This targeting should emphasise on any differential advantages and adopt a suitable positioning within the target segments dibb and simkin, 1996. This is moving way beyond generational segmentation, he said. Learn all about psychographic segmentation definition, variables, examples, and advantages to implement it for your target market. The ukbased national readership survey segregates social class into six categories.
Marketing segmentation strategies can be cultivated through an extensive choice of. Pdf the use of demographic and psychographic segmentation. A combination of demographic, psychographic, geographic, and behaviour information is commonly. Market segmentation is the process of dividing a target market into smaller, more defined categories. Geographic segmentation geographic segmentation calls for dividing the market into different geographical units such as regions, cities, or neighborhood.
Dec 18, 2017 samsung group report contains a full analysis of samsung segmentation, targeting and positioning and samsung marketing strategy in general. A comparative analysis of psychographics and demographics as segmentation variables in a rail passenger market. Psychographic segmentation definition with examples. Pdf with growing competition, loyal customers have become the key to the. Psychographic segmentation is the next frontier for health care, said david homan, director of marketing and innovation and a shareholder at mcgohan brabender. Market segmentation bases for segmenting consumer markets geographic demographic age, gender, family size and life cycle, or income psychographic social class, lifestyle, or personality behavioural occasions, benefits sought, user status, usage rate, loyalty nations, states, regions or cities. This is an exciting and different way to engage consumers in their health care.
May 29, 2018 the beauty of psychographic segmentation. Market definition, market segmentation and brand positioning. Before discussing psychographic or lifestyle segmentation which is what most of us mean. Targeting is the important aspect of the marketing strategy, especially when a company is in different businesses. The habits that consumers generally display with regard to a certain class of products will determine their reaction to the product or service that a marketer is offering them psychographic segmentation variables the variables that come into play when we speak of psychographic segmentation. Demographic segmentation is market segmentation based on various demographic factors, like age, gender, social class, etc. Many believe you can get a full understanding of your customers by studying demographics e. Segmentation involves dividing population into groups according to certain characteristics, whereas targeting implies choosing specific groups identified as a result of segmentation to sell products. If 85% of your clients range from 2035 years old, this is the segment youre going to target.
It is important to specify that pepsico portfolio comprises 22 brands including pepsicola, lays, mountain dew, gatorade, tropicana and others, and the table 2 above specifies pepsico target customer segment in general by focusing on the common characteristics of positioning of brands within pepsico portfolio. One of the main marketing strategies a company like starbucks employs is psychographic segmentation. The key difference between psychographic and behavioral segmentation is that psychographic segmentation focuses on customers personality trait, values and attitudes, whereas behavioral segmentation focuses on activities of the customer market segmentation is one of the key aspects of the marketing strategy. Psychographic segmentation was developed by marketing researchers to. Identifying market segments andtargets formarketing. Jun 24, 2018 if youre only using demographic data for your marketing strategy, youre missing out. It is the marketers of products and services who use this technique in order to decide their marketing strategy. It focuses on the definition, basis of market segmentation and issues related to market segmentation in detail.
Here are some examples of market segmentation to prove this point. Basic explanation of demographic segmentation with examples. Psychographic segmentation and lead generation are part of a complex world. Marketing strategy of nike nike marketing strategy. Market segmentation and target marketing pearson canada. The indian retail market is the fastest growing sector in the indian economy and offers tremendous potential to the modern marketer. Strategy on market segmentation targeting and positioning. Segmentation means the splitting of the market into groups of end users who are.
Psychographic segmentation is a way to categorize audiences and customers by factors that relate to their inner personalities and characteristics. Market segmentation is a vital marketing strategy for any company. This research paper will provide information about the knowledge gap and will show a path for future research in the area of market segmentation, which is the heart of marketing now a day. Subsequently the company then must decide which market strategy to choose. The word demographic is derived from demography, meaning the study of population. However, we all know that a better longterm strategy in converting more customers is to engage in practices of segmentation like psychographic segmentation for instance. Doing the detailed understanding of the marketplace into strategic decisions and the targeting of appropriate customer groups. Psychographics in marketing focus on understanding the consumers emotions and values, so you can market more accurately.
An overview of psychographic segmentation with examples. Different types of market segmentation strategies that. Essentially, a firm adopts a market segmentation strategy that is best suited to achieving its. Market segmentation is a marketing strategy that divides consumers interests, demographics and behavior into different groups to better market to specific needs. A key element for increasing market share and profitability in a fragmented market is through the strategy of market segmentation since stiffer competition has resulted in the need for institutions to identify various options for survival. The use of demographic and psychographic segmentation to creating marketing strategy of brand loyalty article pdf available in scientific annals of economics and business 661. Psychographic segmentation is a method used to group prospective, current or previous customers by their shared personality traits, beliefs, values, attitudes, interests, and lifestyles and other factors. To define the target audience, marketers conduct market segmentation.
The report illustrates the application of the major analytical strategic frameworks in business studies such as swot, pestel, porters five forces, value. The use of demographic and psychographic segmentation to. This kind of market segmentation is done to cater to consumers with similar likes and needs and offer them something they value. Basic explanation of demographic segmentation with. Psychographic segmentation is one which uses peoples lifestyle, their activities, interests as well as opinions to define a market segment.
Difference between psychographic and behavioral segmentation. Samsung group report contains a full analysis of samsung segmentation, targeting and positioning and samsung marketing strategy in general. Demographic segmentation allows you to get more specific with your marketing strategies. Approaching psychographic segmentation in b2b marketing. May 09, 2016 pepsico segmentation, targeting and positioning. May 10, 2018 psychographic segmentation divides potential consumers based on their interests, personalities, lifestyles, activities, and other similar factors. Most companies use it to get the right population in using their products. Unlike demographic and geographic segmentation, which focus on quantifiable and visible details, psychographic segmentation focuses on less obvious details.
Top content on psychographic, segmentation and strategy as selected by the b2b marketing zone community. Psychographics marketing may be a concept that you are not fully aware of, but it. As todays consumers expect a business to understand their needs, knowing the psychology behind your customers is key to offering personalized experiences this is why marketers have been looking more into the science of consumer behavior and psychology to determine the best. While some broad elements of market segmentation e. Market segmentation is a marketing strategy which involves dividing a broad target market into subsets of consumers, businesses, or countries that have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to. Identifying these important factors can be a powerful way of marketing the same product or. Psychographic segmentation definition, importance, advantages. Creating general campaigns usually works in the beginning. The demographic segmentation by starbucks is between 25 and 40 years of age with high incomes, the second target group is 18 to 24 year of age and belongs to richer families. Market segmentation strategy solutions cmg partners.
Mcdonalds segmentation, targeting and positioning is one of the integral components of its marketing strategy. Demographic segmentation aids an organization in understanding its consumers and satisfying their wants and needs. This information can be used in a variety of ways, which well get to in a second, but first, lets take a look at some potential psychographic data collection methods. A target marketing s trategy is focused on the customers needs and wants.
Rediscovering market segmentation by daniel yankelovich and david meer the psychographic profiling that passes for market segmentation these days is a mostly wasteful diversion from its original and true purposediscovering customers whose behavior can be changed or whose needs are not being met. Based on recent marketing definitions, behavioral and psychographic segmentation are the definitions that best represent samsungs current segmentation strategy. The use of demographic and psychographic segmentation to creating marketing strategy of brand loyalty. The predominant factor that can be attributed to this progressive scenario among other things is the emergence of. See how you can leverage market segmentation by learning. This segmentation method focuses on the psychology of the customer, which can be. How they behave psychographic segmentation dividing markets into segments on the basis of consumer life styles and attitudes. After completing this chapter, student should be able to understand. Apr 16, 2020 psychographic segmentation is the market segmentation strategy in which the total market is divided on the basis of psychology, personality of people, characteristics, lifestyle, attitudes etc. Pepsico segmentation, targeting and positioning research.
Psychographic segmentation is a method of dividing markets on the bases of the psychology and lifestyle habits of customers. However, market segmentation s full potential has not been applied to the public health context. Psychographic is the study of how people live, what interests them, what they likealso called lifestyle analysis because it relies on a number of statements about a persons activities, interests and opinions. Psychographic segmentation includes variables such as activities, interests, opinions, attitudes, and values. How to use psychographic data in your marketing strategy. In this post, learn about psychographic datawhat it is and how it can be used to improve your marketing strategies and amp up your conversion. Psychographics greatly enhance your understanding of your customers, allowing you to improve your strategy. Social media perhaps one of the most popular ways to use psychographic data is on social media. The effectiveness of demographic and psychographic variables for explaining brand and product use 20,000 respondents from a study conducted by simmons market research. Pdf psychographic segmentation of young adult consumers. Amazons approach to audience segmentation this article illustrates how a huge marketplace sees you as a customer and adapts its offers to your unique needs. Everyone on planet earth knows amazon is one of the largest ecommerce market players. The psychographic segmentation divides the customers into. A niche segmentation strategy focuses all marketing efforts on a small portion of the population.
Psychographic or lifestyle segmentation lastly, we come to psychographic or lifestyle segmentation, based upon multivariate analyses of consumer attitudes, values, behaviors, emotions, perceptions, beliefs, needs, benefits, wishes, and interests. The impact of market segmentation and social marketing on. The business world has long recognized the power of defining discrete audiences within a target population. It uses separate campaign or strategy to cap the market potential of the different segments. Psychographics are the psychological characteristics of your ideal customer. A study on market segmentation of samsung electronics ltd. Psychographic segmentation consists of dividing consumers from a market into groups based on social class, lifestyle, or personality characteristics mayo, 1977, p. The impact of the consumers psychographic and demographic characteristics on buyer behavior.
This strategy involves dividing the market into segments and developing products or services to these segments. Pdf the use of demographic and psychographic segmentation to. Market segmentation the major segmentation variables are geographic, demographic, psychographic, and behavioral segmentation scribd inc. Psychographic segmentation 5 factors for marketing. According to wikipedia, psychographic segmentation is defined as the study and classification of people according to their attitudes, aspirations, and other psychological criteria, especially in market research.
American journal of business education june 2011 volume 4. Core segmentation research psychographic segmentation is the process of grouping individuals based on attitudes,opinions,personality traits,beliefs, and lifestyles piirto, 1991. Psychographic segmentation goes beyond the typical social and economic demographical factors that we have studied as marketers. Many businesses offer products based on the attitudes, beliefs and emotions, ideas, and perceptions of the target market. The socioeconomic scale ranges from the affluent and highly educated at the top to the uneducated and unskilled at the bottom. Psychographic segmentation is a legitimate way to segment a market, if we. An analysis on the market segmentation of starbucks and. It is the marketers and the sellers of products and commodities who use this technique in order to decide their marketing strategy. Demographic segmentation is one of the simplest and most widest type of market segmentation used. Marketing strategy is carrying out segmentation, targeting and positioning. Psychographic segmentation is quite similar to behavioral psychographic segmentation. It is not possible for a marketer to address the mass with same marketing strategy.
Psychographic segmentation focuses on group customers according to their lifestyle and purchasing psychology. Consumer behavior market segmentation tutorialspoint. Although there have been conflicts within the academic community as to the reliability and validity of psychographic measures wells, 1975, this seg. Mostly starbucks customers belong to the generation y which was born between 1977 and 2000 fromm 2014. Psychographic segmentation is a market segmentation technique where groups are formed according to psychology, lifestyle, personality, social status, daily activities, interests, and opinions. Behavior segmentation a variety of strategies for segmentation is available. Using this segmentation, companies target different messages to. Psychographic segmentation is dividing your market based upon consumer personality traits, values, attitudes, interests, and lifestyles. Using different types of market segmentation allows you to target customers based on unique characteristics, create more effective marketing campaigns, and find opportunities in your market. Psychographic segmentation divides the target market based on socioeconomic class or lifestyle preferences. Psychographics is the qualitative methodology of studying consumers based on psychological characteristics and traits such as values, desires, goals, interests, and lifestyle choices. With this finding, an expert in marketing was engaged in an interview to further analyze the market segmentation strategy used to segregate the market of starbucks and city cafe.
It helps the firm divide the market into several segments or groups, each having a common variable, and target each of these. No matter what kind of marketing strategy your brand uses, psychographic data can enhance the results and get you more paying customers, when done right. Psychographic segmentation could be used to segment markets according to. Psychographic segmentation, or behavioral segmentation, is a method of dividing markets on the bases of the psychology and lifestyle habits of customers. How to use psychographics to enhance your marketing strategy. A target marketing strategy is focused on the customers needs and wants.
Mar 06, 2018 nike uses psychographic segmentation variables to make its offerings more attractive to the target customers. But psychographic segmentation also takes the psychological aspects of consumer buying behavior into accounts. Psychographic, segmentation and strategy b2b marketing zone. The report illustrates the application of the major analytical strategic frameworks in business studies such as swot, pestel, porters five forces, value chain analysis and mckinsey 7s model on samsung. Market segmentation is a common practice among all the industries. Psychographic segmentation of starbucks essay 2212 words. An analysis on the market segmentation of starbucks and city cafe. Psychographic segmentation to creating marketing strategy of brand loyalty. This is a strategy that considers the lifestyle of people, interests, their activities, as well as opinions to. Mar 20, 2019 a buyer persona is a profile of a typical customer based on real data.