Psychographic Segmentation: Marketing And Psydemographic Segmentation

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“Until the 1960s, few firms practiced market segmentation” (Lamb, 136). However, marketers today segment a market into “market segments”, or “subgroup(s) of people or organizations sharing one or more characteristics that cause them to have similar product needs” in order to advance their organizations (Lamb, 136). The purpose of “market segmentation”, or the process of dividing a market into those market segments, is to “enable the marketer to tailor marketing mixes to meet the needs of one or more specific segments” and thus “better allocate resources” (Lamb, 137). Perhaps, the most crucial market segmentation strategy is “psychographic segmentation”, which is market segmentation based on“personality, motives, lifestyles, and geodemographics” (Lamb, 143).
As markets become more global and multicultural, psychographic segmentation is the future while traditional strategies such as demographic segmentation are evolving into obsolescence. Although initially helpful, demographics don’t usually “paint the entire picture” (Lamb, 143) or “shed light on the passion points and interests of an audience” (Affinio, Inc.). Psychographics actually “add meat to the bones“ or “the skeleton” of demographic segmentation (Lamb, 143) by connecting on a “cultural and emotional level” with consumers (Affinio, Inc.). Even Todd Yellin, VP of Product at Netflix, depicted demographic data “as nearly irrelevant" (Brennan). "An audience 's interests transcend demographics” since consumers can

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