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. When segmenting based on education/occupation, it’s important to understand two things: Some products have education requirements before you’ll receive the benefits. Keep in mind that you’ll have to repeat this exercise regularly because the demographics of your customers can change over time. Before a wedding couples are more receptive to bridal advertisements. 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. Race 3. If you target the right market and audience at the right time, the dollars invested into your business will make it lucrative, and successful. I am studying an online course in marketing, and I have gained further understanding of demographic segmentation. Geography. Occupation is obvious for trade magazines but not as useful for general consumer products. 2. Are the majority of your customers likely to be in a specific education or occupational segment? 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. Geographic segmentation slices up your target market based on their geographic location. 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. Use quizzes or surveys to get the demographic information and start experimenting with the information you unlock. This describes how customers think as opposed to their social characteristics. Females are greatly underrepresented. That way, you can use your budget to market to them and leave off the other one. Some common variables of demographic segmentsare 1. Demographics is the practice of identifying groups of people in a population by their characteristics. There are companies use age and life-cycle segmentation to determine the marketing approach. Example Demographic Segmentation of Nike. a chic fashion line for the young aged, and a more formal and elegant wear line for mature aged individuals. ~ Geographic segmentation ~ Demographic segmentation. For example, the four types of segmentation are Demographic, Psychographic Geographic, and Behavioral. is essential to addressing their needs. We can all point to common grade school experiences. Demographic segmentation allows you to get more specific with your marketing strategies. Income demographic segmentation is when people are segmented by their monthly or yearly income. 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. Generally, they are expected to live longer compared to senior citizens and thus prove to be more beneficial customers. 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. If you want more data – surveys and quizzes are best. With each tier of education, there are certain experiences they may have had. They have cars that start at forty thousand dollars and ones that start at half a million dollars. A big reason being that many companies depend solely on traditional approaches, such as geographical and demographic segmentation.. There’s no denying that knowing your average customer’s location, age, gender, etc. Without stereotyping anyone, men are more interested in financial trading and cryptocurrencies. For example, among human beings, males are one demographic and females are another demographic. Marital Status 6. They almost exclusively use female models to showcase their products and the looks you can achieve. 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. Audience segmentation is not about just statistics, it’s about finding your ideal clients and choosing the right way of interaction with them. 1. Example Demographic Segmentation of Starbuck. Do you need to go to college or work in a design firm before you buy a nice pair of jeans? Luxury vehicles are pricey but add incustomization options and it’s a whole new level. Your email address will not be published. Doctors and nurses may make different food choices when compared to truckers and construction workers. When should you use demographic segmentation? Age- Nappies are for infants (0 to 12 months), puzzles for kids (3 to 8 years), calculators (15 years … After a wedding, they’re more receptive to messages about home furnishings. They’re an email marketing company that targets creators. The owner of LCMS, Jin, uses a lot of imagery and testimonials on his homepage. The campaigns are reminiscent of the ads the traditional cigarette industry used to target younger smokers. 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 consists of demographic factors such as age, ethnicity, nationality, occupation, etc. Nike demographic segment based on women and young athletes and showed tremendous sales figures in 2015. Required fields are marked *. Nike target consumer from 15 to 40 years of age. Researchers use demographic analysis to analyze whole societies or just groups of people. Look into other types of segmentation such as behavioral and psychographic to build a better persona of your ideal buyer. This is the primary reason for using age as a variable in demogr… It is an extremely tedious task to accommodate customers belonging to different demographics and develop an exhaustive marketing plan. The Starbucks company also target teenagers from 18 to 24. People in the same demographic segment can have different needs. Every social media platform has an age group that uses it more than others. The data about you and your next-door neighbor is exactly the same. On average, external surveys have completion rates well below 20%. There are commonly accepted age groups for marketing and advertising purposes: Age plays an important role in where and how you market your products. Market segmentation is a common practice among all the industries. Demographics is the practice of identifying groups of people based on information about their identity. You can understand how we use them by clicking learn more. This is because consumer needs and wants change with their age. 3+ Demographic Market Segmentation Examples. 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. If not, you can use a tool like Google Analytics (GA) for this. Behavioral Segmentation. Income level: Under $15,000, $1… They want a unique car, a guaranteed way to stand out and show-offtheir lavish lifestyle. 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. 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. Messages targeted at them are flashy and abstract because their future is still up for grabs. The ability to buy general and specific products rely on customer income segmentation. Understanding demographic data can make or break a business. ONLY, on the other hand, is for women. 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. Age is the most basic demographic segmentation variable. Income segmentation wouldn’t make sense for a bargain product but it would make sense for a luxury product. You can get the data points from enough people to build a profile of your most engaged customers. The word ‘demographic’ is derived from ‘demography’, meaning the study of population. Log into your analytics tool and check if it’s gathering the data. Some companies choose to only serve one gender or the other. Misrepresenting your demographic groups and therefore using the wrong messaging. It emphasize the comfort and luxury of first class tickets. Age is also another common factor used to segment customers. The segment can be based on age, marital and mental status, gender and income level. Please note that this website contains quite a number of market segmentation examples (click here). Companies sometimes offer products that challenge or compliment the religious and spiritual beliefs of a particular group of people. Life Cycle is another parameter of demographic segmentation used by companies to divide potential customers. You’re able to build a profile of your ideal customers and improve the products based on what they care about. This is done because their product offers something that satisfies a mutual interest to these segments. In a broader sense, different age groups have different values, norms, and ways they interpret messages. Demographics can be helpful when you attach them to a survey about interest in your brand or product. Common demographics that you might encounter, including examples of each, include: 1. Starbucks is an American coffeehouse chain operating in 6 continents and 75 countries and territories. Products that practice income based demographic segmentation include all designer labels. Younger groups are more impressionable. It is not possible for a marketer to address the mass with same marketing strategy. It makes it easier to tailor your messaging to their needs. 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