psychographic segmentation and target audience in online marketing

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Psychographic Segmentation & Target Audience in Online Marketing

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Psychographics is about using the demographic information you have for your buyer persona to figure out more about their lifestyle, habits.

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Page 1: Psychographic Segmentation and Target Audience in Online Marketing

Psychographic Segmentation & Target Audience

in Online Marketing

Page 2: Psychographic Segmentation and Target Audience in Online Marketing

Merriam Webster: “market research or statistics classifying population groups according to psychological variables (as attitudes, values, or fears); also : variables or trends identified through such research”

Definition of PSYCHOGRAPHICS

Page 3: Psychographic Segmentation and Target Audience in Online Marketing

Psychographics is about using the demographic information you have for your buyer persona to figure out more about their lifestyle, their behaviors and their habits.

Page 4: Psychographic Segmentation and Target Audience in Online Marketing

How to find the Psychographic Data? 1) Marketing Data 2) Sales and Customer Service Teams 3) Surveys 4) Social Media 5) Focus Groups or Group Interviews

Page 6: Psychographic Segmentation and Target Audience in Online Marketing

Psychographic Segmentation

Psychographic segmentation divides the market into groups based on social class, lifestyle and personality characteristics

Page 7: Psychographic Segmentation and Target Audience in Online Marketing

Psychographic Segmentation

Social class is the single most used variable for research purposes, and divides the population into groups based on the occupation of the 'Chief Income Earner' (CIE), as such it can be seen as a socio-economic scale.

1) Social Class

Page 8: Psychographic Segmentation and Target Audience in Online Marketing

Psychographic Segmentation The socio-economic scale

Social grade Description of occupation Example

A higher managerial, administrative or professional Company director

B intermediate managerial, administrative or professional Middle manager

C1 supervisory, clerical, junior administrative or professional Bank clerk

C2 skilled manual workers Plumber

D semi- and unskilled manual workers Labourer

E state pensioners with no other income, widows, casual and lowest grade earners Unemployed

Page 9: Psychographic Segmentation and Target Audience in Online Marketing

Psychographic Segmentation

One example of a life style classification model, is that developed by the advertising agency, Young & Rubican, called Cross Cultural Consumer Characterization (4Cs for short). This classification model is presented in the table below

2) Lifestyle

Page 10: Psychographic Segmentation and Target Audience in Online Marketing

Psychographic Segmentation Cross Cultural Consumer Characterization

Resigned Rigid, strict, authoritarian and chauvinist values, oriented to the past and to Resigned roles. Brand choice stresses safety, familiarity and economy. (Older)

Struggler Alienated, Struggler, disorganised - with few resources apart from physical/mechanical skills (e.g. car repair). Heavy consumers of alcohol, junk food and lotteries, also trainers. Brand choice involves impact and sensation.

Mainstreamer Domestic, conformist, conventional, sentimental, passive, habitual. Part of the mass, favouring big and well-known value for money 'family' brands. Almost invariably the largest 4Cs group.

Aspirer Materialistic, acquisitive, affiliative, oriented to extrinsics ... image, appearance, charisma, persona and fashion. Attractive packaging more important than quality of contents. (Younger, clerical/sales type occupation)

Succeeder Strong goal orientation, confidence, work ethic, organisation ... support status quo, stability. Brand choice based on reward, prestige - the very best . Also attracted to 'caring' and protective brands ... stress relief. (Top management)

Explorer Energy - autonomy, experience, challenge, new frontiers. Brand choice highlights difference, sensation, adventure, indulgence and instant effect - the first to try new brands. (Younger - student)

Reformer

Freedom from restriction, personal growth, social awareness, value for time, independent judgement, tolerance of complexity, anti-materialistic but intolerant of bad taste. Curious and enquiring, support growth of new product categories. Select brands for intrinsic quality, favouring natural simplicity, small is beautiful.(Higher Education)

Page 11: Psychographic Segmentation and Target Audience in Online Marketing

Psychographic Segmentation

Behavioural segmentation divides the market into groups based on their knowledge, attitudes, uses and responses to the product. Following are commonly applied behavioural segments

3) Behavioural segmentation

Page 12: Psychographic Segmentation and Target Audience in Online Marketing

Psychographic Segmentation Behavioural segmentation

Occasions Groups individuals according to the occasions when they purchase, use or think of buying a product.

Benefits Sought Groups individuals according to the benefits they seek from the product.

Usage Rate Groups individuals according to the level of usage they make of the product, be it Heavy, Medium or Light usage.

User Status Groups individuals according to whether they are non-users, potential users, first-time users, regular users, or ex-users of a product

Loyalty Status

Groups individuals according to their level of loyalty to the product. 'Hard core loyals' always purchase the product / brand in question. Whilst 'Soft core loyals' will sometimes purchase another brand, and 'Switchers' will not specifically seek out a particular brand, but rather purchase the brand available to them at time of need, or that which was on sale.

Page 13: Psychographic Segmentation and Target Audience in Online Marketing

Psychographic Segmentation

Groups individuals according to their readiness to purchase the product. This segmentation model is particularly useful in formulating and monitoring the marketing communication strategies employed to move consumers towards purchase of a product or brand.

4) Buyer Readiness Stage

Page 14: Psychographic Segmentation and Target Audience in Online Marketing

Buy

Conviction

Preference

Liking

Knowledge

Awareness

Psychographic Segmentation

Buyer Readiness Stages

Page 15: Psychographic Segmentation and Target Audience in Online Marketing

Psychographic Segmentation

Stage 1. Awareness At the launch of a new product, the target market may not even be aware that the

product exists, even established products seeking to enter new segments of the

market may need to raise awareness of both their company and their product. The

now infamous Benetton promotion campaigns had as one of their objectives, raising

awareness of the Benetton brand, and what ever you think of the methods the

company used, the fact remains that Benetton became one of the 5 most recognised

brands in the world.

Buyer Readiness Stage s

Buy

Conviction

Preference

Liking

Knowledge

Awareness

Page 16: Psychographic Segmentation and Target Audience in Online Marketing

Psychographic Segmentation

Stage 2. Knowledge The audience may well be aware of a product or company, but still have either very little

knowledge of what the product or company does, or possibly worse have the wrong

impression of both the product and company. Daewoo when it first entered the UK Car

Market, had to go about educating the target market about both its products and the

company itself, early promotional material therefore informed the audience about the

size, history and strength of the company.

Buyer Readiness Stage s

Buy

Conviction

Preference

Liking

Knowledge

Awareness

Page 17: Psychographic Segmentation and Target Audience in Online Marketing

Psychographic Segmentation

Stage 3. Liking Knowing about a company or product does not mean the audience will necessarily like

either, they may well be ambivalent, have no feeling at all, or even dislike the product.

An audience with knowledge of a product must therefore be moved to the stage of

liking the product. Promotion must seek to develop a positive attitude towards the

product, or if market research identifies a poor product image in the market, promotion

must seek to address these issues within its promotional campaign. IKEA addressed

head-on the target markets concerns, that much of their furniture has to be assembled

after purchase, and that there are limited staff available on the shop floor, cleverly

turning what the audience may well have originally perceived as negatives into

positives of shopping at IKEA.

Buyer Readiness Stage s

Buy

Conviction

Preference

Liking

Knowledge

Awareness

Page 18: Psychographic Segmentation and Target Audience in Online Marketing

Psychographic Segmentation

Stage 4. Preference Given the level of competition in markets today, it is often the case that the potential

customer will like several competing products on the market, promotion must now

therefore seek to develop within the audience a preference for their product. Through

research the business must establish the key features of the product in the eyes of the

target market, these might include efficiency, performance, economy, value, and

quality. Promotion will now therefore underline the advantages of the product in terms of

these key features, which differentiate it from the competition.

Buyer Readiness Stage s

Buy

Conviction

Preference

Liking

Knowledge

Awareness

Page 19: Psychographic Segmentation and Target Audience in Online Marketing

Psychographic Segmentation

Stage 5. Conviction An audience which prefers a particular product, may still not buy that product based on

pure preference. In fact many customers will purchase a competitors product which

they did not prefer purely because they were convinced it was the right decision at that

time. Promotion must now build confidence in the audience that their preference for the

product is justified, and convince them through a range of promotion tools including for

example the use of positive press reviews, and expert recommendations that their

product is the right one to buy.

Buyer Readiness Stage s

Buy

Conviction

Preference

Liking

Knowledge

Awareness

Page 20: Psychographic Segmentation and Target Audience in Online Marketing

Psychographic Segmentation

Stage 6. Purchase The last stage in buyer-readiness is purchase of the product, unfortunately conviction to

buy may still not result in actual purchase, this may for example be due to the

individuals current financial situation. Many customers will need further persuasion to

make the purchase. Promotion may offer Sales Promotion discounts, or Personal

Selling through Sales Representatives, in order to convert preference and conviction

into a sale.

Buyer Readiness Stage s

Buy

Conviction

Preference

Liking

Knowledge

Awareness

Page 21: Psychographic Segmentation and Target Audience in Online Marketing

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