Income Segmentation Income is an obvious way to segment the market. If your business is up and running, you can gain psychographic information by surveying people who have already bought your products or services; if your company is still in the startup stage, you can survey people who use similar ones.
Another way to put it is that demographics are things that can be observed from the outside, such as age and race, while psychographics are internal attributes or attitudes. Few men wear makeup.
Women are more likely to donate to causes than men. However, this is another type of segmentation that you need to use carefully.
Stay-at-home moms do most of the family shopping for food and healthcare products. Some companies might go micro, segmenting different parts of town or even different streets. Different groups may have different tastes in food, live in different neighborhoods and have different attitudes.
Psychographics take this idea a step further. To gather both the demographic and psychographic information you need to home in on your target market, you will need to conduct research.
Segment by Gender Different marketing for men and women makes sense as genders have different needs. By AllBusiness Editors In: Trying to market to women by painting some of your products pink comes off as both sexist and clueless, for instance.
Marketing built around stereotypes can offend your potential customers and drive them away. Ethnicity Ethnic groups of different races and nationalities may respond to different marketing tactics — for example, using a spokesperson of their own ethnicity.
This allows you to create selling points for various market segments, making your marketing more powerful.
Demographic segmentation breaks down the market into different categories. Demographics can also include the age of children, status of home ownership, value of the average home, and whether that home is in an urban or rural location.
Together, demographics and psychographics can give your business a critical winning edge. Home Depot, for example, might want to advertise snow shovels to customers in New England, but it would be pointless to do so in Florida.
Segment by Family Families come in all shapes and sizes — single moms, single dads, gay couples with kids, childless straight couples, straight couples with one child or several kids.
These characteristics might include age, annual income, educational attainment, type of occupation, region of the country they live in, or number of individuals living in their household. Psychographics can include such factors as where your target customers like to travel on vacation, the kinds of hobbies and interests they have, the values or opinions they hold, and how they behave.
Demographics are the average or typical characteristics of your target market — the people who buy your products or services. Family makeup can be a useful tool in segmenting the market: What appeals to a year-old Asian-American art history major may be completely different from what appeals to a year-old black attorney.
If you run a dollar store, your targets are probably consumers with lower incomes. Geographic Segmentation Geographic segmentation divides up potential customers by where they live.
Unlike demographics, psychographics are not always easy to categorize into numbers. Large families might be more interested in low-cost products than a childless couple with the same income.each consumer group, construct what is called a demographic profile: Age Gender Location Income level Social class/occupation Education Other (specific to your industry) Other (specific to your industry) Business Plan for Startup Business.
When writing a business plan, the focus of the Market Analysis section is a thorough examination of your target market: those people to whom you intend to sell your products or services.
Even if you intend on selling a product service only within your own community, you won't be selling that service to everyone who lives there. Sep 30, · To grow your business, you need a marketing plan.
The right marketing plan identifies everything from 1) who your target customers are to 2) how you will reach them, to 3) how you will retain your. About the Author.
Over the course of his career, Fraser Sherman has reported on local governments, written about how to start a business and published four books of. Business Plans: Target Market & Demographics This guide is designed to assist students in finding resources to write a business plan.
Its primary focus is on industry conditions, target market demographics, and financial comparables. In order to properly evaluate a community or neighborhood for the best location for your business, you must know the demographic profile of your potential customers.Download