Introduction
Demographic data are population characteristics that can be used to identify groups of people. This data can include age, gender, race, income, education level, and occupation. On the other hand, psychographic data are characteristics of a population that describe their psychological profile. This data includes personality type, values, interests, and lifestyle choices (Gahiton, 2021). Demographic data helps define target markets, whereas psychographic data enables the creation of marketing messages that better connect with those audiences.
Role of Demographics in Marketing Research
The purpose of demographics in marketing research is to provide information about potential customers that can be used to identify target markets and tailor marketing messages. Entrepreneurs can apply such data to segment markets into smaller, more manageable groups for marketing purposes and understand which groups are most likely to purchase certain products or services (Pooler, 2018). Therefore, they can create targeted marketing messages and strategies that are more likely to resonate with potential customers. By gathering and analyzing demographic data, businesses can gain valuable insights that enable them to improve their marketing efforts and better meet the needs of their customers.
Additionally, demographics can help forecast future market trends and understand how customer preferences may change over time. This information can help businesses stay ahead of the curve and adjust their marketing strategies as needed (Pooler, 2018). By understanding the characteristics of potential customers, companies can more effectively reach them through advertising and other marketing communications. Demographics can provide insight into age, social class, and gender, which can all be used to create more targeted marketing campaigns that are more likely to resonate with a specific group.
The Impact of Demographics on Identifying a Brand’s Customer Group
Various demographic factors impact consumers of a particular product in unique ways. These include age, gender, income, location, family size, occupation, hobbies, and values (Pooler, 2018). In terms of age, there are various needs and interests for every age group, which companies can utilize to create products that meet specific requirements.
For example, a brand that sells products for infants and toddlers is likely to have a very different customer group than a brand that sells products for seniors. Moreover, a person in their 20s is expected to be interested in other products than a person in their 60s. This is because people’s needs and interests change as they age.
Gender is a significant demographic factor that can shape a product’s target customer group. A person might identify a niche market for a product by referring to the needs of either women or men, which are primarily different. For instance, a person may target young women for stylish outfits and perfumes in a population where there are more women than men. Furthermore, a brand specializing in children’s clothing may target a predominantly female customer group, as women are the primary caretakers for children.
Before choosing a target group, an entrepreneur must understand the income level of the target audience. They are well-designed for the very wealthy, middle-class, and low-income earners. The quality and elegance of products change depending on the amount a population is willing and able to purchase (Pooler, 2018).
Individuals seeking to supply expensive or luxurious products should target the affluent population as their primary market. A luxury car brand would want to target individuals with a high income, as they are more likely to be able to afford one of their vehicles. Conversely, a company wishing to facilitate more effortless movement for middle and low-income earners can offer affordable vehicles.
Family size may influence how a brand defines its target market, as larger families may require more of a specific product than smaller families. For instance, a family with four children may need more food, clothing, and school supplies than a family with only one child. Occupation may also influence the choice of customer group for a brand, as individuals in certain fields may need or want specific products. A doctor may need medical supplies, while a construction worker may need to purchase tools and equipment.
Values may also influence a brand’s choice of customer group, as people with specific concerns may be more likely to purchase certain products (Pooler, 2018). For example, people who value environmental sustainability may be more likely to purchase organic food or recycled products.
Understanding Psychographics and Their Purpose
Psychographics are factors that reveal how people think, feel, and behave. They are often used to segment consumers into groups based on these factors, allowing for targeted marketing campaigns specifically tailored to these groups. For example, a company might use psychographics to target its advertising toward people who are receptive to its message. Moreover, companies selling environmentally friendly products may use psychographics to target consumers interested in green living (Sarkum, 2020). This target audience may be reached through different channels than other consumers, such as green websites or magazines.
Values-based psychographics encompass consumers’ beliefs and their prioritization of life choices. Someone who is environmentally conscious and only purchases products that are eco-friendly. This individual would show greater responsiveness to advertisements focusing on a product’s or service’s environmental benefits. Furthermore, an illustration of lifestyle psychographics would be someone who is health-conscious and regularly exercises (Sarkum, 2020). This individual would likely be interested in health and fitness products and services and more likely to respond to marketing messages that focus on health and wellness.
The Role of Demographics and Psychographics in Identifying Target Customers
It is usually beneficial to gather information on demographics and psychographics when determining a target customer group. This enables a comprehensive understanding of the potential customer base and helps craft targeted promotional content that is more likely to resonate with the intended audience. However, in the current generation, targeting customers based on psychographics rather than demographics is considered more effective. This is because psychographic information can more accurately predict customer behavior.
However, psychographic data is still insufficient and requires support from demographic data to make more reliable choices. If a company has incomplete information about its target market, it may develop marketing strategies that are not well-suited to the needs and preferences of its target customers. This can lead to lost sales and revenue, as well as damage to the company’s reputation. Incomplete information can also lead to wasted marketing resources, as businesses may target customers who are not interested in their products or services.
Conclusion
To determine a brand’s target customer group, it is necessary to understand both demographics and psychographics. It is essential to note that not all demographics or psychographics are equally crucial to all businesses. Each business has different purposes and goals, so it is essential to tailor the use of these data points to fit the specific industry. Firms should use demographics and psychographics in tandem to get a well-rounded view of the target market. Using either one alone can lead to incomplete or inaccurate data.
References
Gahiton, M. G. (2021). Difference between demographics and psychographics/marketing. YouTube. Web.
Pooler, J. A. (2018). Demographics and shopping: introduction. Demographic Targeting, 1–9. Web.
Sarkum, S. (2020). Dissecting changes in consumer characteristics through psychographics. Promotion and Marketing Communications. Web.