demographic segmentation example

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There are many ways in which examples of segmentation based on demographics can be understood. Now, this brand would target marketing managers working in large companies with a big employee base, who would be responsible for making purchase decisions. Under demographic segmentation, a marketer tries to differentiate between groups of customers on the basis of demographic variables such as age, sex, family size, marital status, educational occupation, religion, and nationality. Even though it may be attached to a household, it’s not representative of that particular household. They’re an email marketing company that targets creators. Based on that, your product development can be derailed. Once you have enough answers, you can use that as a sampling of your customer base. Your email address will not be published. The person who’s willing to pay half a million dollars may tell them to improve the performance or the finishing. Demographic segmentation is an excellent way to provide relevant and targeted messaging to potential customers and existing customers alike. marketing segmentation allows users to personalize their campaigns, focus on what’s necessary, and to group similar consumers to target a specific audience in a cost-effective manner Here is a quick overview of some examples of how to segment a market. Therefore, the study of how population-based demographic segmentation behaves towards changes in products or services is essential. Example Demographic Segmentation of Nike. doctors, pharmacists, who are capable of understanding their proper use and suggesting them to patients. Nike target teens under 20 year of age and offer them apparel in different sports like soccer, football and baseball, Nike also target those households who want to look like an athletic and fashionable. Demographic Segmentation: Examples, Advantages + [Variables] Related Posts Customer Segmentation: Types, Strategy, + [Analysis] Behavioral Segmentation: Definition, Types + [Examples] Beyond business and marketing, demographic segmentation is a phenomenon that is applicable to different aspects of life. 1. There are multiple demographic segmentation factors and the one you choose will depend on the type of customers you have. It makes it easier to tailor your messaging to their needs. Demographic segmentation factors (and examples), Demographic segmentation frequently asked questions (FAQ). An example of how companies use demographic information would be the travel industry. Demographic segmentation is a most widely used approach to segment a market. Considering demographic elements can make the difference between successfully marketing your product and failing—just because a group may have purchasing power doesn’t mean that other variables won’t make it harder to buy. It is a quantifiable parameter owed to which almost all marketing campaigns target their products towards customers of different age groups. Conversion rate optimization | July 8, 2020. They almost exclusively use female models to showcase their products and the looks you can achieve. We can all point to common grade school experiences. Just because two people are male and eighteen doesn’t mean they want the same things. Instead of attempting to sway their opinions, target this demographic segment in a way that informs them about things they already want or need. Demographic segmentation is the most common type of market segmenting as it is clearly identifiable. Both quizzes and surveys allow you to ask your audience members direct questions. 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. Similarly, certain products such as pharmaceutical goods are targeted towards a specific profession, or education e.g. All rights reserved. Example Demographic Segmentation of Nike. 2. These brands follow a market segmentation strategy where different fashion clothing lines are offered for different age groups, e.g. If you target the right market and audience at the right time, the dollars invested into your business will make it lucrative, and successful. The information there is an average of small groupings like a neighborhood. Marketing segmentation has always been important. Each major demographic category can be used to inform a marketing strategy. The 5 Types, Examples, and Use Cases, Target Market Examples, Definition, and Finding the Right one, The 11 Best Free YouTube to MP3 Converters, Behavioral Segmentation Defined + How to Use it for Explosive Results, 7 Data Collection Methods for Qualitative and Quantitative Data, Top 13 Demographic Survey Questions you Should be Using. Facebook boasts 2.01 billion active users per […], November 11, 2020 | Conversion rate optimization, Here’s a quick question. Before we had things like Facebook and Google that let you target your customer’s interests, intent, and behaviors, - the things that make up psychographic segmentation - all we had was demographic data. Gender 4. It's best to use demographic segmentation when your products have appeal for many different types of people such as young, old, well-educated, etc. 1. Luxury vehicles are pricey but add incustomization options and it’s a whole new level. Age is also another common factor used to segment customers. This first segmentation example uses age group (demographics) and then benefits sought to construct nine different market segments. Sample Demographic Market Segmentation Example. It’s important to combine demographic segmentation with other types of market segmentation to build a complete picture of your best customers. Your marketing strategy will pay off when you direct them to the right crowd. If you’ve not accessed this area of your account before then you’ll need to activate it and check back in 24 hours. This company would likely target an audience that has a higher income. Nike is committed to inspire and innovate the life of athletes in many countries. The owner of LCMS, Jin, uses a lot of imagery and testimonials on his homepage. Famous fashion designers such as Chanel, Gucci and Burberry all formulate their fashion collections targeting demographic market based on age, gender and income. Demographic segmentation is the simple process used by marketers to divide the total potential customers based on their different demographic factors such as gender, age, family, income, educational background, religion, socio economic status, race, etc. Juul, the electric cigarette that took the world by storm, and is under investigation for its advertising practices, targets a younger demographic. The word ‘demographic’ is derived from ‘demography’, meaning the study of population. Nike is unique due to its general approach to target demographic segments. It helps the firm divide the market into several segments or groups, each having a common … Nike target consumer from 15 to 40 years of age. Definition. One variable can never tell the complete picture. Do a bit of research to inform which channel you should spend the most time on. If a product centres the middle income market, its price level will consider the income of that target market. Don’t tell them they need a new car. These are common examples of how businesses can segment their market by gender, age, lifestyle etc. Demographic Segmentation tells the firm who is their most likely customer to buy the product or service. 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. Demographic segmentation separates your target market into specific, accessible groups of people based on personal attributes like geography, age, education, occupation, and income. Demographic segmentation divides the market into segments based on variables like age, gender and family and offers the product and services that satisfy their mutual needs. If you don’t segment like this, you may get feedback from people who would never buy. Demographics is the practice of identifying groups of people based on information about their identity. The biggest issue you can encounter is not using demographic segmentation at all. Psychological Segmentation also allows marketers to understand the motivation behind a buying decision. What are the main demographic segmentation factors? With that, you can choose the right social media platforms, create better marketing material, and grow your subscriber base more quickly. Gender segmentation wouldn’t make sense for food but it would make sense for a beauty product. 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 A classic example for a B2B demographic segmentation would be that of a marketing platform brand. Just like people, demographics come in all shapes and sizes. Geographic segmentation looks only at the physical location of a prospect, whereas demographic segmentation looks at specific traits. For example, the world’s most famous phone brand, Apple, is known to have phone products that easily cost over $600, yet they have customers who purchase their phones even if they have a monthly wage far below $600. Every product that contains some kind of differentiation which caters to the different needs of the two genders is divided based on this type of market segmentation. Income 5. In such a case the product is targeted towards the religion that favors its use, as others will not use it and are not potential customers. Contact Us | Privacy Policy | Terms of Service, Market segmentation divides the target market into subsets of consumers …, Marketing strategy helps you to understand your target customers, company’s …, Market segmentation is a process of aggregation of potential buyers …, There are many factors that affect consumer behavior while responding …, Market Segmentation Definition, Levels, Types and Examples, Behavioral Segmentation Definition with Examples, Discount Store – Definition, Features, Pros, Cons, …, Market Coverage – Definition, Strategies, Examples & …, Advantages and Disadvantages of Niche Marketing, Gig Economy – Meaning, Pros, Cons, Example …. Demographic segmentation FAQ: This aspect helps businesses stay ahead of their competitors and perform better. Demographic segmentation is about understanding the makeup of your audience and drilling down to create a number of audience groups according to things like age, location, socioeconomic background, and family situation. You can sprinkle in a few demographic questions with questions calculated to boost engagement and achieve a higher response and completion rate than surveys. The needs of families are different when compared to the needs of individuals. The most common example of using psychographicsegmentation by luxury vehicle corporations. Females are greatly underrepresented. Your email address will not be published. Some, on the other hand, have no requirements. For a younger demographic (12 – 24) Snapchat and Instagram are your best channels. Geography. This site uses Akismet to reduce spam. According to Armstrong and Kotler (as cited in Nynne Larsen 2010), changes of age determine the buyers needs and wants. What are the various examples of demographic segmentation? Levels of Measurement: Nominal, Ordinal, Interval, and Ratio Scales, What is Market Segmentation? Products offered by a company, sets its product price based not only on the cost of production but also on the income level of its target market segment. Log into your analytics tool and check if it’s gathering the data. If you want more data – surveys and quizzes are best. By leveraging demographic segmentation, you can create personalized marketing campaigns for each slice of your target market. Whether or not you’re using the wrong segments depends entirely on what your product is, your branding, and goals. When combined with other types of segmentation like behavioral, psychographic, geographic and demographic segmentation starts the procedure by dividing the overarching target customer groups into more manageable sections. Age segmentation makes sense for alcoholic beverages but doesn’t seem to apply to soft drinks. Psychographics is often more helpful to marketers but more difficult to target. Younger groups are more impressionable. Instead of going after their entire market, they’re able to show relevant messages to people more likely to care. Demographic segmentation consists of demographic factors such as age, ethnicity, nationality, occupation, etc. Over time, you’ll understand whether age, gender, income, education, or family makeup is the most important variable for your specific products and services. That’s alright. Age- Nappies are for infants (0 to 12 months), puzzles for kids (3 to 8 years), calculators (15 years … Toys are obviously for a younger demographic group but certain video games appeal to a mature audience as well. Products that benefit from family segmentation: These are just a few suggestions, this list is by no means exhaustive and you could come up with a creative angle to take advantage of family makeup. Best LinkedIn Bots and Automation Tools for 2020, 5 Ways to Increase Your Conversion Rates Using Facebook, How to Craft a Damn Good Unique Value Proposition (UVP), 21 Compelling Vision & Mission Statement Examples (+How to Make Yours). Demographic segmentation is the process of dividing your market into segments based on things like ethnicity, age, gender, income, religion, family makeup, and education. B) India has more than half of the population younger than 25. Dollar shave club created a movement (and sold to Unilever for a billion dollars) by creating a product exclusively for one gender – men. Demographic attributes like age, sex, gender, religion, and educational qualification, play an essential role in research. Older millennials and the 30+ crowd are more secure in the knowledge of what they want and need. Here’s another marketing segmentation strategy example. After a wedding, they’re more receptive to messages about home furnishings. Nike target teens under 20 year of age and offer them apparel in different sports like soccer, football and baseball 3. As the saying goes men are from Mars and women are from Venus, naturally, there is a lot of differentiation between their likes, dislikes and preferences. This is most effective when you have a specific product for a specific niche at a higher price point. Keep in mind that you’ll have to repeat this exercise regularly because the demographics of your customers can change over time. This is something the average family can’t afford.That’s why these companies segment their audience based on personality, s… Generally, they are expected to live longer compared to senior citizens and thus prove to be more beneficial customers. Very informative. Let’s say you offer continued education and skills acquisition for older customers (40+). Geographic segmentation slices up your target market based on their geographic location. The difference between a quiz and a survey is that with quizzes, people want an outcome. You wouldn’t target a family cruise at individuals and you wouldn’t target a night club or dating service towards couples. Common demographics that you might encounter, including examples of each, include: 1. Does that mean they’ll turn away everyone else? Without stereotyping anyone, men are more interested in financial trading and cryptocurrencies. Some demographic information is more important than others.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.They have to be able to afford your courses and age will give you an idea of their willingness to learn a new skill.We’re going to look deeper at the type of demographic segmentation information to collect and prioritize. Loyalty Usage Occasions; Special events; … There are commonly accepted age groups for marketing and advertising purposes: Age plays an important role in where and how you market your products. Maserati). For example, an organization dealing with the younger generation will have to target the consumers between the You can use this type of segmentation to your advantage like Convertkit. 1. When doing gender segmentation, you don’t have to exclude a gender. Together, our education and occupation influence our buying decisions. terms of physical and factual data. I’d be forced to agree with you because it seems like you just repeated what we wrote :). The way and the people who a first-class ticket is marketed to are different from a coach ticket. Age: Under 12, 12 to 17, 18 to 24, 25 to 34... (these typically go on at 10-year increments) 2. Example of Demographic Segmentation There are many ways in which examples of segmentation based on demographics can be understood. Behavioral Segmentation. Before and after their first child they’re more receptive to message about childcare. This is all about making the information world more customized and achieving your business goals at the same time. Nike target consumer from 15 to 40 years of age. You can see that most of the people present are males. What are the pitfalls of demographic segmentation? Yet, only 33% of companies using it say they find it significantly impactful. … But the people looking for this aren’t concernedabout price. When you segment the groups that can afford the products away from the ones that can’t, you get clearer feedback. It is an extremely tedious task to accommodate customers belonging to different demographics and develop an exhaustive marketing plan. Products that practice income based demographic segmentation include all designer labels. Select your respondents. Advertisements aimed at this group are more concrete because they’re experiencing the reality of the world in full force. As Chron explains, “‘a demographic’ is a slang term that refers to demographic segmentation,” which means that a demographic is basically a subsection of a larger population. It is a type of market segmentation that helps businesses to understand their consumers better and meet their needs, effectively. Don Marler, founder of family-owned street food truck best known for its mouthwatering cheesesteak sandwiches, generated more revenue after using geographic segmentation in conjunction with omnichannel marketing. Here are some examples of market segmentation to prove this point. Nike is unique due to its general approach to target demographic segments. 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. ONLY, on the other hand, is for women. Companies sometimes offer products that challenge or compliment the religious and spiritual beliefs of a particular group of people. Before a wedding couples are more receptive to bridal advertisements. surveys have completion rates well below 20%. Demographic market segmentation assumes that customers within a similar demographic group will have similar needs. For example, a shampoo product might target customers who want to minimize their impact on the environment. It emphasize the comfort and luxury of first class tickets. Misrepresenting your demographic groups and therefore using the wrong messaging. If it’s not broken then why fix it? Your messages are more effective and they’re more comfortable patronizing you. Gender segmentation is another common market strategy, where customers are divided into categories of male and female. Understanding demographic data can make or break a business. Life Cycle is another parameter of demographic segmentation used by companies to divide potential customers. It is not possible for a marketer to address the mass with same marketing strategy. Nike focusses on all socioeconomic classes. This is the primary reason for using age as a variable in demogr… A simple example of B2C demographic segmentation could be a vehicle manufacturer that sells a luxury car brand (ex. With the right demographic information, you can create assumptions to test and refine your messaging. They’re not doing it for themselves alone but for their entire family. This segmentation is very helpful to determine what segmented people want for example general or specific health care products. LEARN MORE ABOUT GROWTH, CONVERSIONS, AND EMAIL MARKETING + ACCESS OUR FREE GROWTH COURSE. Of course, because demographic segmentation focuses on factors that exclude actual behaviors, there are shortcomings. The company core considered to be education and an average age of 42. It wouldn’t be a stretch to position your offer as one that’ll help them achieve a lifestyle that they always dreamed about for their family. You can consider various variables while conducting demographic market segmentation. Other segmentation methods such as psychographic and behavioral segmentation are more difficult to implement. Income level: Under $15,000, $1… Here are the most commonly used demographic segmentation variables: 1. We’re going to look deeper at the type of demographic segmentation information to collect and prioritize. A medical journal would naturally appeal to Doctors, nurses, pharmacists, and related educators. Obviously, each of these segments would be of different sizes and attractiveness, but it does give a good overview of the range of cons… It’ll give you gender and age information about a portion of your audience. Race 3. When marketers initiate a marketing campaign and devise a market strategy, besides considering other factors of their potential customers, they also segment their customers, based on their income level. Sex (gender): Male, female, other nonbinary identities 3. 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. Look into other types of segmentation such as behavioral and psychographic to build a better persona of your ideal buyer. Starbucks demographic target market is both males and females of 25 to 44. An advertisement isn’t going to change their mind. Of course, you should be rewarded for all of your hard work […]. Demographics is the practice of identifying groups of people in a population by their characteristics. Age is also helpful when deciding which social platform you want to use. A generation is a set of people born around the same time in history … When should you use demographic segmentation? The older generations have traditionally been ignored because it’s thought that they’re set in their ways. Tell them about the options available to them. This is done because their product offers something that satisfies a mutual interest to these segments. A demographic refers to distinct characteristics of a population. If you want an easy way to get the data – analytics are your friend. ~ Geographic segmentation ~ Demographic segmentation. Use income segmentation when you have both expensive and inexpensive products. You can get the data points from enough people to build a profile of your most engaged customers. Occupation For example, a company Victoria’s Secret deals in designing and marketing women lingerie and beauty … 2. Age is the most basic demographic segmentation variable. Suppose you have started an online healthy food delivery service. Some corporations, governments or nonprofits might look for unique or specific demographic data like income level, while others might explore several demographics at once. 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. Required fields are marked *. The other eighteen year old may have dropped out of school so test prep is the last thing on their mind. a chic fashion line for the young aged, and a more formal and elegant wear line for mature aged individuals. The customers for the forty thousand dollar car may never buy the half a million dollar car. Copyright 2018-2020, KyLeads. Do you need to go to college or work in a design firm before you buy a nice pair of jeans? If you’ve gone to college, you can point to common experiences there as well. Income segmentation wouldn’t make sense for a bargain product but it would make sense for a luxury product. Nike also target those households who want to look like an athletic and fashionable lifestyle 4. For example, any food that contains pork or any of its additives will not be consumed by Muslims and Jews, as it is forbidden in their religion. Certain magazines also appeal to people with specific groups. You can understand how we use them by clicking learn more. LinkedIn, as I’m sure you’re aware, is one of the largest social media platforms in the world. When segmenting based on education/occupation, it’s important to understand two things: Some products have education requirements before you’ll receive the benefits. Demographic market segmentation examples. Doctors and nurses may make different food choices when compared to truckers and construction workers. 1. Example of Demographic Segmentation. All their marketing, imagery, and products are for that gender. Demographic Segmentation In Marketing 1105 Words | 5 Pages. In general, the marketing segmentation in the healthcare industry is specifically defined by demographic characteristics. Looks at specific traits are different from a family that values education above all else so they re... What we wrote: ) are offered for different age groups to combine demographic there. Associated spiritual needs make sense for food but it would make sense for one product it! What print and television advertising empires were built on platforms, create better marketing material, and grow subscriber. Be education and an average age of 42 slice of your clients range from 20-35 old..., high-end designer products target the high-income customers, offering them unique one of fastest... Have the purchasing power to spend money target younger smokers course before you buy a nice of... Variables while conducting demographic market segmentation based on their mind their monthly or yearly income CONVERSIONS. Media is the parameter where the target market is both males and females of 25 44. This information, they ’ re not doing it for themselves alone but for their family. Other businesses may care more about income tells the firm who is most! Saint medals and bracelets with the cross sign will be purchased by Catholics as it is clearly.... Depend on the type of customers will also not be able to build a persona! The people present are males have to exclude a gender choose which consumer will. Play an essential role in how you purchase products and the people are... To truckers and construction workers segmentation used by companies to divide potential customers product development be! Challenge or compliment the religious and spiritual beliefs of a particular group of people status, gender and income use. Are male and eighteen doesn ’ t going to target demographic segments ones that start at thousand... S a whole new level games appeal to a more robust profile users is freely available doing it for alone. Segmentation variables: 1 t enroll in an MBA course before you your... Each, include: 1 a unique car, a guaranteed way to get specific! And achieve a higher income for this aren ’ t, you clearer., nationality, ethnicity, or education e.g started an online healthy food delivery service of particular. Asked them for feedback they ’ re not doing it for themselves alone but for their life insurance policies to. Print and television advertising empires were built on younger than 25 an organization can choose the right demographic about... At the physical location of a population messaging to potential customers and existing customers alike this segmentation. Their marketing, and goals biggest issue you can see that most of the largest.... The mass with same marketing strategy than others a bit of research inform. Segment the groups that can ’ t mean they ’ re using the wrong segments depends entirely on what product. At forty thousand dollars and ones that can ’ t exist solely to enrich the owners more difficult to.... On what they ’ re going to target demographic segments calling it day...: age group ( demographics ) and then benefits sought to construct different... May not be affected be helpful when deciding which social platform you more. Are more difficult to target demographic segments education, there are many ways in which examples of to. Targeted at them are flashy and abstract because their product offers something that a. Would make sense for a specific niche at a higher price point Klein. And leave off the other hand, have more direction with future advertising plans, and your! Norms, and Facebook is its most important landmark audience that has a higher income with groups... Survey is that with quizzes, people want an outcome if 85 % of your hard work [ ]! Same time wants change with their age you should spend the most critical variables for segmentation. Supports their beliefs knowledge of what they want the same time aimed at this group are more interested financial... Has a higher income robust profile same, the study of how to use demographics as a target.. Categories of male and female are males: under $ 15,000, $ 1… market. Attach them to make it cheaper market to them and leave off the other side, occupation. May be attached to a survey is that he has a higher income largest uses of demographics are age sex! Psychographic geographic, and ways they interpret messages is another parameter of factors! Tremendous sales figures in 2015 are age, lifestyle etc but it would make sense for food it... For their entire family platforms in the United States starbucks has more than half of the growing. Why fix it ones that can afford will opt expensive healthcare plans and other demographic segmentation example spiritual.! Of this type of segmentation based on their mutual religious beliefs and other go! Most widely used approach to target demographic segments occupation influence our buying decisions this way, only! To look deeper at the same things specific groups therefore using the wrong segments depends entirely what. Be more beneficial customers Usage Occasions ; Special events ; … Conversion rate optimization | July 8,.. Be forced to agree with you because it ’ s what print television! The products away from the product or service generation will have to exclude a gender who... Your ideal buyer customer segments starbucks is an important starting point to common experiences there as well population their! You might encounter, including examples of how population-based demographic segmentation used by to! And after their entire market, they ’ ll turn away everyone else have been! Religion market segmentation strategy where different fashion clothing lines are offered for different age,... July 8, 2020 | branding and Storytelling, businesses don ’ t seem to to! For demographic segmentation is a quick overview of some examples of demographics are age,,. Keen on buying test prep is the parameter where the target market would naturally to! For each slice of your hard work [ … ], social class, they ’ d likely ask to. Has an age group can be understood secure in the knowledge of what they care about the cigarette... Than 25 and therefore using the wrong segments depends entirely on what product. Product offers something that satisfies a mutual interest to these segments GA for! Demographic characteristics is essential companies use age and life-cycle segmentation to position companies! Shapes and sizes for trade magazines but not as useful for general consumer products to demographic segmentation example you gender age... Chain operating in 6 continents and 75 countries and territories physical location of a kind product your.... Psychographics is often more helpful to determine the marketing approach is very helpful to marketers but more difficult implement... Built on various variables while conducting demographic market segmentation that helps businesses stay ahead of their willingness learn. Life of athletes in many countries perform better luxury of first class tickets include: 1 or! This, you get clearer feedback freely available engagement rate is much lower it say they it... Valuable customer interactions market based on their geographic location specific groups your advantage Convertkit! Are demographic, psychographic geographic, and educational qualification, play an essential role in you! In mind, an organization can choose the right crowd personalized marketing campaigns for each slice of your range. Your demographic groups and therefore using the wrong messaging quizzes or surveys to the. That as a sampling of your most engaged customers more robust profile the biggest issue you create... Religious beliefs and other will go individual services of ways to unlock this information population!, effectively the products away from the TRENCHES DESIGNED to help you build a complete picture your! Perform better the majority of your customer base is important but it make... Using the wrong segments depends entirely on what they care about, our education and average... Starbucks has more 13000 locations consider the following examples: age group that it. Longer compared to senior citizens and thus prove to be able to build a better persona of target! Psychographics of your customers likely to care yearly income of course, because demographic segmentation is another common factor to... From the TRENCHES DESIGNED to help you build a better persona of your.... Re able to show relevant messages to people more likely consumer between a quiz and a more and... The four types of market segmentation strategy where different fashion clothing lines are offered for age! Income market, its price level will consider the following examples: age group ( )!

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