Psychograhic Segmentation


Psychographic segmentation divides a population into groups that have similar psychological characteristics, values and lifestyles. Psychographic segmentation can be a useful tool for gaining sharper insight into consumer purchasing behavior.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Customer Service Business Plan


Answer the following questions:

  1. What is your mission statement? A mission statement should be a summary of the following points as well.
  2. What product do you produce? What are the components of the integrated products-services, distribution, support, relationship, etc?
  3. Who are your customers? What are the major sub groupings of customers, or market segments?
  4. Where are your customers? Geographically? On terms of level in their organization? How many steps are there between them and you? How do they get your products?
  5. What do your customers buy? How close is it to what they need? How do you know?
  6. What is your relationship with your customers? How do you know they are getting what they need? How do they learn how to use your products?
  7. What do they do with what they buy?
  8. Who are your known competitors? Who else provides products or services that could be substituted for you in the customers’ eye? Who will your competitors be tomorrow?
  9. What is that your customers most value about your organization (not just your products)? About your competitors?

10.  What trends are there in your customers’ businesses or lifestyles that are likely to change what they will need from you?

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Psychographic Data


Psychographic data deals with people’s attitudes, mores, perceptions rather than with externally observable characteristics, like average home value, classified under demographic data. Marketers use psychographic data to identify groups of people who share common values about such diverse subjects as lifestyles, products, politics, religion, and criminal justice.

Marketers tend to use psychographic data when they are planning to launch a campaign or introduce new products into communities where they do not have previous experience. The cable television industry makes extensive use of psychographic data when deciding whether it should promote pay services that feature R-rated or PG-rated movies.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Market-oriented Ethnography


To fully understand how customers of other cultures assess and use services, it is necessary and effective to use approaches, such as market-oriented ethnography. This set of approaches allows researchers to observe consumption behavior in natural settings. The goal is to enter the consumer’s world as much as possible—observing how and when a service is used in an actual home environment or consumption environment, such as watching consumers eat in restaurants or attend concerts. Among the techniques used are observation, interviews, documents, and examination of material possessions, such as artifacts. Observation involves entering the experience as a participant observer and watching what occurs rather than asking questions about it. One-on-one interviews, particularly with key informants in the culture rather than consumers themselves, can provide compelling insights about culture-based behavior. Studying existing documents and cultural artifacts can also provide valuable insights, especially about lifestyles and usage patterns.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Transaction-based Marketing Vs. Relationship Marketing


As marketing has entered the 21st Century, a significant change is taking place in the way companies interact with customers. The traditional view of marketing as a simple exchange process—a concept that might be termed transaction-based marketing—is being replaced by a different, longer-term approach.

Traditional marketing strategies focused on attracting consumers. The goal was to identify prospects, convert them to customers, and complete sales transactions. But today’s marketers realize that, although it remains important, attracting new customers is truly an intermediate step in the marketing process. Marketing efforts must focus on establishing and maintaining mutually beneficial relationships with existing customers. These efforts must expand to include suppliers and employees, as well.

The concept, called relationship marketing, refers to the development, growth, and maintenance of long-term, cost-effective exchange relationships with individual customers, suppliers, employees, and other partners for mutual benefits. It broaches the scope of external marketing relationships to include suppliers, customers, and referral sources. In relationship marketing, the term customer takes on a new meaning. Employees serve customers within an organization as well as outside it; individual employees and their departments are customers of and suppliers to one another. They must apply the same high standards of customer satisfaction to inter-departmental relationships as they do to external customer relationships. Relationship marketing recognizes the critical importance of internal marketing to the success of external marketing plans. Programs that improve customer service inside a company also raise productivity and staff morale, resulting in better customer relationships outside the firm.

Relationship marketing gives a company new opportunities to gain a competitive edge by moving customers up a loyalty hierarchy from new customers to regular purchasers, then to loyal supporters of the company and its goods and services, and finally to advocates who not only buy the  company’s products but recommend them to others. by converting indifferent customers into loyal ones, companies generate repeat sales. The cost of maintaining existing customers is far below the cost of finding new ones, and these loyal customers are profitable ones.

Effective relationship marketing relies heavily on information technologies such as computer databases that record customers’ tastes, price preferences, and lifestyles alongwith the increase of electronic communications. This technology helps companies become one-to-one marketers that gather customer-specific information and provide individually customized goods and services. The firms target their marketing programs to appropriate groups, rather than relying on mass-marketing campaigns. Companies who study their customers’ preferences and react accordingly gain distinct competitive advantages.

Firms in service industry, from retailers to hotels to airlines, are among the leaders in relationship marketing. Their staff members have many opportunities to meet customers personally and build loyalty and repeat business. Rewards for frequent buyers of a firm’s goods or services, such as hotel programs that reward frequent visitors with free room stays and other travel documents, are another form of relationship marketing.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Bases for Market Segmentation


Two broad types of variables are commonly used for market segmentation. Socioeconomic characteristics of consumers, such as gender, age, occupation, income, family life cycle, education, and geographic location make up one type. The other type consists of behavioral variables, including benefits sought from products and services, usage behavior, lifestyle, and attitudes. For industrial buyers, socioeconomic characteristics may include company size and location, and industry or customers served. Behavioral variables may include purchasing objectives and practices as well as product and service benefits. The appropriateness of any one or combination of variables in a specific situation will depend on whether or not a variable relates to purchasing, use, or consumption behavior and responsiveness to marketing programs.

The choice of variables to use to segment a market often depends on insights into buyer behavior, provided by creative research. Even people with similar usage needs often have differing lifestyles representing various value sets. For example, some people have an active lifestyles in which sports and fitness play an important role, while for others arts, fashion and trends may be very important.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Advice to Entrepreneurs


Whether it is the best of economic times or the worst, being an outrageous consumer debt is fundamentally a foolish way to live. If you have that problem start making amends. Go on a money diet. Study your spending habits to see where you waste money. Is it eating out? Ordering in? Impulsive buying? Talking on the telephone? Too many ritual splurges? Take the money you would otherwise fritter away and apply it to your credit cards—one outstanding balance at a time. Of course, you don’t want to penny-pinch yourself into a state of low-grade misery, but you do want to get into the habit of living lean. Consider it a preset for the lifestyle you may need to adopt in the early stages of your business.

Reducing your debt serves several purposes: 1) starting a business is anxiety-producing and debt-incurring enough without beginning it with a lot of extra-business bills; 2) the closer to zero your charge card balances are, the more available credit you’ll have for business purchases and cash advances; 3) should you need a bank loan to capitalize your venture your prospects will be all the better.

If you don’t have a lot of credit card debt but are presently paying off a small loan (personal, educational, home equity) that is open-ended, go on the same diet and get rid of it. That is, beef up your payments against the principal of the loan in order to pay it off ahead of schedule and save yourself some interest payments in bargain.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight