Today’s diverse marketplace allows companies to segment their markets more than ever. In order to accomplish this task Companies use customer characteristics to segment specific markets. Demographic, Geographic and Psychographic.
Demographics are the quantifiable statistics of a given population. These types of data are used widely in public opinion polling and marketing. With this strategy, a company simply divides the larger market into groups based on several defined traits including gender,age, ethnicity and employment status.
Geographic segmentation is used by companies that sell products or service specific to a certain community, state, region, country or group of countries. Local businesses usually get no benefit in paying for national or international advertising.
Companies that operate nationally can often save by delivering the same marketing messages to a national audience through one television, radio, magazine or newspaper ad. Global businesses typically decide whether to maintain a universal message or tailor messages to each country’s marketplace.
Psychographics is the study of personality, values, attitudes, interests, and lifestyles. Psychographics or lifestyle segmentation has become increasingly common as companies look to identify consumers based on interests and activities in lieu of demographics.
Understanding why people behave as they do helps companies to identify needs in the market. Companies that correctly identify customer characteristics can obtain huge profits.