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 !!