Psychographic Segmentation

Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs, and then designing and implementing strategies to target their needs and desires using media channels and other touch-points that best allow to reach them. (Wikipedia.org)

Market segmentation is the division of the market or population into subgroups with similar motivations. It is widely used for segmenting on geographic differences, personality differences, demographic differences, technographic differences, use of product differences, psychographic differences and gender differences. For B2B segmentation firmographics is commonly used.

Methods for segmenting consumer markets

Geographic segmentation[edit]

Marketers can segment according to geographic criteria—nations, states, regions, countries, cities, neighbourhoods, or postal codes. The geo-cluster approach combines demographic data with geographic data to create a more accurate or specific profile ( 'What is geographic segmentation' Kotler, Philip, and Kevin Lane Keller. Marketing Management. Prentice Hall, 2006.)

With respect to region, in rainy regions merchants can sell things like raincoats, umbrellas and gumboots. In hot regions, one can sell summer wear. In cold regions, someone can sell warm clothes. A small business commodity store may target only customers from the local neighborhood, while a larger department store can target its marketing towards several neighborhoods in a larger city or area, while ignoring customers in other continents.

Behavioural segmentation[edit]

Behavioural segmentation divides consumers into groups according to their knowledge of, attitude towards, usage rate or response to a product (Fripp, Geoff.“Market Segmentation Bases”Market Segmentation Study Guide)

Segmentation by occasions[edit]

Segmentation according to occasions relies on the special needs and desires of consumers on various occasions - for example, for products for use in relation with a certain holiday. Products such as Christmas decorations or Diwali lamps are marketed almost exclusively in the time leading up to the related event, and will not generally be available all year round. Another type of occasional market segments are people preparing for a wedding or a funeral, occasions which only occur a few times in a person's lifetime, but which happen so often in a large population that ongoing general demand makes for a worthwhile market segment.

Segmentation by benefits

Segmentation can take place according to benefits sought by the consumer] or according to perceived benefits which a product/service may provide. (Reid, Robert D.; Bojanic, David C. (2009). Hospitality Marketing Management (5 ed.). John Wiley and Sons. p. 139. )

2)

Psychographics is the study of personality, values, attitudes, interests, and lifestyles.( "Who Is Your Next Customer?". Booz Allen Hamilton Inc, Strategy+Business. 28 September 2007.)

Because this area of research focuses on interests, activities, and opinions, psychographic factors are also called IAO variables. Psychographic studies of individuals or communities can be valuable in the fields of marketing,[2] demographics, opinion research, futuring, and social research in general. They can be contrasted with demographic variables (such as age and gender), behavioral variables (such as usage rate or loyalty), and organizational demographics variables (sometimes called firmographic variables), such as industry, number of employees, and functional area.

1.‘’the way that a company divides its customers into groups based on their opinions, interests, and emotions ‘’ [Cambridge Business English Dictionary © Cambridge University Press]

2. ‘’ Psychographic segmentation is a method of dividing markets on the bases of the psychology and lifestyle habits of customers.’’ [Dictionary of Marketing Terms]

Psychographics are the attributes that describe the personality, attitudes, beliefs, values, emotions, and opinions of customers, and prospective customers. (http://www.marketsegmentation.com/what_are_psychographics.html)

Psychographic segmentation is dividing your market based upon consumer personality traits, values, attitudes, interests and lifestyles. Segmentation will allow you to better develop and market your products because there will be a more precise match between the product and each segment's needs and wants.( Psychographic Segmentation in Marketing Shawn Grimsley)

Examples

• You are the president of an automobile company and decide to segment you market into consumers who are interested in luxury, consumers who are interested in practicality, and consumers who are interested in the environment. You focus your product design and marketing of luxury sedans on one segment, station wagons and SUVs on another segment, and your electric hybrids on the environmentally-conscious market segment.

• You produce and distribute organic foods. You segment your market into consumers who purchase organic foods for the sake of the environment, consumers who purchase organic food for health reasons, and consumers who purchase organic foods because it's the latest thing. You direct your advertising of organic foods to appeal to the unique values of each of these segments.

• You operate a cruise line. You currently have a fleet of three cruise ships that are in the process of being renovated. You decide to segment your market into customers who want luxury, customers who want more shore excursions and customers who want a more family-friendly cruise experience. You renovate each cruise ship and its itineraries to meet the needs of each market segment and advertise each ship accordingly.

Demographics describe "who" people are, Psychographics explain "why" they buy (and how to win their attention and motivate them to buy). By creating Psychographic Profiles, marketers are able to understand the motivational and non-conscious drives of a target audience. In market research and social science research,psychographic variables are sometimes referred to as interest, attitude and opinion variables.

Psychographic filtering is located within a branch of collaborative filtering (user-based) which anticipates preferences based upon information received from a statistical survey, a questionnaire, or other forms of social research.[1] The term Psychographic is derived from Psychography which is the study of associating and classifying people

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