by Terra L. Fletcher

Created on: July 26, 2010

Target the Right Customers, Using Demographics and Psychographics

Analyzing demographic criteria, psychographic criteria, brand usage and brand loyalty information will help you create the most well-defined target market. Your targeting decision is a key element of any effective advertising campaign strategy.

Demographic Criteria

Consumer demographics are described as variables of age, gender, income, geographic location, marital/family status, and education. This criterion is readily available and knowing the demographics or your target market is essential when it comes to buying media. It is likely, however, that two groups of similar demographics will have very different buying patterns. Psychological makeup and lifestyles greatly influence predisposition to buy.

Psychographic Criteria

A Psychograhpic criterion takes into consideration psychological and sociological information. Neither is easy to measure. Psychological nature consists of personality, motivations, and attitude. Sociological nature includes lifestyles, activities, and daily routines. Information on psychographic criteria is available in “Simmons Study of Media and Markets” and the VALS 2 system.

Simmons correlates demographics with adjectives rated on a 5-point (Likert) scale. Interviewers ask consumers to rate themselves on personality traits to determine if they are affectionate, broadminded, egocentric, kind, sociable, creative, stubborn, etc. Each of these adjectives are then cross-referenced with demographic variables. Simmons resulting information is available to advertisers and agencies on CD-ROM.

VALS 2, a consumer psychographic system, classifies consumers into eight groups based on 35 attitude items and several demographics. VALS is based on primary motivation and resources. When combined with questionnaires and surveys, VALS is useful for determining a marketing approach for new products, developing brand positioning, and media selection.

According to VALS, consumers are motivated to buy if the purchase will provide satisfaction and give shape, substance, and character to their identities. The three self-orientations are: Ideals motivated consumers who are guided by abstract, idealized criteria. Achievement motivated consumers look for products and services that demonstrate success to their peers. Self-expression motivated consumers purchase for social or physical activity, variety, and risk taking.

These motivations are also influenced by resources including income,

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