Demographic segmentation divides the market into smaller categories based on demographic factors, such as age, gender, and income. Select One: A Behavioral Characteristics B. One reason is that consumer needs, wants, and usage rates often vary closely with the demographic variables. 1. It refers to statistical data about a group of people. It includes age, gender, family status, occupation, income, race and religion. Therefore, with these variables in mind, an organization can choose which consumer they will accommodate. This customer segmentation strategy is commonly used because it’s easy to obtain through consumer insights, census data, social media, and more. In this way, not only the company will benefit from the product but the purchasing power of customers will also not be affected. We use cookies to give you the best experience on our website, deliver our services, personalize content, and to analyze traffic. The Starbucks company also target teenagers from 18 to 24. This is because needs and wants naturally change as a person grows older. Demographic segmentation is one of the most popular and commonly used types of market segmentation. Beyond business and marketing, demographic segmentation is a phenomenon that is applicable to different aspects of life. Examples of Demographic Segmentation in Marketing Segmentation by Family: When marketing items like diapers and cereals, organizations typically create advertisements that appeal to the traditional young nuclear family structure – father, mother, and children. Demographic segmentation slices the market on demographic variables like age of the customer, gender, income, family life cycle, educational qualification, socio-economic status, religion etc. The segmentation variable should relate to customer’s needs for, uses of, or behavior toward the product. Within each of these types of market segmentation, multiple sub-categories further classify audiences and customers. That is, what appeals to individuals in a particular age group may not appeal to members of a different age group. Demographic segmentation definition. Demographic variables include the Age, Sex, Income, Educational level, Social status etc. They can better understand the prospective market, and use advertising personalization to ensure the needs of the targeted group are fulfilled: This customer segmentation method is one of the most commonly used because it’s easy to acquire through census data, analytics software, consumer insights, and more. When you know the income range of consumers, you can usually find data to support how people spend money on both the higher and lower end of the spectrum. Demographic Target Audience Segmentation Factors: The demographic factor is a set of characteristics of the audience, such as age, gender, ethnicity, education, religion, economic, status, and group membership. Definition. Take wristwatches for example. Age is the most basic demographic segmentation variable. Demographic Variables Market Research. Age is the most basic variable of them all, albeit the most important because consumer preferences continually change with age. They then develop an analysis of what motivates consumers to buy products. It is quite low costor sometimes free to attain 3. Geographic segmentation is a process of …, Market segmentation divides the target market into subsets of consumers …, Mass Marketing – Definition, Pros, Cons & Examples, Segmentation Targeting Positioning – STP Model, Geographic Segmentation Definition Examples & Variables, Brick and Mortar Business – Meaning, Challenges …. National Income C. Lifestyle D. All Of Them E. Attitude. Gender segmentation is widely used in areas of fashion and clothing, cosmetics and beauty products, health services, and even some food and beverage items. Personality describes the collection of traits that someone consistently exhibits over time. First, consumer needs, want, and usage … She is a graduate of St. Bonaventure University with a Bachelor’s degree in Journalism and Mass Communication. There are three main psychographic targeting variables, each of which is broken down into subcategories. That’s what you should keep in mind when segmenting on psychographics. They purposely targeted them on Facebook for the most engagement and click-throughs. Demographic marketing segmentation is best used to identify which population of people are most suitable for your product and when you’re ready to scale and reach new markets. Demographic Segmentation: ADVERTISEMENTS: Demographics are the statistical description of population characteristics in terms of age, gender, income, education, family size and so on. Demographic Segmentation: A Customer’s Profile Demographics are the breakdown of your customer personas in the market for cursory traits like age or gender. 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. Segmentation variables can be grouped into four categories: demographic, geographic, psychographic, and behavioristic (Pride/Ferrell, (2006), p. 209). This is one of the most common segmentation practice among marketers. Shein has the right idea with their Facebook ad: They created this ad specifically for women (hence the women’s swimsuits and the “for women” in the description). This helps in creating groups exhibiting a similar … Demographic segmentation can also optimize your resources and time because distributing personalized marketing messages to each slice of your target market will resonate with more people and lead to more conversions than spraying a generic message to your entire target market. Large families might be more interested in low-cost household products, as compared to a couple with the same income, but without any children. To create a complete profile you want to understand your customers. For example, baby products from Mothercare a British retailer for mother and babies, are directed towards married couples who have or expectedly will be having a family and will require purchasing baby products. Demographic segmentation involves dividing the market into groups based on different variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, and nationality. Age; This is an important factor for market demographic segmentation because consumers' needs and preferences differ in line with their ages. Segmentation variables are basically the factors which help the firm determine the target group. Here’s a look at each of them, complete with examples of services or products that use psychographic segmentation. Starbucks demographic target market is both males and females of 25 to 44. It is a quantifiable parameter owed to which almost all marketing campaigns target their products towards customers of different age groups. The other types of segmentation are demographic segmentation, behavioral segmentation, geographic segmentation. Learn all about psychographic segmentation definition, variables, examples, and advantages to implement it for your target market. Demographics: This is the most common way businesses segment their customers. 4.1.2 Demographic Segmentation: We can do demographic segmentation on basis of different variables such as age, gender, income, occupation. 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 Variables Market Research. This would be most easily observable in the areas of fashion, where … Many companies use this data to sell different tiers of the same product, based on income level. Demographic segmentation is the market segmentation strategy in which the total market is divided on the basis of customer demographics. Demographic segmentation allows you to provide a more … Of the four main types of marketing segmentation, today’s article focuses on demographic segmentation. In the United States Starbucks has more 13000 locations. It refers to statistical data about a group of people. Broad factors ysis exles and demographic segmentation importance top 7 demographic survey ions for market segmentation definition bases what is market segmentation how to use. The data may cover the entire population, especially if it has been obtained through government census 4. This is because consumer needs and wants change with their age. After all, you wouldn’t promote a Mercedes or Ferrari to someone who can’t afford a used vehicle with more than 100,000 miles. But we will mostly focus on people whose age is 35 or above for … One of the basics of market segmentation is demographic variables. Gender segmentation is another common market strategy, where customers are divided into categories of male and female. Demographic segmentation is important because several variables directly influence demand. They tend to have distinct ways of speaking and often spend their time on separate platforms. This could impact both their response to marketing and their buying habits. Age is the most basic variable of them all, albeit the most important because consumer preferences continually change with age. The first step of bringing your product to the market is to find out who will be interested. They aim certain clothing lines at specific age ranges, such as a chic fashion line at younger prospects and a more formal and elegant line at older individuals. Income targeting lets you measure the buying power of your audience. The segmentation of customers based on Psychographic variables focuses on subjective traits and behaviours, unlike Geographic and Demographic variables which are objective and measurable. Combining various types of marketing segmentation creates even more powerful, ROI-producing campaigns. Psychographic segmentation divides buyers into groups based on their knowledge, attitude or … process of dividing your market into segments based on things like ethnicity It connects your brand, messaging, and general marketing strategies with the psychology of your customers. For instance, airlines have three classes: economy, business class, and first-class. Psychographic segmentation divides buyers into groups based on their knowledge, attitude or responses to a product: Target market; a set of buyers sharing common needs or characteristics that the company decides to serve: Demographic segmentation divides buyers into different groups based on asocial grade, lifestyle or personality characteristics The different demographic segmentation variables with examples. Demographic segmentation can be seen applied in the automobile market. Nike demographic segment based on women and young athletes and showed tremendous sales figures in 2015. Demographic segmentation is one of the most popular and commonly used types of market segmentation. Stephanie Mialki is a Content Writer for Instapage. 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. Demographics have been used, such as age, gender, height, weight, race and social class. Also, women typically do most of the household grocery shopping and are more likely than men to donate to charitable causes. Psychographic Variables: The psychographic variables include the personality traits, perception, and attitudes, Reference Groups like family and friend circles, and Social roles of the … 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. 4.1.2.1 Age: From our survey, we found most of the people think Jeera pani helps with digestion. Designer products thus are priced high, rendering them purchasable only by the high income individuals, and placing them out of reach of other lower income market segments. Couples with several children have different needs than those who just had their first child. Demographic Market Segmentation Examples Age; Gender For instance, few men apply makeup, and most women don’t wear boxers. Psychographic segmentation has 5 variables – Personality, Lifestyle, Social Status, AIO (Activities, Interests, Opinions), and Attitudes. When companies market a product by region, they must keep in the mind the regional preferences heavily in one region as compared to other regions, this type of segmentation is referred … Demographic Segmentation Demographics are statistical data that describe various characteristics of a population. The segment can be based on age, marital and mental status, gender and income level. Demographicsegmentation is the most often used approach because we can count the number of individuals within a segment who have similar characteristics such as gender, age, educational background, marital status, occupation, and income. As befits such an important decision, an enormous amount of work has gone into exploring all manner of different segmentation variables. Conclusion. Demographic segmentation slices the market on demographic variables like age of the customer, gender, income, family life cycle, educational qualification, socio-economic status, religion etc. Worthy of note is the fact that demographic market segmentation variables are the most popular bases for consumer market segmentation. Get the latest trends, tactics, and thought leadership for advertising conversion and post-click automation. Solved My … It’s also considered by many businesses to be the cheapest way to divide a target market. Companies consider this way to be the least costly way to segment their target market. 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. (1)Geographic segmentation is based on geographic location, such as region, state, or city. The choice of segmentation variables is one of the key strategic decisions when segmenting a market. Spending your time and money on seniors would be a waste. Here’s an Instagram ad that is both age- and generation-targeted, since many millennials in their 20s and 30s use the “Wife, mom, boss” phrase: In addition to age segmentation, Brooklyn & Barnes presumably uses gender, occupation, and family segmentation (more on these below). This type of customer segmentation bases the groupings according to certain statistical data about the characteristics of populations, including the variables discussed in detail below: age, gender, household size, marital status, income, education level, occupation, and ethnicity. … market segmentation variables for segmentation purposes, these include: 1 a short time for market and! 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