Tag Archives: BEB BUSINESS EXTENSION BUREAU

Geographic Segmentation

The four types of Marketing Segmentation are Demographic, Psychographic, Behavioral, and Geographic. Today we review Geographical.

Geographic segmentation groups users based on location. It is put into play when a user’s location is likely to influence their buying behavior, or their consumer wants and needs.

Businesses that are location driven benefit immensely from this type of segmentation. For example, dry cleaners or pizza restaurants (especially those that deliver) are considered location driven businesses. Most of their clients live or work within close proximity of the business.

The size of a community also plays a part in geographic segmentation. One company may market lawn mowers to rural communities where most residents have a yard but target city dwellers with weed trimmers or leaf blowers for manicuring lawns or sidewalks.

Taking the time to research your customer base and study your data can only benefit your business and stretch your marketing dollars far.

Behavioral Segmentation

The four types of Marketing Segmentation are Demographic, Psychographic, Behavioral, and Geographic. Today we review Behavioral.

Behavioral segmentation is based on behavioral patterns and focuses on what consumers like, dislike, and their dispositions towards products or services. Also, behavioral segmentation can help validate data collected through demographic segmentations.

Some good examples of Behavioral data include:

    • Purchasing Habits
    • Benefits Sought
    • Buyer Journey
    • Product Use
    • Customer Loyalty

The better you know and understand a customer, the more personal the value proposition you can offer, and net a greater chance to convince an individual to make a purchase.

Psychographic Segmentation Marketing

The four types of Marketing Segmentation are Demographic, Psychographic, Behavioral, and Geographic. Today we review Psychographic Segmentation.

Psychographic segmentation Leverages customer data with a foundation in psychology.  It uses data to create customer segments based on psychological characteristics. Unlike Demographic Segmentation, which is fact based, psychographic segmentation factors are a bit more difficult to identify because they are subjective. They are not singularly data-focused and require research to uncover and understand.

Today, psychographics is a powerful addition for effective market segmentation because it  operates on the belief of getting to know your customer better and the psychographic data supplements your behavioral and demographic data.

This type of data is available to append to your existing client base today. We use several tools (such as Nielson’s PRIZM and P$YCLE data) to help clients identify psychographic tendencies.

These complex systems go beyond coding customer records for consumer targeting applications. They provide profile databases for behaviors ranging from leisure time preferences to shopping to eating to favorite magazines and TV shows. The programs were created using a proprietary method called Multivariate Divisive Partitioning (MDP) which borrows and extends a tree partitioning method that creates segments based on demographics that matter most to households’ behaviors.

The most common tree partitioning technique, Classification and Regression Trees (CART), involves a modeling-oriented process. Described simply, statisticians begin with a single behavior they wish to predict and start with all participating households in a single segment. Predictor variables, such as income, age, or presence of children, are analyzed to find the variable—and the appropriate value of that variable—that divides the single segment into two that have the greatest difference for that behavior. Additional splitting takes place until all effective splits have been made or the size of the segment created falls below a target threshold.

This process identifies and segments based on Life-Stage groups, and drills further down with 68-additional groupings such as “Young Achievers”, “Accumulated Wealth” or “Empty Nesters”.

Contact us for additional information and pricing on these powerful segmentation tools.

 

Demographic Segmentation Marketing

Market segmentation is the process of dividing a target market into smaller, more defined categories. It segments customers into groups that share similar characteristics. Using different types of market segmentation allows you to target customers based on unique characteristics, create more effective marketing campaigns, and find opportunities in your market.

The four types of Marketing Segmentation are Demographic, Psychographic, Behavioral, and Geographic. Today we’ll review Demographic Segmentation.

Demographic segmentation divides the market into smaller categories based on demographic factors, such as age, gender, or income. Instead of reaching an entire market, this method is used to focus resources into a defined group within that market.

Dividing the market into smaller segments, each with a common variable, allows companies to use their time and resources more efficiently. They can better understand the prospective market, and use advertising personalization to ensure the needs of the targeted group are fulfilled:

Some Demographic Segment Examples include:

    • Age
    • Gender
    • Income
    • Location
    • Annual Income
    • Education
    • Ethnicity

Where the above examples are helpful for segmenting B2C (Business to Consumer) audiences, a business might use the following to classify a B2B (Business to Business) audience:

    • Company size
    • Industry
    • Job function

Demographic information is statistical and factual.

Top 10 Reasons It’s Going to be Alright #1

#1) NO TRAFFIC!

Okay, we KNOW that this bit of fantastic won’t last. In the meantime though – Houston traffic is AWESOME! We are moving at lightning speed and with little aggravation on our highways and WE ARE LOVING IT!
Stay safe and healthy out there, and thanks for taking this “ride for fun” with us!
#itsgoingtobealright

Top 10 Reasons It’s Going to be Alright #2

#2) People Really Do Care

Through all of the sadness, anger, and disappointment floating around; our faith in mankind remains true. Everyday, all over the city we witness acts of kindness. People really do care. People are volunteering at their local food bank or schools to help distribute needed groceries, landlords are forgiving rent, and people are sharing items to help ease the burden for someone other than themselves. Human kindness is overflowing and we are glad of it.
#itsgoingtobealright
 

Top 10 Reasons It’s Going to be Alright #3

#3) Family Time

We see it everywhere now. And truth be told, we hadn’t seen it for a long, long time. Families, together, getting outside and enjoying parks and their community greenbelts.
It’s comforting to see families exercising together, talking with one another, and not focusing on their phones. We hope this change stays a prominent part of our lifestyles going forward.
#itsgoingtobealright

 

Top 10 Reasons It’s Going to be Alright #4

#4) Streaming

Thank goodness the era of reality shows has ended. And thank goodness that streaming companies are serving up some fantastic content! Hulu Sling TV and Netflix (to name just a few) are providing excellent and compelling original content. Shows like, World On Fire, Ozark, and Feel Good cover a wide array of topics with top notch scripts and actors.
#itsgoingtobealright

Top 10 Reasons It’s Going to be Alright #5

#5) Laughter

It seems to us that the sense of humor index is rising higher and higher. There have been some super funny Memes, Tik-Toks and social posts circulating and no topic is off-limits! Politicians, parasites, and pontiffs are all joining in the laughter. Share something funny with someone today!
#itsgoingtobealright