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1 Consumer Behavior [MKTG.301] Dr. Carter ETHNIC VALUE MATCHING: Segmentation for Diverse Market Values

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ETHNIC VALUE MATCHING: Segmentation for Diverse Market Values. Consumer Behavior [MKTG.301] Dr. Carter. ETHNIC VALUE MATCHING PROJECT: [Consumer Behavior (MKTG.301); Dr. Carter]. The “Depth” and “Breadth” of Ethnic Diversity The “Depth” of Diversity – Inclusion vs. Isolation - PowerPoint PPT Presentation

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Page 1: Consumer Behavior [MKTG.301] Dr. Carter

1

Consumer Behavior [MKTG.301]

Dr. Carter

ETHNIC VALUE MATCHING:

Segmentation for

Diverse Market Values

Page 2: Consumer Behavior [MKTG.301] Dr. Carter

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 ]

DePth

*

[ eth

nic

exp

osu

re a

s “

inclu

siv

e”

ep

isod

es o

f cu

ltu

ral in

ters

ecti

on

]

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

Page 3: Consumer Behavior [MKTG.301] Dr. Carter

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

1. The Trend’s Your Friend [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 [TriangulatE 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

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

Page 4: Consumer Behavior [MKTG.301] Dr. Carter

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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”]

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

Page 5: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingConsumer Behavior [MKTG.301]

Dr. Carter Autumn 2K6

SECTION ONE:

A“MARKETING STRATEGY”

PRIMER ON

“ETHNIC SEGMENTATION”

Page 6: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingConsumer Behavior [MKTG.301]

Dr. Carter Autumn 2K6

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.

Page 7: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingConsumer Behavior [MKTG.301]

Dr. Carter Autumn 2K6

Ethnic Market Segmentation is a Strategic Solution …

… to the Dilemma Created by Diverse Ethnic Niches

Mainstream

HispanicAm.

African Am.

Asian Am.

Arab Am.

Page 8: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingConsumer Behavior [MKTG.301]

Dr. Carter Autumn 2K6

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]

Page 9: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingConsumer Behavior [MKTG.301]

Dr. Carter Autumn 2K6

THIS CREATES A

“CULTURAL COMMODITY”

STRATEGY TOWARDS

ETHNICITY & MARKETS

Page 10: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingConsumer Behavior [MKTG.301]

Dr. Carter Autumn 2K6

SECTION TWO:

A

“FREE-TRADE THEORY”

OF

“ETHNIC COMMERCE”

Page 11: Consumer Behavior [MKTG.301] Dr. Carter

11

Ethnic Value MatchingConsumer Behavior [MKTG.301]

Dr. Carter Autumn 2K6

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

Page 12: Consumer Behavior [MKTG.301] Dr. Carter

12

Ethnic Value MatchingConsumer Behavior [MKTG.301]

Dr. Carter Autumn 2K6

“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)

Page 13: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingConsumer Behavior [MKTG.301]

Dr. Carter Autumn 2K6

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

… Whereas Ethnic Orientation Defines Products & Consumption Situations

Ethnic People & Culture Ethnic Products & Consumption

Page 14: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingConsumer Behavior [MKTG.301]

Dr. Carter Autumn 2K6

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”

Page 15: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value Matching Consumer Behavior [MKTG.301] Dr. Carter Autumn 2K6

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 ethnic groups

Fall 2001http://w3.sba.oakland.edu/carterf01/grocery

Winter 2002: http://w3.sba.oakland.edu/carterf01/fashion

Fall 2004Ethnic Music Profiles

WINTER 2005Ethnic AUTOMOTIVE Profiles

FALL 2005 & Autumn 2006 ETHNIC AGRI-FOOD BRANDING

Page 16: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingConsumer Behavior [MKTG.301]

Dr. Carter Autumn 2K6

THIS CREATES A

“TRADE OF VALUES”

APPROACH TOWARDS

ETHNICITY & MARKETS

Page 17: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingConsumer Behavior [MKTG.301]

Dr. Carter Autumn 2K6

SECTION THREE:

“CROSS-CULTURAL”

“ETHNIC MERCHANDISING”

Page 18: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingConsumer Behavior [MKTG.301]

Dr. Carter Autumn 2K6

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

Page 19: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingConsumer Behavior [MKTG.301]

Dr. Carter Autumn 2K6

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

Page 20: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingConsumer Behavior [MKTG.301]

Dr. Carter Autumn 2K6

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

Page 21: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingConsumer Behavior [MKTG.301]

Dr. Carter Autumn 2K6

“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• Strategic Values

Page 22: Consumer Behavior [MKTG.301] Dr. Carter

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2. Understand Market Segmentation Strategy

3. Select Ethnic American Market Segment

4. Profile Ethnic Identity & Orientation

5. Choose Product/Brand Category

6. Cross-Cultural Adaptation

7. Recommended Triangulation

1. Know Customer Needs/Wants & Market/Role Values

Ethnic Value MatchingConsumer Behavior [MKTG.301]

Dr. Carter Autumn 2K6

“Ethnic Value Matching” Consists of 7 Stages:

Page 23: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingMKTG.301

Dr. Carter Autumn 2K6

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”

Page 24: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingConsumer Behavior [MKTG.301]

Dr. Carter Autumn 2K6

SECTION FOUR:

YOUR PROJECT

“ETHNIC CUSTOMIZATION”

OF

“NEW FOOD BRAND

MERCHANDISING”

Page 25: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingMKTG.301

Dr. Carter Autumn 2K6

Fall 2001 Team #1a) NEW Product Specialist

b) Ethnic Segment Data Specialistc) Concept/Website Format Specialist

ETHNIC SEGMENTNPW PROD. CATEGORY

PRODUCT SPECIALIST NPW VISIT REP

ETHNIC SEGMENT DATA SPECIALIST

CONCEPT/WEBSITE SPECIALIST

CHINESE PASTAS/NOODLES STECHOW BARTELL LESSARD

KOREANKIN-CHEE

VEGATABLES GRIMMSTRATTON & KRAMBRINK SKOPEK

POLISH MEAT - UNFROZEN ANDROFF TRAPPE GOIK

HISPANIC BEER RUSHWIN URBAN EVATZ

AF. AMER.SAUCES/

SEASONINGS JORDAN DEPUYDT & JONES MILLER

ARAB AM. GRAINS/SEEDS SENAWE MCCLERREN KERN & LAMPHEAR

GERMAN BEER/WINE SODEE & NICOLAI MORGIA GAGNE

ASIAN INDIANS SPICES/TEAS BASTAS BIELEWSKI WISNER/MARTIN

JEWISH KOSHER/MEATS DUNLAP JASMIN & MAGUET SHAYE

Page 26: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingMKTG.301

Dr. Carter Autumn 2K6

ETHNIC SEGMENTNPW PROD. CATEGORY

"PRODUCT SPECIALIST" NPW VISIT REP

"ETHNIC SEGMENT DATA SPECIALIST"

"CONCEPT/WEBSITE SPECIALIST"

CHINESE SAUCES REVYN BURT WARD

ITALIAN GELATO / DESSERT WATKINS SPURLOCK LANG & DEMCHIK

POLISH MEAT - UNFROZEN STIMAC WITTSTOCK ROBERTS

HISPANIC BEER PARISI SPANO CASTLE & BALICKI

AF. AMER. PERS. CARE PRODS. BARKSDALE MCCAIN LEITCH & DEMONT

ARAB AM. BREADS TAUFIQ MANSOOR ELIA

ARAB AM. BEVERAGES MANSOUR MADDEN BURLEY

PACIFIC ISLANDERS FRUITS ANDERSON BRUGGEMAN GONZALES

JAPANESE TEAS GREEN TOEPEL GRAFF

GREEK DESSERT SORGELOOS MILLER HADDAD

Fall 2001 Team #2a) NEW Product Specialist

b) Ethnic Segment Data Specialistc) Concept/Website Format Specialist

Page 27: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingMKTG.301

Dr. Carter Autumn 2K6

NEW Ethnic Food Brand Observations …

… Should Compose a Product/Service Profile

Product Category• Performance Value• US Market History• Top Brands• NEW Quantity

Merchandise Mix• Existing “Mainstream” [“Market Diversity” Affinity]

• Existing “Ethnic” [“Diverse Market” Authenticity]

• Omitted “Mainstream” [“Market Diversity” Affinity]

• Omitted “Ethnic” [“Diverse Market” Authenticity]

Brand Factors• Name / Language• Logo / Symbols• Image / Packaging• Position / Ethnicity

“Mainstream Products”

“NEW Products”

“Mainstream Products”

Page 28: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingMKTG.301

Dr. Carter Autumn 2K6

Key Library & Web Ethnic Data Access Methods …

… Should Compose Ethnic Customer Segment Profiles

Consumption

Demographics

Socio-Cultural

• National &

Local Level

Data Profile

• Product-Relevant

Facts Only

Page 29: Consumer Behavior [MKTG.301] Dr. Carter

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Ethnic Value MatchingMKTG.301

Dr. Carter Autumn 2K6

THIS CREATES

AN

“ETHNIC VALUE MATCHING”

PROPOSAL FOR

“NEW ETHNIC FOOD BRANDS”