Segmenting and Analyzing the Target Market

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 Systems 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 users 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