Market Segmentation and Targeting

This article discusses the concept of market segmentation and targeting based on psychographic and demographic characteristics. It also explains the definition and benefits of brand positioning for businesses. The article includes examples of advertisements and their target audience based on psychographic and demographic characteristics. The subject is marketing, and the course code is not mentioned. The college/university is not mentioned.

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Market Segmentation and Targeting
Name
Course
Instructor
Date

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Question one: Psychographic and demographic characteristics
Psychographic segmentation relates to dividing markets based on how pop live their
lives, through aspects like values, personality, attitudes and general interests. On the other hand,
demographic segmentation divides the market based on gender, age, family size, education, race,
religion, income, occupation and nationality1.
Image one Antiaging advert
Demographic
Gender- the skin care lotion is preferred designed for the female gender who love
themselves and would like to portray the feminine element in them.
1 J., Aaker,A. Brumbaugh, S. Grier, and Dick Trickle. 2000. "Nontarget Markets and Viewer Distinctiveness: The Impact of Target
Marketing on Advertising." Journal of Consumer Psychology 9 (3), P. 5.

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Age-the product targets women in their youthful ages who are conscious with their skin
and understand what beauty means and how to make themselves more beautiful.
Income: from the design of the advertisement the product is designed for middle and
upper-class women who have class and elegance.
Psychographic
Lifestyle-The product is designed for women who are concerned about how to live a
better lifestyle.
Quality- The skin care is an expensive product with high-quality benefits that women
benefit from using it.
Appearance- Appearance shapes the way people look, thus most people, especially
women, buy anything that improves their appearance regardless of the price.
Image two cricket advert
Psychographics

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Value- the cricket game is one of the prefered games in Australia because of the value it
brings to the country. Those who associate with the game associate with the value that it brings
to the country.
Lifestyle- lifestyle elements in the cricket game are based on both exercise and prestige,
the cricket game is seen as one of the most prestigious games in the county due to its
prominence.
Interest- interest is what people do to make themselves happy. From the advert, the
pleasure that the cricket game brings seems to attract the interests of many people.
Demographics
Age- the advert attracts people of all ages who are willing to participate in the game.
There are two pictures one showing an adult team posing for a group photo while the other one
showing young players celebrating.
Occupation- Cricket is an occupation game in Australia where people play in both
national teams and for professional clubs.
Gender- From the advertisement, the game is more of male-dominated since it show only
male players. Although women also participate, it is evident that men dominate the game more
than their female counter parts.

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Image three body shop ad
Demographics
Gender- the picture focusses more on women and how the picture can meet their beauty
needs. By using the product women become more uplifted.
Age- the picture advertisement focusses on the youthful age who are still conscious in
seeking fulfillment, and appearance through uplifting their looks.
Income level- the energy range advertisement targets people of higher income who
understand the cost of being uplifted and looking more beautiful thus will pay for anything to
meet this need.
Psychographic

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Healthy appearance- the product offers natural healthy ways of achieving beauty through
the use of natural products. This is for healthy conscious customers who determine what they the
use about their health.
Personality- with the changing emphasis on the environment, the product advert is
designed to target the environmentally conscious customer who prefers natural products to
artificial products.
Interest- the product is designed for consumers with interest in the environment through
the use of natural ways of beauty to achieve style.
Image four Rolex advert

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Demographics
Gender- the watch is specifically designed to target male customers who are
seeking greatness. The design of the product is for male the use and not female the use.
Occupation-the advertisement seeks to target the corporate customer based
on the dressing code who are conscious with time as a factor in achieving targets.
Income- the product is design for higher income customers based on how it
appears and targets to make the customer achieve greatness.
Psychographics
Quality- the greatness element of the watch is a quality element that every customer looks
for. It targets customers who are quality conscious with every product that they the use.
Appearance- the product is design to fit in the corporate world by making the wearer of
the watch fit in and look more corporate.
Value- the watch carries a corporate value tag that determines the cost at which it is
bought.
Question 2.1 Definition of brand positioning
A brand position is the conceptual place that the producer wants the product
to own in the consumer’ mind. Since there are other existing brands when one brand is launched,
then it must be followed by penetration strategies that allow the brand to enter the mind of the
consumer and convince them to buy the product by convinced with the relevancy and
distinctiveness of what the brand brings2. This strategy allows the consumer to understand the
benefits linked to the product when they the use it. Four components are the used in brand
positioning: the category frame of reference which defines the competitive context and the
2 S. D., Hunt, and D. B. Arnett. 2004. "Market segmentation strategy, competitive advantage, and public policy: Grounding
segmentation strategy in resource-advantage theory." Australasian Marketing Journal 12 (1), P. 11.

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category that the brand associates with others; the definition of target markets that determines the
specific market segment that the brand is built for; statement of the point of reference which
determines the benefits that the brad stands for or will deliver and lastly the reasons to believe
which proofs the benefits that the customer will receive from the brand3.
Question 2.2 benefits of brand positioning for business
One benefit of brand positioning is market entry. New products often struggle with
market entry since they have to fight with existing products to gain market share. A good brand
position allows customers to understand the benefits that they will reap from the product thus the
product enters their mind increases their chances of utilizing the product4. Product relevance
allows customers to weigh options and determine the best product that meets their needs.
Brand positioning also increases business profitability from increased sales. Good
positioning elicits interests from the consumer and their ability to buy which improves business
profitability5.When the brand position is high, it leads to a direct proportion of sales that relate to
its penetration in the mind of the consumer.
Lastly brand positioning solidifies the brand by making it more appealing to the customer
thus increasing competitiveness6. Companies that have positioned their brands well like Coca-
Cola have solid brands that dominate the market regardless of other entrants. This leads to
increased competitiveness and higher brand image.
3 J., A., Aaker, Brumbaugh, S. Grier, and Trickle Dick. 2000. "Nontarget Markets and Viewer Distinctiveness: The Impact of Target
Marketing on Advertising." Journal of Consumer Psychology 9 (3), P. 7.
4 Jim Blythe. 2009. Key Concepts in Marketing. Los Angeles: SAGE Publications Ltd, P. 21.
5 Bernard J Jansen, Moore Kathleen, and Carmen Stephen. 2013. "Evaluating the Performance of Demographic Targeting Using
Gender in Sponsored Search." Information Processing & Management 49, P. 292.
6 Johnson D. Guillaume, , and Greir A.Sonya 2011. "argeting without Alienating: Multicultural Advertising and the Subtleties of
Targeted Advertising." International Journal of Advertising 2 (30), P. 241.

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Bibliography
Aaker, J., A. Brumbaugh, S. Grier, and Dick Trickle. 2000. "Nontarget Markets and Viewer
Distinctiveness: The Impact of Target Marketing on Advertising." Journal of Consumer
Psychology 9 (3).
Baker, M.J. 2001. Marketing: Critical Perspectives on Business and Management. London:
Routledge.
Blythe, Jim. 2009. Key Concepts in Marketing. Los Angeles: SAGE Publications Ltd.
Guillaume, Johnson D, and Sonya A Greir. 2011. "argeting without Alienating: Multicultural
Advertising and the Subtleties of Targeted Advertising." International Journal of
Advertising 2 (30): 233-258.
Hunt, S. D., and D. B. Arnett. 2004. "Market segmentation strategy, competitive advantage, and
public policy: Grounding segmentation strategy in resource-advantage theory."
Australasian Marketing Journal 12 (1): 7-25.
Jansen, Bernard J, Kathleen Moore, and Stephen Carmen. 2013. "Evaluating the Performance of
Demographic Targeting Using Gender in Sponsored Search." Information Processing &
Management 49: 286-302.