1. CHAPTER 8 Segmenting and Analyzing the Target Market

2. Chapter Objectives To understand the value of electronic resources in identifying demographic and psychographics prospects in the marketing segmentation process. To be able to analyze geographic, demographic, and psychographics data in making informed marketing decision.

3. Searching for the Households National Decision System’s Geo- demographic analysis www.natdecsys.com Mapping Geography Household clusters Psychographics segmentation

4. The Value of Marketing Data Base Classification of like items into smaller groups: Up-to-date information regarding consumer: Demographic Population Households Life style Businesses: Micro:  Personality factors  Purchasing style Macro:  SIC code

5. Importance of Segmentation People are similar and live together. Marketers has to know the characteristics of these similar people as a cluster. Understanding the similarities of people gives direction to marketer about: Promotion Price Place Product

6. Psychographics It is about life styles Marketers can locate the best prospects within any demographic area. Each segment represents an unique pattern of purchasing, consumption, media and financial behaviors. Psychographics profile identifies the percent of population in each market segment. It improves effectiveness in all promotional tools including selection, appeal and proportions.

7. Psychographics (cont.) It helps to recognize market niches. It helps to define the best profile in terms of size and demographics. Ivals2 on the internet has 10 segments: http://future.sri.com It is also important to have behavioral segmentation: Heavy/light/non-users

8. The ivals Psychographics Methodology Wizards Pioneers Up-streamers Socialites Workers Surfers Mainstreamers Sociable Seekers Immigrants

9. Electronic Tracking It is directed toward identifying and tracking the behaviors of online customers.. File called ‘Cookies’ are easily installed and easily turned of from the computer of a Web user. It may be considered as invasion of privacy. Marketers can use the information from cookies to track a user’s visit to a page and track which advertising banner that user had been viewing. Marketers may be able to study site navigation. www.engage.com www.ifrontier.com

10. Art and Sciences Marketers must know: Which creative marketing strategy will work. Who is the appropriate consumer of a product/service. Appling psychographics is a longer-lasting strategy for success.

11. Geographical Mapping Geographical data base technology is becoming very popular: Databases can contains millions of variables Each variable may contain key information Mapping application can pull the information and apply to mapping. Mapping may include following geography: Carrier routes States Zip codes Custom created sales territories Census tracks Designated Market Areas (DMA)

12. Geographical Mapping (cont.) Benefits of mapping: Organization Analysis It is also critical that the map should be up-to-date Types of data base mapping: Site analysis Territory management Database plot