Page 126 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management

Notes Anschuetz found that brand popularity cuts across all levels of purchasing frequency. It will also
be necessary to find out the accessibility of the target audiences. Obviously, how the target
audience is defined would influence the message and media strategies. Consumer research may
be needed to find out:
1. Who buys the product?

2. What do they really buy?
3. When do they buy?
4. Who is the end-user?
Knowing the target audiences' life-style, motivations, and behavioural patterns, etc. helps in
deciding whom the advertiser wants to reach, and also helps creative people to write messages
for real audiences and communicate more effectively.

Bases for Market Segmentation

Geographic Segmentation: Geographic units are the basis to divide the markets. These units
may be nations, states, regions, areas of certain climatic conditions, or urban and rural divide.
For example, Tata Safari considers the terrain as one of the segmentation variables. People in
West Bengal have different food habits than people in South India. Exporters often divide the
market as Western countries, African countries, etc.

Demographic Segmentation: Market segmentation can be based on demographic variables such
as race, age, sex, family size, income, education, and social class.

Example: Shaving products for women are based on demographic variable of gender.
Toy manufacturers, such as Funskool, Fisher Price, and Mattel Toys segment the market on the
basis of age of children. Pepsi and Coca-Cola segment on the basis of age. Automobile
manufacturers segment the market on the basis of income as an important variable. Producers
of refrigerators, washing machines, microwave ovens etc. take family size as one of the variables
in segmenting the market. Some readymade garment producers segment the market on the
basis of social class, such as Van Heusen, Louis Philippe, Chirag Din, Arrow, Zodiac and others.
In general, the social class can represent lower, middle, or upper class depending on education,
income, and status, etc. For example, an engineer and a clerk are considered as members of
different social class.
Psychographics Segmentation: When segmentation is based on personality or life-style variables,
it is called psychographics segmentation. Consumers have a certain image of themselves. This
describes their personality. There are people who are ambitious, aggressive, confident, impulsive,
modern, conservative, loners, gregarious, extrovert, and introvert, etc. Some motorcycle
manufacturers segment the market on the basis of personality variables, such as macho image,
independent, and impulsive. Some liquor, cigarette, apparel manufacturers, and others segment
the market on the basis of personality and self-image. Marketers often are not concerned about
measuring how many people have the characteristic because they assume that a substantial
number of people in the market either have these characteristic or want to have them.
Life-style: This indicates how people live and spend their time and money. Life-style analysis
provides a broad view of consumers because it segments markets on the basis of how they spend
their time (activities), the importance of things in their surroundings (interests), and their beliefs
on broad issues and themselves (opinions). This is popularly called AIO analysis. Demographic
variables are also used in life-style segmentation. Table 7.1 presents some dimensions from
major categories of life-style.

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