Psychographic Segmentation Definition, Examples & How-to

However, seeking to attract younger customers, the company created a market segment of drivers in their late 30s and early 40s, then delivered products and messaging to reach that segment. Both the product design and the marketing strategy Mercedes-Benz used were highly tailored to this younger demographic. By selecting relevant criteria that's targeted toward that segment, a brand can more effectively reach users who fit that segment. Rather than targeting a broad audience with generic messaging and offers, market segmentation enables brands to provide offers specifically tailored to each segment's needs. You want your customers to feel you understand them and that you’re connecting to help, not just sell. And each B2B segment should have a clear set of unique needs that align with business goals.

Once the company is done with the market segmentation process, it can focus on choosing the best segment for its products and/or services. For these reasons, a company should properly do the segmentation process. You can segment users by literal action paths through your product, not just inferred attitudes. Pepsi consumer demographics comprise average to high income earners, including students, employees and professionals. With a market analysis that considers Pepsi demographic segmentation, as well as its geographic, behavioral and psychographic segmentation data, businesses can get to know the Pepsi target audience.

The most popular psychographics are personality traits, lifecycle stage, interests, attitudes or beliefs, and activities. There are many different ways to segment a market along psychographic dimensions, but there are a few you’ll want to include from the start. Last, you’ll include a tailored call-to-action that’s at the intersection of your target buyer’s needs, priorities, interests, and values. A psychographic profile is a unique description of the attitudes, habits, and interests of an individual or group.

How to Start Segmenting Your Audience

Typically, market segmentation divides an entire market, including both unpreferred and preferred targets, to highlight the preferred business areas. Customer segmentation focuses on existing customers, while Psychographic market segmentation market segmentation focuses on target markets, including prospective customers. CVS tailored the shopping experience based on these two distinct demographic segments. CVS designed the suburban stores to conveniently place health and beauty products close to the pharmacy, where customers went to pick up their prescriptions.

Nike Marketing Strategy

• If your target customer loves yoga and you're trying to sell them your nutritional counseling program, you can incorporate images or offers that involve yoga.
• It complements demographic and socioeconomic segmentation, and enables marketers to target audiences with messaging to market brands, products or services.
• Here are 5 standout examples — each using psychographic insights to build loyalty, drive conversions and shape their marketing strategies.
• You want your customers to feel you understand them and that you’re connecting to help, not just sell.

In 1964, Harvard alumnus and social scientist Daniel Yankelovich wrote that traditional demographic traits—sex, age and education level—lacked the insights marketers needed to inform their strategies. It complements demographic and socioeconomic segmentation, and enables marketers to target audiences with messaging to market brands, products or services. Over 600,000 marketers rely on MarketingProfs for B2B know-how every day. Essentially, psychographics enable businesses to understand the “why” behind consumer decisions, which is key to attracting and retaining customers.

1.1. What is Demographic Segmentation?

For startups and established businesses, understanding the importance of segmentation is essential for the granular analysis of consumer demographics, behaviors, needs, and preferences. In addition to using surveys to gather psychographic data, experts suggest that social media monitoring and analytics can also help marketers identify trends in consumer interests, attitudes, sentiments, and psychographic clusters. Around the same time, market researcher Emanuel Demby began using the term 'psychographics,' to reference variations in attitudes, values and behaviors within a specific demographic segment. If you’re ready to start building in-demand digital marketing skills, try the Google Digital Marketing & E-commerce Professional Certificate. This is what demographic segmentation offers – a chance to give customers a personalized experience that resonates with their unique needs and preferences. This group is characterized by shared traits such as demographics, interests, and purchasing behaviors, making them more likely to be interested in the company's products or services.

Behavioral segmentation is based on population characteristics such as age and gender.

They reveal the attitudes, lifestyles, and motivations that drive decisions and help you turn those findings into more effective messages, products, and experiences. The product stays the same, but the story, proof points, and offers should differ for each group. Two customers might share the same demographics and show similar behavior, but one values performance and status while the other values simplicity and price. Choose the segmentation type that matches the question you’re trying to answer about your audience. It’s best for refining creative direction, positioning, and offering design so your message resonates with each mindset. It’s most useful for sizing markets, estimating reach, and planning top-level campaigns or media buys.

Behavioral segmentation

When you have a target audience in your sights you can then work to present your product and all of its benefits, tailored specifically to the needs of your target market. The STP model is useful for creating marketing communications strategies because it helps marketers prioritize propositions and develop and deliver personalized, relevant messages to different audiences. Instead of asking "Should we expand?" you're asking "Which segment offers the best combination of market opportunity and competitive advantage?" Rather, it can be a strategic tool for making critical business decisions about where to expand, what to build, and how to grow. By focusing on specific customer needs and characteristics you can deliver products that uniquely serve them, which inevitably leads to stronger customer bonds and lasting brand affinity. When you know the audience you are targeting, you can determine the best solutions and methods for reaching them.

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