Demographics, Psychographics and Personality

Topics: Marketing, Demography, Marketing research Pages: 5 (732 words) Published: November 22, 2011
Individual Differences
Important tools for segmentation
They include:
Demographics, psychographics and personality
Consumer Motivation (Chapter 8)
Consumer Knowledge (Chapter 9)
Consumer Beliefs, Feelings, Attitudes and Intentions (Chapter 10)

Analyzing and Predicting Consumer Behavior
Demographics is the size, structure, and distribution of a population

Marketers use demographic analysis as market segment descriptors and in trend analysis

I- Demographics
A- Structure of Markets
B- Geographic Factors
C- Economic Resources
D- Global Markets

A- Structure of Markets
Market analysis requires information about
People with needs
Ability to buy
Willingness to buy
Authority to buy
Affected by:
Immigration (30% of annual growth in the US)
Increasing life expectancy

Structure of Markets
Affects demand for products and services

Marketers can adapt product features, packaging, and communication strategies & messages depending on changing age structure of markets

Marketing to Children
Children make purchases themselves

Parents buy for children

Marketing to Teenagers
Growing in number
Greater need for peer acceptance, which often guides product and brand choice More likely to switch brands quicker than other segments (Variety Seeking) Like the social aspects of shopping with friends

Marketing to Young Adults
20-34 years
Need to buy products to set up households and for young children With many needs and greater financial constraints, they often shop at value-oriented retailers Marketing to Baby Boomers
Growing in number

Good market for spas, luxury travel, health clubs, cosmetics and healthy food

This group may be “aging” but doesn’t want to be reminded

Marketing to “Young Again” Market
Referred to as mature markets, seniors & elderly (>65 years) Growing substantially
Many in this segment are feeling, thinking, and buying younger than previous generations Many have adopted “young again” lifestyles and attitudes Cognitive age: the age a person perceives himself or herself to be. It can be used for targeting segments within this group, developing more creative content, and selecting more effective media

1. Demographics
Age Structure of Markets
Geographic Factors
Economic Resources
Global Markets

Geographic Factors
Geo-demography: Refers to where people live, how they learn and spend their money, and other socioeconomic factors

The study of demand related to geographic areas assumes that people who live in proximity to one another also share similar consumption patterns and preferences

Cities are the most important unit of analysis in most marketing plans 1. Demographics
Age Structure of Markets
Geographic Factors
Economic Resources
Global Markets

Economic Resources
Income: money from wages, salaries, interest, and welfare payments Wealth: a measure of a family’s net worth (assets minus liabilities) Net worth influences willingness to spend but not necessarily ability to spend, since many assets are not liquid and difficult to use How much people accumulate over the year is more a function of how much they save rather than how much they earn

Targeting the Up-Market
Print-oriented communication
Simple ads that promote image
Credibility of source selling product
Product reviews influence this group

Targeting the Average “Down” Market
Good products at reasonable prices
Promote value in ads and in store
Limited services to keep prices low
1. Demographics
Age Structure of Markets
Geographic Factors
Economic Resources
Global Markets

Global Market Analysis
The most attractive markets are countries that are growing both in population and in economic resources

Which countries will grow the most in the future?

Which countries have the highest
per capita income?

2. Personality
Personality: consistent responses to environmental stimuli

An individual’s unique psychological makeup, which consistently...
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