consumer behavior [mktg.301] dr. carter

Consumer Behavior [MKTG.301]

Dr. Carter

ETHNIC VALUE MATCHING:

Segmentation for

Diverse Market Values

2

ETHNIC VALUE MATCHING PROJECT:[Consumer Behavior (MKTG.301); Dr. Carter]

A. The “Depth” and “Breadth” of Ethnic Diversity

1. The “Depth” of Diversity – Inclusion vs. Isolation• “E plurabus unum” / “E unum plurabus”• Out of many come one / out of one come many• Unity in diversity / diversity in unity• Many branches – one root• Many doors -- one room• I am because we are / because we are I am• Yin / Yang

AB D

E

C

* *

* *

B r e a d t h [ ethnic exposure as “isolated” cultural silos ]

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Our past periods of complex intersection … Provide lessons for future interaction

3

B. THE “BUSINESS CASE” for ETHNIC DIVERSITY Competitive free market creates a results-oriented “sports team” context that emphasizes …

* Behaviors vs. Attributes * Future vs. Past * Cohesion vs. Contention * Positive vs. Negative

1. The Trend’s Your Friend [“Portfolio Theory” of Demographics and Growth Rates]

2. Survival of the Fittest [Biodiversity as Market Diversity]

3. Free Markets Create Ethnic Choices [Ethnic Identity vs. Ethnic Orientation]

4. Think Globally, Act Locally [Cross-Cultural Analysis for American Ethnic Segments]

5. Matching Values in Valuable Markets [Triangulation of People, Products, Processes]

A. The “Depth” and “Breadth” of Ethnic Diversity [Cont’d.]2. The “Breadth” of Diversity – Spectrum of Specialties

• Anthropology – “mosaic of meanings” • History – “trail of tears … and triumphs”• Sociology – “let ins and left outs” • Political Science – “power blame and power brokers”• Business – Portfolio Markets and bio-diversity Competence


* Reference: www.diversityinc.com [search “the business case for diversity”]

http://www.diversityinc.com/

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C. SEGMENTATION – The Fundamental Framework

1. Segmentation Purpose/Logic [“Homogeneous –

Heterogeneity”]

2. Segmentation Bases [“Ways to slice the pie’]

3. Segmentation Method and Technique [“Process for slicing

the pie”]

4. Assessing Meaningfulness of Segments [“Ways to test the

slices”]

5. Segmentation Strategies [“Ways to taste the slices”]


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Ethnic Value MatchingConsumer Behavior [MKTG.301]

Dr. Carter 2K7

SECTION ONE:

A“MARKETING STRATEGY”

PRIMER ON

“ETHNIC SEGMENTATION”

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Dr. Carter 2K7

Ethnic Diversity in the American Marketplace …

… Creates a Strategic Dilemma Regarding Future Paths to Market Success

Mainstream

Asian Am.

Hispanic Am.

African Am.

Arab Am.

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Dr. Carter 2K7

Ethnic Market Segmentation is a Strategic Solution …

… to the Dilemma Created by Diverse Ethnic Niches

Mainstream

HispanicAm.

African Am.

Asian Am.

Arab Am.

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Dr. Carter 2K7

Effective Ethnic Segmentation Creates “Market Diversity” Within “Diverse Markets” …

… By Emphasizing INTRINSIC Ethnic PatternsInstead of EXTRINSIC Profiles of Race

ETHNICITY – the unifying cultural identity & traditional orientation of people who share a common history [e.g., beliefs, values, symbols, customs]

RACE – a class or kind of people with genetically similar physical & biological traits, characteristics, and tendencies [e.g., skin, hair, face features, body type]

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Dr. Carter 2K7

THIS CREATES A

“CULTURAL COMMODITY”

STRATEGY TOWARDS

ETHNICITY & MARKETS

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Dr. Carter 2K7

SECTION TWO:

A

“FREE-TRADE THEORY”

OF

“ETHNIC COMMERCE”

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Dr. Carter 2K7

The Beginning of “Market Diversity” …

… is the Freeing of Ethnic Identity from Ethnic Orientation

Ethnic Identity

• Fixed

• Collective

• Traditional

• Chain

• Intergenerational

• Self-referential

• Ends

Ethnic Orientation

• Fluid

• Individual

• Transitional

• Choice

• Situational

• Self-constructing

• Means

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Dr. Carter 2K7

“Market Diversity” is Driven by Ethnic Orientation …

… Just as Ethnic Identity Defines “Diverse Markets”

Ethnic Identity

• Ethos

• Demographics

• Bio-Genetics

• Ancestry

• Consummation

• Cultural Values

• Faith/Belief System(s)

Ethnic Orientation

• Logos

• Psychographics/Lifestyle

• Psycho-Genetics

• Access

• Consumption

• Market Values

• Financial/Barter System(s)

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Dr. Carter 2K7

In the Language of Markets, Ethnic Identity Defines People & Customer Segments …

… Whereas Ethnic Orientation Defines Products & Consumption Situations

Ethnic People & Culture Ethnic Products & Consumption

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Dr. Carter 2K7

Although Ethnic Identity is Authentically Created “Of” & “By” a Particular Ethnic Segment …

… Ethnic Orientation Forms/Expressions are Shared “For” All Ethnic Segments to Collaborate & Consume

Authenticity of Ethnic Identity“ROOTS”

Affinity of Ethnic Orientation“FRUITS”

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Ethnic Value Matching Consumer Behavior [MKTG.301] Dr. Carter 2K7

In “Free-Market” Societies like America …

… Ethnically Diverse Customers CHOOSE which Cultural Pool they Consume

“ETHNIC MENU”“Styles White* African Hispanic Asian Arab Others of Life”

Foods

Fashion

Fun

Function

Furnishings

Finance Facts*Note: Includes multiple European/Anglo ethnic groups

Fall 2004Ethnic Music Profiles “Sounds of Diversity”

Winter 2005Ethnic Automotive Profiles “Driving Diversity”

Fall 2005 & Spring 2006 – Ethnic Agri-Food Branding

FALL 2007 as well as Spring 2007; Fall 2006 & Winter 2002

Ethnic Fashion Branding

Fall 2001 – Packaged Foods Branding “New Product Works (NPW) “Ethnic Collection”http://www.arborstrategy.com/asg/newproductworks/newproductworks.html

http://www.arborstrategy.com/asg/newproductworks/newproductworks.html

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Dr. Carter 2K7

THIS CREATES A

“TRADE OF VALUES”

APPROACH TOWARDS

ETHNICITY & MARKETS

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Dr. Carter 2K7

SECTION THREE:

“CROSS-CULTURAL”

“ETHNIC MERCHANDISING”

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Dr. Carter 2K7

The Duality of Ethnic Identity & Ethnic Orientation …

… Permits Bi-Directional Application of Ethnic Marketing Strategy

Ethnic Customer/Market Pools[“Ethnic Identity”]

Ethnic Product/Service Pools[“Ethnic Orientation”]

Ethnic Marketing Strategy

Ethnic Marketing Strategy

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Dr. Carter 2K7

On One Hand, Mainstream Offerings can beCUSTOMIZED to Ethnically Diverse Markets …

Mainstream Offerings

Ethnic Offerings

Ethnically Diverse Market Customization

Multi-Ethnic Market Exploration

… On the Other Hand, Ethnic Offerings ElicitMulti-Ethnic Market EXPLORATION

DIVERSE

MARKETS

MARKET

DIVERSITY

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Dr. Carter 2K7

Global “Cross-Cultural” Analysis Techniques …

… Adapt Market Offerings to America’s World of Diverse Markets

Market Offering “X”

• Prod/Service Category• Performance Values

• Brand Image(s)• Design Features

• Practical Functions• Pleasurable Uses• Merchandising

Ethnic Segment “Y”

• Prod/Service Spending• Cultural Values

• Aesthetic Image(s)• Demographic Features

• Lifestyle Functions• Leisure Activity

• Language

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Dr. Carter 2K7

“Ethnic Value Matching” applies Market Segmentation …

… To Connect “Diverse Market” Customers with “Market Diversity” Offerings through “Mediating Processes”

SEGMENTATION

PEOPLE(customers)

• Ethnic Identity • Cultural Values

PRODUCTS(commodities)

• Ethnic Orientation • Market Values

PROCESSES(company)

• Market Mediation• Brand Strategy Values

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2. Select the “Old/New Country” Ethnic PEOPLE

3. Select the Focal Fashion PRODUCT Category

4. Profile Ethnic Identity of PEOPLE (Earth, Time, Culture, Values)

5. Profile Ethnic Orientation of Fashion PRODUCT (3Fs)

6. “Old/New Country” Cross-Cultural Adaptation

7. Brand Value PROCESS Triangulation (3Ts)

1. Understand Ethnic Market Segmentation Strategy


Dr. Carter 2K7

“Ethnic Value Matching” Consists of 7 Stages:

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Ethnic Value MatchingMKTG.301

Dr. Carter 2K7

We Use Concepts to Format Ethnic Market Profiles …

… Because Customer Data & Products Can Change,But the Value of Analysis Framed by Theory Remains!

CUSTOMER DATA

“CHANGE”

MARKETING THEORY

“REMAINS”

PRODUCTS/BRANDS

“CHANGE”

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Dr. Carter 2K7

SECTION FOUR:

YOUR PROJECT

“ETHNIC CUSTOMIZATION”

OF

FASHION BRAND ARCHITECTURE

25… Format “Live & Linked” Ethnic Fashion Reports


Dr. Carter 2K7

Customer Behavior Concept Frameworks …

IndividualContextual

Data

EnvironmentalPhysicalData

EnvironmentalContextual

Data

3 Roles

9 Values

Level

Processes

People

Products

NEW Triangulation

EthnicValue

Matching

(A) PEOPLE (B) PRODUCT

•Earth (space)

•History (time)•Culture (ethos)•Values (logos)

•Form (tangible “what”)•Function (intangible “how/when”)•Facilitation (meanings “why/which”

(C) PROCESS: *Triangulate (“match”) *Target (“market”) *Taste (“message”)

PersonalPhysicalData

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Dr. Carter 2K7

THIS CREATES

AN

“ETHNIC VALUE MATCHING”

PROPOSAL FOR

“NEW ETHNIC FASHION BRANDS”

consumer behavior [mktg.301] dr. carter

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