psychographic segmentation

Examples of psychographic segmentation in the following topics:

• Developing a Market Segmentation

  • There are two major segmentation strategies followed by marketing organizations: a concentration strategy and a multi-segment strategy.
  • In the multi-segment strategy, a company focuses its marketing efforts on two or more distinct market segments.
  • In psychographic segmentation, consumers are divided according to their lifestyle, personality, values, and social class.
  • Foreigners within the same demographic group can exhibit very different psychographic profiles.
  • Markets could also be segmented by usage rates.

• Identifying the Target Market

  • In addition to the above segmentations, market researchers have advocated a needs-based market segmentation approach to identify smaller and better defined target groups.
  • Identify clusters of similar needs - Demographics, lifestyle, usage behavior and pattern is used to differentiate between segments.
  • Apply a valuation approach - Market growth, barriers to entry, market access, and switching is used to valuate segments.
  • Test the segments - A segment storyboard is created to test the attractiveness of each segment's positioning strategy.
  • Modify marketing mix - The segment positioning strategy is expanded to include all aspects of the marketing mix.

• Marketing Data Types

  • Psychographics is the science of using psychology and demographics to better understand consumers.
  • Psychographic segmentation: consumer are divided according to their lifestyle, personality, values.
  • Aliens within the same demographic group can exhibit very different psychographic profiles.Market segmenting is dividing the market into groups of individual markets with similar wants or needs that a company divides into distinct groups which have distinct needs, wants, behavior or which might want different products & services.
  • The process of segmentation is distinct from positioning (designing an appropriate marketing mix for each segment).
  • Segmentation according to occasions.

• Target Market Characteristics

  • The different characteristics of a target market are geographic, demographic, psychographic, behavioral, and product related.
  • The different characteristics of a target market are geographic, demographic, psychographic, behavioral, and product related.
  • A psychographic target market would be a market that has similar attitudes, values, or lifestyle.
  • Product related segmentation describes a target approach for customers who already own a specific product.

• Growth Strategy

  • At the business-unit level, diversification is most likely to involve expansion into a new segment of an industry in which the business already competes.
  • New users can be defined as new geographic segments, new demographic segments, new institutional segments, or new psychographic segments.

• Ansoff Opportunity Matrix

  • Market development targets non-buying customers in currently targeted segments.
  • It also targets new customers in new segments in order to expand the potential market.
  • New users can be defined as: new geographic, demographic, institutional, or psychographic segments.
  • At the business unit level, diversification is most likely to expand into a new segment of an industry that the business is already in.

• Selecting Target Markets

  • Strategic targeting can optimize the return on investment by selecting the best segments in the market for return on investment.
  • The purpose of identifying various market segments within the broader market is to refine the targeting of paid and organic advertising.
  • What are the demographic, psychographic, behavioral, and geographic characteristics of each segment?
  • Is is practically feasible to enter where the ideal segment is (i.e. geographically)?
  • Recognize the importance of segmentation and how to translate data into smart decisions

• Conclude with Action Plan

  • It includes developing the content; describing the product or services and special features, creating a marketing budget that includes advertising and promotional needs, describing the business-its location any advantages or disadvantages it may have, the staffing developin a pricing strategy, forecasting the company's financial future and defining the market segment as well as the competition
  • Situational Analysis - the current situation - the macro-environment - the Economy, legal, technological, ecological, socio-cultural and supply chain oriented, market analysis, market definition including segmentation and size, industry structure, strategic groupings, competition strengths and weaknesses and their market share, a Porter 5 Force Analysis, a consumer analysis, the nature of the buying decision, staffing, demographics, psychographics, buyer motivation and expectations, loyalty segments and company resources.
  • Marketing Strategy- segmented - product mix, perceptual mapping, product life cycle, branding information, customer, geographic, distribution channels, pricing, discounts and allowances, price elasticity and customer sensibility promotional goals advertising reach that includes frequency, flights, theme and media types, electronic and online promotions, public relations, word of mouth (buzz marketing), viral opportunities,

• The Target Market

  • However, all marketers should be familiar with the basic market segmentation approaches that are most common across industries:
  • Psychographic – Compared to the previous two, this is a bit more complex.
  • Psychographic targeting revolves around attitudes, religion, lifestyle, and values.
  • The ultimate objective of most effective targeting approaches will be to filter the broader population into a small, idealized segment that is highly likely to convert into paying customers.
  • The idea is that a target market is a specific segment of a broader population, filtered through strategically collecting information.

• Social Behavior of Consumers

  • The data helps sales and marketing professionals improve segmentation to target prospects and customers.
  • However, consumer behavior is also influenced by internal conditions such as demographics, psychographics (lifestyle), personality, motivation, knowledge, attitudes, beliefs, and feelings.
  • Similarly, psychographics are often used that offer insight into the lifestyle and personality traits of buyers.