As marketers and business people, we will sell our products to whomever will buy it –Ie: wedding...
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Transcript of As marketers and business people, we will sell our products to whomever will buy it –Ie: wedding...
• As marketers and business people, we will sell our products to whomever will buy it
– Ie:• wedding gowns to seniors
• Retirement funds to a teenager
• Yet these aren’t our “most likely customers”
• We need to optimize our marketing dollar….let’s get the “most bang for our efforts”
• Everyone has unique physical features, personality, values, beliefs, geographic location and history
• These differences are reflected in people’s daily decisions and behaviors.
• As a marketer, the more we know about our potential customers, the better we are able to anticipate or influence their buying decisions
• Marketers therefore create “Consumer Profiles” of the kind of people most likely to be attracted to a specific product
• Each identified group of consumers with common characteristics and buying habits is called a “consumer segment” which is accomplished through the process of “segmentation”
.
• Once identified, marketers will focus their efforts on trying to reach and influence these segments
• For some products, there may only be one segment….for others there may be multiple segments
• Examples:
– One segment: Wedding Gowns (females, 20-30, getting married)
– Multiple segments: Levi Jeans (how you sell jeans to teens is different than middle age, etc.)
Let’s look at how this is done……...
• Categorizing potential consumers in this way enables marketers to direct their efforts toward a target market, a specific group of consumers who will be most interested in their product
DEMOGRAPHICS
• The study of obvious characteristics that categorize people.
• These characteristics include age, gender, family life cycle, income level and ethnicity and culture
• Each characteristic is then subdivided into variables or ranges
Let’s look at each of the main variables………
A. Age
• Depending on the market, people are
grouped into various groups
• Stats Canada divides the population as such:• 0-15, 15-24, 25-44, 45- 64, 65-74, 75+
• Depending on the product / service, marketers need to determine the age group that will most likely purchase their product
.
B. Gender
• The classification of the population into either male or female
• Marketers must determine whether the target market for their product or service is mainly male, female or both and strategize accordingly
• Ie: • Male – Cologne, Tools, Cars, Football
• Female – Perfume, Purses, Romantic Novels
• Both – Groceries, Gas, Movie Rentals
C. Family Life Cycle
• A consumer’s stage in the family life cycle determines many of his or her wants, needs and purchasing patterns
• Businesses use this demographic to determine who buys what for whom
• Ie:
• New Family – diapers, baby food
• Older Family – Ipods, computers
Examples of Family Life Cycle Stages
• Single
• Married (no children)
• Family (young children)
• Family (older children)
• Empty Nesters (children left)
• Retirees
D. Income Level
• Grouped by how much money the targeted consumer earns
• Allows marketers to determine how many consumers can afford their product / service
• In Canada, the average gross family income (before taxes) in 2008 is $ 90,000
• Based upon these statistics, marketers can generally define the Canadian population into the following income segments:
• Wealthy / Affluent ($ 150,000 +)
• Middle Income ( $ 50,000 - $150,000)
• Lower Income ( $ 50,000 or less)
E. Ethnicity & Culture
• It is vital for a marketer to understand the ethnic and cultural differences of their market
• Marketers must design their marketing strategy to appeal to their target market, yet make sure they don’t offend them
• Ie… Wedding Gowns
– In our western culture, white is the norm
– In India and parts of China, red is worn for “good luck”
• Understanding our target market’s culture is essential to marketing success
PSYCHOGRAPHICS
• A system of measuring consumers’ beliefs, opinions, and interests.
• A way of profiling consumers on the way they “think”…
• IE:• Religious beliefs, lifestyle, musical tastes, attitudes, etc.
• They are much harder to measure, yet they are vital in creating an effective customer profile
GEOGRAPHICS
• A system of measuring “where” consumers live
• Do your customers live:
• in a rural / urban / suburban area?
• Do they live in “pockets” or concentrations in certain places?
IE: • tractors – rural Canada
• Indian Cuisine – focus on areas of high Indian population
• Toronto Raptors – focus on urban / suburban GTA
Profile Category Profile Group Targeted Consumer
Age
Gender
Income
Family Life Cycle
Culture
Lifestyle/Values
Country/City
What is the target consumer for People magazine?
Profile Category Profile Group Targeted Consumer
Demographics Age 25-40
Gender Female
Income Middle
Family Life Cycle Single or Married, No Children
Culture ‘Western’ culture oriented. Hollywood references.
Psychographics Lifestyle/Values Watches movies and television. Follows fashion. Buys name brands.
Geographics Country/City North America, urban / suburban
• However, if a marketer is able to effectively profile their target market, they can then begin to create a marketing plan that focuses on that “target”
• Although this doesn’t guarantee business success, your chances are much greater with a well reseached and targeted customer
A business will obviously sell their product to whomever they can, yet they need to focus their marketing efforts on those who are most likely to buy it
The End !!