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1、 2015 Cengage Learning.All Rights Reserved.May not be scanned,copied or duplicated,or posted to a publicly accessible website,in whole or in part.1 Chapter 2 Consumer-Focused Strategy:Segmentation and Positioning Outline Chapter Objectives Chapter Summary Teaching Suggestions Opening Vignette A Divi
2、de and Conquer Strategy How Consumers and Society Benefit from Market Segmentation Factors Influencing Market Segmentation Strategies Bases of Segmentation Demographic Bases Geographic Bases Geo-demographic Bases Psychographic Bases Behavioral Bases Positioning Positioning a Leader Positioning a Fol
3、lower Positioning Linked to Segmentation Bases Repositioning Perceptual Mapping Review and Discussion Questions Chapter Objectives After studying this chapter,you will be able to.Objective 1Define segmentation,target markets,and positioning,and understand why this process is important to marketers.O
4、bjective 2Explain how society benefits form market segmentation.Objective 3Describe the factors that influence the determination of a segmentation strategy.Objective 4Discuss various bases of segmentation.Objective 5Provide examples of strategies marketers use to position brands after segmentation.2
5、015 Cengage Learning.All Rights Reserved.May not be scanned,copied or duplicated,or posted to a publicly accessible website,in whole or in part.2 Chapter Summary One of the most important ways marketers discover and satisfy customer needs and wants efficiently is through a“divide and conquer”process
6、 of market segmentation and positioning.Market segmentation is the process of dividing the large and diverse mass market into subsets of consumers who share common needs,characteristics,or behaviors,and then targeting one or more of those segments with a distinct marketing mix.By identifying groups
7、of highly similar consumers,a marketer is able to develop products and services specifically tailored to that groups needs that also closely match the capabilities of the organization,thus maximizing the chances of profit and success.Marketers make two underlying assumptions related to market segmen
8、tation:(1)consumer preferences vary,and(2)by tailoring a product or service to a segments needs,firms can make the offer so appealing that segment members are willing to pay a price that offsets the higher associated costs.In addition to these assumptions,four factors influence a companys market seg
9、mentation strategy:1.Consumer preference heterogeneity(the idea that consumer preferences vary).2.Majority fallacy(the risk of focusing on large,average segments and neglecting smaller,less typical segments).3.Sales-cost trade-off(the fact that market segmentation increases sales and costs simultane
10、ously).4.Potential for cannibalization(when different products offered by the same company are very similar,they compete with each other).Bases of segmentation include demographic,geographic,psychographic,attributes/benefits,and behavioral.Demographic-based segmentation divides customers according t
11、o vital population statistics.In geographic-based segmentation,the market is divided based on the physical location of potential customers.An underlying assumption of this market segmentation base is that consumers located in geographic proximity share similar needs and preferences for some products
12、.Geo-demographic-based segmentation combines geography and demographic segmentation bases.Psychographic-based segmentation centers on customers lifestyles.One of the leading lifestyle segmentation systems is the VALS System.Behavioral-based segmentation involves segmenting consumers based on consume
13、r preferences for a particular product attribute or benefit,usage occasion,user status,rate of product usage,and loyalty status.Positioning is the process of communicating with target market(s)through specifically chosen marketing mix variables to help consumers differentiate a product from its comp
14、etition and perceive how this product best satisfies their needs.Sometimes marketers use terms like value proposition or The Big Idea to describe a brand,product,or positioning strategy.2015 Cengage Learning.All Rights Reserved.May not be scanned,copied or duplicated,or posted to a publicly accessib
15、le website,in whole or in part.3 Like the bases of segmentation,companies use several strategies to position their products.The best positioning strategy depends on the characteristics of the product,market segmentation bases used,the competition,and the type of mental associations marketers want co
16、nsumers to form.If a brand is the pioneer,that should be emphasized in its promotion.If the brand is markedly different on a single,easy-to-communicate,and important dimension,a single core benefit proposition should be used.If the brand is very similar to competitors offerings or difficult to diffe
17、rentiate by product attribute,then price,usage situation,or user are ways of differentiating it.If competing brands have an exploitable weakness,repositioning is a possible strategy.Finally,marketers use perceptual mapping to measure consumer preferences and develop competitive strategies.2015 Cenga
18、ge Learning.All Rights Reserved.May not be scanned,copied or duplicated,or posted to a publicly accessible website,in whole or in part.4 TEACHING NOTES Teaching Suggestions 1.Ask students to survey current advertisements from a variety of media:local billboards,Internet sites,TV,radio,consumer magaz
19、ines,and newspapers.Ask them to identify specific ads representing each positioning strategy discussed in the chapter.Bonus points could be awarded to students who find examples of different positioning strategies for brands in the same product category.2.To illustrate the usefulness of perceptual m
20、apping,ask students to construct perceptual maps for a product category(e.g.,shampoo,coffee,cell phone service).Theyll need to determine at least two attributes that are important for consumers in this product category.Then,they should plot brands in the map according to their perceptions of the var
21、ious brands.Ask students to observe and discuss the implications of brands that are clustered close together.Are there any gaps in the map?If so,do students perceive them as opportunities,infeasibilities,or undesirables?3.Briefly explain the nature of geo-demographic segmentation.Then,go to the Clar
22、itas Web site:.Ask students to provide the ZIP Codes of their home towns or a ZIP Code of a famous location(e.g.,Beverly Hills).Type a few select ZIP Codes into Claritas PRIZM“ZIP Code lookup.”The five most common PRIZM segments will emerge.Ask students to evaluate the“names”of these segments and ve
23、rify the accuracy of the segment descriptions.Class discussion that follows is typically quite lively.Opening Vignette The opening vignette describes a supermarket(Jungle Jims,just north of Cincinnati,Ohio)that marries two unique traits:(1)shopping-as-entertainment and(2)international specialty food
24、s.Through creative positioning,Jungle Jims has been able to distinguish itself in the fiercely price-competitive grocery market.A Divide and Conquer Strategy This section defines market segmentation as dividing mass markets into subsets of consumers who share common needs,characteristics,or behavior
25、s,and then selecting one or more of those segments to serve with a distinct marketing mix.This two-step process is referred to as a“divide and conquer”strategy.1.Dividing involves disaggregating and aggregating the market into homogeneous subgroups.2.Conquering involves targeting one or more segment
26、s for business.The Benefits of Marketing Segmentation 1.Firms benefit by more efficiently using their resources,i.e.,its more efficient to target a homogeneous subgroup of consumers than to try and please a mass 2015 Cengage Learning.All Rights Reserved.May not be scanned,copied or duplicated,or pos
27、ted to a publicly accessible website,in whole or in part.5 market.Firms can also avoid direct competition by selecting an underserved market or specializing.2.Consumers benefit because their unique needs are more likely to be satisfied.In addition,their search costs are reduced.3.Society benefits be
28、cause target marketing encourages the development of new and better products and services.Factors Influencing Marketing Segmentation Strategies This section describes key factors that influence the way the market is segmented.The fundamental premise of market segmentation is that consumers are not a
29、ll alike.This begs the question:To what extent do consumers differ in their preferences for products and services?1.Preference heterogeneity is the extent to which consumers differ in their needs and wants.The greater the preference heterogeneity is,the more finely segmented the market can be.The ex
30、tremes of preference heterogeneity are defined at one end by a mass market and at the other end by a picomarket,or individual consumer.2.The majority fallacy describes a situation where marketers focus on larger segments that exhibit“average”preferences and neglect smaller,less typical market segmen
31、ts.The fallacy lies in the assumption that the larger markets will generate more profits.Often,the opposite is true:Smaller,more extreme groups are less crowded and underserved.Figure 2.1 depicts the majority fallacy with a graph of normally distributed preferences.3.Sales/Cost Trade-offs recognize
32、that as market segmentation increases,sales also increase because a firms marketing mix is more likely to align with consumers preferences.On the other hand,costs also increase because multi-product strategies are more expensive to implement.Thus,marketers must carefully evaluate both the costs and
33、benefits of increased segmentation.4.Cannibalization occurs when products offered by the same firm are so similar that they compete among themselves,creating a situation of oversegmentation.Here,one brand may“eat away”market share from another brand in the same family(e.g.,Diet Pepsi Lime and Diet P
34、epsi Vanilla).Bases of Segmentation This section outlines the four primary bases of segmentation:demographic,geographic,psychographic,and behavioral.2015 Cengage Learning.All Rights Reserved.May not be scanned,copied or duplicated,or posted to a publicly accessible website,in whole or in part.6 Tabl
35、e 2.1 lists the four segmentation categories,along with sub-variables and illustrative examples.1.Demography refers to the study of populations.Thus,variables based on vital population statistics provide measureable means to segment product markets.Markets segmented this way use data on age,gender,i
36、ncome,education,occupation,marital status,family life cycle,ethnicity,and religion to split mass markets into segments.2.Geography refers to the physical location of consumers.Variables such as total population,density,regional differences in culture,and climate can be used to differentiate market s
37、egments.3.Geo-demography combines geographic and demographic segmentation bases.It is sometimes referred to as ZIP-Code marketing.The basic tenet is“birds of a feather flock together.”PRIZM by Claritas provides 66 distinct segments,combined into 14 broad social groups.4.Psychography involves the mea
38、surement of lifestyle,often combined with attitudes,beliefs,and personalities.Psychographic segmentation can be summarized with the AIO model(activities,interests,and opinions).Another way to capture psychography is to determine where consumers spend their leisure time and disposable income.The VALS
39、 System by SRIC-BI provides a two-dimensional model of psychographic segmentation.Figure 2.2 and Table 2.2 describe the VALS Segments.5.Behavioral segmentation groups consumers based on their preferences for a specific benefit,use occasion,user status,rate of product usage,and loyalty status.Benefit
40、-based segmentation centers on consumers preferences for specific attributes or outcomes delivered by a product(e.g.,picture resolution or price for a digital camera).Figure 2.3 describes benefit segmentation based on price.Usage occasion and product usage describes purchasing and consuming products
41、 at different times of the day(e.g.,drinking orange juice in the morning or evening),different times of the year(taking vacations in the summer vs.winter),at different events(e.g.,birthdays),or on different occasions(e.g.,holidays).Positioning This section defines positioning as the place that a bra
42、nd occupies in the mind of the consumer,relative to competitors products.Two important clarifications surround this definition:2015 Cengage Learning.All Rights Reserved.May not be scanned,copied or duplicated,or posted to a publicly accessible website,in whole or in part.7 1.A firm must position in
43、terms of the competition.2.Marketing communication(e.g.,advertising and promotion)creates positioning not product design and development.Positioning Strategies 1.Positioning as a leader is usually reserved for pioneering brandsthose brands first to enter and define a market(e.g.,Coke,Xerox,Kleenex,L
44、inoleum).2.Positioning as a follower occurs when a brand creates a new category(e.g.,Michelob Ultra),does the“opposite”(e.g.,7-Up),or promotes itself as the underdog(e.g.,Avis).3.Positioning linked to segmentation parallels the segmentation bases discussed above(benefit,price,product use situation,p
45、roduct user).Repositioning Repositioning involves changing how consumers perceive a brand,relative to its competitors.Tylenol repositioned as“the brand that wont upset your stomach.”Royal Doulton china changed consumers perceptions by repositioning competitor Lenox as a brand from New Jersey.Scope r
46、epositioned itself as delivering“fresh minty breath.”Perceptual Mapping This section describes how consumer perceptions can be depicted on graphs,with the x-axis indicating product attributes.A perceptual map tells marketers who their direct competitors are(plotted in nearby Cartesian space)and what
47、 brands represent less serious competition.Blank spaces on the maps indicate potential gaps in the market,which could be:A true opportunity A combination of attributes that nobody wants(undesirables)A combination of attributes that is impossible to deliver(infeasibilities)Figure 2.4 depicts a percep
48、tual map of the soft-drink market.2015 Cengage Learning.All Rights Reserved.May not be scanned,copied or duplicated,or posted to a publicly accessible website,in whole or in part.8 Answers to Review and Discussion Questions 1.Clearly distinguish between the following terms:demographics,psychographic
49、,lifestyle,and positioning.Demographic characteristics are vital population statistics,such as age,gender,income,education,occupation,social class,marital status,household size,family life cycle,and culture or ethnicity.Psychographics is the measurement of lifestyle,often combined with measures of a
50、ttitudes,beliefs,and personalities.Lifestyle,which is simply how we live,is traditionally defined in terms of a persons activities,interests,and opinions.Positioning is the process of communicating with target market(s)in such a way as to help consumers differentiate the firms product from other pro