Market Segmentation

Unit 1

Market Segmentation

Market Segmentation

Market Segmentation

VALS Framework

• It explains consumer purchasing behaviorThis typology classifies American adult population into eight Distinctive subgroupsThere are three primary motivations

a) Ideals motivated(these consumers segments are guided by knowledge and principles)

b) Achievement motivated(consumer segments are looking for products and services that demonstrate success to their peers)

c) Self expression motivated(these consumer segments desire social or physical activity, variety and risk)

VALS Framework(contd..)

• Innovators-successful sophisticated, take care people with high self esteem

• Thinkers Motivated by ideals; high resources,are mature, satisfied and comfortable

• Believers-• Motivated by ideals ; low resources, strongly

traditional respect rules and authority

VALS Framework(contd..)

• Achievers-motivated by achievement; low resources, goal oriented lifestyles that center on family and career.

• Strivers-Motivated by achievement and low resources, they are trendy and fun loving

• Experiencers-Motivated by self expression high resources,they are active and impulsive

• Makers-Motivated by self expression; high resources, value practicality and self sufficiency

VALS Framework(contd..)

Implementing Segmentation Strategies

• If a more generic need or characteristic is identified, two or more segments can be combined and targeted with a redesigned marketing mix.

Discussion Question

• Some marketers consider benefit segmentation as the segmentation approach most consistent with the marketing concept. Do you agree or disagree with this view? Why