segmentation variables for retail stores
DESCRIPTION
in retail market segmentation values, behavioral variables have more importance.TRANSCRIPT
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Retail Marketing Segmentation
- N. Mohammed Nizar
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• A market is a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods and services tat can satisfy these needs
Mass Marketing Segmentation
Marketer
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Market Segmentation
• The process of dividing the heterogeneousTotal market into small group of customers who share similar set of wants
Ex. Women
Working Housewife
• Different groups have different promotional strategies and mkg mixes because they have diff. wants and needs
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Sub-segments
Women
Working Housewife
Children No Children
• Segmentation helps the retailer to customize the product and tailor its promotional campaigns
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Stages in Segmentation
Targeting
1. Decide on targeting2. Identify whichsegments will be Targeted3. How many segment should be targeted
Positioning
1. Understanding the target segment2. place offering in the mind of the target segment3. Evolve mkting mix
Segmentation
1. Choose variable for segmentation market2. State a profile of Segment3. Verify prospective segment
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Benefits
• Development of Marketing Mix
• Store location decisions
• Understand customer behavior
• Merchandising decision
• Promotional campaigns
• Positioning
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Criteria for effective segmentation
• Homogeneous within
• Heterogeneous between
• Substantial
- should be large enough
• Actionable
• Accessible
• Measurable
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Dimensions for Segmentation
• Geographic
• Demographic
• Psychographic
• Behavioral
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SEGMENTATION BASESEGMENTATION BASE SELECTED SEGMENTATION VARIABLESSELECTED SEGMENTATION VARIABLESGeographic Segmentation
Climate
Density of area
City Size
Region Southwest, Mountain States, Alaska, Hawaii
Major metropolitan areas, small cities, towns
Urban, suburban, exurban, rural
Temperate, hot, humid, rainy
Demographic Segmentation
Income
Marital statusSexAge Under 11, 12-17, 18-34, 35-49, 50-64, 65-74, 75-99, 100+
Male, femaleSingle, married, divorced, living together, widowed
Under $25,000, $25,000-$34,999, $35,000-$49,999, $50,000-$74,999, $75,000-$99,000, $100,000 and over
Occupation
Education Some high school, high school graduate, some college, college graduate, postgraduate
Professional, blue-collar, white-collar, agricultural, military
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SEGMENTATION BASESEGMENTATION BASE SELECTED SEGMENTATION VARIABLESSELECTED SEGMENTATION VARIABLESPsychological Segmentation
Learning-involvement
Perception
Personality
Needs-motivation Shelter, safety, security, affection, sense of self-worth
Extroverts, novelty seeker, aggressives, low dogmatics
Low-risk, moderate-risk, high-risk
Low-involvement, high-involvement
Psychographic
Subcultures (Race/ethnic)
Religion
Cultures
(Lifestyle) Segmentation Economy-minded, couch potatoes outdoors enthusiasts status seekers
American, Italian, Chinese, Mexican, French, Pakistani
Catholic, Protestant, Jewish, Moslem, other
African-American, Caucasian, Asian, Hispanic
Family life cycle
Social class Lower, middle, upper
Bachelors, young married, full nesters, empty nesters
Attitudes Positive attitude, negative attitude
Sociocultural Segmentation
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Values
• Refers to belief systemex. Benetton targeted customers who value protection of
environment, it encourages recyclable packaging and refill services
• Cultural values
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VALS• Begins with people instead of products
• Classifies people by their unique style of living
• It then determines how marketing factors fit into their lives- The self-driven materialists
- the independent Explorer
- The Passive traditionalist
- The enthusiastic experiments
- The mature Sensible
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Behavioral
• Reason/ occasion for purchase
• Frequency of purchase
• Quantity of purchase
• Product usage
• Loyalty status
• Buyers readiness stage
• Source of purchase
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Market Targeting• Choosing the segment• Measure the attractiveness and its capacity to
serve in the segment
Factors• Size of the segment• Purchasing power• Growth rate• Presence of competition• profitability
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Customer ProfileProfiles help the retailer in understanding the needs of the target segments and its shopping behavior
• Customer demographics• Family decision making • Psychographics• Purchsing behavior• Motivation for purchase• Purchasing process• Time utility• Space utility