Takeaway: Segmenting Markets

Tuesday’s class discussion was, in my opinion, a little scattered. However, I did pick up on some useful and informative topics to mention in my takeaways.

First, marketing to a B2C versus a B2B requires some analysis of segmentation as well as identifying what works in that particular selling environment. This article I found compares and contrasts how businesses sell to consumers versus other business. For a B2C sell, transactions are quick and aggressive; customers buy based on emotion in which marketers tap into their emotional buying decisions. B2B sales are more in-depth both in time and management. It is relationship based that requires trust and involvement of other people to make a final purchasing decision. B2B buyers are also more sophisticated and knowledgeable about what they want to buy. Therefore, the marketing material must be detailed and professionally compiled. B2C buyers typically do their own research to compare your deal with competitors. The marketing behind this is more on creating loyalty (word-of-mouth). I think understanding how to market (or sell) to consumers vs. businesses is important in all fields (of IWC) because it effects the entire goal, design, and development process.

A second point is how psychographics influences marketers to use human psychology to tap into the minds of their consumers. This video by Business Consultant Alex Guererros simplifies the difference between psychographic and demographic. Basically, demographics are measurable traits about you, such as age, gender, income, etc. Psychographics are traits that pertain to the individual’s personality, such as interests, activities, and opinions. By researching psychographics, marketer can better define their target market and reach into the “emotional” aspect of buying and selling. An example Alex gave was selling hip-hop style clothing, understanding psychographics and what motivates these people to like hip-hop can enhance the marketing plan much more than simply understanding the demographics–especially since hip-hop doesn’t always pertain to a specific age, gender, or income group.

The third takeaway point is the importance of understanding co-hort groups, particularly, age generations. I found this youtube clip from 60 Minutes that interviews two Gen. Y’s and their reasoning behind their actions, motivations, and goals. In short, the generation of their parents (gen X) raised gen Y’s to become who they are. Praise, encouragement, giving “special treatments” to gen Y as children, all lead to their behaviors of putting friend and family above career. However, despite their non-realistic goals, Gen Y’s are a huge target market for businesses today and into the future: $214 billion was spent on products and services by Gen Y’s in 2011, and that amount is estimated to grow, even surpassing Baby Boomer’s spending, by the year 2017.

The fourth point was how marketing can create a product and add a personality to it to make it seem “human” so that consumers can interact and relate with it (brand personality). The example given in class was how different brands/brew of beer have very distinct human-like personalities, thus, people with similar personalities are drawn to it. So I looked up an article to go more in-depth with this concept. In this in-depth blog by Brian Monger, marketers can collect research to discover what sort of brand personality their product has by having customers rate their brand (product) by assigning personality adjectives, such as aggressiveness. These brands can then be profiled into a personality. Another test is to give a customer a stimulate word and have them return a few words associated with it. Other methods were mentioned as well for marketers to narrow down on an exact personality for their product.

Lastly, I felt I understood so little about Generation Z. In the future, I will most likely find myself designing pieces to cater to this younger age group, so I decided to look up more information about who they are. This article from Business Insider describes them fairly well, and with some good statistics. For instance, 72% of high schoolers want to start their own business someday and 61% wants to be their own boss rather than work for someone else. 64% of Gen Z are considering an advanced college degree vs. 72% of the Gen Y’s. They prefer to work independently, spend more money on food and drinks than anyone else, and are less active than any of the previous generations (go figure!) This article was very interesting to me and it gave me an idea of who this generation is, and what they could be in the next few years as they become working-class adults.

 

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About vang67196

Graphic & Web Design student at LTC. Currently hold a Bachelors Degree in Marketing. I also do hand illustrations.
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