Deconstructing your Target Audience in a Complex Market
For many marketing experts, the demystification of the target market/audience by their income status has been the gold standard in the practice.
So, we have the ‘A, B, C, D and E’ social-economic classes. The logic is pretty straightforward. If we know what Mr ‘A’ or Mr. ‘Z’ earn, we can easily know what brand they can buy (where, price, place) and or what medium is appropriate to reach them.
As apt as this theory seems, it has been discovered to be a perfectly-flawed logic to understanding the right market/audience with marketing campaigns/brands in a complex market.
To say it the way it is, the defect in the social economic class theory is more particular with Africa and continents (Asia, India sub-continent) where disclosing one’s income is not just an anomaly but a taboo to many.
Researchers found out that most respondents either decline, parry questions or mostly understate their income for many reasons known to them.
However, the paradox becomes obvious when you try to match people’s actual/estimated income with their lifestyles. A civil servant with less than $6,000 annual income is living in a private estate where average annual is more than $8,000 per annum, s/he owns more than three luxury SUVs and travels annually for summer with his/her family.
So, how can a marketer, media planner know the right target audience? Bogged down with this conundrum, media and marketing stakeholders finally deconstructed the problem. Instead of looking at the income, look at the lifestyles of the respondents. That was the Genesis of living standard measurement (LSM).
Researchers now look more into the standard of living, giving points to everything the individual has access to, including tangible assets.
Credits: SBI Media