Potential customers in the target market continue to make decisions based on predictable triggers.

Through the use of these motivators we are able to appeal to a larger percentage of this market and
ultimately increase a companys net sales.
Creating such a plan requires in-depth knowledge of industry specifics, marketing techniques and the
behavior of both primary and secondary audiences. For this reason we collaborate with our clients to
design both their brand and their marketing goals.

Primary Audience

Our target market audience analysis generally begins by focusing on a companys primary audience.
These are potential customers who receive direct marketing in the form of advertisements and other
media.
We separate this segment into very clear groups based on their buying tendencies. We use well defined
buying personas like spontaneous, methodical and competitive to define how they will respond to certain
marketing techniques.
Our efforts can then be specialized to fit each group. Targeting methods, such as keyword distinction for
online pay-per-click advertisements, direct these customers to pages with individualized sales content that
is far more effective then general advertisements.

Secondary Audience
Advertising directed at the secondary audience is usually made through indirect channels. This includes
word of mouth, messages on social networking websites and content which in some way relates to the
industry. Achieving success with this group requires more in-depth analysis to determine their buyer type
and spending trends.

Performing an In-Depth Analysis

This targeting process would be impossible without the highest quality metrics. We take advantage of
Google Analytics, in combination with other industry-specific utilities, to determine every piece of
information about visitors to a customers website. This data includes:

How do customers find your site?

Are visitors new or returning?

Where region are the visitors from?

How effective are current online advertisements?

Which visitors make purchases?

What trends are occurring in traffic, sales and net profits?

Young Cosmopolitans
Upper middle class is a term that is used often, yet it's rarely defined. Now you can get not only
a precise definition, but also put your upper middle class marketing strategies into action to
reach this profitable sector. When marketers use lifestyle mailing lists from Experian and
Mosaic, the distinctive connection between geography and households enables them to
naturally utilize targeted segments across all phases of analysis, planning and execution. The
traits on this page describe most of the people in one specific upper middle class marketing
sector.

Overview
Residents are young, single, college-educated and earning upper middle class incomes as
white-collar professionals, managers and executives. They live in luxury apartments and condos
in fast-growing cities, including a number of college towns.
3.22 percent of U.S. households

Demographics

Many are under 35, single and earning above-average incomes as white-collar workers

Commute to work in sporty subcompacts, and nearly half hold college degrees

Hold fast-track jobs in finance, information services and the arts

Are almost twice as likely as average Americans to have graduate degrees

Earn dual incomes if married, as it's a given that both spouses work

Avoid extravagant purchases

Lifestyles

These upscale young people work hard, play hard and live comfortable lifestyles

Keep up with the latest in home design and shop at Crate & Barrel, Pottery Barn and
Ikea

Have prosperous leisure lives and travel frequently for business and pleasure

Like to look good and feel good, whether they're on the town or at home

Enjoy city-quality amenities, such as restaurants, movies, theaters and nightlife

Keep fit with jogging, weightlifting, yoga and cardio machines at health clubs

Patronize high-end stores like Bloomingdale's, J. Crew and Victoria's Secret

Are big purchasers of all kinds of tech gear, including iPods, BlackBerries and Xbox
consoles

Media

Are often too busy to stay at home to watch television or read a magazine

Would rather go out and get their entertainment on a stage or a big screen

Make a strong audience for news, comedy and late-night talk shows

Catch music videos on MTV and VH1

Keep their radios tuned to alternative rock and adult contemporary music stations

Are not fans of magazines other than youth-oriented fashion and fitness titles (Shape,
Elle)

Increasingly spend time online at news and travel sites and social networking forums

Age: children, teens, young, middle, elderly

Gender: male, female

Education: high school, college, university

Income: low, medium, high

Marital status: single, married, divorced

Ethnic and/or religious background

Family life cycle: newly married, married for 10 20 years, with or without
children.
This information should be available to you through your local town , hall, library, or
psychographics as your guide:
Lifestyle: conservative, exciting, trendy, economical

Social class: lower, middle, upper

Opinion: easily led or opinionated

Activities and interests: sports, physical fitness, shopping, books

Depending on the nature of your business, you might even be able to write a description
of your customer. "My target customer is a middle-class woman in her 30s or 40s who is
married and has children, and is environmentally conscious and physically fit."
On the other hand, what if you 'specialized' your product or service and then researched
your target market, only to discover that there are probably less than 75 people who will
buy from you?
First of all, if those 75 are corporate customers who will spend hundreds on your

SOCIAL CLASSES & CONSUMER BEHAVIOURS:

Social Stratification, the divison of memebrs of a society into a hierarchy of

distinct social classes, exists in all societies and cultures.
Social class usually is defined by the amount of status that members of a
specific class possess in relation to members of other classes. Social-class

membership often serves as a frame of reference for the development of

consumer attitudes and behaviour.
The measurement of social class is concerned with classifying individuals into
social class groupings. These groupings are of particular value to marketers,
who use social classification as an effective means of identifying and
segmenting target markets.
There are 3 basic methods for measuring social class:
1.
2.
3.

Subjective Measurement
Reputational Measurement
Objective Measurement

Subjective Measures rely on an individuals self perception.

Reputational Measures rely on an individuals perceptions of others and
Objective Measures use specific socioeconomic mesures, either alone or in
combination with others.
Composite variable indexes sucha s the index of status characteristics and the
socio economic status score, cominbe a no. of socio economic factors to form
one overall measure of social class standing.
Class strucutres range from two class to nine class systems. A frequently used
classification system consists of 6 classes: Upper upper, lower Upper, upper
middle, lower middle, upper lower, and lower lower classes.
Profiles of these clases are reflected in differences in attitudes, in leisure
activities, and in consumption habits. That is why, for the marketers, social
class based market segmentation is of high importance.
Geodemographic clustering is a technique that combines geogrpahic and socio
economic factors to locate concentrations of consumers with particular
characteristics. Particular attention currently is being directed to affluent
consumers, who represent the fastest growing segment in our population;
however, some marketers are finding it extremely profitable to cater to the
needs of non affluent consumers.
Research has revealed social class differences in clothing habits, home
decoration, leisure activities, as well as saving, spending and credit habits.

Thus, smart marketeres tailor specific product and promotional strategies to

each social-class target segment.
Which Social classes are your customers from? How are their behaviours
impacted by these various factors?

Strategies for Selling to Upper Class

American Society
For a company to successfully target certain demographics of consumers, it must
have an understanding of their consumption habits.
Through differentiation, many companies separate their products from the herd
by creating unique characteristics that customers value.
This value stems from product innovations, superior quality, and superior service
reinforced by advertising campaigns, building brand equity, and beneficial
stakeholder relationships.
Consequently, differentiated products focus on unique value creation rather than
competing on price. Conventional wisdom suggests that many differentiation
strategies target the more affluent consumers of society since they have a higher
probability of being repeat customers. Due to this reality, an understanding of the
consumption habits of the upper-middle and upper classes is vital for companies
The reason people are willing to purchase products at these inflated prices
revolves around the marketing campaigns that surround them. They highlight
their superior qualities or give the appearance of unique characteristics that build
brand equity.
Diversity allows a customer to conform yet still helps them feel unique and to feel
powerful and in control of their buying process. The key to diversification is to
make the customers feel like individuals by customizing the product as much as
possible to their particular tastes. Doing so gives customers a sense that they are
actually participating in the production process to a certain extent, a feeling that is
valued by consumers.
To charge the premium prices that the differentiation strategy provides,
organizations either need to offer multiple variations of the same superior product

or provide a product that can be marketed to the masses but customizable to the
individual.
To be sure, understanding the nuances of selling to Bobos is a big opportunity for
entrepreneurs. It would not be unrealistic for a company to adopt a Bobo-centric
strategy and transform an underperforming business line into a highly profitable
money maker.

Demographic Variables and Marketing

Strategies
MAY 1, 2014 BY LINDSAYT

If you have ever started a business, you must be aware that no matter how
great your product or service is, your business wont head anywhere unless
you make a sale. Marketing helps you get the product to a consumer, but as an
art, it is extensive. Consumers must be grouped according to various
categories (market segmentation) based on some similarity or commonality.
There are various ways to segment a market: Geographical segmentation,
lifestyle or psychographic segmentation, distribution segmentation, price
segmentation and demographic segmentation, just to name a few.
However, our focus is on the demographic segmentation, which generally
involves grouping the markets into sub-categories based on demographic
variables such as occupation, age, religion, nationality, gender, income, race,
family size and education. Most marketers prefer segmenting a market based
on demographic variables, partly due to the fact that a customers preferences
are closely related to variables such as age and income.
Types of Demographic Variables
Age
This variable segments a market according to the age of consumers. It is based
on the premise that a typical consumers needs and desires change as they age.
This variable classifies a consumers age into four stages:

1. Children (infant)
2. Teenaged
3. Middle-aged
4. Older popularion
A child will demand to have toys, while teenagers want to keep up with the
latest fashion trends.
Furthermore, some consumer segments have more purchasing power than
others. Consider this; In the United States, there are around 76 million baby
boomers, which refer to individuals born between 1946 and 1964. This buying
group forms the single largest consumer market, as they outspent other age
groups by $400 billion in 2009. A small business owner has much to gain by
targeting this age group.
Income
Income is the most important and commonly used base for segmenting a
consumer market. The purchasing power of a typical consumer varies based
on the level of income earned. Based on this demographic variable, consumers
are grouped into three categories; high, middle and low income, with the
market also classified on the same basis. This is due to the fact that highincome consumers tend to give pr luxurious goods such as designer clothes.

Likewise, consumers with middle incomes will opt for medium-priced and
durable goods, while consumers with low income purchase and often
prefer lower-priced products to satisfy their physical needs. This is because
they have less disposable income and hence are sensitive to price changes.
Manufacturers of home appliances, cars and motorcycles classify their
markets based on consumer income.
Size of Family
The number of family members or family size is another demographic variable
that can be used to segment a market. This is mainly due to the fact that the
number and size of family members directly affects the usage rate of consumer
goods. The size of the family also affects the size of packaging.

Gender/Sex
This variable classifies a consumer market into two segments; female and
male market. Since the desires, wants, interests and needs of females and
males differ, marketers take this into consideration when designing their
marketing strategy.
Social Class
When formulating your marketing blueprint, you can also segment a
consumer market based on social class, which is divided into three categories:

1. Lower Class
2. Middle Class
3. Upper Class
The behavior, purchasing power, and motives of consumers vary depending
on their social class. As such, upper class consumers tend to buy luxurious
products more, while the middle class consumers tend to buy durable and
quality products whilst keeping a close eye on prices and quality. Likewise,
consumers in the lower class buy low-priced products that satisfy their
physical needs.
Learn more about segmenting consumers based on social class in
this marketing course.
Consumer Occupation
The occupation of the consumers can greatly influence their buying decisions.
This means you must keenly identify professionals that would be interested in
your products. In fact, some companies focus on making products that satisfy
the needs of certain occupations. Ideally, a senior company executive will buy
luxury cars, expensive clothes and subscribe to a golf club membership.
Similarly, a teacher will purchase books, papers and pencils as well as lowerpriced clothes.
Family Life Cycle
The stage of the lifecycle may differ among individuals of the same age; some
young people may be single, others young and married but with no children,
young and married with children, older married persons with dependants,

older married persons with no dependents, older divorced persons living alone
as well as middle-aged married and with dependent children. The list is
exhaustive, and is classified based on the products sold. The differences in life
cycle stages influence the objectives of the purchase, desires, buying behaviors
and wants. Manufacturers of luxury cars such as Ferrari tend to target middleaged men with no children or young (and wealthy) men with no children.
Religion
The religion of a particular demographic is a key variable that influences sales
of certain products. Have you noted that Muslims usually eat cow meat,
instead of pork? Likewise, Hindus consider a cow as sacred. They also view
pigs as dirty animals and hence wont eat it, unlike Christians who regularly
include pork as part of their menu.
Education Level
The education level of a particular individual tends to influence his buying
decisions. This necessitates subdividing the consumer market based on
education level, which creates two groups; educated and uneducated
consumer segments. The educated group is sub-classified further into
elementary, high school, associate degree, bachelor, masters and doctorate.
This grouping is commonly used by book publishers who classify a market
based on the education level of the targeted consumers.
Racial and Ethnic Background
Multinational companies tend to use this form of classification, which holds
premise that consumer needs and buying patterns differs from one racial or
ethnic group to another. The global market can be classified into American,
African, Europeans and Asian. As such, food processor will package cow meat
for sale to Chinese market, but process chicken meat specifically for Indian
markets only.
Psychographic Variables
In case you are not familiar with the term, psychographics is the study of
lifestyles, personality and interests of various people. Psychographic variables
are also called IAO variables as they deal with exploration of interest, activates
and opinions. Under this classification, marketers consider factors such as

environment, behaviors and culture. Lets have a look at two key variables;
personality, lifestyle and motives.
Learning how to interact with the culture of even your local
neighborhood is a good place to start on learning how to find
opportunity to make money.
Motives This category lumps consumers based on the reasons why
they buy a particular product. It includes safety, personal appearance,
health, status and affiliation. These motives not only influence the type
of products bought, but also determine the choice of retail outlets from
which the products are bought.
Personality Characteristics This can be used especially where
there are several competing goods. You must always structure the
product with certain personality traits that the target market views
positively. Individuals with high self-esteem tend to respond well to
marketing messages that appeal to their ego and project a suitable
image.
Lifestyles- This method of segmenting a consumer market based on an
individuals lifestyle is anchored on the belief that it directly influences
his choice of a particular product. As such, dont be surprised if you ask
an environmentalist what is his idea of an enjoyable holiday only to be
told it is a rally driving experience or a hunting expedition.
Conclusion
There are many approaches you can use to segment a market and develop the
best strategy to capture as many consumers as you can. However, it is
recommended to use several strategies at once for the best
results. Identifying a marketing strategy that incorporates
demographic variables is easy to understand and the key to
maximizing your sales.

Targeted Marketing
Explore the Strategy of Targeted Marketing

Southwest Airlines advertises itself as a low-cost, low-frills carrier with frequent flights to many
destinations around the United States. The airline focuses its marketing efforts on middle-class
families, small business owners, those traveling short distances, and young adults.

Targeted Marketing Guide

In this article...

What is Targeted Marketing?

Who Employs Targeted Marketing?
How is Targeted Marketing Deployed and Developed?
What Types of Careers Employ Targeted Marketing Strategies?
Targeted Marketing Education

Related...

Find schools offering marketing programs

Conversely, United Airlines focuses its marketing on individuals who are college educated or have
graduate or post-graduate degrees, are employed full time (particularly in a management or
executive position) and have a household income of $50,000 or more. This is because business
travelers are more likely to pay in full for airfare than those traveling for pleasure.
In addition, those with a higher income often select first class options over economy class. Because
of this targeted marketing, United sells more full-cost fares and increases their overall revenue.
Airlines identify those who are more likely to respond to their particular offerings, such as low fares
for middle-class earners or more luxurious accommodations for affluent business executives using
targeting marketing strategies. (See also Marketing Airlines)

Targeted marketing appeals to individual demographics or preferences, causing those who view
targeted marketing tactics to respond and purchase the advertised product or service. In turn,
companies find that this highly effective advertising results in increased overall sales and brand
awareness.

What is Targeted Marketing?

Four Key Targeted Marketing Strategies

Geographic Strategies find audiences in a certain location, such as a certain state or neighborhood.

Demographic Strategies find audiences with certain characteristics like race, age or gender.

Psychological Strategies look for desired personality attributes such as religion or previous purchases of a
certain product.

Attractiveness and Relative Ability - Once these elements have been determined, the focus of the
marketing campaign is narrowed by determining if the identified audience is likely to be interested in the
specific product. This is evaluated in association with the ability of the company to meet that audiences
needs and wants.

Targeted marketing identifies an audience likely to buy services or products and promotes those
services or products to that audience. Once these key groups are recognized, companies develop
marketing campaigns and specific products for those preferred market segments.
Promotional messages and advertisements are sent to those primary groups instead of mass
marketing without regard to the specific characteristics of the audience. (See also Niche Marketing)
For example, the company Glaceau began to market its vitamin-enriched water to men and women
between the ages of 18 and 49 who indicated that they were interested in health and fitness.
Because of this targeted marketing, the Glaceau Smartwater brand grew approximately 28 percent
in less than a year.

Who Employs Targeted Marketing?

Companies that offer specialized products or services typically benefit the most from using targeted
marketing strategies. Focusing marketing efforts on specific groups who are more likely to respond
increases the chances that the marketing efforts will be relevant to those groups. When marketing is
relevant, people are more likely to spend money on that service or product.
In addition, targeted marketing typically provides specific information and incentives to people, giving
them a reason to choose that company over competitors in the same industry.
For example, Starbucks currently holds the largest market share of the coffee industry in the United
States. The company focuses its advertising on women and men between the ages of 25 and 40
who live in urban areas, have moderately high income and professional careers, and demonstrate
an interest in fair trade and social welfare. Starbucks bets that these key groups are more likely to
spend money on specialty coffee drinks and products.
In addition, Starbucks targets young people between the ages of 18 and 24 by providing a
comfortable, appealing place where they can sit and chat, study, or work. Starbucks also stays active
on social networking websites, further appealing to the 18-to-40 demographic. This encourages
younger adults to follow Starbucks on social media sites, increasing brand awareness and
encouraging people to spend their time (and money) at Starbucks locations.

Well-Known Target Marketing Campaigns

Yaz Contraceptive
The female contraceptive pill Yaz airs television advertisements during episodes of the Bravo channel reality
TV show The Real Housewives of Orange County, which has a primary demographic of women between the

ages of 18 and 49. Not coincidentally, this is the same demographic of users most likely to use an oral
contraceptive.
Pepsi Co.
Pepsi-Cola Company was struggling with slow sales of its Mountain Dew flavored soda because consumers
viewed the soda as something primarily consumed by low-income individuals in rural areas Essentially,
Mountain Dew was not considered cool. As a result, an ad campaign targeting youth between the ages of 18
and 24 in urban areas featured skateboarder Paul Rodriguez and hip-hop artist Lil Wayne was launched in
cities such as L.A., New York City, New Orleans and Miami. This ad campaign was design to respond to
trends in popular music and sports, getting the attention of young hipsters in urban areas by implying that hiphop artists and skateboarders prefer the taste of Mountain Dew to other soda brands. Because of this
targeted marketing effort, overall sales of Mountain Dew increased.

How is Targeted Marketing Deployed and Developed?

Companies used targeted marketing to learn more about their primary audience for a specific
product or service, allowing the company to focus efforts on advertising to those most likely to
respond (See also Scientific Marketing). Targeted marketing is usually much more effective than
mass marketing, which tends not to consider the qualities of the consumer who views an
advertisement.
A targeted marketing plan starts with the identification of primary audience segments. For example,
an online social gaming company might choose to perform market research to discover specifically
who uses online social gaming apps the most.
Once data is collected, companies eliminate individuals who are less likely to respond to their
targeted marketing efforts and focus on those who might be more interested. For example, if people
under the age of 18 and over the age of 60 are less likely to play online social games, the online
social gaming company will want to tailor their advertising efforts toward people between the ages of
18 and 60.
After identifying a key audience, companies can deploy marketing efforts specifically at that
audience. Potential marketing campaigns include promotional emails, mailed coupons, text
messages, and online banner ads. In the online social gaming example, the company focuses
advertising for the game at males and females between the age of 18 and 60 and encourages these
individuals to download the game by sending them ads promoting the benefits of the game.
Once the sales and marketing campaign launches to the targeted market segments, the company
follows the results of the campaign. Sales of the specific product are monitored to determine the
success of the marketing campaign, such as how many times the new online social gaming app is
downloaded. The online social gaming company might determine that women between the age of 30
and 45 download the game the most, while males between the age of 18 and 30 download the game
the least.
Based on the results of the sales and marketing campaign, the company may alter or change the
format of the marketing campaign or expand their defined target markets to improve future sales.

Future advertising for the online gaming company might focus on appealing to middle aged women
and focus less on young men, if females between the age of 30 and 45 are shown to have the most
interest in the game.

What Types of Careers Employ Targeted Marketing Strategies?

Market Research Coordinator
A market research coordinator identifies market trends and creates marketing campaigns specifically
designed for certain audiences. The position requires the ability to understand consumer behavior
and predict spending trends.
Education/Experience
A bachelors degree in marketing is required, as is a basic understanding of marketing principles and
techniques. Professional experiencing in a marketing-related position is desirable as well.
Social Media Manager

Targeted Marketing Salaries

Market Research Coordinator

Starting: $60,570
Top Earners: $111,440+
Social Media Manager
Starting: $57,550
Top Earners: $166,400+
Director of Advertising
Starting: $83,890
Top Earners: $112,800+

Source: Bureau of Labor Statistics

As the popularity of social media grows, so does the need to use social media for business
purposes. A social media manager plans and executes marketing campaigns using online social
media networks such as Facebook and Twitter. Within this position, social media is utilized to
increase visibility of the company and interact with targeted markets in order to increase brand
awareness and sales.
Education/Experience
A social media manager needs a bachelors degree in marketing as well as several years of social
media experience. Companies are seeking candidates with extensive personal and professional
social media experience as well as an understanding of online search engine optimization and target
market analysis.
Director of Advertising
A director of marketing helps guide an entire companys marketing efforts. This includes using
targeted marketing as well as other marketing strategies such as data collection and analysis to

decide the best audience for specific advertising campaigns. The director of marketing oversees all
current marketing campaigns and creates new marketing efforts directed at the audience most likely
to respond. This includes creating online, television and print advertisements, and managing the
deployment of these ads.
Education/Experience
A director of advertising needs at least a bachelors degree in marketing, although a masters degree
in marketing is preferred. In addition, a job candidate should have several years of experience with
targeted marketing and advertising campaigns.

Targeted Marketing Education

Marketing degree programs teach students how to understand human behavior and how to apply
that understanding to business and marketing. Gathering this data requires a significant amount of
mathematical skill, requring marketers to model data points and base their goals on data analysis.
Additionally, marketing courses include learning about associated concepts such as scientific
marketing, which collects and analyzes statistics and information about the marketplace to make
decisions about marketing campaigns. Students also learn how to analyze market trends to find
target advertising opportunities and execute a campaign for those selected market segments.
Those with bachelors degrees in marketing have the specific skills that companies seek. To learn
more about how a marketing degree can help you build a successful marketing career, request
information from schools offering marketing degrees today.

Powerful Targeted Marketing

Breakfast cereal brands Kelloggs and General Mills are responsible for approximately 650 television ads per
year promoting pre-sweetened cereal. These ads are shown primarily during shows specifically designed for
toddlers and young children.
A Yale University study of this targeted marketing found that almost 50 different kinds of cereal were shown to
kids on television, online, and displayed at their eye level in stores on a regular basis.
Because of this type of advertisement, the Kelloggs brand sells the most types of pre-sweetened cereal with
almost 17 percent of total sales by volume. General Mills follows with approximately 12 percent of the market
share for pre-sweetened cereal sales.

trategies for Selling to the Upper

Middle Class
By Terra L. Fletcher Aug 29, 2012
3
1887

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Who is the upper middle class? The socioeconomic class between working class
and upper class may be comprised of professionals, highly skilled laborers, and

lower and middle management. These individuals may have greater purchasing
power, but there are other reasons why targeting this market is wise.
Affluent consumers are more likely to be repeat customers than those that are
overly concerned with price. Product areas with buying habits greatly influenced
by class include cars, home furnishings, leisure activities, and reading/media
materials.

Motivation to Buy
What motivates one person to buy may be very different from what motivates
another. Understanding both demographics and psychographics of your market
is essential. Gender, age, profession and interest should be considered. How you
will advertise will depend on the habits and priorities of your market.
While young ones can be more readily reached through pop culture, creating
products of superior quality, backed by white glove service, and
complementary marketing communications is key to succeeding in reaching the
upper middle class.

Focus on Value
Your unique selling position or differentiation strategy should not focus on price.
When youre competing for an upper middle class market, you need to
understand their consumption habits. Focusing on value is more likely to move
your prospects and customers up thepyramid of customer loyalty. Charging a
higher price will attract those that can afford to pay it. People also associate a
higher value for anything they pay more for. Matthew Loop makes a good
argument for Why You Should Charge More.

Keeping Up Appearances
Whether for a hobby or an everyday luxury, the affluent seek out boutiques,
specialty shops, and labels that present the image they desire. From SUVs that
have never seen dirt to diving watches that have never gotten wet, its the idea
or opportunity that the affluent seek to purchase. The upper middle class seek
products of the highest quality. Even if they never wear those high end hiking
boots outside the city limits, at least they feel like and look like they could.
Offering enhanced performance and more features will help target the more
affluent as will creating a brand image of superior quality. Diversity of offerings
has a way of making an individual feel that they are, well, and individual. If a
boutique orders very limited quantities of items, even one each perhaps, it is
sure to gain regular patrons that dont want to be seen with the same purse
that someone else in town has.
Personalized products, custom blends, and made-to-order items make buyers
feel as if they themselves are participating in the production. These items are
more likely to catch the eye of others, be boasted about, and create
wonderful word-of-mouth marketing campaigns for you.
If you understand the motivations behind a purchase, the psychographics of
your market, focus on quality, and have a truly unique value proposition, youre
sure to have success selling to the upper middle class.
Have you spoken to and been heard by the upper middle class? Please share
your story in the comments below.

Step 1: Research Demographics

Look at the age and gender of the people who use your product. You can do
this by surveying the consumers or deciding what age and gender you want
to attract to your product.

Find out your consumers' education and income levels. You may be able to
market differently to those who have earned a college degree versus those
who haven't and to those who are in a high-income bracket versus those who
aren't.

Notice the marital status and family life cycle of your target consumers. Find
out whether they are single, newlyweds, have been married for many years,
or have children or grandchildren. Each type spends money differently.

Look at the ethnic and religious background of the people who use your
product. This may make a difference in many cases, and is often good to
know.

Put all the demographic information into a customer demographic profile. For
example, you may find that your target market includes people in their 30s
and 40s who graduated from high school, have a middle class income and
are married with young children.

Step 2: Research Psychographics

Look at the target consumers' lifestyle. See whether they are conservative,
trendy, or enjoy traveling. Every little detail can tell you the type of people
they are.

Figure out what social class your consumers belong to, whether lower, middle
or upper class. This tells you how much extra money they may have to spend
and whether or not they spend it.

See whether your consumers are opinion leaders or followers. Find out
whether they tell others what products they should use or need others to tell
them what is trendy and what works.

Look at their activities, interests, attitudes and beliefs. Find out what they like
to do in their spare time, what their hobbies are, what sort of music they
listen to and whether they are interested in environmental issues or politics.

Put the psychographic information into a customer profile along with the
demographic information to figure out who your market is and how to go
about advertising to the market. Once you find this out, you can advertise to
the people where they hang out, where they work out or where they shop.
Once these distinct customers have been defined, a marketing mix strategy
of product, distribution, promotion and price can be built by the business to
satisfy the target market.

Target marketing can be a particularly valuable tool for small businesses,

which often lack the resources to appeal to large markets or to maintain a
wide range of differentiated products for varied markets. By focusing
resources on a specific customer base in this way, a small business may be
able to carve out a market niche that it can serve better than its larger
competitors.
Selecting a target market segment for a product rather than attempting to
sell to the entire market can also be a more efficient use of promotion
dollars, because a greater market share can be achieved by capturing most
or all of a segment via a carefully directed marketing plan that reaches
precisely the right people with the right message than by trying to capture
market share with a generic approach. It is also a better use of production
resources if they can be concentrated on a single product and/or package,
thus experiencing economies of scale. For example, a factory that only
makes metal bed frames can operate with less equipment, expertise, and
materials than a similar size company that makes metal bed frames, sofa
beds, dining room tables, and office furniture.
Target marketing keeps a business owner focused on the most important
aspect of their business - the customer. Targeting the right customer for your
product or service will increase the efficiency of your sales and decrease
marketing and operation costs, potentially translating into a larger profit
margin.

Ways to Segment Consumer Markets

Most marketing departments use multiple segmentation

strategies

Geography

Demographics

Psychographics

Benefits sought

Usage rate

Geographic Segmentation
One of the first variables that the team could use in their segmentation strategy is geographic.
This would allow the team to break the market into sections by climate, density, market size,
world or states. Many companies use climate if their products or services rely on the weather,
such as snow shovels, melting pavement salt, wave runners and boats. Our Town USA is more
interested in targeting geographic locations that are located near the park in a 100-mile radius.
They believe some customers will fly in from out of state, so in addition, they will target largedensity areas nearby.

Demographic Segmentation
Demographic segmentation is extremely important to all marketing departments since the
data is easily available and does drastically affect buying patterns. Age, income, gender, ethnic
background and family life cycle are all important factors of demographic segmentation. The
park is going to use an age range of 2-60 years of age so they can include kids, teens, parents
and even grandparents. The income level would have to be middle to upper class - $50,000
annual income or above - since park tickets are very expensive. The amusement park is not a
gender-specific product, and ethnicity will also not affect the overall plan.
The marketing team is very interested in the family life cycle sub-segments. Family life cycle
segmentation is a series of stages determined by a combination of age, marital status and the
number of children in a household. Obviously, the park is very interested in the family life cycle
of young single, young married with kids, middle-aged married with kids, young divorced with
children and middle-aged divorced with kids. They plan on advertising via social media and
local cable ads where parents and kids congregate.

Tweens have a lot of spending potential because their

parents provide them with disposable income

tweensBaby BoomersGeneration X

Psychographic Segmentation
A very complicated way to segment the market is through using
psychographics. Psychographicsegmentation is segmenting a market based on personality,
motives and lifestyles. When the amusement park team identifies their target market's
psychographic traits, they will look at consumers with personalities who enjoy fun, like
spending time with their family, enjoy leisure time and are outgoing in nature. The television ad

for the park will consist of people laughing, screaming on exciting rides and enjoying a day of
freedom.

demographics classifications
free social grade definitions and demographics classifications and
geodemographic classes
Here are some free listings of commonly used demographics, lifestyle and geodemographical
classifications.
The word 'geodemographics' combines the analysis of demographic lifestyle and geography.
The term demographics is from the Greek words demos, the people, and graphos, meaning written,
in the sense of representation, analysis and diagrams.
Social class definitions and geodemographics are mainly used by marketing professionals, statistical
researchers and social and lifestyle commentators, but the study and theory of demographics, and
the systems within it, are very helpful for anyone who has an interest in people and behaviour (US,
behavior), social science, lifestyle, relationships, management and business generally.
Terms like 'ABC1' - as a definition of consumer types - are often used to describe a profile of users or
target customers.
Demographical and social grade definitions enable the classification and measurement of people of
different social grade and income and earnings levels, for market research, targeting, social
commentary, lifestyle statistics, and statistical research and analysis.
A basic assumption, and probably a proven accepted principle within demographics, is that people
living in similar 'neighbourhoods' (US, 'neighborhoods') generally exhibit similar lifestyle and
spending tendencies. This enables businesses and other providers of services to adapt and 'target'
their offerings and communications according to geographical areas, and/or in other ways so as to
understand, communicate and deliver the most relevant offerings to the most relevant people.
Researchers and social scientists also use demographics, whose principles enable surveying and
analysis of individual and group behaviour at a deep and complex level.
Much of the basic data used in demographics is derived from national census information,
traditionally gathered by governments (and for some while now theoretically available to us all in the
UK and most other developed nations). Demographics services organizations, like the examples
here, perform a vital role in interpreting these vast amounts of national data - typically too
cumbersome to be easily used in a 'raw' state - in developing user-friendly profiling and analysis
systems like the ones explained here below.

Included in the explanations here are NRS, CACI ACORN and INSIGHT classifications, including the
excellent free ACORN UK population percentages reports.

Demographics profiling systems on this page are:

CACI's ACORN system
NRS's 'ABC1 social grade' demographics profiling system - and
Insight Social Value Group

While this demographics guide focuses on UK consumer profiling systems, the principles of
demographic profiling broadly transfer everywhere else.
I am open to suggestions to add summaries and resources from providers of overseas and
international demographics profiling systems.

caci acorn profiles of great britain

ACORN is a geodemographic (combining geographical and demographics analysis) classification of
British social classes and is used by marketing professionals, entrepreneurs and researchers, to
measure and target consumers and characteristics.
The ACORN acronym meaning is 'A Classification Of Residential Neighbourhoods'. (See other
interesting business acronyms).
Here is CACI's 2013 ACORN UK Demographics Profile and User Guide.(This is a big 5.6MB pdf
file.)
ACORN is a population profiling 'segmentation tool' which categorises the UK's population into
demographic types.
Here is a summary (pdf) of the 2013 ACORN UK Demographics Statistics.
Acorn segments households, postcodes and neighbourhoods into 6 categories, 18 groups and 62
types. This compares with and supersedes the previous Acorn 2010 system, which comprised 5
categories, 17 groups and 56 types. (Also big file, 6.7MB)

Whether or not you use ACORN classifications, it is useful to know broadly how such a profiling
method operates. The classifications also provide a thought-provoking profile of the different social
groupings in Britain today - which to varying degrees is reflected across the developed and
developing world. Societies everywhere are much more mixed than ever before, and they will
continue to become more so.
For historical reference purposes the 2010 CACI ACORN UK Demographics Profile and User
Guide (originally published October 2010) remains available here as a free pdf file. This is a big file
(6.7MB). CACI's 2010 ACORN demographic profile was based on the 2001 census, which provided
about 30% of the data, and ongoing research via CACI's consumer lifestyle databases, covering the
UK's [then] 46 million adults and 23 million households. It is superseded by the 2013 Acorn
standards.
In turn the 2010 Acorn standards superseded the 2004 CACI ACORN UK Demographics Profile and
User Guide (big file - 8.5MB) which also remains available here for historical reference purposes.
CACI provide annual percentages population figures each year for each classification, although the
large Demographics Profile Report and User Guide is not updated every year. When it is next
updated I will endeavour to make the new edition available here, subject to agreement with CACI.
The ACORN resources, demographics classifications and percentages and reproduced here with
CACI's permission, which is gratefully acknowledged.
I encourage you to visit the CACI website and Acorn microsite, which contain many other useful
resources, and offer useful demographics analysis functionality free online, including a certain level
of free demographics reporting by specified area, in addition to chargeable demographic reporting
(by postcode, etc), based on the ACORN UK demographic classifications.

changing classifications and figures

As UK society has changed in recent years, so has the ACORN profile, in its classifications structure,
and in its percentage figures across the different classifications.
The percentage figures in the 2013 ACORN demographics classifications supersede previous
ACORN data.
The definitions within the 2010 ACORN demographic classifications were unchanged compared to
those of the 2004 report, having been revised and expanded from the earlier 2001 ACORN
demographic classifications. For historical reference purposes the 2001 and 2004 definitions are
shown below.
For all current considerations refer to the 2013 ACORN classifications and definitions,
and/or summary of the 2013 ACORN UK Demographics Statistics.

Further information is at the ACORN section of CACI's website.

acorn 2013 demographics definitions with uk population and percentages

Here is a summary (pdf) of the 2013 ACORN UK Demographics Statistics - a UK profile according to
the ACORN classifications. The report was provided for Businessballs by CACI and is offered free to
Businessballs users, with grateful acknowledgments to CACI. This document supersedes the
historical figures for earlier years.
Here is a more concise overview of Acorn's 2013 UK population profile of demographics
percentages, followed by a more detailed analysis.

Choice of Consumer Segmentation Bases

What are the main ways of segmenting a market?

There are quite a number of potential market segmentation bases (also referred to as segmentation
variables), which an organization could effectively utilize to construct market segments. As a simple
guide, segmentation bases can be classified into five major categories:

geographic,

demographic,

psychographic,

behavioral, and

benefits sought.

By using any of these segmentation bases, either individually or in combination, an organization can
construct market segments for evaluation to help them select appropriate target markets.
Note: This topic discusses segmentation bases for consumer markets, there is a separate topic area
relating to business market segmentation bases/variables.

SEGMENTATIO
N BASE

DESCRIPTION OF EACH MAIN CONSUMER

SEGMENTATION BASE

Geographic

Segmenting by country, region, city or other geographic basis.

Demographic

Segmenting based on identifiable population characteristics, such as

age, occupation, marital status and so on.

Psychographic

This segmentation approach involves an understanding of a

consumers lifestyle, interests, and opinions.

Benefits sought

This approach segments consumers on the basis of specific benefits

they are seeking from the product, such as convenience, or status, or

value, and so on.
Behavioral

Segmenting the market based on their relationship with the product

or the firm. Examples include: heavy or light users, brand loyal or
brand switchers, and so on.

Understanding market segmentation

bases/variables
Probably the best approach to understanding the different segmentation bases is to view some
examples, which are listed in the table below.
It is important to note that sometimes textbooks classify the lower-level bases/variables slightly
differently. For example, some textbooks integrate benefits sought as being a behavioral
segmentation base option. However, benefits sought are quite an important and commonly used
segmentation approach in real business practice and should be separated out. And some texts will
list geo-demographics (a combination of geographic and demographic measures) as a separate
category. However, as it is possible to combine (use hybrid segmentation) any of the bases, the
following examples just utilize the major categories.

MAIN
CATEGORY

SEGMENTATION
BASE

EXAMPLE/S

Geographic

Country/continent

England, UK, Europe

Region/area of the country

North India, West India, South India

Demographic

Psychographic

City

New York, Los Angeles, Dallas, Chicago

Urban/rural

Measured by the areas population

density

Climate

Tropical, arid, alpine

Coastal/inland

Measured by distance to the coast

Age group

Pre-teens, teens, young adults, older

adults

Generation

Baby boomers, Gen X, Gen Y

Gender

Male, female

Marital status

Married, single, widowed

Family life cycle

Young married no kids, married young

kids

Family size

Couple only, small family, large family

Occupation

Professional, trade, unskilled

Education

High school, university, vocational

Ethnic background

African-American, Hispanic, Asian

Religion

Christian, Jewish, Hindu, Muslim

Lifestyle

Family, social, sporty, travel, education

Values (VALS)

VALS = values and lifestyles

Social class

Upper class, middle class, lower class

Personality/self-concept

Ongoing, creative, innovator, serious

Activities, interests, opinions

(AIO)

Various hobbies, sports, interests

Benefits Sought

Needs/motivations

Convenience, value, safety, esteem

Behavioral

Occasion

Birthday, anniversary, Valentines Day

Buying stage

Ready to buy, gathering information only

User status

Regular, occasional, never

Usage rate

Heavy, light

Loyalty status

Loyal, occasional switcher, regular

switcher

Brand knowledge

Strong, some, none

Shopping style

Enjoys shopping, functional, avoids

Involvement level

High, medium, low

Please note that these are some examples only there are many other ways to segment (divide) a
consumer market. The important things to remember are: the major categories, that there are
hundreds of potentially useful segmentation bases, and that these bases can be used in combination
(which is known as hybrid segmentation).

Can firms use more than one segmentation base?

Yes, by using more than one approach for segmentation organizations can have a much stronger
understanding of each of the segments. Please refer examples for segmentation bases and to main
tools used in segmenting markets.

What is hybrid (multivariate) segmentation?

Hybrid segmentation (which is also sometimes referred to as multivariate segmentation) refers to
using multiple segmentation variables in the construction of market segments. For example, using a
demographic segmentation variable together with a psychographic segmentation variable in order to
determine the market segment. The segmentation trees shown in the example section use hybrid
segmentation.
Related Topics
A list of market segment ideas
Market segmentation examples

The role of Social Class in segmenting markets

by SREE RAMA RAO on FEBRUARY 11, 2010

It is evident that the concept of social class should help

us to understand better the behavior of the various
market segments. However, the marketing practitioner
wants to know if segmentation on the basis of social
class is an advantageous approach.
Social class segmentation involves two basic issues.
First, opinions differ concerning which procedures are
best for identifying social classes. This issue is beyond
the scope of our discussion. However, it should simply
be noted here that there are various approaches to
social class measurement with each one offering
certain advantages and disadvantages. A second and
lower fundamental problem is whether even to use
social class (which is, in effect a composite index
consisting of several variables) in segmenting markets,
or whether to use a single proxy variable such as
income (for which data more readily exist) Thus, the
basic question here is, which approach better explains
consumer behavior?
Social class and Income related to lifestyle patterns:
While we are addressing this issue, it may be useful to
examine the results of a study that correlated more
than 200 lifestyle items with both social class and
income. Although none of the correlations was as high

as might be desired in order to clearly support the

contention that lifestyle is the essence of social class.
Those correlations obtained for social class were
generally higher than those obtained for income. Two
conclusions from this study should cited.
1) Many lifestyle items showed significant correlations
with the index of social class, indicating definite but
small differences between the social classes in terms of
lifestyles.
2) Some items showed a much greater correlation with
social class than with income, suggesting that social
class is a better predictor of consumers living patterns
than in income.
Those items that were more related to social class than
to income seemed to comprise two clusters one
representing cultural activities the other representing a
group of social interaction items. Cultural activities
(such as concerts, ballet, and bridge games) are
available to people of almost any income level. The fact
that some people choose to engage in them and others
do not is one of the things that makes social class a
meaningful concept. Social interaction items (such as
confidence, outgoingness, or good looks) may result
from higher class people feeling a sense of belonging
and recognition from having a secure place higher up in
the social structure. However, upper social class people
also seem to have less interest in the home in general

and in children in particular that do upper income /

lower class individuals.
How can the marketer use such information? General
lifestyle items that correlate well with product usage
might well explain characteristics of the markets
activity, interest, and opinion to the seller. Such finding
could give the marketer some direction for product,
promotion, channel and pricing decisions. A preferred
approach, however would be to design a lifestyle study
especially for the particular firm or its product line.
A fundamental question not specifically addressed
above, however, is whether social class or income is
more closely associated with specific consumer activity,
particularly with product purchase patterns.
Those who believe that social class is much better than
income for market segmentation claim that income
categories are quite often irrelevant in analyzing
markets and explaining consumers shopping habits
store preferences and media usage. An example of the
superiority of social class to income is the following
comparison of three families, all earning approximately
the same amount per year, but belonging to different
social classes with radical differences in their spending
patterns.
An upper middle class family headed, perhaps by a
young lawyer or a college professor is likely to spend a
relatively large share of its income on housing in a

prestige neighborhood, on expensive furniture, clothing

from quality stores, and on cultural amusements or club
memberships.
A middle class family headed, lets say, by an insurance
salesman or a successful grocery store owner probably
has a better house, but in not as fancy a neighborhood
as full a wardrobe although not as expensive; more
furniture but none by name designers; and a much
bigger savings account.
A working class family headed perhaps by a welder or
cross country truck driver is likely to have a smaller
house and neighborhood than the others; however it
will have a larger newer car, more expensive kitchen
appliances, and a larger TV set in the living room. This
family will spend less on clothing and furniture but more
on food and sports.

more at http://www.citeman.com/8813-the-role-of-social-class-in-segmenting-markets.html#ixzz3lKZlPkCD

Six steps to defining your target market

Whether you sell washing lines or wiper blades, you need to understand your customer if you want to
maximise your sales. Who are you selling to? Why should they buy your product? What do they stand to
gain? Grant Leboff, principal of Sticky Marketing Clubexplains how you can identify your target customer
1. Understand the problems that you solve
The starting point in defining the target market for your proposition is to understand the problems that you solve.
Once you have a good idea what these are, you can start to work out who is most likely to suffer from these
problems.
2. Paint a picture of the customer
Start to list all the different types of customers that suffer from the problems you solve. Once done, you can start to
build up a picture of these customers. Group them by location - for example, high net worth individuals tend to live in
certain postcodes. Group them by market sector - are they manufacturers, recruitment agents, and so on.
Ask yourself other types of relevant questions about these people. Are they married? Are they male or female? Do
they play golf? Define them in as many relevant ways as possible.
3. Who will gain from the value in your offer?
Ask yourself:

To whom will these problems be most troublesome?

Who will have the most to lose by not dealing with these issues?
If you can demonstrate that the cost of NOT sorting out the problems is GREATER than the cost of dealing with them,
then your case becomes compelling.
Remember to take into account aspects like emotional upheaval, stress and the risk to reputation when implementing
your solution, as well as a bottom line cost. It is all these factors that make up the value in your offering.
4. Think about your market
Today we live in the world of niche. For example, we are no longer prisoners of television schedules. We can watch
what we want at our convenience from almost anywhere in the world; meaning every person can enjoy a unique
viewing experience.
The web is fantastic at delivering personalised products and services, cutting out many of the distribution challenges
that previously existed.

It is these factors that mean it is a more effective strategy to be a big fish in a small pond rather than the other way
round. It will be easier to build your reputation and gain referrals. You will also find you get more from your marketing
endeavours.
Therefore, with the previous knowledge gained, start to segment your market. Do you want to work:

with particular types of people - high net worth individuals, men, women, golfers, and so on?

in certain geographical locations - Peterborough, The North West, and so on?

around tight market sectors - manufacturers or accountants, and so on?

5. Look internally at your company
One way of deciding on the right markets to pursue is to think about your company and your business.

Do you have particular areas of expertise?

For example, have you a lot of experience in particular markets, such as working with lawyers?

Do you have unique knowledge of a specific geographical area?

Are you better at getting on with certain types of people?

All these factors could help you establish a particularly attractive offering.
Take an accountant working alone in Manchester, for example. For a start, working all over the country is probably
not practical. They may therefore decide to only work with clients in the North West.
It may be that before going alone they worked in-house for a couple of different entrepreneurial businesses.
Therefore, the accountant may decide to make their marketplace 'Entrepreneurs in the North West'.
Suddenly, if you are an entrepreneur in the North West, this is an accountant probably worth knowing. By solely
working in this area they are more likely to introduce you to the right people and have more market knowledge of
schemes and funding available to entrepreneurs.
Meanwhile, by concentrating in this marketplace, the accountant knows which websites to look at and belong to,
which publications to read and possibly write for, and which networks to attend. Within this market it will be quite easy
for the accountant to become known. Without limiting their market it would almost be impossible to know where to
start.
6. What else is available?
Once you have decided the answers to some of these questions you must look at the market to see what else is
available. The question you must have an answer to is:

Why am I uniquely placed to solve the problem?

It may be that for some marketplaces there is no answer. However, in certain sectors or geographical locations there
may be a compelling response to that question.
If you are unable to answer the question, you either have the wrong target market or the wrong offering. In this case,
more work will need to be done before you start targeting your potential customers.
Written by Grant Leboff of Sticky Marketing Club.

Creating a content strategy without a clear understanding of your audience is a

bit like setting a boat adrift without navigational tools. Youre out there and
youre taking action, but youre not working toward a specific goal. These are the
situations that marketers dread: huge amounts of time and money, without a
clear potential for good ROI.
Lets start with goals. Its easy to think about goals in terms of SEO and content
strategy in different ways.
I want to rank at the top of Google for the keyword fishing in Franklin MA.
I want to get 40 hot leads a month through inbound marketing.
I want to double my link profile 100% each month through guest blogging.
What these goals dont articulate though, the truth lying right beneath the surface
and driving every content effort, is a desire to reach people. Specific people, that
your brand will resonate with and who will take action to buy, use, and promote
your products and services. Beginning every campaign with a strong
understanding of your audience is one of the best ways to ensure your
success. Heres a step by step process to help you do that.
1. Who Are They?
Every solid audience profile starts with a fundamental understanding of who your
audience is. Demographic profiles are limited in their potential to uncover
motivations and buying patterns. But theyre a great launch point for any
discussion. For example, consider the following five people:

A single male in his early twenties renting an apartment in NYC and making
more than $100,000 a year

A married mother of four in Wisconsin that is a stay-at-home parent and has a

total family income of less than $40,000 per year

A divorced father of two residing in Alaska, on a farm, with a net worth of

several million dollars

A couple in their thirties with no children, living in Boston, coping with

unemployment

A retired couple in their seventies in Texas with fourteen grandchildren and

fixed retirement incomes

Each of these vignettes contains only a few details of the peoples lives, but you
begin to form a picture. Its true that in the first example, a huge amount of
variation is possible. Your prospect could be an investment banker working a
hundred hours a week, a novelist that found early success with a book and is
struggling with creativity on his next project, or an architect with a passion for
urban environments. These other details hang on that scaffolding and give it
context. Its the context that helps you sell.
Still, without a fundamental understanding of where your prospect is coming
from and how she lives her life, digging deeper into her needs and motivations is
going to be a challenge. Always build your audience profiles on a solid
demographic base.
2. Whats Their Most Pressing Issue, Problem, or Desire?
Every person on that list has something that keeps them awake at night. It might
be a persistent problem such as an inability to get an entrepreneurial venture
off the ground, find the willpower to be healthy, or sustain a healthy relationship.
It might be a momentary issue such as insomnia, the need to hire a great personal
assistant, or a desire to figure out how to deal with a difficult client.
Whatever the issue whether longstanding or short-term its the entre into
the discussion and your invitation into their lives. If you understand this from
two perspectives, youll be much better equipped to be everything from create
powerful content.

Understanding the predominant problem that has brought your previous

customers to your door especially your best and most profitable customers
helps you recognize that motivation in others. Your pattern recognition for the
people that comprise your best customers will improve dramatically. It also
helps you create content that attracts more of those prospects.

More broadly understanding what is driving people to seek out products and
services like yours will expand your arsenal of topics, approaches, and more.

As you develop your audience profile, do your best to articulate what drives them
in terms that they themselves would use. This permeates every level of a
successful marketing effort.
1. Sharpen your focus
One of the most effective things you can do to market your product smartly and
efficiently is narrow your gaze in other words, prioritize. Which efforts should
you prioritize? Here are three tips to help you focus your marketing approaches:
A. Determine what needs your product fulfills
Who is most likely to use your product? As you answer this question, consider
factors like age, buying power, geographical location, and marital status. Take, for
instance, a recent college graduate who has just started her first job she will
have different needs than a mother of four teenage children. Both women require
food and shelter, but at the same time, they might choose to spend their
discretionary income in very different ways. Almost 50% of millennial women, for
instance, shop for clothes more than twice a month, compared to only 36% of
women from older generations. Millennial men, meanwhile, spend twice as much
on clothing as non-millennials do.
What does this mean in a business context? If you are a clothing retailer, whether
you are offering $15 t-shirts or $500 coats will lead to you very different target
markets. T-shirts that retail for $15 can be bought multiple times each year, while
a $500 coat might be a once-in-a-lifetime purchase. If you plan to sell $15 tshirts, you now have a clearer idea of your target market: millennials who want
variety at a lower cost.

How to Identify a Target Market

and Prepare a Customer Profile
Get your message to the people who need and want what you have to offer! This guide takes you
through a step-by-step process that helps you identify specific target markets within your industry
and provides you with the know-how to create customer profiles to better channel your marketing
effortsL
WHAT TO EXPECT

This Business Builder will take you through a step-by-step process that will help you identify specific
target markets within your industry and provide you with the know-how to create a customer profile.
WHAT YOU SHOULD KNOW BEFORE GETTING STARTED [top]
In order to market your product or service, it is imperative that you tailor your marketing and sales
efforts to specifically reach the segment of population that will most likely buy your product or
service. It is critical that you first determine or clearly identify your primary market. Your energies and
funds then can be spent more efficiently.
If you dont know who your customers are, how will you be able to assess whether you are meeting
their needs? Since success depends on your being able to meet customers needs and desires, you
must know who your customers are, what they want, where they live and what they can afford.
Weve all heard a business owner say, "My product is terrific! It appeals to everyone." Many of us
have also seen small businesses that try to be all things to all people. This is a difficult, if not
impossible, bridge to cross.
Targeting your market is simply defining who your primary customer will be. The market should be
measurable, sufficiently large and reachable.
For example, a printers target of mid-sized firms with mid-size projects is not a measurable
definition. However, a target market of firms within a radius of 20 miles, with annual revenues of $10
to $25 million and a need for four-color printing runs of approximately 5,000 pieces is a clear
definition.
Once your target market is defined through your knowledge of product appeals and market analysis,
and can be measured, you should determine whether that target market is large enough to sustain
your business on an ongoing basis. In addition, your target market needs to be reachable. There
must be ways of talking to your target audience.
Types of Markets
A market is simply any group of actual or potential buyers of a product. There are three major types
of markets.
1.

The consumer market. Individuals and households who buy goods for their own
use or benefit are part of the consumer market. Drug and grocery items are the most
common types of consumer products.
2.
The industrial market. Individuals, groups or organizations that purchase your
product or service for direct use in producing other products or for use in their day-today operations.
3.
The reseller market. Middlemen or intermediaries, such as wholesalers and
retailers, who buy finished goods and resell them for a profit.
IDENTIFYING YOUR MARKET [top]
Here are three steps to follow when identifying your market:

Identify Why A Customer Would Want To Buy Your Product/Service

Segment Your Overall Market
Research Your Market
Step One Identify Why A Customer Would Want To Buy Your Product/Service

The first step in identifying your target market is understanding what your products/services have to
offer to a group of people or businesses. To do this, identify your product or services features and
benefits. A feature is a characteristic of a product/service that automatically comes with it.
For example, if a toothpaste has a stain-removing formula, thats a feature. The benefit to the
customer, however, is whiter teeth.
While features are valuable and can certainly enhance your product, benefits motivate people to buy.
An example is anti-lock brakes; they are features on a car, but the benefit to the consumer is safety.
By knowing what your product/service has to offer and what will make customers buy, you can begin
to identify common characteristics of your potential market.
For example, there are many different consumers who desire safety as a benefit when purchasing a
car. Rather than targeting everyone in their promotional strategy, a car manufacturer may opt to
target a specific group of consumers with similar characteristics, such as families with young
children. This is an example of market segmentation.
In one column, list the features of your product/service. In the other, list the benefits each feature
yields to the buyer.
Features:
1.
2.
3.
4.

Benefits:
1.
2.
3.
4.

Step Two: Segment Your Overall Market

It is a natural instinct to want to target as many people and groups as possible. However, by doing
this your promotional strategy will never talk specifically to any one group, and you will most likely
turn many potential customers off. Your promotional budget will be much more cost effective if you
promote to one type of customer and speak directly to them. This allows you to create a highly
focused campaign that will directly meet the needs and desires of a specific group. Again, this is
called market segmentation.
Case StudyA president of a management training firm had been marketing to Fortune
500 companies more than a year. She received some business, but the competition was fierce. One
day, she received a call from the owner of a manufacturing plant who needed to have managers
trained. The president agreed to take the job, and found out there was virtually no competition for
plant manufacturing training services, because it was less glamorous to train in a manufacturing
plant than in executive offices of the Fortune 500 companies. The president decided to change her
marketing strategy and target only manufacturing plants. Their promotional material reflected this
change. Within six months the company increased its revenues by 80 percent and created a
competitive edge by segmenting its market.
Market segmentation is the process of breaking down a larger target market into smaller segments
with specific characteristics. Each group requires different promotional strategies and marketing
mixes because each group has different wants and needs. Segmentation will help you customize a
product/service or other parts of a marketing mix, such as advertising, to reach and meet the specific
needs of a narrowly defined customer group.

Case Study Career Options, a job placement firm, has a target market of the unemployed. While
its true that anyone looking for a job is a potential customer, developing a focused marketing
strategy to reach such a broad market would be difficult, if not impossible.
Instead, Career Options should target the following segments within the broad group of people
seeking employment: recent college graduates and professionals in transition. Both groups share
one important characteristic they need a job but the two groups have different characteristics,
different needs and wants. New college graduates, for example, are young and often unsure of
career paths. They have little experience in resume writing and interviewing. Professionals in
transition may be dealing with the trauma of being fired or laid-off. They usually have a defined set of
skills and a career path.
Another example of market segmentation is the athletic shoe industry. Major manufactures of athletic
shoes have several segmented markets. One segment is based on gender and the other segment is
based on the type of sport or activity. They have different promotional campaigns for each market
segment.
Larger markets are most typically divided into smaller target market segments on the basis of
geographic, demographic, psychographic and behavioristic characteristics:

Geographic. Potential customers are in a local, state, regional or national

marketplace segment. If you are selling a product such as farm equipment, geographic
location will remain a major factor in segmenting your target markets since your
customers are located in particular rural areas. Or, if you own a retail store, geographic
location of the store is one of the most important considerations.
Climate is a commonly used geographic segmentation variable that affects industries such as
heating and air conditioning, sporting equipment, lawn equipment and building materials.
Decide if your business is going to do business on a local, regional, national or international level.
Identify the geographic region where your market is located. Identify specific boundaries within which
you will do business.

Demographic. Potential customers are identified by criteria such as age, race,

religion, gender, income level, family size, occupation, education level and marital
status. Choose those characteristics of your demographic target market that relates to
the interest, need and ability of the customer to purchase your product or service.
For example, a target market for a real estate developer selling luxury vacation homes near Walt
Disney World would include professional married couples approximately 30 to 45 years old with
young children, and with incomes of more than $100,000.
Another example of targeting through demographics is Liz Claiborne Apparel Company. They have
named their target market, her name is Liz Lady. They know Liz Ladys age, income range,
professional status, family status, hobbies and interests. Every decision from marketing to design is
based on Liz Ladys profile.
A demographic profile for a business would include such factors as customer size, number of
employees, type of products, and annual revenue. If you are a business-to-business marketer for
example, you may want to consider segmenting according to your target customers size. A printing
company may decide to target only magazine publishers that publish more than one magazine
because they need high volume accounts to make a profit.
Identify the following demographic characteristics of your market.

Consumer Market
Age

Income

Gender

Profession

Education

Family Size

Homeowner

Marital Status

Business Market
Geographic location

Size of Company

Annual revenue

Number of Branches

Number of Employees

Industry

Age of Company

Psychographic. Many businesses offer products based on the attitudes, beliefs

and emotions of their target market. The desire for status, enhanced appearance and
more money are examples of psychographic variables. They are the factors that
influence your customers purchasing decision. A seller of luxury items would appeal to
an individuals desire for status symbols.
Business customers, as well as consumers, can be described in psychographic terms. Some
companies view themselves as cutting edge or high tech, while others consider themselves socially
responsible, stable and strong. Still others see themselves as innovative and creative. These
distinctions help in determining how your company is positioned and how you can use the
companys position as a marketing tactic.
For example: Southwest Airlines has positioned itself as an innovative and fun airline that takes
passengers on short, inexpensive excursions, whereas Delta chooses to promote reliability and
safety.
The following are psychographic variables. Identify the characteristics of your target market.
Consumer Market
Lifestyle

Fun-Seeking

Family Stage

Trendy

Hobbies

Status Seeking

Sports Enthusiasts

Conservative

Forms of Entertainment

Socially Responsible

Publication
Environmentally Conscious

Influencer

Subscriptions

Family Oriented

Technical

Workforce Type

Management Style

Other

Business Market
Business Style

Industry Leader

Business Stage

Innovative

Employee Relations

Conservative

Trade Associations

Socially Responsible

Business Products/Stable

Services Used

Employee Friendly

Publication Subscriptions

Workforce Type

Management Style

Behavioristic. Products and services are purchased for a variety of reasons.

Business owners must determine what those reasons are, such as: brand, loyalty, cost, how
frequently and at what time of year customers in a segment use and consume products. Its
important to understand the buying habits and patterns of your customers. Consumers do not rush
and buy the first car they see, or the first sofa they sit on. A Fortune 500 company doesnt typically
make quick purchasing decisions.
Answer the following questions regarding your market.
Reason/occasion for purchase?

Number of times theyll purchase?

Timetable of purchase, every week, month, quarter, etc.?

Amount of product/service purchased?

How long to make a decision to purchase?

Where customer purchases and/or uses product/service?

Most businesses use a combination of the above to segment their markets. Demographic and
geographic criteria will usually qualify your target markets so you can establish if segment members
have enough money to purchase your offering or if theyre in a location thats accessible to the
product. Most businesses then use the psychographic and behavioristic factors to construct a
promotional campaign that will appeal to the target market.
For example, Career Options is limited to the geographic region where their office is situated
because their target customers want to work in that area. In their advertising they will appeal to
psychographic factors such as the desire for stability and income.
Take a moment to decide which segmentation criteria will be most helpful to you in segmenting your
target market:
geographic
demographic
psychographic
behavioristic

_____Yes
_____Yes
_____Yes
_____Yes

_____No
_____No
_____No
_____No

Next, identify what is important to your customers and rank these on a scale of high, medium, low or
not at all. Are they price sensitive? Are they looking for the highest quality? Is great customer service
important? Or, is location a deciding factor?
High
Price
Quality
Brand Name
Variety of services
Salespeople
Customer Service
Special Offers
Promotional Campaign
Packaging
Convenience of Use

Medium

Low

Not at all

Convenience of
Purchase
Location
Guarantees
Store/Office Decor
Payment Terms
Other
Step Three: Research Your Market
Some or all these reference tools can be found in the reference collection of any public library or
college library that supports local business or a business school:
Federal Government Data:
A great deal of demographic data is either free or inexpensive because it is collected and published
by the federal government. The following publications are from the Commerce Department and
Census Bureau.

Statistical Abstract of the United States (annual)

Published by the U.S. Department of Commerce, this publication provides one-stop shopping for a
demographic portrait of life in the United States. Tables include information on just about everything:
school enrollment, voting patterns, employment projections, the federal budget, production figures,
family income, public expenditures, vital statistics, labor force information. While the emphasis is on
national information, many tables represent states and regions with a smaller number covering
metropolitan areas and cities.

United States Census

Every 10 years, the United States Census Bureau, in its attempts to count the number of people in
the United States, gathers a vast array of data about its citizens. The most current Census is
available in print format in many libraries. For the first time the Census is also available in CD-ROM.
The Census Bureau also monitors the population through its regular surveys, including the
monthly Current Population Survey (CPS). The March issue of CPS contains household and income
data. Contact the Census Bureau Call Center at 301.763-4636 to obtain the annual
publication Census Bureau Catalog and Guide, which explains publications available from the
Census Bureau and how to order them. The customer service department of the Census Bureau can
be reached at 301.763.4100.
Data for American States
The simplest way to collect state and local data is to check regional Web sites and make a telephone
call to the appropriate source. Regional Web sites can be located through the State and Local
Government on the Net Web site. City or county planning departments often compile demographic
data. Additional sources for local information are chambers of commerce, local business
associations, regional economic development groups, realtors and school boards. Local experts may
also be able to help you with detailed data. Some of the Census Bureau reports are broken down to
the state, county, zip-code, and city block level.
County and City Data Book
Contains data for 50 states, more than 3,000 counties or county areas, 243 SMSAs, and 840 cities
of 25,000 inhabitants or more.

State and Metropolitan Area Data Book (annual)

The SMA Data Book provides demographics for each state and metropolitan area, as well as
counties and central cities.
Commercial Sources of Demographic Statistics:

Online databases and CD-ROM products have made it much easier than it used to be to sift through
the mountains of information created by the Census Bureau and other gatherers of statistics. For a
complete listing of demographic and other databases, consult the Gale Directory of
Databases (available at most large libraries). The following sample of databases is available through
database vendors such asDialog. You can also use online search engines such as Yahoo! and
Google to find database compilers and other vendors.
Population Demographics from Claritas.
The Population Demographics database provides access to the decennial Censuses, as well as
estimations and projections developed by Claritas. The database provides census information in an
easy to use and comprehensive manner. Information can be searched by a variety of fields,
including age, sex, race, industry, occupations and geographic areas. Current year estimates and
five-year projections are also available for certain data.

ESRI reports
The company that publishes the Sourcebook of Zip Code Demographics and Sourcebook of County
Demographics, listed below, invites you to order brief local demographic reports online.

Local sources
Enter demographic data and a place name in the search blank of a search engine such as
Google or Yahoo! to find still more online sources.
Demographic Publications:

American Demographics monthly magazine containing articles on

demographic trends.
Sourcebook of County Demographics and Sourcebook of Zip Code
Demographics. ESRI publishes these volumes that identify dozens of local potentialcustomer characteristics annually.
Demographics USA, City and County editions. Trade Dimensions International
publishes these volumes that are similar in concept but have little overlap with
the Sourcebooks from ESRI.
Lifestyle Market Analyst from SRDS (annual).
Demographic, Psychographic and Behavioristic:
The primary vehicles to obtain this information are surveys and focus groups. Surveys are typically
anonymous and try to reach as many members of a target market as possible. Focus groups, on the
other hand, attempt to get an understanding of a specific market segment by questioning eight to 12
members of that group to discover what psychographic and behavioristic factors might motivate the
entire group. You should consider hiring a marketing research firm, since executing both
questionnaires and focus groups can be complex undertakings. If hiring a marketing research firm is
out of the question for your business at this time, here are some suggestions for conducting your
own survey research:

Your current customers can provide you with insight on potential customers and
how to appeal to them. You may also discover an opportunity to produce additional

products to serve this market or improve on an existing product. Ask yourself: What do I
need to learn about my customers? Then construct questions that will provide the
answers. It can be as simple as asking a current customer:
Why did you purchase this product? or, How can this product be improved? Make sure you give
them enough space to answer.

If you have a retail outlet, you have the means of distributing a customer
comment card or questionnaire. A suggestion box is also a vehicle for obtaining
information about your customers and their wants and needs.
When mailing monthly invoices or statements, include a questionnaire and return
envelope. If you provide an incentive to those who return it, such as a free gift or
premium, you increase the chances of getting it back.
Get statistics on the subscriber population for the trade journal that serves the
market you want to segment. Most major publications have demographic and
behavioristic profiles of their readership. If youre a manufacturer of a part used in
printing presses, a magazine focusing on the printing industry can provide you with
valuable segmenting information. Simply call the advertising department and ask for a
media kit. While youre talking to the publishers representative, ask if there are any
regular or special articles you should see for useful trade and demographic statistics.
Requesting a customer-organizations annual report will provide you with
business demographic information.
Work with a local college. If you need help in designing and executing a market
survey, contact a marketing professor at a nearby college and offer it as a class project.
Identify your potential customers and question them.
For Example: Career Options might go to the state unemployment office and conduct a survey, or
visit a local college and conduct a survey among college seniors.

Trade associations can provide valuable information for industries not only on
demography and market size, but on competition and trends for growth areas as well.
Trade associations usually sponsor trade shows. A printer serving the magazine market
would attend a trade show for that industry. But if this printing company was
considering targeting new markets such as book publishers or greeting card publishers,
then attending trade shows for those industries would be a prime way to identify and
question potential customers.
SAMPLE OF A CUSTOMER PROFILE AND ANALYSIS [top]
Career Options Sample Customer Profile:
Professionals in Transition Segment
Gender:
Age:
10% 26-30
Income:
25% 30-40K
Marital Status:

30% Female

70% Male

30% 31-40

30% 41-55

25% 40-50K

50% 50-75K

80% Married
Level of Education:
60% Bachelors degree
Occupations:

30% 56-64

20% Single
40% Masters degree

10% Health Care

20% Financial
30% Marketing/Advertising
40% Hi-Tech Fields
Job Sought:
70% Same Field
30% New Field
Most Important Benefits:
1. Assistance in finding work quickly.
2. Want a better job.
3. Want equal salary or increase.
4. Stability.
Psychographic Summary: This segment closely associates work with selfesteem. They feel pressure because most have families and comfortable
lifestyles to maintain. They are not interested in forging new careers but
want stability.
Having completed the customer profile, Career Options will have a good idea of how to attract and
serve customers in this target market. Their advertising will emphasize that Career Options
specializes in helping professionals find good paying jobs quickly. They will also discover that most
of their potential customers in this segment are seeking employment in technical industries.
Advertising in various local industry publications would therefore be a good way to reach this market
segment. They can also develop an expertise for counseling and placing hi-tech career
professionals.
Constructing a similar profile will assist you in developing the proper marketing strategies to be
successful in your target market. Remember, no two customer profiles will be the same. Youll have
to decide how much emphasis to place on a potential users lifestyle, loyalty, and spending habits. If
youre going to advertise heavily, youll want to know the media habits of potential customers as well.
Whatever information will help you better promote and sell your product should be included in your
customer profile.
CHOOSE THE SEGMENTED TARGET MARKET(S) YOU WILL SELL TO [top]
After identifying and defining the possible segments within your target market, you must face the
critical question of whether it would be profitable and feasible for you to pursue each identified
segment, or choose one or two. To make this decision, you must answer the following questions:

What is the financial condition of my firm? If you have limited resources at this
time, you may want to direct your marketing efforts to only one segment. A
concentrated advertising campaign to reach one market segment is likely to be more
effective than a diffuse campaign attempting to reach two.
What segments are my competitors covering? Are they ignoring smaller
segments that I can possibly exploit? The printing company previously mentioned may
decide to pursue small magazine publishers because there are many competitors
currently serving the needs of larger publishers. Or, Career Options may discover that
since in their geographic location there are several firms that specialize in helping
professionals in transition, they should specialize in the recent college graduate market.
Is the market new to your firm? If so, it may be better for you to concentrate on
one segment for now, and expand to others when your initial segment has been
successfully penetrated. Developing new markets takes a greater commitment of time,
money and energy.
Important Considerations:

If you pursue one segment of your target market and the demand for your
product decreases, so will your financial strength. In essence, you are putting all your
eggs in one basket.
When your firm becomes well established in a particular market segment, it may
be difficult for you to move to another segment. This may occur due to your market
reputation or popularity.
For example, if Career Options becomes known for helping college graduates find jobs,
unemployed professionals may perceive them as only having the expertise to serve that market.

After you have mastered one particular segment, you can then begin to develop
another. Directing your firms marketing efforts at more than one market segment by
developing a marketing mix for each specific segment is known as multi-segment
strategy. An example of a product that was traditionally targeted at women and is now
being targeted with variations in strategy at men is hair coloring.
The marketing mixes for multi-segment strategy may vary by product feature, price, promotional
material and distribution methods. If product variations requires additional work, you may incur
higher production costs. Additionally, different promotional plans and distribution efforts will result in
higher marketing costs. Plan carefully, to make sure the costs dont outweigh the benefits.
Now think about all the characteristics you have identified and start formulating the
promotional campaign that will best address this specific target market. Start to formulate a
picture or description of your ideal customer. Make sure everything you do, from design,
price to marketing, addresses your market.

CHECKLIST [top]
Identifying Your Market
___ Determine why a customer would want to buy your product/service.
___ Identify your products/services benefits and features.
___ Decide which segmentation criteria will best segment your target market: geographic,
demographic, psychographic or behavioral.
___ Segment your market.

___ Divide larger target market segments into smaller segments.

___ Decide if it would be profitable and feasible for you to pursue each segment.
RESOURCES [top]
Books
The Successful Business Plan: Secrets & Strategies by Rhonda Abrams and Eugene Kleiner.
(Running R Media, 2000).
The Marketing Plan: How to Prepare and Implement It, 3rd ed. by William M. Luther. (AMACOM,
2001).
Developing a Creative and Innovative Integrated Marketing Communications Plan: A Working
Model by James R. Ogden. (Prentice Hall College Div., 1998).
Web Sites
"Sales and Marketing: Researching Your Market," by Laura Tiffany. Entrepreneur.com, 2001.
"Getting the Dirt on Your Market," by Rhonda Abrams. RhondaOnline.com, February 2002.
"Hitting Them Where They Live," by Kate Maddox. BtoB (September 15, 2003).
"How to Identify, Target Your Best Customers," by Rebecca Bell Ellis.BtoB (May 5, 2003).
"Slices of Lives," by Meredith Levinson. CIO 13:21 (August 15, 2000), 126 (4).
Mapping the Growth of Older America: Seniors and Boomers in the Early 21st Century by William
H. Frey. The Brookings Institution, Living Cities Census Series. May 2007.
About the writer Susan MaGee, formerly Publicity and Book Club Sales Director for Running
Press Book Publishers, now operates her own Philadelphia-based business specializing in public
relations and business writing.
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