Transcript C. Family Life Cycle

• As marketers and business people, we will sell our
products to whomever will buy it
– Ie:
• wedding gowns to seniors
• Retirement funds to a teenager
• Yet these aren’t our “most likely customers”
• We need to optimize our marketing dollar….let’s get
the “most bang for our efforts”
• Everyone has unique physical features, personality,
values, beliefs, geographic location and history
• These differences are reflected in people’s daily
decisions and behaviors.
• As a marketer, the more we know about our potential
customers, the better we are able to anticipate or
influence their buying decisions
• Marketers therefore create “Consumer Profiles” of
the kind of people most likely to be attracted to a
specific product
• Each identified group of consumers with common
characteristics and buying habits is called a “consumer
segment” which is accomplished through the process
of “segmentation”
• Once identified, marketers will focus their efforts on
trying to reach and influence these segments
• For some products, there may only be one
segment….for others there may be multiple segments
• Examples:
– One segment:
Wedding Gowns (females, 20-30, getting married)
– Multiple segments:
Levi Jeans (how you sell jeans to teens is different than
middle age, etc.)
Let’s look at how this is done……...
• Categorizing potential consumers in this way enables
marketers to direct their efforts toward a target
market, a specific group of consumers who will be
most interested in their product
DEMOGRAPHICS
• The study of obvious characteristics that categorize
people.
• These characteristics include age, gender, family life
cycle, income level and ethnicity and culture
• Each characteristic is then subdivided into variables
or ranges
Let’s look at each of the main variables………
A. Age
• Depending on the market, people are
grouped into various groups
• Stats Canada divides the population as such:
• 0-15, 15-24, 25-44, 45- 64, 65-74, 75+
• Depending on the product / service, marketers need to
determine the age group that will most likely
purchase their product
B. Gender
• The classification of the population into either male
or female
• Marketers must determine whether the target market
for their product or service is mainly male, female or
both and strategize accordingly
• Ie:
• Male – Cologne, Tools, Cars, Football
• Female – Perfume, Purses, Romantic Novels
• Both – Groceries, Gas, Movie Rentals
C. Family Life Cycle
• A consumer’s stage in the family life cycle determines many
of his or her wants, needs and purchasing patterns
• Businesses use this demographic to determine who buys what
for whom
• Ie:
• New Family – diapers, baby food
• Older Family – Ipods, computers
Examples of Family Life Cycle Stages
•
•
•
•
•
•
Single
Married (no children)
Family (young children)
Family (older children)
Empty Nesters (children left)
Retirees
D. Income Level
• Grouped by how much money the targeted
consumer earns
• Allows marketers to determine how many consumers can
afford their product / service
• In Canada, the average gross family income (before taxes) in
2008 is $ 90,000
• Based upon these statistics, marketers can generally
define the Canadian population into the following
income segments:
• Wealthy / Affluent ($ 150,000 +)
• Middle Income ( $ 50,000 - $150,000)
• Lower Income ( $ 50,000 or less)
E.
Ethnicity & Culture
•
It is vital for a marketer to understand the ethnic and cultural
differences of their market
•
Marketers must design their marketing strategy to appeal to
their target market, yet make sure they don’t offend them
•
Ie… Wedding Gowns
•
–
In our western culture, white is the norm
–
In India and parts of China, red is worn for “good luck”
Understanding our target market’s culture is essential to
marketing success
PSYCHOGRAPHICS
• A system of measuring consumers’ beliefs, opinions, and
interests.
• A way of profiling consumers on the way they “think”…
• IE:
• Religious beliefs, lifestyle, musical tastes, attitudes, etc.
• They are much harder to measure, yet they are vital in creating
an effective customer profile
GEOGRAPHICS
• A system of measuring “where” consumers live
• Do your customers live:
• in a rural / urban / suburban area?
• Do they live in “pockets” or concentrations in certain
places?
IE:
• tractors – rural Canada
• Indian Cuisine – focus on areas of high Indian population
• Toronto Raptors – focus on urban / suburban GTA
What is the target consumer for People magazine?
Profile Category
Profile Group
Age
Gender
Income
Family Life Cycle
Culture
Lifestyle/Values
Country/City
Targeted Consumer
Profile Category
Profile Group
Targeted Consumer
Demographics
Age
25-40
Gender
Female
Income
Middle
Family Life Cycle
Single or Married, No Children
Culture
‘Western’ culture oriented.
Hollywood references.
Psychographics
Lifestyle/Values
Watches movies and television.
Follows fashion. Buys name
brands.
Geographics
Country/City
North America, urban / suburban
A business will obviously sell their product to whomever
they can, yet they need to focus their marketing efforts on
those who are most likely to buy it
• However, if a marketer is able to effectively profile their target
market, they can then begin to create a marketing plan that
focuses on that “target”
• Although this doesn’t guarantee business success, your chances
are much greater with a well reseached and targeted customer
The End !!