Demographic Segmentation Example, Definition, and Market Segmentation. Demographic segmentation definition. Target market demographics examples. Demographic segmentation, meaning, demographic audience, demographic segmentation in marketing. Target market demographics.
Demographic segmentation refers to the process of separating people into similar subgroups based on demographic factors. The demographic factors or variables are age, gender, ethnicity, education, religion, economic status, experience, also group membership. The three market segmentation techniques are demographic geographic, psychographic segmentation.
Demographic Segmentation Example
A political party is conducting an election campaign to motivate them. The party will persuade those people who are voters and residents at the constituency. According to the laws, people cannot exercise their voting rights who less than 18 years old. Therefore, the political party looks for more than 18 years old and residents in the same area.
Demographic Segmentation Factors or Variables
The demographic factors mean a set of characteristics of the audience, such as age, gender, ethnicity, education, religion, economic status, and so more. Demographic factors are also known as demographic variables.
The demographic segmentation factors or variables are (1)Age, (2)Gender, (3)Ethnicity, (4)Education, (5)Religion, (6)Economic status, (7)Experience, (8) Group Member, (9) Nationality,(10)Marital Status, (11)Employment Status, (12)Family Status and (13)Living Status.
Age is the most significant demographic factor of audience segmentation because it divides people into similar subgroups based on their age boundary. People are categorized based on age limits. It sets the generation of people. A generation is a group of people who get birth and grow up throughout the same period of time. People of the same age have identical characteristics and experiences.
Demographic Segmentation Example-Age
For example, Generation X refers to the people who were born between 1965 and 1980. So, they are around 41 to 56 years old. On the other hand, Generation Z refers to the people born between 1997 and 2012; therefore, they are the newest generation, and their age is about 6 to 24 years. The characteristics, passion, attire, vision, and mission are different between Generation X and Generation Z. Hence, the audience segmentation and market researcher will not use the same strategic plan for both of these generations because they are distinguished for their different ages.
Gender is another important demographic factor of audience segmentation that divides people into a similar subgroup based on their sexes( Males or Females). It is a biological factor that differentiates men and women. Gender is a biological factor that sets the people’s sex, whether they are males or females. Males are also called men, and females are known as women. Men and women are strongly distinguished for their dress-up, hobby, passion, belongings, and behaviors. Therefore, the market and audience researchers choose different social, political, and advertising campaigns between males and females.
For example, a cosmetic product selling company will surely target women for product marketing. Women are more interested in buying cosmetics than men; therefore, most cosmetic companies choose women to reach their upcoming and existing product information.
Ethnicity is a demographic factor of audience segmentation that divides people into a similar subgroup based on their tradition, culture, language, history, etc. However, many scholars have suggested avoiding ethnic stereotypes. People in the same ethnic group share similar cultures, traditions, and experiences. But, two people of the same ethnic group may have diverse attitudes, interests, and experiences because of differences in their age, gender, education, income level, and religion.
Education level is a demographic factor of audience segmentation that divides people into the same subgroup based on their education level. The difference between an educated and uneducated person is clearly visible. The interests, attires, mentalities, and behaviors are different between educated and uneducated people. Therefore audience segmentation researchers use a different approach for target market segmentation campaigns.
Religion is another famous demographic factor of audience segmentation that divides people into identical or similar subgroups based on their religions such as Christianity, Muslim, Hinduism, Buddhism, Taoism, Sikhism, etc.
For instance, advertising for alcoholic beverages is taboo in the Muslim religion, whereas marketing for alcoholic liquor is highly accepted in the Christian faith. The researcher should focus on demographic factors religion before starting marketing for alcoholic liquor.
6. Economic Status
Economic status is a demographic factor that separates people into identical or similar subgroups based on their income. Income denotes a prime factor of audience segmentation that affects people’s behaviors and attitudes.
For example, if a family earns little money to exist, the family members will probably be more concerned about fulfilling basic needs. On the other hand, if a family makes a perfect amount of money, they will focus on fulfilling other’s needs such as hobbies, passions, etc. Researchers suggested that the higher the income of a family, the more conservative their attitudes.
Experience refers to the skill and knowledge obtained from exercising and training. The market analyzer needs to use a different strategy for the experienced and non-experienced potential customers to motivate a client.
For example, the experience is not similar among the potential newcomer, expert, and veteran employees. Similarly, the first year, second year, and final year students differ in expertise and knowledge.
8. Group Member
Group members refer to a demographic factor of audience segmentation that separates people into similar subgroups based on joining a group to meet demands. People join a group to meet their diverse needs, for example, spending pastimes, satisfying hobbies, playing recreational activities, etc. A group consists of a limited number of people who share a common independent goal. For instance, football team members share a similar common goal and also represent similar attitudes and behavior.
For example, as a marketing manager, if you want to sell football players’ accessories among cricket players, it would be a worse decision.
Nationality indicates the citizen of the country. Every person is a citizen of a particular country that is also known as nationality. According to international law, It a legal identification of the people under a sovereign state.
For example, Jon is a citizen of America; so, his nationality is American, whereas, Xujiao is Chinese, so his nationality is china.
10. Marital Status
Marital status refers to the marital situation admittedly. There are many types of marital status; for example, single, married, divorced, widow, separated, single parent, and conditional partnership.