Chapter 15 - personality and segmentation - 2009 Notes

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Chapter 15 - personality and segmentation - 2009 Notes Powered By Docstoc
					Personality, Segmentation and

         Chapter 15
      Today’s Objectives

• Discuss Personality and how it is
  used by marketers
• Define market segmentation
• Analyze market segmentation in
  terms of 5 interrelated tasks
• Discuss how products are positioned

• A person’s unique _____________________and
  how it consistently influences the way a person
  responds to his/her environment
•     -Stable vs. _____________-specific

• Personality Characteristics
•     Psychoanalysis
•     Trait Theory
•     Brand Personality
        Freudian Psychoanalysis
• Personality = conflict between
  gratification & responsibility

  – Id: ____________principle

  – Superego: our ______________

  – Ego: mediates between id and superego
        Freudian Psychoanalysis
• Marketing Implications
  – Symbolism in products to exploit id
    or superego
     • -Or pit against each other
     • -___________symbols

  – Unconscious motives underlying
Freudian Motives for Consumption
                         Trait Theory

• Personality traits: identifiable characteristics that define a person
• Traits relevant to consumer behavior:
    –   ___________________(Openness to new experiences)
    –   Self-consciousness (Neuroticism/Emotional stability)
    –   ___________________(Interacting with others)
    –   Conscientiousness (Need for cognition/Systematic)
    –   ___________________(Comfortable in social settings)

• Other Important Traits
    – Frugality vs. Materialism
    – Emotional Intelligence (trait-based)
     Are You an Innie or an Outie?
• What is your personality type?

   Myers-Briggs personality profile
  Big 5 and Brand Preferences

Personality Dimension   Preferred Brand Characteristics

     Neuroticism        Emotional, ______________
     Extraversion       Sociable, Active, people-oriented,
                        _______________, Affectionate, Fun
      Openness          Creative, Original, Imaginative,
    Agreeableness       Helpful, Straightforward, ______________
   Conscientiousness    Neat, Preserving, Purposeful
     Marketing Applications of Personality

• Marketers have recently begun to look at
  “_______________________” in hopes that
  consumers who identify with these
  personality types will buy these brands.
              Brand Personality
• Set of traits people attribute to a product as if
  it were a person
      -Based on “Anthropomorphism”
Seen as a valuable factor in increasing brand
engagement and brand _______________,
in much the same way as people relate and
bind to other people
    Product Personality Issues

• Gender
  – Often used for brand ________________
  – Some products perceived as masculine (coffee and
    toothpaste) while others as feminine (bath soap and
• Color
  – Color combinations in packaging and products denotes
• Geography
  – Actual locations like _______________cream cheese and
    ____________iced tea
  – Fictitious names also used such as Hidden Valley and
    Bear Creek
      Market Segmentation
• “A single brand usually will not appeal to all
• Market segmentation is the process of
  dividing a market into groups of __________
  consumers… and then selecting the most
  _______________ group(s) of individuals for
  the firm to serve (target market)

• Five tasks in the process of market
Tasks in Market Segmentation
Analyze Consumer-Product Relationships

• Analysis of the affect and cognition, behavior,
  and environments involved in the
  purchase/consumption process for the
  particular product

• Three general approaches
  – _________________
  – Focus groups and other types of primary
  – ________________research
Useful Segmentation Bases for Consumer Markets
Useful Segmentation Bases for Consumer Markets cont.
Investigate Segmentation Bases

• No simple way to determine the best bases
  for segmenting markets

• Several combined types of segmentation
  – Benefit (benefits sought)
  – _________________(lifestyles)
  – Person/situation (usage situation with
  – ___________________(geography with
Benefit Segmentation
       VALS II (Values & Lifestyles)
• The best-known psychographic segmentation is
  called VALS II

• VALS II is based on the idea that most people
  have one of three basic orientations:
   – ______-oriented - behavior is guided by a strongly
     held set of internal principles and values
   – ____________-Oriented - behavior is strongly
     influenced by the actions and approval of others,
     they like to demonstrate their success to others
   – _________________-oriented - strong desire for a
     high level of social and physical activity, like variety
     and risk
     VALS II (Values & Lifestyles)

• Combine these orientations with the amount
  of resources individuals have to follow their
  – Resources = money, time, energy (mental and
    physical), health, education
VALS™ Framework and Segments
 Person/Situation Segmentation

• Markets can often be divided on the basis of
  the _________________in conjunction with
  individual differences of consumers
  – Combines not only the person and the situation,
    but also other important segmentation bases
     • Demographics
     • Benefits sought
     • Product and attribute perceptions
            -Hummer, Bud Light, Absolute
   Geodemographic Segmentation

• Identifies specific households by;
  – Focusing on local neighborhood geography
  – Creating classifications of actual, addressable,
    ______________neighborhoods where
    consumers live and shop
    Develop Product Positioning
• Positioning the product relative to competing
  products in the minds of consumers
   – Key objective is to form a particular ______________ in
     consumers’ minds

   – Accomplished by developing a coherent strategy that may
     involve all of the marketing mix elements
Develop Product Positioning cont.

– Five approaches for a positioning strategy:
   •   ________________
   •   Product class
   •   Use or application
   •   Product user
   •   ________________
• Positioning can be accomplished in 5 ways:
   – Positioning by Attribute
      -Better ingredients. Better pizza
      -Toothpaste with baking soda
   – Positioning by Product Class
      • Comparing it to a different product category
        -Caress is like bath oil in a bar
        -Montana drives like a car, but does the job of a truck.
– Positioning by Use or Application
   • Telling consumers “when/where” they should use
     -Brawny - It’s for tough jobs.
– Positioning by user
   • Telling consumers “who” should be using it
     -Choosy mothers choose Jif.
– Positioning by Competitors
   • Compare it to other brands
       -Avis - We’re #2, we try harder.
       -Tylenol Extra Strength- more effective than the leading
         prescription medicine
       -Subway – the lower fat alternative to burgers

Can use “Positioning Map” to understand how your product
is positioned compared to competitors…
Positioning Map for Automobiles
 Select Segmentation Strategy

• Four basic segmentation strategy alternatives
  – 1. May decide not to enter the market
  – 2. May decide to be a mass marketer instead of
  – 3. May decide to market to only one segment
  – 4. May decide to market more than one
    segment and design a separate marketing
    strategy for each
   Design Marketing Mix Strategy

• Develop and finalize the marketing mix for set of
  targeted segments (target market)
      -Primary and Secondary

• Next lecture (chapters 16-19) will discuss consumer
  behavior and marketing mix strategy!