3.

2 CUSTOMER PROFILING
Group 3:

Cherry Mae De Guzman

Jann Tristan Ico
Shenna Molina
Pedro Ong
Ellis Apilado
Clyde Nortez
CUSTOMER PROFILING
Successful entrepreneurs know with exactness the wants, wishes
and buying behaviors of specific individuals.

They have analyzed the size of the market or the number of

potential customers that fit the target profile.

They know their customers’ names, ages, genders, incomes,

home and Internet addresses, professions, education, associations,
and marital status, number of children, hobbies, their tastes and
interests.

They grasp what their customers watch, read and hear. They
understand their likes and dislikes.
METHODS OF CUSTOMER PROFILING
1. DEMOGRAPHICS

– quantifiable characteristics of your prospective

– we categorize customers into the following:

1. Age
2. Income classes
3. Social Classes/ Reference groups
4. Ethnic backgrounds
5. Religious beliefs
6. Occupations
7. Domiciles
Customers are classified according to the following Income
classes:

1. Class A, the high income class

2. Class B, the upper middle income class
3. Class C, the middle income class
4. Class D, the lowe middle income class
5. Class E, the low income class
2. PSYCHOGRAPHICS

– psychological or mental characteristics, interests, and beliefs

– MOTIVATION goes to the roots of customer’s needs and wants.

–This can be classified into PHYSIOLOGICAL (satisfaction of thirst,

hunger, and shelter) and PSYCHOLOGICAL.

–MOTIVATION provides the drive for action, PERCEPTION defines

exactly what that person will do.
EXAMPLES:

•Likes/Dislikes

•Hobbies

•Favorite TV Shows, Music, Websites, or Other Media

•Interests

•Political Views

•Anxieties

•Spending Habits
2. TECHNOGRAPHICS

– classifies people according to their level of expertise in using a

product or a service.

– For example:

•Sports beginners might just want basic equipment.

•Sports regulars may be looking for more sophisticated equipment

•Finally, sports professionals would want the best for competitive

purposes.
APPLICATION OF CUSTOMER PROFILING

1. Develop a product or service to test out in the

marketplace.

a. The customers most attracted to the product or service can then

be profiled.

b. After profiling, the next step is to find out how huge this market
is for exploitation purposes.
2. Profile the different types of customers in a given
industry or area as to their needs and wants.

a. From these types, the entrepreneur could then choose the

customer group with the best potentials.

b. Products or services can be developed by the entrepreneur to

match this chosen customer group.
MARKET SEGMENTATION

•Market segmentation is the process of dividing a market of

potential customers into groups, or segments, based on
different characteristics.

• The segments created are composed of consumers who

will respond similarly to marketing strategies and who share
traits such as similar interests, needs, or locations.
•The purpose of segmentation is to learn as much as possible
about the consumers and with this information begin to craft highly
targeted marketing campaigns.

•Targeting a particular market does not mean excluding people who

do not pertain to the criteria. Rather, learning as much as possible
on specific people allows you to craft highly targeted marketing
campaigns.

•This is a much more affordable, effective and efficient way to reach

potential clients and generate revenues.
EXAMPLES:

•Customer needs are the most common type of market

segment. For example, some customers need decaffeinated
coffee and others need regular coffee. It is common offer
different products, prices, locations and promotions based on
needs.

•Customer Preferencessuch as perceptions of food ingredients.

For example, a brand of salad dressing with all natural
ingredients for customers who dislike ingredients that sound
like chemicals or fillers.
•Demographics such as age, gender, education, nationality,
religion and ethnicity. For example, an insurance product for
seniors.

•Income level such as a hotel designed for families on a

budget.
•(Location) Segments based on geography such as a
restaurant chain that customizes its menu to include local
foods from each region and city.

•(Customer Loyalty) Products, prices and promotions

that target your most loyal customers or perhaps your least
loyal customers. For example, a fashion brand that releases
limited addition items that are promoted to loyal customers.
MARKET AGGREGATION

•Defined as the marketing of standardized goods and

services to a large population of people that have
similar needs.

•Another name for market aggregation is "mass

marketing," a strategy that treats all customers as a
single group that is handled homogeneously.
•The reason why market aggregation works is because
large numbers of people perceive the product as the
same no matter what company provides the product.

•Market aggregation reduces production and marketing

costs, thereby reducing costs to consumers.
Example:

If there are products like sugar, then almost every

consumer will need it, and they will buy it irrespective
of which company it belongs to if and only if marketing
is done in the right manner. Thus these types of
products are generally sold by adopting the strategy of
market aggregation.
MARKET MAPPING (also called PERCEPTUAL MAP)

– illustrates the range of "positions" that a product can take in a

market based on two dimensions that are important to
customers

– Examples of those dimensions might be:

•High price v low price

•Basic quality v High quality
•Low volume v high volume
•Necessity v luxury
•Light v heavy
•Simple v complex
•Lo-tech v high-tech
•Young v Old
In the chocolate bar market, Divine Chocolate (a social
enterprise) successfully spotted that some consumers
were prepared to pay a premium price for very high
quality chocolate made from Fairtrade cocoa. Green &
Black's exploited the opportunity to sell premium
chocolate made from organic ingredients. Both these
brands successfully moved into the high quality / high
price quadrant (see above) before too many competitors
beat them to it.
•The purpose of market mapping is to provide the market
analyst a better understanding of the market as a whole and to
paint a clearer picture of where the different competitors are
relative to the different market segments.

•It also allow entrepreneurs to discover market segments that

are relatively unserved or undeserved. They could then develop
products and services that fulfill the gaps in the marketplace.
 SOURCES:
https://www.forbes.com/sites/alanhall/2012/06/14/to-succeed-as-an-
entrepreneur-know-your-customer/#722a4e983696

https://cerealentrepreneur.academy/customer-profiling-the-key-to-
improving-marketing-roi/

https://simplicable.com/new/market-segment

https://www.reference.com/business-finance/definition-market-
aggregation-b4a92a708225f1b

https://www.marketing91.com/what-is-market-aggregation/

https://www.tutor2u.net/business/reference/marketing-market-
mapping