1. Chapter 5 Target Audience and Market Segmentation

2. 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.

3. 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.

4. 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.

5. 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.