COMMUNICATIONS

AND ADVERTISING

CAA201
 CHAPTER 7:
SEGMENTING AND
TARGETING THE AUDIENCE

PART 2

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 Key objectives

• Discuss targeting and how it differs from

segmenting
• List several characteristics that are used to
segment markets and target consumers

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 How do we Segment
Markets and Target Audiences?

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 Market Segmentation
Dividing a market into smaller segments with
distinct needs, characteristics, or behavior that
might require separate marketing strategies or
mixes.
WHY? To define the size of the market we will
operate

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 Segmentation strategies
Market segmentation
An approach to more precisely match customer
needs and wants with products.

Niche markets
Tighter subsegments of a more general market
segment.

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Types of segmentation

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 Types of segmentation

Demographic segmentation
Divided by age, gender,
ethnicity, income.
Life-stage segmentation
Based on a stage in the
consumers’ life cycle.
Geographic segmentation
Uses location as a defining
variable.

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 Segmentation strategies

Psychographic segmentation
Based on how people spend their money, their
interests and opinions, and views of themselves.

Behavioral segmentation
Based on product category and brand usage.

Values and benefits-based segmentation

Based on underlying values or consumers’ needs
and problems.

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Profiling Markets and
Target Audiences

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Targeting and profiling using
demographics
One of advertising’s
most familiar slogans
moved women who were
tired of being told that
there are things ladies
don’t do, such as color
their hair.

What lesson can you

learn from a successful
ad like this?

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 Demographics
Demographics
Statistical, social, economic
characteristics including:

1. Age
2. Gender and sexual
orientation
3. Education, occupation
and income
4. Race, ethnicity, and
immigration status
5. Geography
6. Religion
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 Demographics
Age: This is the most important demographic
characteristic used by marcom planners
Age-related population categories:

• The Greatest • Gen X

Generation • Me Generation
• The Silent Generation • Generation Y
• Baby Boomers • Millennials
• Generation Jones

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1
3
 Demographics

Gender and sexual orientation

Women account for about 85 percent of all
consumer purchases in the United States.
Many brands are either masculine or feminine in
terms of use.
Sexual orientation has become a marketing issue
as gay and lesbian consumers have become
serious target markets.

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 Demographics

Education, occupation, and income

Generally, white U.S. consumers attain higher levels of education
than blacks and Latinos.

Occupation is key because most people identify themselves by what

they do.

Income data from the 2011 census showed a shift toward fewer
people in the top third and more people in the bottom third.

Advertisers are especially interested in consumers’ discretionary

income.

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 Demographics

Race, ethnicity and immigration status

In the U.S., ethnicity is a major segmentation
factor.
The United States is more multicultural than ever.
Smart multicultural strategies recognize these
trends.
Media use differences may be based on ethnicity.

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 Activity 3

This ad for Tide targets the Hispanic culture. The translation

is “The salsa is something you dance, not what you wear.” If
you were on the Tide team, would you recommend using this
ad? Why or why not?

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 Demographics

Geography
People residing in different regions need certain
products.
Media planners use designated market areas
(DMAs) to describe certain media markets.

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 Demographics

Religion
Here, culture and demographics come together.
Some religions forbid certain products.

As a class:
What are some examples?
What does this imply for advertisers?

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Targeting and profiling using
psychographics

Psychographics refer to lifestyle and

psychological characteristics including:

Activities
Values
Interests
Attitudes
Opinions

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 Psychographics

Attitudes

An attitude is a predisposition that reflects an:

opinion
emotion
mental state

……directed at some

object
person
idea
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 Psychographics

Lifestyles
Lifestyles can be analyzed in terms of:

• Patterns of consumption
• Personal relationships
• Interests
• Leisure activities

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 Psychographics
Lifestyles
The Yankelovich MONITOR™ MindBase™ identifies
eight consumer groups:

“I am Expressive”
“I am Down to Earth”
“I am Driven”
“I am Sophisticated”
“I am at Capacity”
“I Measure Twice”
“I am Rock Steady”
“I am Devoted”

Check this company out at

www.thefuturescompany.com
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 Psychographics
Lifestyles
The VALS™ system
categorizes consumers
according to psychological
traits:

Thinkers and Believers

motivated by ideals

Achievers and Strivers

motivated by achievement

Experiencers and Makers

motivated by self-expression

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 Psychographics

Sociodemographic segments
This approach refers to people in terms of when
they were born.

As a class:
Try to figure out who these labels describe:

• Dinkies •
• Guppies Ruppies
• Skippies • Mini-Me

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 Psychographics
Trends and fads
Related to lifestyle and psychographic factors,
and the fascination with choice in a consumer
culture.

Young people are particularly involved in trends.

Trend spotters: researchers that identify trends

affecting consumer behavior.

Cool hunters: specialize in identifying trendy

fads that appeal to young people.

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 Where We’re Headed Next

List several characteristics that are used to

segment markets and target consumers
(cont.d)

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Q&A