Psychographic segmentation is a form of market segmentation, that looks at consumers into sub-groups that share specific psychological characterises, that comprise activities, interests, and opinions of customers. The rise of data-driven marketing enabled psychographic segmentation to become a key element of digital marketing activities to personalize those campaigns and reach a micro-audience.
|Definition||Psychographic Segmentation is a marketing strategy that categorizes consumers based on their psychological traits, attitudes, values, lifestyle, interests, and behaviors. Unlike demographic or geographic segmentation, which focuses on measurable characteristics like age, gender, income, or location, psychographic segmentation delves into the underlying motivations and preferences that drive consumer choices. This approach helps businesses create more targeted and personalized marketing campaigns, tailoring products or services to specific consumer segments’ unique psychological profiles. Psychographic segmentation provides a deeper understanding of consumers’ emotional triggers and decision-making processes, enhancing the effectiveness of marketing efforts.|
|Key Concepts||– Psychological Traits: The segmentation relies on psychological characteristics such as personality traits, values, beliefs, and attitudes. – Lifestyle: Consumer lifestyles, including hobbies, interests, and daily routines, play a crucial role in psychographic segmentation. – Motivations: Understanding what motivates consumers to make purchase decisions is central to this approach. – Behavioral Patterns: Analyzing past behaviors and preferences helps predict future choices. – Customization: Psychographic segmentation enables customized marketing strategies for different consumer segments.|
|Characteristics||– Rich Consumer Profiles: This approach creates detailed consumer profiles, offering insights beyond basic demographics. – Emotion-Centric: Psychographic segmentation acknowledges the role of emotions in consumer decision-making. – Targeted Messaging: Businesses can craft messages that resonate with specific psychographic segments, increasing engagement and conversion rates. – Market Adaptability: Companies can adapt to changing consumer preferences by continually updating their understanding of psychographic segments. – Product Development: Psychographic insights inform product or service development, ensuring offerings align with consumer values and interests.|
|Implications||– Tailored Marketing: Businesses can create marketing campaigns that speak directly to the emotional and psychological needs of specific segments. – Improved Product Fit: Products and services can be designed to better match the desires and values of target consumers. – Enhanced Customer Loyalty: Personalized experiences build stronger connections with customers. – Market Expansion: Identifying new psychographic segments can lead to the expansion of a customer base. – Competitive Advantage: Effective psychographic segmentation can provide a competitive edge in crowded markets.|
|Advantages||– Deeper Understanding: Businesses gain a profound understanding of what drives consumer behavior. – Personalization: Tailored marketing appeals to consumers on a personal level, increasing engagement. – Higher Conversion Rates: Targeted messages are more likely to convert prospects into customers. – Loyalty and Retention: Psychographic segmentation fosters customer loyalty through personalized experiences. – Adaptability: Businesses can adapt quickly to changing consumer preferences.|
|Drawbacks||– Complexity: Psychographic segmentation can be more complex to implement than demographic or geographic methods. – Data Collection: Gathering detailed psychographic data may require extensive research and resources. – Overlapping Segments: Consumers may fit into multiple psychographic segments, making targeting more challenging. – Privacy Concerns: Gathering sensitive psychological information may raise privacy concerns. – Accuracy: Achieving precise psychographic segmentation may not always be feasible.|
|Applications||– Product Positioning: Businesses use psychographic insights to position products or services in a way that aligns with consumer values and lifestyles. – Advertising Campaigns: Marketing messages are crafted to resonate emotionally with specific psychographic segments. – Content Creation: Content marketing can be tailored to the interests and preferences of target segments. – Market Expansion: Companies identify untapped psychographic segments to expand their customer base. – New Product Development: Psychographic data informs the development of new products that cater to specific consumer needs.|
|Use Cases||– Apple’s Brand Image: Apple has successfully used psychographic segmentation to create a brand image associated with innovation, creativity, and a desire for unique products. – Luxury Brands: High-end luxury brands often employ psychographic segmentation to target consumers seeking exclusivity and status. – Fitness Industry: Fitness brands target consumers with specific lifestyle and health-conscious psychographics, tailoring products and messaging accordingly. – Environmental Products: Companies marketing eco-friendly products focus on consumers with environmental values and concerns. – Political Campaigns: Politicians use psychographic segmentation to tailor campaign messages to voters with particular beliefs and priorities.|
The birth of psychoanalysis
Psychoanalysis comprises various psychological theories and therapeutic techniques based on the work of Austrian neurologist Sigmund Freud.
Psychoanalysis is based on the research of Sigmund Freud who believed that all people have desires, feelings, thoughts, and memories that are unconscious. As a result, the primary intention of psychoanalysis as a therapeutic tool is to allow an individual to release repressed experiences and emotions. In other words, to make the unconscious conscious.
While many believe Freud was the first to propose the idea of an unconscious mind, 17th century philosophers René Descartes and John Locke also speculated that there was some factor beyond awareness that influenced individual behavior.
The four basic tenets of psychoanalysis
The therapeutic element of psychoanalysis rests on the assumption that people can derive important insights into their current state of mind by bringing unconscious drivers into conscious awareness.
While this process can be uncomfortable at first, an individual who is motivated to do so can experience an emotional release and alleviate psychological distress. To that end, the therapeutic value of psychoanalysis is based on four principle tenets:
- The behavior of an individual, as we noted earlier, is based on unconscious factors.
- Mental health disorders such as anxiety and depression are in most cases caused by a conflict between the conscious and unconscious mind.
- The personality of an individual is mostly determined by their early childhood experiences. Indeed, Freud believed personality was mostly fixed by the time of the child’s fifth birthday.
- Individuals employ defense mechanisms to cope with information in the unconscious, such as denial, projection, repression, and displacement.
What can psychoanalysis treat?
Psychoanalysis can be used to treat a multitude of problems, including:
- Obsessive-compulsive disorders.
- Self-destructive behavior.
- Sexual difficulties.
- Generalized anxiety disorder.
- Eating disorders.
- Disassociate identity disorder (DID), and
- Other chronic psychological issues.
Strengths and weaknesses of psychotherapy
In the final section, we will list some of the main strengths and weaknesses of psychotherapy as an approach.
- Foundational research – much of the initial research conducted by Freud and others continues to be influential today, despite many of the core principles of psychoanalysis either revised or replaced in the 20th century. For example, the theories of psychoanalytic thinking remain a key component of experimental psychology, a broad field that encompasses branches such as cognitive and behavioral psychology.
- New thinking – those who studied psychoanalysis were also some of the first to posit that mental health disorders could be alleviated by discussing problems with a professional doctor. This was a revolutionary idea in Freud’s day.
- Difficult to measure – some of the concepts put forth by psychoanalysts are difficult to detect and measure. The vast majority of Freud’s arguments were based on clinical observations and case studies.
- Investment level – psychoanalysis requires a significant investment of time, effort, and money for both the patient and the mental health professional. Some issues may take months or even years to resolve while others will require management for the rest of the patient’s life.
Summing things up
- Psychoanalysis comprises various psychological theories and therapeutic techniques based on the work of Austrian neurologist Sigmund Freud.
- The therapeutic value of psychoanalysis rests on the assumption that people can derive important insights into their current state of mind by bringing unconscious drivers into conscious awareness.
- Initial research into psychoanalysis has provided an important foundation for experimental psychology in particular – though many of its principles have since been revised or replaced. Psychoanalytical theory was also one of the first to suggest talking through problems could result in better mental health outcomes.
The birth and rise of psychographic segmentation
Psychographic segmentation divides consumers into sub-groups based on shared psychological characteristics. Those might include subconscious or conscious beliefs, motivations, and priorities to explain and predict consumer behaviour.
Psychographics started as an attempt to go beyond demographics. As computational power grew more data became available, this gave a chance for marketers to better segment potential customers.
As recounted on archive.ama.org when Emanuel H. Demby, one of the founding fathers of psychographics when he was asked “What do you call what you’re attempting to do?” he said “Psychographics!” which was meant as a combination of psychology and demographics.
Another founding father of psychographics was Paul Lazerfeld and his associates during the 1950s at Columbia University’s Bureau of Applied Statistics.
As pointed out by Emanuel H. Demby, Paul Lazerfeld taught that any market research that wanted to understand consumer behavior had to “involve an interplay among three sets of variables; predisposition, influences, and product attributes.“
Therefore, psychographics is an attempt to move away from just demographics and give meaning to numbers by focusing more on individuals with feelings and tendencies.
Give meaning to numbers is the primary aim of a marketer. Imagine those two scenarios, Mr. X earns $40K per year. With the other situation, Mr. X earns $40K, after getting a 10% rise compared to the previous three years’ salary.
Without going too far we can put ourselves in the shoes of Mr. X, how accomplished he feels, and the purchasing tendencies he might have after such a raise.
Maybe he wants to buy a new car or a new TV set. Keep in mind that marketers’ focus is to increase sales. And there is no better salesperson who has insights and personalized information about her target customer.
While in the past it was tough to get valuable psychographic data, that isn’t the case anymore.
Tools for psychographic segmentations
With the rise of digital advertising, and advertising machines like Google and Facebook Ads, it has become easy to create targeted marketing campaigns, primarily focused on performance and able to target potential customers with an incredible focus.
Google Ads and Facebook Ads allow marketers to go quite in-depth with psychographics definition of their audience:
Above an example of how Google Ads enables marketers to target specific interests and psychographic traits of a group of people. This allows a segmentation that can be laser targeted.
- Psychographic Segmentation: Psychographic segmentation involves dividing consumers into sub-groups based on shared psychological characteristics such as beliefs, motivations, and priorities. This form of segmentation goes beyond demographics and aims to predict consumer behavior by understanding their subconscious and conscious traits.
- Data-Driven Marketing and Personalization: The rise of data-driven marketing has made psychographic segmentation a crucial element in digital marketing. Marketers can use psychographic data to personalize campaigns and target micro-audiences with specific traits and preferences.
- Psychoanalysis and its Birth: Psychoanalysis is a psychological theory and therapeutic approach pioneered by Sigmund Freud. It focuses on the unconscious mind, repressed experiences, and emotions, aiming to make the unconscious conscious.
- Four Basic Tenets of Psychoanalysis: Psychoanalysis is based on four fundamental principles: behavior is influenced by unconscious factors, mental health disorders often result from conflicts between the conscious and unconscious mind, early childhood experiences shape personality, and individuals employ defense mechanisms to cope with unconscious information.
- Applications of Psychoanalysis: Psychoanalysis can be used to treat various psychological issues such as phobias, obsessive-compulsive disorders, self-destructive behavior, sexual difficulties, anxiety, depression, eating disorders, dissociative identity disorder (DID), and chronic psychological problems.
- Strengths of Psychoanalysis: Foundational research conducted by Freud and others has had a lasting impact on psychology. The idea of discussing problems with professionals for mental health improvement was revolutionary.
- Weaknesses of Psychoanalysis: Some psychoanalytic concepts are difficult to measure. The approach requires significant time, effort, and financial investment from both the patient and the mental health professional.
- Birth and Rise of Psychographic Segmentation: Psychographics emerged as an attempt to move beyond demographics, focusing on consumers’ feelings and tendencies. It gained momentum with the growth of computational power and data availability.
- Pioneers of Psychographic Segmentation: Emanuel H. Demby and Paul Lazerfeld were key figures in the development of psychographic segmentation. They emphasized the interplay of predisposition, influences, and product attributes in understanding consumer behavior.
- Importance of Giving Meaning to Numbers: Psychographic segmentation aims to provide depth and context to demographic data, understanding consumers’ emotional responses and tendencies to make better predictions about their behavior.
- Tools for Psychographic Segmentation: Digital advertising platforms like Google Ads and Facebook Ads allow marketers to create highly targeted campaigns based on psychographic traits, interests, and preferences of potential customers.
- Digital Marketing Channels: Digital marketing includes various channels such as SEO, SMO, email marketing, SEM, SMM, and display advertising. Google Ads and Facebook Ads enable detailed psychographic targeting to create laser-focused segments.