STANDARD 3 The Target Customer

Why? Knowing & understanding customers is key for exceptional companies. Award winning businesses know their customers as well as they know themselves. They use this knowledge to give buyers:  the right product  at the right place  at the right time  for the right price

Successful businesses have spent hours researching their current and prospective buyers & what they want & need. They know :  Age  Gender  Income  Home & internet address  Profession  Education  Marital status  # of children  Hobbies  Likes/dislikes  Interests

Who are my customers?  Are they men, women, tweens, teens, children, young adults or all ages? What do they expect from my company?  Quality products?  Good Value?  The best prices?  Quick Service?.  Products to enhance their self-image?  A Large selection?  The latest styles?

How do my company's products or services enhance the customer’s lives?  Do they make the customers’ lives easier?  Are they a necessity?  Do they make our customers feel good about themselves?

Buying Experience They also provide their product or service at the with the appropriate warranties, features and support to create a positive buying experience.

DESIGN the EXPERIENCE It’s the experiences that people have with your company that determine:  whether or not they are going to choose to do business with you  whether or not they are going to give you more of their business  whether or not they are going to refer people to you. It’s the experience they have with you that helps them form perceptions of trust, quality & ability.

CASE STUDY Focus on your target customer, spend time asking them what they want. Skull Candy Inc. ® skullcandy.com  Owner: Rick Alden  Target audience: years of age  Knows his customer, he knows they want to be cool and accepted by peers. He know s what they watch, where they shop, what apps they have on their phones and iPads.  Headsets or ear buds with skulls on them are now worn in every country.

Customer Profile A customer profile uses marketing segmentation to identify key factors and using them to break down the pool of customers to who would likely purchase the product or service. This shows a company where to spend their advertising resources to get the most return on investment. Target Market Segmentation Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral

Geographic Segmentation: Geographic Segmentation : is based on  where consumers are located or climate  ie: Regions – States – Cities - Rural Areas – Cold – Hot

Demographic Segmentation Segmentation based on statistical characteristics, such as:  Gender: male, female  Age: children, teenagers, young adult, middle age, senior, elderly  Ethnicity: American, African, Indian, European, Asian, etc.  Education: 8th grade or less, high school, some college, college degree  Occupation: white collar, blue collar, service worker, farm worker  Income: low, middle, high  Life stage: single, married, with children, without children, older

Psychographic Segmentation Segmentation based on values, attitudes, personality, and lifestyle People classified according to what they feel, what they believe, their way of life, and the products, services, and media they use

Behavioral Segmentation Segmentation based on purchase behavior  User Status  Include nonuser, ex-user, potential user, first-time user, regular/loyal user Brand loyal users require the least amount of advertising  Usage Rates  Volume segmentation measures consumers’ usage and categorizes them as light, medium, or heavy users  Purchase Occasion  Regular occasion  Special occasion

Importance of target markets Once target markets are identified correctly, specific marketing programs are directed to identified group, or target market.

Example of Customer Profile Skull Candy Customer Profile:  Geographic segmentation:  any area, any climate  Demographic segmentation:  age –  Males  Professional musician  Psychographic segmentation:  Likes to listen to music  Athletic/exercises  Trendy  Extreme Sports  Behavioral  Listens to personal media device  Buys mobile music media  Brand conscience

Example of Customer Profile 15 Day Alaskan Cruise Customer Profile:  Geographic segmentation:  any area, any climate  Demographic segmentation:  age – 55 +  Retired  high income/professional  married  Psychographic segmentation:  interested in travel  likes scenery cruises  likes to travel on water  Behavioral  purchases trip packages

Example of Customer Profile Snowboard Company Customer Profile:  Geographic segmentation:  cold climate  mountain region  Demographic segmentation:  age – 8-60 years  middle to high income  Married with or without kids  Psychographic segmentation:  interested in snowboarding  likes winter sports  Behavioral  goes snowboarding  purchases own gear