SC

D5+objectives

1. Demographics

1.1 Definition

  • Demographics refers to statistical characteristics of a population.

  • It represents WHO our consumers are.

  • Typical demographic variables include age, gender, income, education level, and occupation.

1.2 Limitations

  • Lacks depth: Does not explain WHY consumers behave a certain way.

  • Static: Does not account for changes in behavior over time.

2. Lifestyle

2.1 Definition

  • Lifestyle encompasses the habits, tastes, and behaviors that define how an individual lives.

2.2 Relationship to Personality

  • Personality influences lifestyle choices, including hobbies, interests, and spending habits.

  • Lifestyle reflects how personality traits manifest in daily activities.

2.3 Types of Lifestyle Variables

  1. Activities: How consumers spend their time (e.g., hobbies, sports).

  2. Interests: What consumers care about (e.g., arts, travel).

  3. Opinions: Individual viewpoints on issues (e.g., social, political).

3. Psychographics

3.1 Definition

  • Psychographics dives deeper to understand WHY consumers act a certain way.

  • Segmentation based on hobbies, interests, personality, and values.

3.2 Pros and Cons

  • Pros:

    • Provides insight into consumer motivations.

    • Helps tailor marketing strategies to specific lifestyles.

  • Cons:

    • Data collection can be time-consuming and costly.

    • Requires sophisticated analysis to interpret correctly.

4. Comparison of Demographic and Psychographic Data

4.1 Similarities

  • Both are used for segmentation purposes.

  • Aid in identifying and targeting specific markets.

4.2 Differences

  • Demographics focus on characteristics (who), while psychographics focus on motivations (why).

  • Psychographics can provide a fuller picture of consumer behavior.

5. Psychographic Measurement Tools

5.1 AIO Inventories

  • Activities, Interests, Opinions inventory used to assess lifestyle.

  • Marketers learn about consumer preferences and behaviors.

5.2 Limitations of Simplified Method

  • May not capture the complexity of consumer behavior.

  • Oversimplification can lead to misinterpretation of data.

6. VALS Framework

6.1 Definition

  • Values and Lifestyles (VALS) categorizes consumers based on their core values and beliefs.

6.2 Pros and Cons

  • Pros:

    • Helps marketers understand motivations behind consumer choices.

    • Popular tool for market segmentation.

  • Cons:

    • Can be overly simplistic or fail to capture nuances.

    • May not adapt well to changing consumer trends.

7. Geodemographics

7.1 Definition

  • Geodemographics combines geographic and demographic data to analyze consumer behavior based on location.

7.2 Advantages

  • Segmentation based on the proximity of people aids targeted marketing efforts.

  • Useful for identifying regional preferences and needs.

8. PRIZM Model

8.1 Definition

  • Potential Rating Index by Zip Marketing (PRIZM) analyzes demographics and behavior to inform marketing strategies.

8.2 Pros and Cons

  • Pros:

    • Rich data set allows for dynamic market segmentation.

    • Helps identify consumer trends within specific locations.

  • Cons:

    • May require significant investment for effective implementation.

    • Data may not be current, hindering accuracy.