One of the most difficulty, yet critical, functions of marketing is determination of potential markets for products or brands. A company’s mission and vision are usually based on market wants and desires.  These statements will drive the company to develop strategies based on analysis of business markets.   As marketers conduct SWOT and PESTAL Analysis a focus on who and where of potential markets will exist.

This is where a difference in analysis takes place – the “Who” may be based on behavior, while “where” is determined through demographics. The segmentation of markets is similar to breaking down natural elements to find segments that are most likely to contain potential customers for the company offerings and large enough for a ROMI (Return on Marketing Investment.)

What sounds easy can be very difficult when weighing potential behaviors and financial return.  This is compounded by the fact that many other companies are competing for the same customers with varied offerings.    This brings up the question – “Why our product over theirs?”

The answer may be derived from the behavioral analysis of the segments and critical theory.  The cumulative exposure to a message may lead consumers to make decisions based on perception of a Brand image. 

And people do think differently.  Mark Levit writes an article about Marketing According to Gender – which is a demographic variable, that has a myriad of behavior differences. 

How can you learn more?  Here is a site that discusses Demographic Segmentation by Fahad Muhammad. And this site by Stephanie Mailki presents Defining Behavior Segmentation.

Cheers,

Dr. Blake Escudier

PG Marketing Faculty.