Required fields are marked *. Demographic segmentation is the process of dividing your market into segments based on things like ethnicity, age, gender, income, religion, family makeup, and education. Similarly, high-end designer products target the high-income customers, offering them unique one of a kind product. Famous fashion designers such as Chanel, Gucci and Burberry all formulate their fashion collections targeting demographic market based on age, gender and income. The difference between a quiz and a survey is that with quizzes, people want an outcome. Levels of Measurement: Nominal, Ordinal, Interval, and Ratio Scales, What is Market Segmentation? Now, this brand would target marketing managers working in large companies with a big employee base, who would be responsible for making purchase decisions. The most common example of using psychographicsegmentation by luxury vehicle corporations. Let’s say you offer continued education and skills acquisition for older customers (40+). Demographic segmentation is based on measurable characteristics of populations which includes all of the following examples except: A) Asia is home to 500 million consumers aged 16 and younger. Males and females tend to have different preferences. Products that practice income based demographic segmentation include all designer labels. Log into your analytics tool and check if it’s gathering the data. Luxury vehicles are pricey but add incustomization options and it’s a whole new level. Age- Nappies are for infants (0 to 12 months), puzzles for kids (3 to 8 years), calculators (15 years and above), walking sticks (60 years and above) etc Demographic segmentation involves grouping according to race, age, gender, family size, and more.. For example, some businesses are targeted only to women, others only to men. Are the majority of your customers likely to be in a specific education or occupational segment? With that, you can choose the right social media platforms, create better marketing material, and grow your subscriber base more quickly. Here are some examples of market segmentation to prove this point. Look into other types of segmentation such as behavioral and psychographic to build a better persona of your ideal buyer. Demographic segmentation is the most common type of market segmenting as it is clearly identifiable. I am studying an online course in marketing, and I have gained further understanding of demographic segmentation. While this may be true on the surface, it’s always a good idea to niche down and serve a group of people more closely. Demographic segmentation separates your target market into specific, accessible groups of people based on personal attributes like geography, age, education, occupation, and income. You wouldn’t target a family cruise at individuals and you wouldn’t target a night club or dating service towards couples. Geographic segmentation looks only at the physical location of a prospect, whereas demographic segmentation looks at specific traits. Demographics is the practice of identifying groups of people in a population by their characteristics. When should you use demographic segmentation? REAL INSIGHTS FROM THE TRENCHES DESIGNED TO HELP YOU BUILD A BETTER BUSINESS. Customer Segmentation. Simply open your GA account, click on audience ->demographics -> overview. For example, if you’re selling premium online courses for photography, the gender of your audience isn’t as important as their age or income. Of course, you should be rewarded for all of your hard work […]. Messages targeted at them are flashy and abstract because their future is still up for grabs. A fashion brand would care more about gender but a software company that sells to other businesses may care more about income. Older millennials and the 30+ crowd are more secure in the knowledge of what they want and need. Marketing segmentation has always been important. Occupation is obvious for trade magazines but not as useful for general consumer products. You can’t get away with asking seven demographic questions and calling it a day. Very informative. This is something the average family can’t afford.That’s why these companies segment their audience based on personality, s… This company would likely target an audience that has a higher income. An example of how companies use demographic information would be the travel industry. Geography. You may not be able to get demographic information for every one of your customers or audience members. Facebook boasts 2.01 billion active users per […], November 11, 2020 | Conversion rate optimization, Here’s a quick question. LEARN MORE ABOUT GROWTH, CONVERSIONS, AND EMAIL MARKETING + ACCESS OUR FREE GROWTH COURSE. Different products differ based on gender, and since companies are focusing on female customers equally as on male customers, majority of products offered in the market are divided based on gender segmentation. Example Demographic Segmentation of Nike. This site uses Akismet to reduce spam. With that, you can craft clear messages that work – every time. Some companies choose to only serve one gender or the other. A medical journal would naturally appeal to Doctors, nurses, pharmacists, and related educators. Demographic segmentation factors (and examples), Demographic segmentation frequently asked questions (FAQ). Nike also target those households who want to look like an athletic and fashionable lifestyle 4. Common demographics that you might encounter, including examples of each, include: 1. That’s alright. Consider the following examples: Age group can be … One of the first variable of demographic segmentation is age. You can consider various variables while conducting demographic market segmentation. Demographic segmentation examples explain how researchers divide a market into smaller groups according to age, gender, family income, race and ethnicity, qualification, marital status, nature of employment, etc. They want a unique car, a guaranteed way to stand out and show-offtheir lavish lifestyle. Here are the most commonly used demographic segmentation variables: 1. The different demographic segmentation variables with examples. For example, the four types of segmentation are Demographic, Psychographic Geographic, and Behavioral. 1. Demographic Segmentation In Marketing 1105 Words | 5 Pages. Life Cycle is another parameter of demographic segmentation used by companies to divide potential customers. For example, among human beings, males are one demographic and females are another demographic. If a product centres the middle income market, its price level will consider the income of that target market. Demographic segmentation is an excellent way to provide relevant and targeted messaging to potential customers and existing customers alike. Females are greatly underrepresented. 1. The company core considered to be education and an average age of 42. It helps businesses to show the right advertising to the right people – for example, only customers in Omaha need to receive ads about the Omaha state fair. Marital Status 6. The person who’s willing to pay half a million dollars may tell them to improve the performance or the finishing. Your email address will not be published. Race 3. The needs of families are different when compared to the needs of individuals. Example of Demographic Segmentation. Example Demographic Segmentation of Nike. Whether it s to launch a new product or introducing changes or implementing new services, businesses need to stay on board and up to date with this ever-changing market. It is not possible for a marketer to address the mass with same marketing strategy. 2. There are companies use age and life-cycle segmentation to determine the marketing approach. They have cars that start at forty thousand dollars and ones that start at half a million dollars. We can all point to common grade school experiences. Psychographics is often more helpful to marketers but more difficult to target. If you don’t segment like this, you may get feedback from people who would never buy. They almost exclusively use female models to showcase their products and the looks you can achieve. They’re an email marketing company that targets creators. They have to be able to afford your courses and age can give you an idea of their willingness to learn a new skill. It makes it easier to tailor your messaging to their needs. There are commonly accepted age groups for marketing and advertising purposes: Age plays an important role in where and how you market your products. These brands follow a market segmentation strategy where different fashion clothing lines are offered for different age groups, e.g. Together, our education and occupation influence our buying decisions. Do a bit of research to inform which channel you should spend the most time on. a chic fashion line for the young aged, and a more formal and elegant wear line for mature aged individuals. This first segmentation example uses age group (demographics) and then benefits sought to construct nine different market segments. We are using cookies to give you the best experience on our website. As soon as someone lands on your websites do they know what you’re all about? It just means that all their decisions are informed by the main group they target. 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