In the contemporary world marketing strategies apply different segmentations to address the target audience which break the market down by different criteria. If demographics is to categorize consumers by variables such as gender, ethnicity, age, lifestyle, occupation or income, psychographics, in its turn, groups people by shared attitudes, interests, values and other psychological factors. Although both aspects are highly essential for the market, the latter one is ignored by some specialists. So, to better understand the role of psychographic segmentation in constantly changing business landscape let’s look at the benefits it engenders.
Psychographics as an effective marketing trick gives a much richer and detailed picture of who consumers are and helps target them with tailored propositions. Some people are very health conscious while others are foodies, some like being trendy while others prefer personal comfort. As distinct groups of people respond differently to variations in the market, it will be easier to define a specific type of product for a certain population with the use of the fact-based technique. The application of psychographics in marketing can be seen all across nowadays. For example, it is frequently used in the car industry. Taking the example of Renault cars, they are bought by demographically similar consumers but are positioned differently. So, they attract psychographically different people by segmenting the market to consumers who are interested in luxury, practicality, and environment. Meaning, you focus your product design on the first segment, premium noise insulation and similar properties on another and electrical hybrids on the environmentally conscious market segment.
Understanding consumers’ expectations is crucial for the consumer service. Businesses need to meet or exceed these expectations as a company is the praise or criticism of the company is based on this coefficient. Since psychographic segmentation provides a more accurate match between the product and each segment’s needs and wants, it mitigates the process of predicting clients’ expectations. When a consumer relates to the characteristics of a brand or service they are more likely to engage with it. This type of classification is an effective tool to make the voice of the audience heard. Additionally, employing such a principle can influence the traffic along with extending the scope of cooperation, as the satisfaction and comments of former users will more likely result in a new chain of clients. In this way, the consideration of psychographics as a must-have marketing tip may boost your business up and infuse it with fresh spirit and vigor.
Meeting needs and hopes of customers along with providing a daily upgrading chain is a guarantee of a growing profit margin. This term shows the profitability ratio which is calculated by dividing the net income by the revenue or net sales. The formula may vary depending on the type of margin the company addresses. Such commercially-focused approach to marketing helps build competitive entrepreneurship. For example, Zara stores market themselves on the basis of lifestyle targeting the customers who want the latest clothing and most fashionable items. Similarly, Arrow markets focus on the office lifestyle where probably your bosses shop for the sharp clothing. Winding up, instead of treating customers as part of a larger group, psychographics in marketing view each one as an individual by giving your brand or company an edge over your rivals.
Today marketers practice various methods to reinforce the market. To comprehend its advantages, we need to go deeper into the principles of marketing and understand how consumers think, observe their reasonings and consider their priorities within the techniques we deploy. Hopefully, the advantages, we provided will make you reevaluate the role of psychographics in marketing.
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