1. Market Segmentation

2. Purpose of this section 1. Introduce the Concept of the MARKETING PLAN 2. To Define Market Segmentation 3. Present 4 types of market segmentation 4. Aspects of the Canadian market 5. Main types of segmentation in industrial markets

5. Fundamental Tasks in Developing a Marketing Plan 1. Target Market ** 2. Implement a Marketing Program ** this recognizes that you are “consumer oriented (to be able to do this, you have to recognize the difference among people and understand there are different segments)

9. Classes of Consumer Products Convenience Shopping Specialty Goods Services 14-1 POP $ $ ATM

10. Various Classes of Consumer and Industrial Goods and Services Def’n - industrial goods are products used in the production of other products

16. Figure 3.1 Bases for Market Segmentation Slide 3-7

20. Percentage Distribution of the Population of Canada by Province Slide 3-8 +, Ontario contains 52% of foreign born people in Canada Geographic Segmentation

22. Figure 3.4 Urban–Rural Population Distribution, 1871–1991 Slide 3-9 Geographic Segmentation

23. Geographic Segmentation The reason why we study geographic segmentation is because WHERE people live has a big effect on their consumption patterns. Additionally, WHERE people live in a city is also a reflection of their income level and we can make certain assumptions about their ABILITY TO SPEND based upon their address. This helps people plan store locations and the location of other services.

24. Geographic Segmentation Climate: winter equipment and recreation are effected by geographic location you will sell more snow shovels in Northern Ontario than southern Ontario , BUT, population in Northern Ontario is very small clothing purchases are also effected by climate/geography

29. Figure 3.5 Population Projections by Age Group Slide 3-10 Demographic Segmentation

38. Demographic Segmentation income Segmenting markets on the basis of income and expenditure patterns - The number of single mom families has increased by 12.8% between 1985 and 1994 - Male single parent families have more income, on average, than Female single parent families (chart 3.6)

41. Psychographic Segmentation “ The use of psychological attributes, lifestyles and attitudes in determining the behavioral profiles of different customers” TEXT The use of detailed information to understand differences in what people buy WTGR psychological

42. Psychographic Segmentation Psychographic profiles on a target market segment are obtained by doing a lot of questionnaires and surveys to ask people if they agree/disagree with certain statements made about particular activities, interests or opinions AIO - activities, interests, and opinions http://ourworld.compuserve.com/homepages/finkleman/psychogr.htm

43. Psychographic Segmentation Thompson Lightstone Segments 1. Passive/Uncertain 2. Mature 3. Home Economists 4. Active/Convenience 5. Modern Shoppers 6. Traditional Home/Family Oriented http://www.goldfarbconsultants.com/who.html

44. Psychographic Segmentation LIFESTYLE PROFILES Table 3.8 - HOW DO YOU FIT?

45. Benefit Segmentation “ It is based on the Attributes (characteristics) of products, as seen by the customers” example, people buy something because it causes a benefit ie. Diet coke - less sugar, lose weight ie. Extra white toothpaste, whiter teeth, better smile

46. Benefit Segmentation “ Many marketers now consider benefit segmentation one of the most useful methods of classifying markets” ie. Watches - the benefits customers looked for where durability and product quality- older research was based on dividing the watch market according to a different segment - once they used the new segment, they changed the marketing plan- modern example would be price of PCs for home use - biggest use is entertainment NOT schoolwork or home based businesses

47. Benefit Segmentation of the Toothpaste Market Segment Name The The Sensory The Independent Segment Sociables The Workers Segment Principal benefit sought Flavour, product Brightness Decay Price appearance of teeth prevention Demographic strengths Children Teens, young Large families Men people Special behavioural Users of Smokers Heavy users Heavy users characteristics spearmint- flavoured toothpaste Brands disproportionately Colgate, MacLean’s, Crest Brands flavoured Stripe Plus White, on sale Ultra Brite Personality characteristics High self- High High High involvement sociability hypochondriasis autonomy Lifestyle characteristics Hedonistic Active Conservative Value- oriented Benefit Segmentation

48. Figure 3.9 Segmentation Bases for Industrial Markets Slide 3-12 Segmentation for Industrial Markets