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… PRODUCT CONSUMER PROFILE ADVERTISING

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…

Five Major Generations Mature60+ Baby Boomers45-59 Generation X27-45 Generation Y11-26 Millennium Kids0-10 Demographics

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…

FacebookFacebook 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?Facebook How Does Facebook Make Money? source: AdvertisingApplications 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 Of that $4.27 billion, some $3.8 billion will come from advertising, according to New York - based EMarketer.New York

How Does Facebook Make Money? (continued) Through ads that appear on Facebook pages, for example, companies can target audiences specific to their products or services. That's why Facebook's users are more valuable to the company at no charge than they might be paying membership fees. Companies that charge membership fees, for instance, can't so easily sell user information to advertisers. But with Facebook, for instance, if a user comments they like Wal-Mart, ads for Wal-Mart are likely to start showing up on their page and their friend's pages -- especially those who have "liked" the comment.Wal-Mart Facebook is also seeing rapid growth in revenue for applications, including games like "Farmville" from Zynga. Facebook takes a "rental fee" from revenue generated by games and other external applications its members use. In 2011, for instance, Facebook should make $470 million from Facebook Credits, the virtual-currency program that lets users buy items in games, according to EMarketer. That's more than triple the $140 million Facebook made from applications last year. Facebook Credits is a revenue source that's expected to grow more rapidly grow than advertising revenue for the social network in the next several years. Finally, the third way Facebook makes money is by selling virtual goods. This is the smallest piece of the revenue pie for Facebook, but it's still substantial. Whenever a Facebook user sends a "virtual gift," Facebook gets a portion of the gift revenue. The average cost of a virtual gift sent to friends is only $1, but Facebook's portion of the revenue can add up quickly with some 800 million users. So while Facebook doesn't charge users, and claims it never will, the company has become proficient at making money. EMarketer estimates that Facebook will generate nearly $6 billion in ad revenue alone in 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 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 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.information compiled by Statistics Canada Open the following excel file, and answer the questions by mining the Stats Can data.following excel file