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.

• 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.

• 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,

• Understanding The Consumer + The Planning Process

  • Demographic characteristics – Statistical data about people that helps us segment large groups into smaller groups based on age, ethnicity, gender, income, family size, and geographic location
  • Psychographic characteristics – Consumer preferences, values, and feelings that motivate their choices, behaviors, and habits.
  • Even though human beings are diverse and every individual is unique, we can actually classify them, with relative accuracy, by segmenting people into demographic and psychographic categories.
  • It’s fascinating the way some companies cluster people into “lifestyle categories,” which establish cohorts among various segments of the population based on interests and activities.

• 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.

• The Importance of Market Segmentation

  • Market segmentation allows for a better allocation of a firm's finite resources.
  • Market segmentation can be defined in terms of the STP acronym, meaning Segment, Target and Position.
  • While there may be theoretically 'ideal' market segments, in reality, every organization engaged in a market will develop different ways of imagining market segments, and create product differentiation strategies to exploit these segments.
  • To increase marketing efficiency by directing effort specifically toward the designated segment in a manner consistent with that segment's characteristics
  • Rather, one or more target markets (segments) must be selected.

• Evaluating Market Segments

  • Segmentation involves classifying people into homogeneous groupings and determining which of these segments are viable target markets.
  • Rather, one or more target markets (segments) must be selected.
  • Thus, market segmentation is a twofold process that includes:
  • An ideal market segment meets all of the following criteria:
  • The other segmentation strategy is a multisegment strategy.