Consumer Profiling
Consumer Profiling
Consumer Profiles
- the kind of people most likely
to be attracted to a specific
product
Consumer Profiles
Cohort :
a group that shares common
characteristics and buying habits,
also called a
Consumer or market segment
Consumer Profiles
primary or target market :
the most likely consumers
secondary market :
other, occasional consumers
Consumer Profiles
Knowledge of consumer
profiles affects distribution,
advertising, product design,
media, international markets…
PRODUCT
CONSUMER
PROFILE
ADVERTISING
Consumer Profiling
Demographics:
the study of obvious characteristics
that categorize people
Examples :
age, gender, family life cycle,
income level, ethnicity, culture
Demographics
Age
• generally broken down into six
groups: 0-14, 15-24, 25-44,
45-64, 65-74, 75 and over
• Different researchers use
different breakdowns…
Demographics
Five Major Generations
Mature
60+
Baby Boomers
45-59
Generation X
27-45
Generation Y
11-26
Millennium Kids
0-10
Demographics
Gender
• Few products are marketed exclusively to one
gender; gender roles have changed, many
products are successfully marketed to both.
But here are some typical gender segments:
• Male – Cologne, Tools, Cars, Football
• Female – Perfume, Purses, Romantic Novels
• Both – Groceries, Gas, Movie Rentals
Demographics
is at the heart
of one of the most
successful Businesses
of our era…
can you guess which one?
A case study…
How Does Facebook Make Money?
source: http://www.ibtimes.com/articles/234132/20111019/how-does-facebook-make-money.htm
Facebook is the world's largest social network, with a reported 800
million users. But the service is free to users, in that it doesn't charge
a sign-up or monthly fee.
So, many wonder: How does Facebook make money?
• Advertising
• Applications
• Virtual Goods
Facebook has become proficient at making money, to say the
least. According to a report, Facebook will generate $4.27 billion
in revenue this year -- double what the company made in 2010. Of
that $4.27 billion, some $3.8 billion will come from advertising,
according to New York - based EMarketer.
How Does Facebook Make Money? (continued)
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Want to Advertise on Facebook?
Demographics
Who is Facebook’s biggests target market?
Interesting FB Facts Break…
- Average user has 130 friends on the site
- Average user spends an average 15 hours and 33
minutes on Facebook per month
- Average user visits the site 40 times per month
- Average user spends 23 minutes on each visit
- Average user creates 90 pieces of content each month
- 200 million people access Facebook via a mobile device
each day
- More than 30 billion pieces of content are shared each day
- Users that access Facebook on mobile devices are twice as
active on Facebook compared to non-mobile users
- Facebook generates 770 billion page views per month
Demographics
New Family – diapers, baby food
Older Family – Ipods, computers
Family Life Cycle
• A business may sell its products to
various groups, but it will adjust
marketing strategies for each.
Demographics
Income Level
• Businesses use this to
determine whom to market to.
Upper-income group can/will
buy more expensive items.
Demographics
Income Level
• Most businesses target customers
of average income and compete
for customers’ discretionary
income.
Consumer Profiles
Psychographics:
Customers may also be grouped by similar
psychographic variables such as values,
beliefs, buying patterns, perceptions, and
lifestyle choices such as recycling, fitness,
travel, and hobby interests. Psychographic
variables provide insights into how and
why customers buy.
Psychographics
Consumer Profiles
Geographics
Marketers are also interested
in where consumers live.
A 28-year-old Han Chinese man is the most typical person on the planet.
There are 9 million of them. A Demographic and Geographic profile…
Geographics
Urban Consumer
• live within the boundaries of a city
• live in apartments, condos, houses
with small yards
• spend on cultural events,
restaurants, public transport
Geographics
Suburban Consumer
• lives on the outskirts of the city
• needs at least one car
• spends money on gardens,
barbecues, home furnishings
• almost always commutes
Geographics
Rural Consumer
• usually need a truck to carry items
• often has large parcels of land
and needs riding mower, tractor,
other farm equipment
Geographics
Marketers develop Consumer Profiles by combining
Demographic, Psychographic and Geographic
information.
This is done with consumer surveys and by data
mining habits we reveal through credit card purchases
and Internet usage.
Google and Facebook are constantly “mined”,
because we divulge our location and willingly offer
details about ourselves through searches and posts.
Consumer Profile: Assignment
1
Visit www.youniverse.com and try answering the questions by
selecting an image that relates to you. The site will then create a
consumer profile for your self based on your interests. Browse
through the booklet created to see if the descriptions relate to you.
Using this booklet as an example, develop a creative consumer
profile for a friend (Use PPT or Publisher). Let this profile tell a story
about your friend. It should be easy to get to know your friend based
on what you include (school appropriate) in the profile.
You must include all 5 categories of market segmentation:
Demographic, Psychographic, Geographic, Behaviour Patterns and
Consumption Patterns.
You must have at least 5 elements for each segment.
Data Mining: Assignment 2
Consumer Profiles are also developed through census
data published by the Federal
Government. This data is full of
Demographic, Psychographic
and Geographic information
Marketers can use.
Time to profile!
Using information compiled by Statistics Canada, we
are going to do some data mining.
Open the following excel file, and answer the
questions by mining the Stats Can data.