Segmenting & Analyzing Target Market: Electronic Resources, Geo-Demographic Analysis, Psychographics & Geographical Mapp

1. CHAPTER 8 Segmenting and Analyzing the Target Market

2. Chapter Objectives • To understand the value of electronic resources in identifying demographic and psychographics prospects in the marketing segmentation process. • To be able to analyze geographic, demographic, and psychographics data in making informed marketing decision.

3. Searching for the Households • National Decision System’s Geo-demographic analysis • www.natdecsys.com • Mapping • Geography • Household clusters • Psychographics segmentation

4. The Value of Marketing Data Base • Classification of like items into smaller groups: • Up-to-date information regarding consumer: • Demographic • Population • Households • Life style • Businesses: • Micro: • Personality factors • Purchasing style • Macro: • SIC code

5. Importance of Segmentation • People are similar and live together. • Marketers has to know the characteristics of these similar people as a cluster. • Understanding the similarities of people gives direction to marketer about: • Promotion • Price • Place • Product

6. Psychographics • It is about life styles • Marketers can locate the best prospects within any demographic area. • Each segment represents an unique pattern of purchasing, consumption, media and financial behaviors. • Psychographics profile identifies the percent of population in each market segment. • It improves effectiveness in all promotional tools including selection, appeal and proportions.

7. Psychographics (cont.) • It helps to recognize market niches. • It helps to define the best profile in terms of size and demographics. • Ivals2 on the internet has 10 segments: • http://future.sri.com • It is also important to have behavioral segmentation: • Heavy/light/non-users

8. The ivals Psychographics Methodology • Wizards • Pioneers • Up-streamers • Socialites • Workers • Surfers • Mainstreamers • Sociable • Seekers • Immigrants

9. Electronic Tracking • It is directed toward identifying and tracking the behaviors of online customers.. • File called ‘Cookies’ are easily installed and easily turned of from the computer of a Web user. • It may be considered as invasion of privacy. • Marketers can use the information from cookies to track a user’s visit to a page and track which advertising banner that user had been viewing. • Marketers may be able to study site navigation. • www.engage.com • www.ifrontier.com

10. Art and Sciences • Marketers must know: • Which creative marketing strategy will work. • Who is the appropriate consumer of a product/service. • Appling psychographics is a longer-lasting strategy for success.

11. Geographical Mapping • Geographical data base technology is becoming very popular: • Databases can contains millions of variables • Each variable may contain key information • Mapping application can pull the information and apply to mapping. • Mapping may include following geography: • Carrier routes States • Zip codes Custom created sales territories • Census tracks Designated Market Areas (DMA)

12. Geographical Mapping (cont.) • Benefits of mapping: • Organization • Analysis • It is also critical that the map should be up-to-date • Types of data base mapping: • Site analysis • Territory management • Database plot