Wk 2. Market Segmentation & Customer Targetting

Chris Fill (Marketing Communications 2006) explains that segmenting is neccessary because a single product is unlikely to meet the needs of all customers in a mass market. Therefore we can divide the mass market according to the following methods of segmentation:

Demographic focuses on key variables such as age, sex, occupation, religion, social class, education and income.Geographic Segmentation follows the idea that the different needs of potential customers in one geographic area are different from those in another area.
Geodemographic considers the relationship between the type of housing a person lives in and their purchasing behaviours (i.e. ACORN profiling – where we live determines how we live).
Psychographic analyses AIO (activities, interests and opinions) to determine a person’s lifestyle or patterns of behaviour. It synthesises motivators, personality traits and core values held by individuals. By clustering common lifestyles, a correlation can be identified between a consumer’s product and media usage.

Behaviouristic puts usage and lifestyle into segments by analysing markets on the basis of customer behaviour (e.g. USAGE = how often someone buys, for what situation and where it was purchased / LIFESTYLE = looks at varying disposable income & differing needs at various life stages).

Who Is My target Customer???

To assist me with segmenting the demographic target customer for my clothes swapping brand, I have gathered resources from online interviews with Matt Poulton - Marketing Lead for clothes swapping website Swango.com. Matt highlights the much higher ratio of women partaking in clothes swapping than men, "Although our target audience remains largely female, our business strategy is to reach men through their female companions and wives". The clothes swapping idea has been a huge success for women who see it also as a socialising event, but there has not been anything near as much interest from men.

Secondly, Matt explains how initially Swango.com aimed its efforts primarily at the environmentally conscious crowd, and later also targetted fashion lovers and bargain hunters. I hope to attract ethical shoppers through the premise of recycling, however my target customer will be the fashion conscious who may not be able to afford new brand names (i.e. students).

Therefore, my target customer demographic will be:

Females, aged 18-30 educated to college or university level, middle class, Full time student (with possible part time job) or full time office type job (entry level job), low salary - possibly dependent on student loan, high interest in fashion, socialising, freedom of expression.

According to ACORN (geodemographic segmentation), my target customers are types 17-20, and 23-25. This includes;

• multi-ethnic young educated workers starting out in their careers (i.e. office, clerical or lower managerial) & students, aged in their twenties. They live in denseley populated areas, or in the suburbs close by, in small flats (often purpose built). They are well above average in terms of qualitifcations held (NVQs, A levels, Degrees) and tend to use public transport as their main means of getting around. The most popular newspapers are The Guardian, The Independent, The Observer and The Times. This segment like spending their money on shopping and eating out and are comfortable internet users, as well as frequentcoffee shop users. Typical cities of residence include; Edinburgh, Glasgow, London, Brighton, Oxford, Cambridge, , Plymouth, Bath and Southampton. Typical suburban areas of residence include; Richmond-upon-Thames, Sutton, Bromley, Cheltenham, St Albans and Guildford.

According to E-Types (psychographic segmentation) which segments customers according to how they use the internet, my target customers are:

• Group B - Frequent Socialisers. These are the most active users of technology for socialising. This group has a strong bias towards the under 25's, living in rented accommodation. Incomes tend to be lower than average and perhaps as a consequence, they tend to spend less online than other people. They make significantly more use of social networking sites than other groups. Instant messaging is preferred to email and they are enthusiastic about downloading music, ringtones and TV programmes. This group includes the most prolific of users of text messages and download the widest variety of things to their mobile phones. Immediacy of communication is a requirement of the fast pace of this youngsters' social world.

According to VALs (psychographic segmentation) which segments customers according to values and lifestyles, my target customers are:

• Experiencers - motivated by self-expression. As young, enthusiastic, and impulsive consumers, Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities.Experiencers are avid consumers and spend a comparatively high proportion of their income on fashion, entertainment, and socializing. Their purchases reflect the emphasis they place on looking good and having "cool" stuff.
• Innovators - successful, sophisticated, take-charge people with high self-esteem. Because they have such abundant resources, they exhibit all three primary motivations in varying degrees. They are change leaders and are the most receptive to new ideas and technologies. Innovators are very active consumers, and their purchases reflect cultivated tastes for upscale, niche products and services.Image is important to Innovators, not as evidence of status or power but as an expression of their taste, independence, and personality. Innovators are among the established and emerging leaders in business and government, yet they continue to seek challenges. Their lives are characterized by variety. Their possessions and recreation reflect a cultivated taste for the finer things in life.