The Consumer by jennyyingdi

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									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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