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… CONSUMER PRODUCT ADVERTISING PROFILE 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) Facebook is that appear on Facebook money is for applications, Through ads also seeing rapid growth in revenueby selling virtual goods. Finally, the third way Facebook makes pages, for example, companies including games like specific to their products or services. but it's still can target audiences"Farmville" revenue pie for Facebook, That's why This is the smallest piece of the from Zynga. Facebook takes a "rental fee" from revenue generated by games the company at no applications Facebook's users are more valuableuser sends a "virtual gift," Facebook substantial. Whenever a Facebook to and other external charge than its members use.the 2011, for instance, Facebook shouldcharge$470 they might be payinggift revenue. The average cost of a virtual gift sent to gets a portion of In membership fees. Companies that make friends is only $1, for Credits, can't so easily sell program add up million from fees, but Facebook's virtual-currencyuser information to membershipFacebookinstance, theportion of the revenue canthat lets advertisers. some 800 million users. to EMarketer. That's more than quickly with users buy items in games, according triple the $140 million Facebook made from applications last year. Butwhile Facebook, doesn't chargea user comments they like will, the So with Facebook for instance, if users, and claims it never Wal-Mart, company Credits is likely to start making up on their page and their Facebookhas become proficient atshowing money. EMarketer more ads for Wal-Mart are a revenue source that's expected to growestimates rapidly pages -- especially those who billion"liked" the comment. next friend'sgrow than advertising revenue for thein ad revenue alone in 2012. that Facebook will generate nearly $6 have social network in the several years. 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.
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