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A market consists of people with the willingness, purchasing power,
and authority to buy. Describe the people in the market for breakfast
cereal, taking into account the three characteristics of willingness
to buy, purchasing power, and authority to buy.
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Figure 3.2 identifies five commonly used bases for segmenting consumer
markets. Two (demographic and geographic) are considered to be “descriptive”
and three (psychographic, benefit, and usage) are considered to be
“behavioural.” Explain what makes the first two “descriptive”
and the other three “behavioural” in nature.
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The “descriptive” bases for subdividing total markets
are considered to be easier to use than the “behavioural”
bases. List and discuss three reasons why.
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One of the geographic characteristics of the Canadian population
is that it is highly mobile. Discuss a business opportunity that you
believe results directly from the fact that Canadians move an average
of twelve times in their lifetimes. This opportunity can be a business
that already exists or it can be an opportunity that you think of
that has not yet been developed.
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Table 3.4 summarizes the six stages of the family life cycle, a
demographic variable that can be used to segment consumer markets.
People at different stages of the family life cycle need different
products or have different needs with regard to the same product.
Review people’s need for different types of milk relative to
the six stages of the family life cycle.
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After you graduate from university (and if you live on your own
for a few years), you will become part of the SSWD market segment
(a single-person household consisting of someone who is single, separated,
widowed, or divorced). Cite three products or services that are or
should be targeted specifically at this group, and explain why SSWDs
are the most appropriate target group for these products or services.
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Explain why psychographic segmentation often proves to be more useful
for marketers than demographic and geographic bases for segmentation.
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Table 3.5 summarizes how benefit segmentation can be applied to
the yogurt market. Create your own chart summarizing how benefit segmentation
can be applied to the market for jeans.
