Importance of Psychographics

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Psychographics helps marketers analyze and identify market segments. It helps in understanding the Attitudes, Interests and opinions of the identified segment. Most commonly used parameter for ad campaigns is demographics, using psychographics actually help marketers to have an edge over competition. It also helps marketers identify a particular profile within a segment based on attitudes and interests and thus help save costs. Netflix customers are mostly housewives with an income of $75000 and age around 35. If a family is to be targeted in an ad, it would make more sense for the company to focus on middle aged women focusing the advantages of delivering movies at the doorstep with the ease of not stepping out of the house. Every company develops a strategy to attract the segment which is most likely to buy their products. Netflix positions its product by utilizing the reach of the internet. The traditional movie rental was that it took time out of busy customer’s lives to go to the store, search titles and then rent them. It is important to understand which stage of a family life cycle is the most likely buyer. For example for working couples, childcare facilities are more likely to be used than in case of a couple where husband is working and the wife is a housewife. As people are in different stages of a Life cycle they have different needs. Family Life cycle can be divided into different stages like Young singles, Newlyweds, married couples with children, households with teenagers or mature couples. Research shows that majority of Netflix customers are in the income group of $75000 and age 35. Household with teenagers are more likely to order movies. With recent introduction in services like delivering movies directly to user’s PC’s is appealing to young consumers too. Understanding which stage of a family life cycle are the likely users would help in formulating an effective ad campaign to target. A catchy tagline appealing to youth with fast music in the...
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