Chapter 5 Target Audience and Market Segmentation

Segmentation Categories Demographic Age Gender Income Marital Status Family Size Psychographic Life Style Attitudes Interests Personality Ethnicity Geographic City Size Zip Codes CBSA's DMA's Sales Regions Purchase/Use Buyer Status Amount Frequency Purpose Price Sensitivity Figure 5.1 Segmentation categories are used to identify differences among customers and potential buyers. This information is used later for creative development and media buying. Each of the categories also has subdivisions that focus on the unique aspects of consumers. The more specific the details of demographic, psychographic, geographic, and purchase use, the better.

Buyer Status Segmentation First Time Brand Switchers Not Interested Loyal Customers Figure 5.2 First time buyers are new to the market and require information. Since they have limited experience with the product category, these buyers need to understand product features, as well as brand benefits. Brand switches tend to make decisions based on the lowest price or best deals, but often switchers are people who are unhappy with their brand for other reasons. Loyal customers have very high levels of satisfaction with their existing brand and continue to purchase it on a regular basis. And, there is another category of individual who are not interested in the product category or have very little need for such products and services.

Purchase Rate Segmentation Light Users 1-3 Times Per Week Purchased Monthly Medium Users 4-7 Times Purchased Weekly Heavy Users More Than 8 Times Per Week Purchased Daily Figure 5.3 The descriptions of light, medium, and heavy purchasers must always be quantified. This means that specific numbers must be assigned to each category. Although this might be an arbitrary decision, it helps to calculate the percent of buyers in each category and estimate the potential sales volume.

Target Audience Profile Demographic 24-35 Female $45,000 Single Two Children Psychographic Professional Impulsive Action Sports Enthusiastic Hispanic Geographic Large Metro Zip Codes CBSA's Miami Sales Regions Purchase/Use First Time Buyer No Experience Heavy Potential Use Healthy Eating Premium Quality Figure 5.4 This an example of how the four segmentation categories can be used to identify a specific target audience for a brand. The profile provides a better of existing or potential buyers and guidance for the development of every type of IMC program.