Monday 3 March 2014

Research; Target Audience (Demographic and Psycho-graphic)

The target audience can be segmented into two groups; Demographic and Psycho-graphic.

Demographic targeting of target market segments has been around for years, and has been used extensively in print media. Psychographic or behavioral marketing began being used more frequently with broadcast media such as television or radio. Use of both have proven valuable for online marketing, and even more so with social media, where in-depth preferences and attitudes are captured in the registration and profile development process.


Demographics Include Age, Gender And Other Observable Characteristics. Demographic segmentation consists of dividing your prospective and existing customers into groups based on variables such as age, gender, family size, income, occupation, education, religion, race and nationality. This usually works quite well because your customers often have wants and needs that are based on these categories.
Consider Demographic Segmentation First. Since this information is fairly easily obtained, it is one of the least costly ways to segment your market. It does make sense to test this method of segmentation first.


Now Segmentation Gets Really Interesting. Psychographic segmentation, sometimes referred to as behavioral segmenting, divides the market into groups based on not-so-visible characteristics, such as lifestyles, attitudes, expectations and activities of your target market. Note that these factors can be used in conjunction with demographic segmentation.
Psychographic Segmentation Increases Your Marketing Spend ROI. The value of targeting in this way comes from your ability to use specific advertising vehicles, increasing you ad spend efficiency. You also can appeal more specifically to motivations in your messaging, which improve your conversion rate.
Some of the major types of psychographic segmentation include:
  • Lifestyle - different people have different lifestyle patterns, and our wants and needs change based on those patterns. Here is an example of a common US-centric "sagacity lifestyle model", with four stages:
    • Dependent (e.g., children or young adults still living at home with parents);
    • Pre-family (adults with their own households but no children);
    • Family (parents with at least one dependent child); and
    • Late (parents with children who have left home, or older childless couples).
  • Opinions, attitudes, interests and hobbies - a huge area and includes religious, gender and political opinions, views on the environment, sporting and recreational activities and arts and cultural issues. The opinions your market segments hold and activities they engage in will have a huge impact on the products and services they buy, and even how they respond to your messaging. This is the richest area of opportunity in online marketing and particularly with social media.
  • Degree of loyalty - customers who buy your brand either all or most of the time are extremely valuable. By segmenting in this way, you can adapt marketing vehicles and messaging to retain your loyal customers. A rule of thumb is that it is ten times more profitable to sell to existing customers than to find and sell to new ones.
  • Occasions - if your product or service is purchased or consumed around an event or occasion, it makes a lot of sense to segment this way. Purchases made for weddings, holidays, etc. are examples. If your offering fits into this category, you may want to experiment with broadening usage to other times by using benefits sought, lifestyle or attitudes segmentation as well.
  • Benefits Sought - segmentation based on the main benefits purchasers look for in a product or service. For instance, automobiles are used for basic transportation, true, but they are also selected on perceptions of luxury, additional safety, sportiness, etc. Knowing what is looked for can help you start relating or reorienting your offering toward additional benefits sought.
  • Usage - sometimes segmentation can be based on light, medium and heavy usage groups.
The main point of this additional segmentation is to group prospective purchasers into meaningful groups that define choices they make and messages that resonate with them
Other Categorisation of Psychographic




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