Marketing Chapter 7 Segmenting And Targeting The Audience Race Ethnicity And Immigration Status The

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Chapter 7: Segmenting and Targeting the Audience

Race, Ethnicity, and Immigration Status

 In the United States, ethnicity is a major factor for segmenting markets. According to

the 2011 update, Hispanics now comprise 16.3 percent of the population and have

overtaken African Americans at 13% as the largest ethnic group. African Americans,

however, have seen a dramatic increase of more than 55 percent in their buying

power since 2000. Asians comprise 5 percent of the U.S. population. The United

States is more multicultural than ever.

 Latinos and blacks make up more than half of the births in the U.S. population.

According to the Census Bureau, whites now account for only 49.6% of all births

and minorities accounted for 92% of the nation’s population growth in the decade

that ended in 2010.

 Media use differences may also be based on ethnicity. Latino audiences are more

influenced by advertising than other U.S. consumers and are more likely to base

purchasing decisions on advertising. They are also less cynical about marketing.

Geography

 Geographic segmentation is an important strategy for marketers because marketers

are often tied to locations where their products are sold. Marketers study the sales

patterns of different parts of the country because people residing in different regions

need certain products. Differences also exist between urban areas and suburban or

rural areas.

Religion

Chapter 7: Segmenting and Targeting the Audience

Targeting and Profiling Using Psychographics

 Just as demographics relates to social characteristics, psychographics summarizes

personal factors. Psychographics refers to lifestyle and psychological characteristics,

such as activities, interests, and opinions. Sometimes complex psychographic factors

are more relevant in explaining consumer behavior than are demographics.

Attitudes

 An attitude is a predisposition that reflects an opinion, emotion, or mental state

directed at some object, person, or idea. Advertisers are interested in attitudes because

of their impact on motivations. Because attitudes are learned, we can establish them,

 One trend that depicts changing attitudes is what Time Magazine refers to as ethical

consumerism, which refers to consumers who buy according to their conscience.

A Time magazine poll found that 82% of those queried said they shopped local and

40% said they purchased a product because “they liked the social or political values

of the company that produced it.’’

Lifestyles



Psychographic analysis looks at lifestyles in terms of patterns of consumption,

personal relationships, and leisure activities. Figure 7.6 illustrates the interactions

Chapter 7: Segmenting and Targeting the Audience

 As part of their services to clients, some research firms create proprietary lifestyle

profiles that collectively reflect the whole culture. The Yankelovich (renamed the

 A second psychographic segmentation tool, called PRIZM, uses zip codes to classify

consumers into 68 lifestyles and provides marketers with clusters of these segments

across the United States. Figure 7.7 shows an example of the PRIZM system.

 The Values and Lifestyle Survey (VALS) categorizes U.S. and Canadian adults age

18 or older into distinctive consumer groups on the basis of an individual’s responses

Sociodemographic Segments

 Age groups also connect with lifestyles. Generation X and Y, as well as the echo

boomers, are important demographic segments, but their socio-demographic

characteristics may represent more consistent lifestyle differences.

 Some of the most common lifestyle patterns are described by phrases such as yuppies

and yuppies puppies. Seniors are referred to as the Gray Market and divided into two

categories—young seniors (60-74) and older seniors (75 plus). Other terms that have

been used to describe demographic and lifestyle segments include the following:

 Dinkies: double income young couples with no kids

 Guppies: gay upwardly mobile professionals

Chapter 7: Segmenting and Targeting the Audience

Trends and Fads

 The phenomenon of trends and fads is related to lifestyle and psychographic factors,

as well as the fascination with choice in a consumer culture. Young people are

Targeting and Profiling Using Behavioral Patterns

 Behavioral targeting is a practice used by online marketers who track customers’

activities – sites visited and products bought – to predict consumer interest in a

product and design personalized brand communication message. Examples of

behavioral targeting come from both Google and Orbitz.

 Behavior is related to feelings (impulse) or thoughtful search. One area in which

behaviors have been investigated is grocery shopping. An observational study found

Brand Usage and Experiences

 There are two ways to classify usage: usage rates and brand relationship. Usage rates

refer to quantity of purchase: light, medium, or heavy. Heavy users typically buy the

most of a product category or a brand’s share of the market. Switchers are people

Innovation and Adoption

 Another type of behavior has to do with how willing people are to be innovative and

try something new. Researcher Everett Rogers developed the classic system, called

the Diffusion of Innovation Curve, to identify adoption behavior for new ideas. This

 Risk taking is a characteristic of one’s personality but it combines with behavior in

the area of trying a new product. Perceived risk is your view of the relationship

between what you gain by trying something new and what you have to lose if it does

not work out.

Chapter 7: Segmenting and Targeting the Audience

Seeking Seekers

 Segmenting and targeting strategies have evolved in recent years with developments

in social media and internet technology. This new, more complex communication

system recognizes the increased importance of word of mouth, where consumers talk

 Schultz argues that this expansion of marketplace communication has changed the

dynamics of marketplace power, bringing a loss of control by marketers over

marketing and marketing communication systems. It makes the consumer more

END-OF-CHAPTER SUPPORT

REVIEW QUESTIONS

7-3. In what ways does the culture in which you grew up affect your consumer

behavior? Describe and explain one purchase you have made recently that reflects

your cultural background.

The culture and the society in which you were raised affect your values and opinions.

The boundaries each culture establishes for “proper” behavior are norms, which are

simply rules that we learn through social interaction that specify or prohibit certain

Chapter 7: Segmenting and Targeting the Audience

151

needs of the vast number of women (96%) who could not see their own beauty, knowing

that the potential for realization of these needs by these women provided motive for

purchasing the brand.

Dove’s original target was all women of all ages and sizes. In 2012, the target market

was extended to include pre-teen girls.

TRACE NORTH AMERICA CASE

Read the TRACE Case in the Appendix before coming to class.

Multicultural Innovation

7-16. From the case study and your own personal experiences in college, what factors do

you believe most strongly influence Multicultural Millennials in their decision making?

7-17. What campaigns targeted to African Americans, Chinese, and Hispanics are you

aware of, and do you believe they are successful? Why or why not?

ADDITIONAL MATERIAL

ASSIGNMENTS

Individual Assignments

1. Locate an advertisement for a recent product or service that you purchased. Then

review the Chapter 7 list of Rokeach’s 18 terminal values that govern people’s

attitudes. Which ones does this advertisement bring out in you? Share your answers

2. Write a demographic profile of a family member. Base your report on some

combination of the following factors: age, population category, gender, family status,

Think-Pair-Share

1. Have students break off into pairs. Each partner within each pair will identify a

different brand community to explore. Students can choose CultofMac.com or

hog.com, which were both mentioned in this chapter. Or, by typing ‘brand

communities’ into Google’s search box, perhaps students can identify other brand

communities. Each student should explain what happens inside their brand