In this method, the qualitative research techniques such as depth interviews, focus groups and ethnography play a vital role in establishing the various market segmentation advantages. Psychographic segmentation helps marketers understand that why—the goals, challenges, emotions, values, habits, and hobbies that drive purchase decisions. Creating psychographic segments enables clearer, more targeted messaging as “fuller” insights into consumers’ lives are uncovered. Matcha Source, for example, tailors their webshop copy to the lifestyle of the “married soccer mum”: Less subtle than Fred Perry’s approach. It is also quite an effective approach for small firms, with limited resources that often need to operate in a defined geographic area for efficiency purposes. 24 April 2020 Psychographic: Pizza Hut’s psychographic segmentation also called lifestyle segmentation Pizza Hut hasdivided the market into different groups based on social class, life style or personality characteristics Behavioural: Pizza Hut’s behavioural segment is the class where people love to spend money on eating. And guess what? Being a retailer, it’s not enough to only appear to reinstate the values of your target segment (although closing down their stores was a good way to prove their solidarity to the cause). Developing questions for psychographic surveys can be difficult, as it is common to be assumptive about the target market. You’re left making assumptions about your customers using methods that don’t quite cut it anymore. It’s a good indicator but not necessarily a direct cause. Behavioral. Psychographic segmentationis the process of creating clusters of customers who share similar characteristics and then grouping them together. Check which segments work for your brand and target audience. What exactly can Geographic Segmentation do for you? Once a segment has been identified which meets these requirements, … With behavioural segmentation, you can make your own life easier. What’s the takeaway? Advantages of Demographic Segmentation Demographic variables like age, gender, income are easy to measure as they are quantifiable in nature. There are several reasons for that. It is important to note that whilst psychographic segmentation is a powerful marketing tool that reveals greater insights into a wider range of customers, it still does not grasp the entirety of information required to fully understand buying decisions. Separating out the group of people who shop at your store every day and tell their friends about you from the rest of the crowd. To test consumer attitudes towards claims based on different segments, Conjoint.ly’s Claims Test reporting can be displayed segment by segment. Values are another psychographic segmentation variable to pay close attention too. Psychographic segmentation, therefore, informs Patagonia’s overall branding, by taking their customers’ values into account in all their messaging and communication. Your market research is outdated. Psychographic Target Audience Segmentation Factors: Psychographics is a term for characteristics of the audience such as values, beliefs, attitudes, and behaviors. Segments fall between the two extremes of total homogeneity and total heterogeneity. These clusters will form subsets (or segments) of customers based on their: 1. Common Mistakes. Lifestyle: How people perceive life and how they live it. ABN 56 616 169 021. Psychographic segmentation, when done right, is a powerful lever for refining your messaging and creating the right products. You can always unsubscribe later. Market segmentation helps to segregate the consumer market and helps to identify the promising markets in which the business can flourish. Creates opportunity for product repositioning. For example, upper class are often driven by luxury, whereas the middle to lower classes are more motivated by value for money. An excellent example of benefit segmentation is the fitness industry. When you incorporate psychographic segmentation in marketing, it helps make your marketing more relevant—that is, if the information behind the segmentation is accurate. How do you group your customers together by their shared psychological characteristics? Understanding customer preferences, needs and wants in-depth by analyzing their personalities, lifestyles, or social status. The memes had over 2 million likes and outperformed Gucci’s previous campaign. Lifestyle 3. Psychographic segmentation capitalizes on this by dividing customers based on psychological factors, which include behaviors, personalities, lifestyles, and beliefs. Developed in the 1970´s, it applies behavioral and social sciences to explore to understand consumers’ … Psychographic segmentation is a legitimate method to segment a target market provided that the marketer can identify the appropriate market segmentation variables. How do they perceive Wealth? Another example that I’ve seen referenced a lot when segmenting by personality is Harley Davidson. Disadvantages Of Using Psychographic Segmentation. This segmentation gives an in-depth analysis of the customer, thus better than demographic or geographic segmentation. Their audience can be divided into: And within these psychographic segments, there will be overlap, micro-segments, and high-value segments that all of Patagonia’s campaigns will take into account, from ads to social media campaigns. 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