Wednesday, October 3, 2007

Word of the Day: Geodemography

GEODEMOGRAPHY refers to where people live, how they earn and spend their money, and other socioeconomic factors that influence buying decisions. In Marketing, the study of demand related to geographic areas assumes that people who live in proximity to one another also share similar consumption patterns and preferences.

Shoppers, whether Sunday-at-the-mall-browsers or high-end-technology-solution-purchasing agents at XYZ, Inc., now expect retailers to provide an ‘experience’. They expect to be entertained as they shop and sellers who are looking to show the value that they provide are looking to display what The Future Laboratory refers to as ‘masstige’: the requirement to mass prestige.

In an attempt to create value for shareholders, high-end brands (i.e. Mercedes) are reaching lower, whilst lower-end brands (i.e. Gap) are reaching upwards. Brands across all industries and marketplaces are going to great lengths to create a experiences and perceived solutions that serve a targeted "identity" of buyer.

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