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Segmentation bases underpin the design and selection of targets markets and are a critical strategic marketing decision. This video reviews psychographic segmentation and outlines the advantages and disadvantages of using the segmentation base.
For more information, please see... https://www.segmentationstudyguide.com/should-i-use-psychographic-segmentation-bases/
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Hello and welcome to another video from the Marketing Study Guide. In this video
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I'm going to have a look at the for and against of using psychographic segments
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to construct your target markets. My name is Jeff and I'm a long-term marketing
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lecturer and practitioner. Okay so as you probably know the main bases are
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listed there. I have videos on each of these. This video covers psychographic
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segments but if you need other information please have a look at the
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other videos now very quickly what are we trying to do when we construct market
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segments there's a number of goals but basically we start with we've got to put
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our overall market into common and distinct groups that are based upon some
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marketing basis so the product needs lifestyles demographics purchasing behavior attitudes etc what we're trying to do is is look for people who have
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things in common so this group here for example those consumers what we put to
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in the one segment should have some of these things in common okay so that they
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are similar in their actions, they're never going to be identical, they're going to be quite similar
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in terms of something marketing related and they're going to be quite distinct as opposed to the other
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segments. So each segment needs to be almost a little bit unique. So segment one, they've got
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this in common which is different from segment two and different from segment three. Our goal is not
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just a segment market although that can provide us with very helpful information Our goal is also to come up with which of these segments make sense for us as a target market and I got a video on how you would do that and also at the end of
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the day we want to construct a marketing strategy and a marketing mix that really works well with
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target market so we make a better business and the less we're able to do
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it in terms of identifying the best target market and coming up with improved
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marketing solution it's a pointless exercise so the end result is to make a
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stronger and more profitable business okay let's have a quick look at what
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psychographics are so I've got a picture of a person there with lots of things in
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their head and that's sort of a clue. So typically psychographics are lifestyle
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measures. We're having a look at how they live their life. We're having a look at
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what attitudes they have. Potentially we're looking at different personality types and values, things that they hold important or fundamental to how they
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operate in life. To keep it very very simple it's how people live, feel, think
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okay so that's what we're trying to do with like with demographics as a whole
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bunch of things we can look at same the psychographics so we're just going to
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depict one or two of those and so I hide this this is a common segment and
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they're quite different to this segment the advantage is psychographics helps us
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really dig down in understanding a person so it's a sort of a deep dive
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Sometimes in textbooks you'll see the word lifestyle ysis, which is psychographic research and you often see AIO which stands for what are the person activities what are they interested in and what opinions do they have on key social events
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So that's often a way you can look at segmenting. Okay, let's have a look at the fours and against of using psychographics
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The big advantage is obviously the depth and the insight we have into people and how they live their lives
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And if we can convert that into a marketing capital somehow, that gives us the ability to have more success
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We will have a much better understanding of consumers and as people in particular, including their base motivations
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What is driving them to buy certain products or attract them to certain brands, etc
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So it has a lot more power in that regard. because we have more information and a deeper understanding hopefully against our competitors
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we know more about the market and we know more about our target markets so that should give us
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an advantage longer term and we should be able to create very rich and detailed segment profiles
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and brand personas that we keep using long term. So yeah, it takes a lot of work
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but the investment in this hopefully will pay back over time. Okay, let's have a look at now the reasons not to use psychographics
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or the disadvantages of using them. At the top there it says
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we understand the person as a person, their lifestyle, but we still don't know necessarily
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how that impacts their purchasing behavior. So the second point is we need to
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connect the dots You go okay person lives like that this is important to them this is their activities and interests How does that impact their purchasing behavior So there still a little bit more work to do
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We just can't rely on psychographics only. And because of that, the third point is it takes a
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lot of time and money and resources to make this happen. So firstly, we're going to understand them
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as a person in their lifestyle. And then we're going to go, okay, how does that connect from a
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customer viewpoint and that takes a lot of information and it takes a long time to get
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And that sort of makes this more of a appropriate approach for larger companies or companies who can buy in this information
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The second last point there is not as clear to work within a company. So if you turn up and said hey our
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our segment is people in their 20s or people who live in this city, it's clear cut. Everybody knows
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what we're talking about. If we come up with a, you know, it's people who enjoy this sort of thing
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and holds these values, it's not as easy to get your head around. So that's why we use a brand
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persona somebody who represents the target market and the very last point is
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they might be harder to reach into action so that means you know how do we
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get media out to these people how do we communicate to them how do we physically
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set up stores to it to access these people this is a cross-section
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potentially of all the consumer base so they might not live in the same area they
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might not necessarily do the same things so it's a little bit more challenging
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Okay so that's it remember there's videos on all the segmentation bases so
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please check them out
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