1. Market Segmentation/
Consumer Profiles

2. Yet these aren’t there “most likely customers”
Marketers and business people, will sell their products to whomever will buy them
i.e.
wedding gowns to seniors
Retirement funds to a teenager
Yet these aren’t there “most likely customers”
They need to optimize their marketing dollar…. get the “most bang for their buck”

3. As a marketer, the more we know about our potential customers, the better we are able to anticipate or influence their buying decisions
Customers have unique physical features, personalities, values, beliefs, geographic location, and history
Marketers therefore create “consumer profiles” of the kind of people most likely to be attracted to a specific product

4. Each identified group of consumers with common characteristics and buying habits is called a “consumer segment” which is accomplished through the process of “segmentation”
The purpose for segmenting a market is to allow your marketing/sales program to focus on the subset of prospects that are "most likely" to purchase your offering. If done properly this will help to insure the highest return for your marketing/sales expenditures
Once identified, marketers will focus their efforts on trying to reach and influence these segments

5. For some products, there may only be one segment…
For some products, there may only be one segment….for others there may be multiple segments
Examples:
One segment: Wedding Gowns (females, getting married)
Multiple segments: Levi Jeans (teens/middle age, males/
females, low income/upper income

6. 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

7. Market segments are created by profiling consumers
under three main categories:
Demographics
Psychographics
Geographics

8. 1. Demographics
Demographics refers to the study of characteristics that categorize a population
These characteristics include age, gender, family life cycle, income level and ethnicity and culture
Each characteristic is then subdivided into variables or ranges

9. Age Depending on the market, people are grouped into various groups
Stats Canada divides the population as such:
0-15, 15-24, 25-44, , 65-74, 75+
Depending on the product / service, marketers need to determine the age group that will most likely purchase their product .

10. 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
i.e.:
Male – Cologne, Tools, Cars, Football
Female – Perfume, Purses, Romantic Novels
Both – Groceries, Gas, Movie Rentals

11. 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
i.e.:
New Family – diapers, baby food
Older Family – ipods, computers

12. Examples of Family Life Cycle Stages
Single
Married (no children)
Family (young children)
Family (older children)
Empty Nesters (children left)
Retirees

13. 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

14. 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)

15. 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
i.e. 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

16. 2. Psychographics A system of measuring consumers’ beliefs, opinions,
and interests.
A way of profiling consumers on the way they “think”…
i.e:
Religious beliefs, lifestyle, musical tastes, attitudes, etc.
They are much harder to measure, yet they are vital in creating an effective customer profile

17. 3. 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?
i.e.:
tractors – rural Canada
Indian Cuisine – focus on areas of high Indian population
Toronto Raptors – focus on urban / suburban GTA

18. What is the target consumer for People magazine?
Profile Category
Profile Group
Targeted Consumer
Age
Gender
Income
Family Life Cycle
Culture
Lifestyle/Values
Country/City

19. 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

20. 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
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 researched and targeted customer