The Target Customer

1. The Target Customer Standard 3

2. Why? • Knowing & understanding customers is key for exceptional companies. • Award winning businesses know their customers as well as they know themselves. They use this knowledge to give buyers: • the right product • at the right place • at the right time • for the right price

3. Successful businesses have spent hours researching their current and prospective buyers & what they want & need. • They know : • Age • Gender • Income • Home & internet address • Profession • Education • Marital status • # of children • Hobbies • Likes/dislikes • Interests

4. Who are my customers? • Are they men, women, tweens, teens, children, young adults or all ages? • What do they expect from my company? • Quality products? • Good Value? • The best prices? • Quick Service? . • Products to enhance their self-image? • A Large selection? • The latest styles?

5. How do my company's products or services enhance the customer’s lives? • Do they make the customers’ lives easier? • Are they a necessity? • Do they make our customers feel good about themselves?

6. Buying Experience They also provide their product or service at the with the appropriate warranties, features and support to create a positive buying experience.

7. DESIGN the EXPERIENCE • It’s the experiences that people have with your company that determine: • whether or not they are going to choose to do business with you • whether or not they are going to give you more of their business • whether or not they are going to refer people to you. It’s the experience they have with you that helps them form perceptions of trust, quality & ability.

8. CASE STUDY • Focus on your target customer, spend time asking them what they want. • Skull Candy Inc. ® skullcandy.com • Owner: Rick Alden • Target audience: 12-26 years of age • Knows his customer, he knows they want to be cool and accepted by peers. He know s what they watch, where they shop, what apps they have on their phones and iPads. • Headsets or ear buds with skulls on them are now worn in every country.

9. Customer Profile A customer profile uses marketing segmentation to identify key factors and using them to break down the pool of customers to who would likely purchase the product or service. This shows a company where to spend their advertising resources to get the most return on investment. Target Market Segmentation Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral

10. Geographic Segmentation: • Geographic Segmentation : is based on • where consumers are located or climate • ie: Regions – States – Cities - Rural Areas – Cold – Hot

11. Demographic Segmentation • Segmentation based on statistical characteristics, such as: • Gender: male, female • Age: children, teenagers, young adult, middle age, senior, elderly • Ethnicity: American, African, Indian, European, Asian, etc. • Education: 8th grade or less, high school, some college, college degree • Occupation: white collar, blue collar, service worker, farm worker • Income: low, middle, high • Life stage: single, married, with children, without children, older

12. Psychographic Segmentation • Segmentation based on values, attitudes, personality, and lifestyle • People classified according to what they feel, what they believe, their way of life, and the products, services, and media they use

13. Behavioral Segmentation • Segmentation based on purchase behavior • User Status • Include nonuser, ex-user, potential user, first-time user, regular/loyal user • Brand loyal users require the least amount of advertising • Usage Rates • Volume segmentation measures consumers’ usage and categorizes them as light, medium, or heavy users • Purchase Occasion • Regular occasion • Special occasion

14. Importance of target markets Once target markets are identified correctly, specific marketing programs are directed to identified group, or target market.

15. Example of Customer Profile • Skull Candy Customer Profile: • Geographic segmentation: • any area, any climate • Demographic segmentation: • age – 12-26 • Males • Professional musician • Psychographic segmentation: • Likes to listen to music • Athletic/exercises • Trendy • Extreme Sports • Behavioral • Listens to personal media device • Buys mobile music media • Brand conscience

16. Example of Customer Profile • 15 Day Alaskan Cruise Customer Profile: • Geographic segmentation: • any area, any climate • Demographic segmentation: • age – 55 + • Retired • high income/professional • married • Psychographic segmentation: • interested in travel • likes scenery cruises • likes to travel on water • Behavioral • purchases trip packages

17. Example of Customer Profile • Snowboard Company Customer Profile: • Geographic segmentation: • cold climate • mountain region • Demographic segmentation: • age – 8-60 years • middle to high income • Married with or without kids • Psychographic segmentation: • interested in snowboarding • likes winter sports • Behavioral • goes snowboarding • purchases own gear