Geographic Customer Profiles
A geographic customer profile is based on predefined geographic boundaries. The difference in preferences- and interests can vary dramatically throughout the countries, states and, cities. Hence, marketers have to recognize these differences very carefully and strategize marketing strategies accordingly. Example of geographic segmentation for a small business is, consider a burger shop whose target market are all resident falling in the radius of four miles from shops location. So, the marketing strategy to target this market would be different. The shop owner can hang a banner containing some special offers for all the businesses and homes within the defined radius or mail the coupons to everyone within the four-mile radius. Another example is McDonald’s. If one has never visited any foreign countries before and directly goes to McDonald’s, one would be surprised to know that McDonald’s serves different menus in some countries based on the geographic location. For example, people in the Philippines love spaghetti, so McDonald’s added McSpaghetti to the menu for the people of the Philippines. Likewise, in Hong Kong, McDonald’s sells Rameen flavor French Fries and McAloo Tikki Burger in India. These all are examples of how Mcdonald’s has segmented its customer profile based on geographic location and improved its menu based on their needs.
Demographic Profiles
This is the most straightforward way of defining customer segment profile. Demographic segmentation divides customer profiles based on income level, gender, age, marital status, education level, occupation, and more. For example, through market research, a company finds its ideal customer as a college-educated married female aged 25-35 with an income level of $20,000 to $30,000. Hence, from this information now the business owner would make a strategy that will focus on this segmented group rather than appealing to everyone, which will save the owner’s marketing cost and valuable time. Another example for this profile is a luxury brand goods manufacturer who wants to target potential customers based on their income, such that their marketing budget will not get wasted directing messages to people who cannot afford their products. The most common variable of this segment is “age,” and it also helps in choosing the best marketing channel. For instance, to reach the younger market segment, digital media will be best, whereas to reach the older segment of the traditional market way of emailing would be more effective. Many brands like H&M and Zara offer products to males, females, and kids of all ages, and they have distinct styles, advertising, and labels for each segment.
Psychographic and Behavioral Profiles
Psychographic segmentation is based on the intrinsic trait of customers such as personality, lifestyle, interest, opinion, values, and more. A designed survey, interviews, audience testing, focus groups are used to get data on this level. For example, assume a person who lives near a small beach town and surfs to make a living versus now imagine a person who lives in a big city and works in corporate America. The needs, wants, and living styles of these two people are different. Therefore a marketer needs to understand this difference and offer a product to the customer according to their needs. An example of a company work on a psychographic profile is Starbucks. Starbucks segmented its customers based on psychographic traits. For example, Starbucks knew that not everyone prefers to drink coffee. Hence, Starbucks added cake pops and chocolate milk for the kids that accompany their parents on their morning coffee runs.
Behavioral profiles analyze the way customer make their decisions related to the buying process. It studies characteristics such as price sensitivity, desired product benefits, and brand loyalty. For example, if a restaurant chain knows that their customer loyalty is high, it means they can experiment with their menu prices. Customers are willing to tolerate menu price increases. Likewise, brands like Sephora have an excellent rewarding system for their loyal customers. The more one purchases, the more points one will get, which one can redeem later for generous samples.
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