Demographics and Psychographics EXAM ReviewSports and Entertainment MarketingMarketing and StrategyCouncil Rock School DistrictMr. Sherpinsky

Demographics Demographics: The study

of characteristics of groups of human beings in terms of statistics. Objective characteristics of

consumers such as age, income, education, sex or occupation.

A demographic is what most marketing activities focus on, as it is easiest to describe.

Psychographics

• Psychographic Analysis • A technique that investigates how

people live, what interests them, what they like--also called lifestyle analysis because it relies on a number of statements about a person's activities, interests and opinions. (How they “behave”)

• Psychographic Segmentation • Dividing markets into segments on

the basis of consumer life styles.

Psychographics

Psychographic Analysis

• A technique that investigates how people live, what interests them, what they like--also called lifestyle analysis because it relies on a number of statements about a person's activities, interests and opinions. (How they “behave”)

Geographics Geographic segmentation tries to

divide markets into different geographical units: these units include: Regions: Counties or major metropolitan

areas States: perhaps categorized by size,

development or membership of geographic region (East v. West, North v. South)

City / Town size: e.g. population within ranges or above a certain level

Population density: e.g. urban, suburban, rural, semi-rural

Climate: e.g. Northern, Southern

Markets The simplest way to define a

market is to think of a market as consisting of all the people or organizations that may have an interest in purchasing a company’s products or services. In other words, a market comprises

all customers who have needs that may be fulfilled by an organization’s offerings.

Marketing Segmentation Market segmentation is a

marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs for the relevant goods and services. Subsets may be divided by criteria such

as age and gender, or other distinctions, such as location or income.

Marketing campaigns can then be designed and implemented to target these specific customer segments.

Lifestyle Analysis

Analyzing consumer lifestyles (psychography) means examining the way people live rather than where they live (geography) or their age, income, or occupation (demography).

Lifestyle analysis is based upon a person's activities, interests and opinions.

Examples of Demo vs. Psycho Demographic data

SWM, MWF (male / age) Earn a certain income Occupation is computers,

education, sales or… Have one child, no child Graduated college, no college,

advanced degree Psychographic data

Conservative with spending Value driven rather than price

driven Aversion to debt Value efficiency and privacy Early majority but not always a

technology optimist

Niche Marketing

A niche market is the subset of the market on which a specific product is focusing. So the market niche defines the

specific product features aimed at satisfying specific market needs

It is also a smaller market segment.▪ For example, sports channels like

STAR Sports, ESPN, STAR Cricket, and Fox target a niche of sports lovers.

Why Are These Things Useful?

Demographics & Psychographics have an important place in marketing research Increase the effectiveness of a

promotional campaign by: Targeting the appropriate audience▪ Reaching only those who could or will buy

your products Focusing the message on their needs▪ Using images, text, and specific messaging to

heighten connectivity to consumers Selecting the appropriate media▪ Selecting the right method or combination of

methods to find our target audience using the least amount of resources

Baby Boomers What is a Baby Boomer

anyway? The common definition is that people born

between 1946 and 1964 are considered "Baby Boomers.“ Also called, Me Generation,

Boomers, Baboo, and Love Generation

Gen-X Generation X can technically be

defined as the generation following the Baby Boomers. Gen-Xers were born between 1965 & 1977 now

ranging in age from 35-47, as of 2012 and judged by characteristics assigned to them by the media.

Also known as the Baby Bust, Slackers, Why me Generation, and Latch-key Generation

The media has singled out America's youth as representative of Gen-X: "underemployed, overeducated, intensely private and unpredictable”

Gen-Y- Millennials/Echo Boomers

Also known as the Millennials or the Echo Boomers, “Why Generation”, Net Generation, Gen Wired, Next Generation, and Nexters Chiefly the children of baby boomers and

new immigrants, a demographic behemoth born roughly between 1977 and 1994, age 18-35, as of 2012

The Millennials have already shown themselves to be big spenders. Debt to Income Ratios: 20:1

Gen-Z

Gen Z also known as Tweens, Baby Bloomers, and Generation 9/11 Born after 1994 and are less than

18 years old, as of 2012. Newest Generation Not yet fully defined

Oldest of this group is Tweens (11-17)

Psychographics People’s interests and values

How you spend your time Lifestyle research

Valuable in establishing market segments Often influences▪ Purchases▪ Housing, Vehicles▪ Location (Where you choose to live)▪ Recreation time (What do you do with free time)

Responsible for coffee shops, book stores, sports venues, home décor, and healthcare Used to develop segments from the mass

market

Psychographics

When we look at the Psychographics of a consumer, we study the consumers shopping trends based on social and psychological characteristics. Specifically: Attitudes Values Lifestyles

Psychographics Attitude: How do people feel

about certain things…Optimistic vs. PesimisticWhite Collar vs. Blue CollarDIY vs. Hiring out helpBasic vs. LuxuryDebby Downer vs. Sammy

Sunshine

PsychographicsValues: How

consumers think about certain things…

Religion: Religion practiced: Orthodox? Family: Traditional or Untraditional Work Ethic: Live to work or work to live?Food: Organic or Not? Education: What is expected? High School, College, Apprenticeship? Money: Spend, Save, or Invest…

Psychographics Lifestyle: How consumers

live Family: Single, DINKs, Married w/Kids, Empty NestersVehicle: Bike, Automobile, Mass TransitBody-types: Athletic, Plastic, Voluptuous, Overweight, Losing that LAST 5 pounds…Vacation: Camping/Mountains, Beach/Shore, Travelers, Amusement Parks, Vegas, Global, Family.

Mass Marketing Mass marketing is a market coverage

strategy in which a firm decides to ignore market segment differences and appeal the whole market with one offer or one strategy. It attempts to sell a product to a wide

audience. The idea is to broadcast a message that will

reach the largest number of people possible.▪ Traditionally mass marketing has focused on

radio, television and newspapers▪ Opposite of Niche Marketing▪ Examples: Chewing Gum and Light Bulbs

The Buying Decision

Step 1The dishwasher breaks, creating a Want

Step 2Set Criteria: new or used? What kind do I want? How much can I spend?

Step 3Product search: various “Places” are investigated

Step 4Decision is made: the best deal is selected

Step 5Purchase made

Step 6Purchase is evaluated

Motivational TheoriesThorndike’s Law of Effect States that: Consumers are motivated to

buy products that produce positive events and to avoid products that produce negative events▪ Motivation is affected by how good or how

bad a product or service is (Product) but also by (Place) factors such as crowded stores, parking problems, noise, salespeople, etc

Consumer Motivation to purchasePain: economic and emotional

Pleasure: economic and emotional

VALS System

Primary Motivation Consumers are inspired by one of three

primary motivations: ideals, achievement, and self-expression. Consumers who are primarily motivated by

ideals are guided by knowledge and principles.

Consumers who are primarily motivated by achievement look for products and services that demonstrate success to their peers.

Consumers who are primarily motivated by self-expression desire social or physical activity, variety, and risk.

Behavioral Marketing

What Is Behavioral Marketing? Behavioral marketing targets consumers

based on their behavior on Web sites, rather than purely by the content of pages they visit. Behavioral marketers target consumers by

serving ads to predefined segments or categories. These are built with data compiled from clickstream data and IP information. ▪ Example: A user visits several travel category pages on

a particular site, for example. She's then served airline ads. In most cases, the ads are served through a run-of-site (ROS) placement.

▪ The user's behavior is the key, not the placement.

Contextual Marketing Contextual advertising is a form of

targeted advertising for advertisements appearing on websites or other media such as browsers. Advertisements are selected and served

by automated systems based on the content displayed to the user.

A contextual advertising system scans the text of a website for keywords and returns advertisements to the webpage based on those keywords

The AIDA Formula The term and approach are

commonly attributed to three (3) basic principles to which an advertisement should conform:

1. Attract a reader, so that he will look at the advertisement and start to read it;

2. Interest him, so that he will continue to read it;

3. Convince him, so that when he has read it he will believe it.

If an advertisement contains these three qualities of success, it is a successful advertisement.

The AIDA FormulaA = Attention: the headline or main image

catches the readers' attention and excites them. The headline should either reveal or conceal a common interest. Consider a concern that a large percentage of the target market has and use that as the theme of the headline. Examples▪ 1) FARM FRESH EGGS SOLD HERE!▪ 2) HOW TO BURN OFF BODY FAT, HOUR-BY-HOUR▪ 3) THE MOST EXPENSIVE MISTAKE OF YOUR LIFE

I = Interest: Interest is created by giving the potential customer multiple benefits that will enhance their life.

The AIDA FormulaD = Desire: Build desire by making the

product irresistible. Include things like attractive images, free bonuses, guarantees, endorsements. Build urgency into every offer. Example: "Order now in the next 72 hours

and you will get this free bonus.“

A = Action: The sales piece must have a call to action. The customer should be invited to buy. The customer should be aware that it is easy for them to buy (as many payment methods as possible).

Exam Next Class!!!

EXAM Next Class35 Questions