The Consumer Audience

1. The Consumer Audience Week 4 Lecture 7

2. Identify market type Homogenous Heterogeneous Examples: Telecom companies launch campaigns Petrol company ads Steps to Segmentation

3. Identify market type Dividing the market into groups of people with similar characteristics in certain key product-related areas (Segment) Steps to Segmentation

4. Identify market type Segment Identify the group that will be the most profitable audience / is most likely to respond to the message (Target) Steps to Segmentation

5. Why Use Segmentation Approach? • Precisely match needs & wants of customers with high buying potential • Advertising messages • Product variations • Save on wastage in media plans • Generate more sales

6. Customer-Oriented Product-Oriented Segmentation Approaches Demographics Age & Life Stage Gender Ethnicity Religion Income Education Household Size Psychographics Society/Culture Lifestyle Personality Geographics International National State City Climate Urban/Rural Benefits Sought Specific Problems solved by product Specific Benefits offered Behavior Traits Usage Rates User Status Brand Loyalty

7. Demographics • Are statistical, personal, social & economic characteristics used to describe a population • Age • Gender • Education • Income • Occupation • Race / Ethnicity • Family Size

8. Geographic • The area in which the target market lives • Urban / Suburban • City • Province • National • International • Climate

9. Psychographic • Refers to lifestyles & psychological characteristics such as values, attitudes, beliefs, personality, motivations, interests & opinions • Activities (Hobbies, shopping, entertainment, social events…) • Opinions (Self, social issues, morality, culture, business, religion, environment, society…) • Interests (family, job, community, fashion, food, health…) • Trends & Fads

10. Important Components • Culture & Values • Freedom, independence, individualism, collectivism, achievement, respect, excitement, openness, conservativeness, need for self-fulfillment, long-term orientation, superiority, etc… • Reference Groups – guides for behavior • Social Class

11. Usage Behavior • How much of a product category or brand a customer buys or may buy or how willing people are to innovate Consumer Categories Based on Product Usage Usage Rates Light Medium Heavy Brand Relationship Non-Users Ex-Users Regulars First-Timers Loyal Users Switchers Innovation Innovators Early Adopters Early Majority Late Majority Laggards

12. Benefit Segmentation • Based on consumers’ needs or problems (or wants) or specific benefits consumers hope to derive

13. Maslow’s Hierarchy of Needs • Primary (Innate) vs. Secondary Needs (acquired) Relevant Products Examples

14. Lifestyles Analysis How people allocate time, energy & money VALS – Values & Lifestyle Analysis Sociodemographic Segmentation Baby Boomers, Gen X, Gen Y, Millenium Kids… Other Segmentations

15. Target Profiling • Also called Consumer Narrative • Descriptions of the target audience that read like a description of someone you know • Example (for Fishing Boat Charter): • Married men within 35 – 50 year age bracket with kids up to 3 in number aged 6 – 16, upper middle class socio-economic background with income around $90K or more per year. Well settled in their career with white-collar professional jobs. Reside in a coastal area of Florida. Busy schedule and usually pre-plan vacations & value comfort & relaxation over adventure. Vacations are a way to spend quality family time. Want to be role models for their sons and have strong progressive family values… Many have had prior fishing experience…