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For you to market effectively, you need to understand the basics of psychographics. Since products are in different niches and categories which can be luxury goods or essentials, they belong to different market segments. For instance, marketing a luxury product to a mid-level income earner is a perpetual waste of time. Because of this, it is very important to understand the concept of psychographics.
This article will enlighten you on many subjects like psychographic overview, psychographic segmentation, psychographic vs demographics, example, types, and lots. Relax and rock the ride!
What is Psychographics?
Psychographics is the study of customers based on their activities, interests, and opinion. It is otherwise known as AIO.
This concept goes beyond classifying people based on demography, such as age, gender, or color. It basically seeks to understand the factors that drive consumer behaviors. Some of the factors may include moral, ethical, and political values and emotional response, to mention but a few.
The marketer or researcher should create a psychographic profile of the segments the audience fall into He will then use it to create distinct messages for them to purchase his product. Well, the data he gathers allows all these and many more.
Why psychographics is valuable is because, even within clearly defined demographic groups, there are often variations in individual needs. For instance, just because A&B are the same age and have similar income doesn’t depict they will share the same personal values or activities.
What Are Psychographics Examples?
As we have already established, two people in the same demography can be psychographically different.
As a result, some advertising strategies such as direct mail, televised ads, and billboards are very squared methods. They can reach vast audiences, but the messaging may be irrelevant to many. Consider streamlining the message.
For example, imagine trying to market a fitness product, assuming that everyone within the ages of 40 and above needs a fitness product is rather absurd. You can run a Facebook ad targeted at everyone above 60 pounds and maybe find some success. But, by getting more particular with athletes, fitness enthusiasts the campaign will literally be a blast.
Types of Psychographics
There are 3 main types of psychographics.
The main types of psychographics are interests, activities, and opinions. You can also split them into subcategories as well to Attitude; lifestyle and behavior. However, for the context of this post, we will stick to the main three.
Interests are affinities and interests.
For instance, you can see conversion rates and e-commerce data based on the affinity category: google analytics affinity report.
Activities are what people do. Things like baking, reading, fishing.
Here is a hint, if you ask the right questions, that is, good, open-ended questions that let you know your customer Bette, you can learn how customers spend their day, what they care about. For instance, “Other than work and sleep, how do you spend your time?”
This trend in psychographic activities can help to better target your audience via ads, better content that uses metaphors and references from their activities, and even selling what they want.
Opinions are personal views on a subject matter. Some times, they are influenced by attitudes, or lifestyle, or social status. These are the sub-categories we talked about.
An individual’s attitude is molded by the way he was raised and their cultural background. Each customer will have a different attitude which can be used as a variable for psychographic segmentation.
Read Also: 6 Types of Market Segmentation
Psychographics vs Demographics
Let us begin by defining demographics. It is the study of the human population, in terms of their basic features like age, gender, religion, language, education, occupation, income, and wealth.
Psychographic information might be your buyer’s habits, hobbies, spending habits, and values.
Demographics explain who your buyer is, while (vs) psychographics explains why they buy.
While Demographics focuses on abstracts like age, color, vs Psychographics focus on lifestyle, personality, opinions, values, and culture.
To be able to track psychographic information, check your customers’ user activity on social media, online platforms, online product purchases, or use of mobile applications. A large amount of data can be gotten from these sources.
Psychographic segmentation is dividing your market based on consumer personality traits, values, attitudes, interests, and lifestyles.
With segmentation, you will develop your products better to match the precise needs and wants of each segment of the market where you have an audience.
According to Blogspot, People have different interests, attitudes, and traits, so you should not expect their taste to be the same. For example, some people really care about the environment, while other people don’t. Some want to have some fun during the weekends while some just want to rest. People are fitness and health-conscious while others are foodies. Psychographic segmentation occurs when you break your market down along these interests and attitudes so you can market the appropriate product to each segment of the market.
In other words, Psychographic segmentation is defined as a market segmentation technique where groups are formed according to psychological traits that influence consumption habits drawn from people’s lifestyle and preferences.
If your organization can understand your customers’ thought process, they can divide their target market according to this segmentation method.
Conducting psychographic market segmentation is a very important task in business development and thus, needs attention. Because every individual has a distinct demand and opinion, Brands must focus not only on dividing the market based on psychographics but also to connect with their target market on the basis of psychographics.
What is an example of Psychographic Segmentation?
Here is a psychographic example.
A very common example of psychographic segmentation is a luxury mobile-manufacturing brand that specializes in customization like Apple.
The products are not for everyone. There are people in certain standards of living that cannot afford those. While there are others who can comfortably.
By using psychographic market segmentation, the marketing team of this brand can divide the target market according to their social status first and then on the basis of lifestyles, attitudes, age, income, or personality.
In addition, they have to evaluate their competitors and find out techniques to beat them in their branding.
Other industries can use this system as well. You will also notice that both `psychographics vs demographics come into play.
Psychographic questions answer why and how.
- How do you feel about cars?
- Which make and model of car have you owned in the past 6 years?
- If an electric car was the same price as a car that runs on gasoline, would you consider purchasing one?
Sometimes they are open-ended, other times they are not.
Sometimes, questions can be less directly about a product and more about customers’ motivations. This gets the customer’s attention. They feel loved and cherished.
For example, instead of asking respondents about sweatshirts, the questions may be about how important the climatic changes affect their lives or their thoughts on global warming.
Here are the most relevant psychographic companies examples;
Health care companies
We didn’t intend for this post to get this long. However, we had to explicitly explain many concepts so you will understand better. Go through the post and reach us in the comment box if there are questions.