Summary: This article looks at post research segmentation variables – specifically, identifier variables.
As mentioned earlier, segmentation variables can be broadly classified into two categories – identifier variables and response variables.
Identifier variables are used after response variables to define who the members of a segment are. These are of great use when it comes to communicating value to the market, because they tell us exactly who people are. Of course, we also need to know who we are creating value for, which is why we include them here in the identifying value Chapter.
They include -
- Location.
- City and city size.
- Population density.
- Climate.
- Demographic age.
- Family size.
- Family life cycle (e.g. age, martial status, children etc).
- Gender.
- Sexual orientation.
- Income level.
- Occupation.
- Education level.
- Religion.
- Race.
- Generation.
- Nationality.
- Social class.
- Psychographic lifestyle.
- Personality.
- Behavioural occasions.
- Status.
- User cycle – first time buyers etc.
- Buyer readiness stage – e.g. heard of product, unaware, interested, desire it etc.
- Attitude – enthusiastic, positive, indifferent, negative, hostile etc.
These are bits of background information, so demographics, geography, psychographics (internal drivers of consumer behaviour), product preference, purchase frequency, and channel are collected and tracked and help us build profiles of segments, but the segments are always, first and foremost, built around jobs and outcomes based segments drawn up for response variables first. We may well find that within each jobs based segment there is other meaningful data – such as 90% of economy buyers are males 45 – 60 living in the North – but this is secondary data – the response variables are always used to create the jobs based segments first!
We must never segment initially by demographics, or by product or service, as many people may buy the same product when they have very different jobs to be done. So we would never say – “all people with black hair over 60 is one segment of our market” – as there are simply is no common jobs and outcomes that binds them together.
Identifier variables are especially important when you look at who the Key Players are – buyers, users, payers, key influencers, and final decision makers – because then you know where to find them.
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