Know your market. How understanding local demographics can help you increase sales CHDC June 2013
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1 Know your market How understanding local demographics can help you increase sales CHDC June 2013
2 demographers.id informed decisions informed decisions.id is a company of demographers, housing analysts, forecasters and Census data experts who have developed demographic information products specifically for the Australian Local Government market..id stands for informed decisions and our work is to provide decision makers within government and the community with readily accessible, easy to use information about the people living in their communities of interest..id s products give Councils the evidence base to plan housing policy and service delivery, attract investment and promote their region, support funding submissions and compete for resources, advocate for the community and work collaboratively. po box 1689 collingwood victoria 3066 t f e info@id.com.au 2
3 Segmentation Who buys your products? What % are local? Local buyers vs other areas B2B locally? How can you get more? What type of businesses buy? What are they buying and why? End Consumers do they tend to be a particular type of consumer? Families Mothers Aged Young etc Who influences this decision?
4 Consumer insight Why do they buy? How do they see your product vs competitors eg what are your competitive strengths, USP, uniques? Who makes the decision? What would make them buy more, or more often? What would turn them away from your products?
5 Potential local market Develop understanding of buying criteria for your products Know your unique features (USP s) Develop an understanding of what types of people make up your target market Then, you can look to see where those people live and work, and Develop marketing strategies to reach them
6 Current customers Let s start with your current customers, and current products Could you say that a certain type of customer is more likely to buy a certain product? Maybe you have many products and can think of the type of people that buy
7 Segmentation examples Con tiki tours Toothpaste young, older, etc Deodorant Lynx vs Rexona Cars Size Performance Passenger capacity Economy Prestige Hotels holiday makers, business travellers, price points, economy vs luxury
8 Market Segmentation 1. Demographic Age Gender Family size Family lifecycle Generation: baby-boomers, Generation X, etc. Income Occupation Education Ethnicity Nationality Religion Social class
9 Segmentation 2. Geographic Region: by continent, country, state, or even neighborhood Size of regional area: segmented according to size of population Population density: often classified as urban, suburban, or rural Climate: according to weather patterns common to certain geographic regions
10 Segmentation 3. Psychographic Psychographic segmentation groups customers according to their lifestyle. Activities, interests, and opinion surveys are tools for measuring lifestyle. Some psychographic variables include: Activities Interests Opinions Attitudes Values
11 Segmentation 4. Behavior Behavioralistic Segmentation Behavioral segmentation is based on actual customer behavior toward products. Some behavioralistic variables include: Benefits sought Usage rate Brand loyalty User status: potential, first-time, regular, etc. Readiness to buy Occasions: holidays and events that stimulate purchases Behavioral segmentation has the advantage of using variables that are closely related to the product itself. It is a fairly direct starting point for market segmentation. Factors that influence buying Decision process and choice theory
12 Segmentation Market segmentation is one of the steps that goes into defining and targeting specific markets. It is the process of dividing a market into a distinct group of buyers that require different products or marketing mixes. A key factor to success in today's market place is finding subtle differences to give a business the marketing edge. Businesses that target specialty markets will promote its products and services more effectively than a business aiming at the "average" customer. Opportunities in marketing increase when segmented groups of clients and customers with varying needs and wants are recognized. Markets can be segmented or targeted using a variety of factor. The bases for segmenting consumer markets include: Demographical bases (age, family size, life cycle, occupation) Geographical bases (states, regions, countries) Behavior bases (product knowledge, usage, attitudes, responses) Psychographic bases (lifestyle, values, personality) A business must analyze the needs and wants of different market segments before determining their own niche. To be effective in market segmentation keep the following things in mind: Segments or target markets should be accessible to the business Each segmented group must be large enough to provide a solid customer base. Each segmented group requires a separate marketing plan. Large companies segment their markets by conducting extensive market research projects.this research is often too expensive for small businesses to invest in, but there are alternative ways for to a small business to segment their markets. A small business can do the following to gain knowledge and information on how to segment their markets: Use secondary date resources and qualitative research. You can use the following resources for external secondary data: Trade and association publications and experts Basic research publications External measurement services Conduct informal factor and cluster analysis by: Watching key competitors marketing efforts and copying them. Talking to key trade buyers about new product introductions Conducting needs analysis from qualitative research with individuals and groups. There are many reasons for dividing a marketing into smaller segments. Any time you suspect there are significant, measurable differences in your market you should consider market segmentation. By doing so you will make marketing easier, discover niche markets, and become more efficient with your marketing resources.
13 Common segments Lone person (younger) Young couple no kids Young family Family Empty nesters Empty nesters 11 Lone person (older)
14 Who lives here? (and buys here) What is the household style and is this changing? Who are the emerging groups? What businesses exist and how much do they buy locally? How much do they sell locally? Of the people who live here and work elsewhere what industries do they work in? They are potential buyers too How do they get to work? Where do they travel to? Local demographics
15 Local demographics Cities and suburbs change over time Life cycle of suburbs household type Role and function of place Local demographic data can provide fantastic base line information for your marketing strategy
16 How much would you pay to get this How about $0? information? It s already been provided by the Central Highlands Council, in conjunction with.id Sites you need to know Profile.id Atlas.id $$$$$$$
17 Profile.id Let s have a closer look at the local population trends
18 Other areas This information is also available for many areas around Australia..id have around 240 clients. The information can be found on their website at:
19 More information Jim Myhill, contact for.id
20 Comparative growth among the states - absolute Absolute growth NSW Vic Qld SA WA Tas NT ACT 20
21 Historical migration - national Net migration
22 What are the trends in Central Highlands? - Population 22
23 Population change summary 23
24 What are the trends in Central Highlands - Age 24
25 Age Structure 25
26 Change in age structure 26
27 But the change is not consistent across all areas e.g. Emerald Town, biggest growth is in cohort 27
28 But Eastern Rim shows highest growth in 15-19, with losses in many cohorts 28
29 What are the trends in Central Highlands - Families 29
30 Household types 30
31 Changes in household type 31
32 But again varies widely by area e.g. Buckland Toprain - Springsure 32
33 ...and The Gemfields - Lochington 33
34 What are the trends in Central Highlands? - Socio-economic 34
35 Household income 35
36 Household income quartiles 36
37 Household income quartile change 37
38 Employment 38
39 Change in employment 39
40 Employment by industry 40
41 Industry employment change 41
42 Workforce local jobs Modelled data 22,274 Census employment 16,854 42
43 Where do the workers come from? Residential location of workers Central Highlands Regional Council 2011 Number % Live and work in the area 12, Live and work in the same SLA 10, Live in the area and work in different SLA 1, Work in the area, but live outside 4, Total workers in the area 16,
44 Tools available Central Highlands Regional Council has a range of tools to help understand key trends and plan for the future of the region..id is available to help and provide training and ongoing support. Every department that serves the community will be influenced by the changing demographic landscape so please encourage your staff to understand the tools and how to use them. 44
45 Tools available Online now: Access all your.id sites from the landing page at profile.id understand your communities atlas.id - target your services Economy.id Lite understand your local economy National Economic Indicators see how your economy is performing Future options: forecast.id - Understand your future population economy.id - Understand your economy and workforce. 45
46 Follow us Find out about the latest demographic trends and news. Subscribe to our newsletter online Insights into populations trends around the Country Hints & Tips about using your profile and forecast sites. Data updates to your sites Census & urban planning news.id blog on our website Follow us on 46
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