Previously we looked at how demographics are used to determine the target market of the business. Now we will look at psychographics, which are the more personal characteristics of the consumers.
Psychographics look at the consumers’ lifestyles, values, and attitudes to determine why consumers purchased the products they do. Emanuel Demby coined the term psychographics back in 1974. Over the years, he has revised and updated the definition and the most recent one appears in Barry and Weinstein‘s article. It is as follows:
Psychographics help explain the reasons why consumers chose the specific product.
They would have to look at the reasons why the consumers want or need the laptop.
While demographics are rather easy to obtain through public sites such as the Census Bureau or even through observation in a brick and mortar store, psychographics are more difficult to gather and to segment.
Yankelovich’s MindBase identifies eight attitudinal groups that each have three sub-segments.
The attitudinal groups are labeled I am Expressive, I am Driven, I am At Capacity, I am Rock Steady, I am Down to Earth, I am Sophisticated, I Measure Twice, and I am Devoted. (See http://www.dsa.org/pubs/research/yankelovichproducts.pdf for full descriptions). Marketing communications can use these segments as profiles for determining the target market and creating the marketing communications plan.
The other well-known service that provides psychographic segmentation is SRI Consulting Business Intelligence’s (SRIC-BI’s) VALS tm system.
Companies use this psychographic data to use the proper medium to reach their targets.
From this description, the company can determine its marketing and marketing communications plan. The marketers might choose to advertise in a high-end wine magazine or on the website of a luxury vehicle.
Understanding of demographics and psychographics is an important part of determining the target market. The target market is the basis for the marketing communications plan and needs to be determined to move forward.
As you learned in Introduction to Marketing, a product cannot be all things to all people.
There are certain people that like fishing and others that prefer to spend time at the beach.
Same goes for advertising–the fishing family will probably skip over the advertisement for a beach umbrella. For most companies, advertising dollars are scarce, so it is important to get the message out to the right people.
Businesses need to target their audiences so that the right consumers receive the right message.
As Mandy Porta explained in her article,
According to Porta and other marketing professionals, you can determine your target market by analyzing your customers, examining the competitors, and reviewing the features of your product or service.
Companies determine their target market by using several different forms of characteristics including behaviorgraphic, psychographic, geodemographic, and demographic. For this lecture, we will focus ondemographic targeting.
The most common ways to group demographics are by age, gender, education, family status, income, ethnicity, or race. According to Clow and Baack (2005), the reason for using demographics for market segments is the belief that people with similar characteristics have similar needs. For example, one of the main demographic features that marketers use to determine the communication about a product or service is age.
Some of the common groupings include children (Preschool, Elementary. Tweens (usually between 8 and 12), and teenagers), Young Adults (Generation X or Gen X usually born between 1965 and 1981 and Generation Y and Millenials born between 1982 and 1996), Middle-aged (35-54), and Mature (over 55). Some additional divisions include The Greatest Generation (born 1901-1924), The Silent Generation (born 1924-1945), and Baby Boomers (born 1945-1965).
Determining the target market is important to your business to ensure that your marketing and advertising dollars are spent correctly. Using demographics is one way to define your target market.
Psychographics look at more personal characteristics of people. Those will be discussed in the second lecture.
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