Today’s Tip
Best Practice: Understanding customer demographics and psychographics makes it easier to create, implement and successfully manage a brand. 139
Today’s Article: Guide to Customer Target Market Analysis
The kiss of death in branding is trying to be all things to all people. The more you understand about your customer the easier it is to find them, connect with them and build a trusted relationship.
Steps Two: Understanding the target customer is critical for the success of the company and brand. To better understand the customer look at their demographics and psychographics.
Demographics are the outward characteristics of the customer: person, business or government. For business to consumer (B2C) or consumer to consumer (C2C), it is important to know customer’s age, sex, marital status, education, family cycle, income, home value, etc. For business to business (B2B) it is important to know customer’s business type, size of company, annual sales, ownership, number of employees, decision maker, purchasing pattern, etc. For business to government (B2G) it is important to know what type of government i.e. federal versus state, government department, annual purchasing budgets, number of employees, decision maker, purchasing pattern etc.
Psychographics Where as demographics look at the outward characteristics of a customer, psychographics review the internal qualities like customer’s personality, values, opinions, attitudes, interests, and lifestyles.
Note: In looking at your customers demographics and psychographics do not forget to look at generational characteristics.
Once you know the target market customer profile (demographic and psychographic with generational characteristics), you can see if there is enough customers in your geographic idea to support the business idea and to make decisions about the 4P’s:
Product
Goods and services that are sold to a target market.
Place
Location and method of getting the product to the customer. This can also include business location ie bricks and mortar (store front), internet, direct mail (catalog), direct sales (door to door), distributors, logistics, etc.
Price
How much customer pay for goods and services: below market, at market or above market. This can also include payment methods: cash, credit, terms, discounting as well as credit collection.
Promotion
How the company connects with its target market to promote benefits and value of its goods and services through marketing, advertising and public relations.
Once you complete your target market customer profile (demographic and psychographic with generational characteristics) continue onto step three.
Return to Do-It-Yourself Branding for Steps 3-8
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