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MARKET SEGMENTATION
MARKET SEGMENTATION
What is it?
creating separate selling arguments
to separate segments or target markets
of potential consumers
DEMOGRAPHICS
socioeconomic and cultural variables
• population size and shifts
• gender and age
• geographic location and mobility
• income and expenditures
• occupation and education
• race, nationality, and religion
• marital status and family status
Marketers track demographics
the way fishermen track schools of fish,
and for the same reason.
“ Fish where the fishing is good. ”
PSYCHOGRAPHICS
…the opposite of demographics
not the outside of one’s life…
but the inside.
• Attitudes
• Opinions
• Habits
• Personality traits
• Lifestyles
• Social class
BUYING BEHAVIOR
BUYING BEHAVIOR
How they think and use the products themselves
OCCASIONS
OCCASIONS
“When” people buy or use something
OCCASIONS
… invent an occasion!
BENEFITS SOUGHT
BENEFITS SOUGHT
Ask yourself what benefits consumers seek…
USAGE RATE
USAGE RATE
We consume a LOT of some things but a lot LESS of others
“80/20 RULE”
“80/20 RULE”
20% of the market consumes 80% of that product
LOYALTY STATUS
LOYALTY STATUS
Loyal brand users…
What unites them?
What separates them from others?
READINESS STAGE
READINESS STAGE
Are consumers ready to buy…
Unaware of the brand…
Informed or interested?
ATTITUDE
ATTITUDE
People’s attitudes, from negative to positive,
toward you product or brand
WHAT CAN YOU DO?
WHAT CAN YOU DO?
THINK…
WHAT CAN YOU DO?
THINK…
Who’s buying the product…
How many kinds of “WHOS” are out there?
WHAT CAN YOU DO?
Make assertions about what type of consumer
MAY be out there.
SPEAK THEIR LANGUAGE
“ To know whom to write for
is to know how to write.”
Virginia Woolfe
THINK LIKE
THE MARKET SEGMENT
“ If you can’t turn yourself into your
customer, you probably shouldn’t be in
the ad writing business at all.”
Leo Burnett, founder, Leo Burnett agency

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Chapter 4