What is the relationship between customer satisfaction and mark
• Differentiating Customers According to Value
• How can you determine which customers need to be ldquofiredrdquo
• Understanding Customersrsquo Needs and Wants International Marketi
• Latent and Manifest Motives
• Researching Consumer Motives
• Slide 13
• IMR Objectives
• IMR Challenges
• Slide 16
• Slide 17
• Slide 18
• Bases for Demographic Segmentation
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Social Class and Leisure
• Discussion
• Case 3-4 Groupon