Marketing Life Stage Segmentation the Generational Cohort

Marketing

Life Stage Segmentation

The generational cohort segmentation shows how segmentation divides a population into smaller distinct groups. The different and unique characteristics of each group formed during segmentation allow advertisers to get an important guidance for communications planning. There are generally five ways of using this information once advertisers have divided a certain group.

First, segmentation permits advertisers to consider differences within the potential consumer audience for a particular product or service. As the segment characteristics in the generational cohort segmentation illustrate, it is unlikely that all individuals in the broader adult population will see all brands within a product category as equally acceptable or all advertising messages for brands within a category as equally relevant or persuasive. Different segments are likely to respond differently to the same product or advertising message. Thus, segmentation provides the information required for the planning and presentation of an advertising campaign that exactly fits and responds to the characteristics, needs, and lifestyles of a unique segment of the market, increasing the relevance and potential impact of the advertising. Consumer segmentation thus helps an advertiser to realize that no brand positioning or advertising message can be expected to appeal to all people. As a result, segmentation helps an advertiser understand the need to target a specific group of people with a specific message.

Second, segmentation permits an advertiser to respond to the current structure and realities of the marketplace. Halley, in this regard, points out that it is usually easier to take advantage of market segments that already exist than to try to create new segments. Segmentation, therefore, improves the communication planning process by helping an advertiser understand the consumer segments that comprise the marketplace and how brands are positioned against among segments. This understanding makes explicit the range of available positioning, target audience, and message options.

Third, segmentation helps multibrand advertisers avoid brand cannibalization and maintain distinct brand images. The positioning of different brands against different consumer segments increases a multibrand advertiser's potential to control more of a market by becoming the dominant brand in multiple segments rather than having multiple brands fight each other for a share of the same segment.

Fourth, segmentation helps refine and increase the efficiency of media and promotional plans. Different segments often have different media habits and receptivity to different types of promotional efforts. The identification of a specific segment's media preferences helps a media planner better match media selection with target audience media habits.

Finally, segmentation helps an advertiser uncover new opportunities in sec¿ndary smaller or fringe segments. Jello, for example, used segmentation to discover and target a group of mothers who were concerned about the fat and cholesterol in their children's snacks. This group, traditionally not Jello users, was targeted in a special print advertising campaign that communicated the fat-free, cholesterol-free character of Jello.

In sum, marketers and advertisers conduct and use consumer segmentation research because it makes them more efficient and increases their chances for marketplace success.

Generally, consumer segmentation is the process of dividing a population into distinct smaller subgroups where individuals in a specific group are similar to each other in terms of important characteristics and possess characteristics different from individuals in other groups. Marketers and advertisers segment populations because it makes them more efficient and increases their chances for marketplace success. Segmentation accomplishes this by helping marketers and advertisers take into account and respond to differences within the consumer's audience.

Consumer segmentation research defines segments using characteristics that fall into one or more of the following areas:

demographics (age, gender, household, life stage, race, ethnicity, social class, lifestyle),

geographics (region, population size, population density, climate),

psychographics (attitudes, values, motivations, and lifestyle),

category and brand-related attitudes and behaviors (product usage, brand loyalty and benefits).

The segmentation research used by a marketer or advertiser can either be customized and proprietary or it can be an adaptation of consumer segmentation research developed and syndicated by others.

Customized, proprietary segmentation research begins similarly to other quantitative research. The need for the research is identified, segmentation is selected as an appropriate response to the informational need, and sample and sampling issues are addressed. The actual segmentation research then proceeds through eleven steps:

1. Determine the basis for the segmentation.

2. Identify descriptive variables.

3. Use qualitative research to explore the range of segmentation and descriptive variables.

4. Reduce the list of segmentation and descriptive measures.

5. Sample and survey the population.

6. Use segmentation variables to form groups.

7. Create visual representation of segment characteristics.

8. Create a narrative describing each segment.

9. Use descriptive variables to explain each segment's internal characteristics.

10. Relate segments to specific brand behaviors.

11. Select a segment.

There are three major syndicated approaches to segmentation: psychographic, product usage, and geo-demographic.