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Copyright Goodheart-Willcox Co., Inc.
Chapter 10 Marketing
Research has found that customers in the same
market segments have similar buying patterns
and behaviors.
• Geographic segmentation is segmenting
a market based on where customers live.
Customers can be segmented by region,
climate, or population density.
• Demographic segmentation is dividing
the market of potential customers by their
personal statistics. This information can
be found in census data. A census is a
count of the people in a country made by
the government on a regular basis. Some
of the census data collected includes age,
gender, income, ethnicity, education level,
occupation, marital status, and family size.
• Psychographic segmentation is dividing
the market by certain preferences or
lifestyle choices. Psychographics are
data about the preferences or choices
of a group of people. This includes
information about individual values,
attitudes, activities, and interests that
affect purchasing decisions.
• Behavioral segmentation divides a market
by the relationships between customers and
the good or service. Behavioral variables
include benefits sought, usage rate, buying
status, brand loyalty, and special occasions.
Once marketers have divided a market
into segments, they choose which segments to
target for marketing purposes. When the market
segments are chosen, a customer profile is
created for each segment. A customer profile is a
detailed description of the typical consumer in a
market segment. The profile includes geographic,
demographic, psychographic, and behavioral
characteristics about this typical customer. A
sample customer profile is shown in figure 10-5.
Accurate customer profiles help determine
the best promotional strategies. By knowing who
is most interested in the company’s products,
promotional dollars can be used wisely.
Segmenting the market is an efficient use
of time and money. However, some marketing
plans include mass marketing. Mass marketing
is marketing to a larger group of people who
might buy a product. An example of using mass
marketing is a product advertisement shown on TV.
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Figure 10-5 A customer profile for a ski shop in Colorado lists demographic, psychographic, and geographic
characteristics about consumers in the market segment.
Customer Profile
Skier
Demographic
Age: 25 to 40
Gender: male and female
Ethnicity: any
Family size: any
Income level: $50,000 and above
Occupation: professional
Psychographic
Interests: outdoors, adventure
Activities: downhill skiing,
snowboarding, cross-country
skiing, snowshoeing
Geographic
Colorado