Demographic segmentation is a type of market segmentation where consumers are grouped by age, race, religion, gender, the size of family, one’s ethnicity, income, household type and education level. In demographic segmentation, a company can, for instance, decide to segment its clothing market in terms of age. This is because consumers in different age brackets have different clothing needs in terms of sizes and designs. Jewelry can also be segmented by demographic segmentation in terms of the level of incomes of different consumers as all consumers have different purchasing abilities. Published books can also be segmented on the basis of educational level as different consumers have different education levels. Consumers, therefore, have different requirements on the reading materials they require.
Psychographic segmentation is a marketing segmentation strategy in which customers are categorized according to their personality and interests. Psychographic segmentation can be a way of selling a single product type to people who fall completely into different demographics (Lin, 2002). The product to be introduced into the market should go hand in hand with the preference and expectations of the target market. In psychographic segmentation, the supplier separates the market in terms of lifestyle, attitudes or beliefs. Most individuals purchase electronics such as mobile phones according to their lifestyle and status. Mobile phones are also a major reflection of a consumer’s status and lifestyle. Different consumers also have different requirements based on the type of mobile accessories they require. Psychographic segmenting can be used on jewelry as it also reflects the status and type of lifestyle a consumer is living. Jewelry made of precious minerals such as gold and diamond particularly reflects the high status of a consumer. Psychographic segmentation could also be used in cars as they are a major reflection of the consumer’s lifestyle, social status, and class.
As an entrepreneur, I would engage in the manufacture of different clothes that would appeal both the male and female segment. Several types of market segmentations may be applied to this type of products such as behavioral segmentation, demographic segmentation, and psychographic segmentation. The use of demographic segmentation is most appropriate in this line of production as it would encompass segmenting the market with regards to age, income level and the gender of the target market (Lin, 2002).
Segmenting the market in terms of age would involve targeting the kids, teenagers, and youths between 13 and 30 years. Segmenting according to gender involves creating different clothe lines for both the female and male gender. For instance, a company would produce promote new clothe lines for a certain gender. The level of income of customers would also be a major consideration in segmenting. After conducting a market research to evaluate the level of incomes of the target market, the company would come up with a target market most preferred to venture in and this would either include the high or low-income earners. When deciding the market segment to serve, a company should also consider the market served by its prospective competitors, pricing strategies of related products and also identify the buying behavior of the prospective customers (Lin, 2002).
The most favorable way of positioning new cloth lines in the market would be away from competitors as this would draw the attention of customers to the new products in a market dominated by other beauty products. This would also avoid unhealthy competition between the new and the existing products. The company must also differentiate its products from those of its competitors in terms of branding and packaging and articulate key product attributed. A deep understanding of how competitors position their products should also be ensured.
Promotional marketing involves the use of a special offer by a company to create a customer’s interest in its products, make the company stand out among its competitors and also influence potential customers to make a purchase. Promotional marketing can be part of directing marketing whereby free samples can be offered to customers to make them interested in the products offered by the company. It mainly aims at creating awareness of a product, makes it appealing to potential customers and helps build loyalty in the company’s existing customers.
Fabriko Company, a company involved in the manufacture of clothing, for example, had an aim of increasing its customers. It was mainly involved in the manufacture of eco-friendly clothing. It made special offers to its customers by packaging and delivering their commodities in bags that could be easily converted into a sling bag for their personal use. This enabled the company to get more inquiries from potential customers and also acquire more additional retailers.
Fabriko Company segmented its market on the basis of psychographic segmentation whereby it targeted the lifestyle of its potential customers. It packaged its products and shipped them in tote bags that customers could easily convert into sling bags and use them for their everyday activities. Fabriko Company used psychographic segmenting by looking at the attitudes of its potential customers, and this influenced its manufacture of eco-friendly clothing. This ensured it was in accordance with the attitudes of people towards conserving the environment.
The target market of Fabriko Company is characterized by customers who are conscious of promotion activities and added benefits that come about as a result of purchasing products. This is because after Fabriko Company had started the promotional activity involving a change in its method of packaging its commodities, there was an increase in inquiries by potential customers and retailers. It is also characterized by customers whose attitude aims at ensuring the effectiveness of suppliers in taking care of the environment by offering eco-friendly products.
Lin, C. F. (2002). Segmenting customer brand preference: demographic or psychographic. Journal of Product & Brand Management, 11(4), 249-268.