Topic > Wendell Smith: Market Segmentation - 780

In 1956, Wendell Smith published an article proposing market segmentation as an alternative marketing strategy (Smith 1956) and is often credited with popularizing the fundamentals of marketing now common. Market segmentation is the division of the market into smaller segments of consumers with similar characteristics and needs. (Kotler et al, 2013). Marketers will use one or a combination of the main segmentation variables: demographic, geographic, behavioral and psychographic. Psychographic segmentation divides a large heterogeneous market into smaller homogeneous markets based on personality traits, values, lifestyle, or social class (Kotler et al., 2013). This method allows companies to tailor their product and marketing mix to the group most likely to purchase them (Yankelovich and Meer, 2006). Often in combination with demographic variables, companies can use psychographic data to position their brand to appeal to the wants, needs and values ​​of their target market. By the early 1960s, age and income were no longer in line with tastes and lifestyles. This change meant that demographic segmentation was not as effective as it had previously been. (Yankelovich and Meer, 2006) There was a need for another means of segmentation. The term "psychographic", a portmanteau of "demographic" and "psychology", was coined by Emanuel Demby in 1974. Demby wanted to apply social science principles to demographics to improve understanding of customer behavior, thus enabling more effective marketing. effective. strategies. (Vyncke, 2002) This new segmentation method took into account the different psychological profiles found within a demographic group. (Lin, 2002) Personal value systems or characteristic classifications such as VALS, LOV and RVS...... center of paper ...... Sivi wines are a symbol of wealth and status, indicating the desire to live a luxurious life style, placing them in the “aspirational” segment of wine drinkers. The Asia-Pacific region also accounts for a third of global beer volume and is the largest alcohol-consuming region in the world. While this and other emerging markets offer great opportunities for expansion, psychographic segmentation faces several challenges when it comes to international markets. Cultural views regarding alcohol vary around the world. Some of these opinions may be influenced by religious mandates, such as those found in Islam, or the opinions may be influenced by governmental factors, including the legal drinking age or liquor laws and regulations. This means that there cannot be a universal method for psychographic profiles and limits research conducted in the area to the country in which it was conducted.