This type of segmentation uses variables like social class, lifestyle and personality to define customer segments. Most of the product manufacturers keep in mind the income demographic segment while putting a price tag on the product. Likewise, Hindus consider a cow as sacred. The demographic segmentation is further divided into the following three categories. It allows for better targeting of the customers through targeted marketing techniques. Furthermore, they use bespoke photography.
Video: What Is Demographic Segmentation in Marketing? This necessitates subdividing the consumer market based on education level, which creates two groups; educated and uneducated consumer segments. Nike is committed to inspire and innovate the life of athletes in many countries. Based on age segmentation, products can be targeted for different age groups for babies, children, adolescents, adults, middle-age group or senior citizens 2. Market segmentation is a very important initial step in the process of marketing. Home Depot, for example, might want to advertise snow shovels to customers in New England, but it would be pointless to do so in Florida.
In this way segmentation also reduces the risks involved in marketing by eliminating wastage. The list is exhaustive, and is classified based on the products sold. Likewise, consumers in the lower class buy low-priced products that satisfy their physical needs. Two young girls that are from two different social classes will have different purchasing habits. This grouping is commonly used by book publishers who classify a market based on the education level of the targeted consumers.
Once you have split the orange apart, you can examine each segment to determine which ones look to be the most desirable. Income Segmentation 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. Some are very concern about the environment. Various strategies of market segmentation are put to use by firms nowadays, and 'demographic segmentation' seems to be the most sought after of them all. You can pull census data to determine who, where, and how you want to market your product.
If a firm is resorting to demographic segmentation alone, it is more likely to be vulnerable to its competitors. It helps clarify your vision, have more direction with future advertising plans, and optimize your resources, time, and budget. It is because it provides an easy basis of segmentation which is also very effective. In today's economy, it is more important than ever that business owners are able to locate the most desirable group of individuals to whom they should advertise and promote their product or service. Understanding what your audience has in common is key to successful marketing. Demographic segmentation data like age, income, gender are quantifiable and can be adjusted as per the requirement of a company 3. Similarly, high-end designer products target the high-income customers, offering them unique one of a kind product.
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. The income level segments include different packing, for example, returnable glass bottles, plastic bottles and Tins with different pricing strategies. Thus, education is a widely used variable in demographic segmentation. Segmentation of Beer market On the basis of product, the market can be segmented into light beer and strong beer. A small business owner has much to gain by targeting this age group.
Car companies often use benefits segmentation to target a broad market looking for different benefits, such as economy, performance, luxury or status. Demographic segmentation helps the firm understand the customers, and satisfy their needs. With this strategy, your market segments have shared familiarity with your products. For example the variable lifestyle greatly affects the interest of the customers in the purchasing or certain products and the purchased products resultantly express their lifestyles. Dividing the market into smaller segments, each with a common variable, allows companies to use their time and resources more efficiently. They sell high-end clothing for men by a range of designers and third-party brands. Targeting of multiple segments is becoming popular day by day that not only increases the basic knowledge of the customers, but also ensures the competitive advantage for the organization.
In comparison to traditional demand gen, is often described as a flipped funnel approach because it inverts the process. By using this strategy, they can identify market gaps. Using the example of the automobile company again, the marketers realized that their target segment would not at all be interested in a vehicle that would appeal to their parents, so they created separate showrooms to display their vehicles. Demographic segmentation should not be used as an end-all-be-all way to gather consumer insights. So, how do they do it? In occasion segmentation, the market is divided on the basis of occasion when the customers purchase the product and use it. In this segment the customer base is broad, and they have preferences based on their location.
In the Lenny Kravitz example, they include cool photos of the man posing in various styles in poses: Mr. Tying demographics to behavior You can use demographic data to understand how your audience consumes content and their purchasing behavior. For example, baby boomers are those born between 1946 and 1964 in the United States. Moreover, it is much easier to measure the demographic variables than any other segmentation variables. Find social media posts from customers using your products and feature them on your social profiles and website. Similarly, saint medals and bracelets with the cross sign will be purchased by Catholics as it supports their beliefs.