1. Segmentation / Consumer Profiles

2. “the most bang for the buck”
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
“the most bang for the buck”

3. Everyone has unique physical features, personality, values, beliefs, geographic location and history
These differences are demonstrated by the daily decisions and behaviors these different people do
As a marketer, the more we know about our potential customers, the better we are able to anticipate or influence their buying decisions

4. 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”.

5. 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.)

6. Let’s look at how this is done……...

7. 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

8. 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

9. Let’s look at each of the main variables………

10. Depending on the market, people are grouped into various groups
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, , 65-74, 75+
Depending on the product / service, marketers need to determine the age group that will most likely purchase their product .

11. The classification of the population into either male or female
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

12. 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

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

14. 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

15. 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)

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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 reseached and targeted customer

22. The End !!