Demographic Segmentation Definition & Example in Marketing

Demographic Segmentation Example & Definition in Marketing. Demographics Examples. Target Market Demographics Examples.

Demographic Segmentation

Demographic segmentation refers to the process of separating people based on demographic factors such as age, gender, ethnicity, education, religion, economic status, experience, and group membership. The demographic factors are also known as demographics examples in market segmentation. The three types of market segmentation techniques are demographic, geographic, psychographic segmentation. Demographic segmentation is a significant way to divide potential customers. Market researchers use it to group customers effectively.

Demographic Segmentation Example

Demographic segmentation example refers to the characteristics of the audience, such as age, gender, ethnicity, education, religion, economic status, and so more. The example of demographics is also known as demographic variables.

For 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 senior residents who are the voters in the constituency. In this regard, age is an example of demographic segmentation. There are many more examples of demographic segmentation such as age, gender, race, education, etc.

Demographic Segmentation Example & Definition in Marketing. Demographic segmentation definition. Target Market Demographics Examples.
Target Market Demographics Examples

Example of Demographic Segmentation

The 13 examples of demographic segmentation 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
  13. Living Status.

Target Market Demographics Examples

The demographic segmentation factors are also known as the target market demographics examples. Market and academic researchers conduct target market segmentation via a survey questionnaire. The academic researcher set demographic characteristics in the quantitative research questionnaire to collect data for the research project.

1. Age

Age is the most significant demographic example of target market 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 give birth and grow up throughout the same period. People of the same age have identical characteristics and experiences. Age is one of the crucial target market demographics examples.

Age Segmentation Examples

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.

2. Gender

Gender is another significant demographic example of target market 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 natural 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.

Gender Segmentation Examples

For example, a cosmetic product selling company will surely target women for product marketing instead of targeting men. Women are more interested in buying cosmetics than men; therefore, most cosmetic companies choose women to reach their upcoming and existing product information.

3. Ethnicity

Ethnicity is a demographic example of target market segmentation that divides people into a similar subgroup based on their tradition, culture, language, history, etc. However, many scholars have suggested avoiding ethnic target segmentation in marketing due to 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.

Ethnicity Segmentation Examples

For example, Indian women prefer to wear Saree in the cultural festival due to the traditional values. On the other hand, Malay women wear scarfs and Chinese dress cheongsam. So, the market researchers should focus on ethnicity to target market segmentation. The marketing policy will not be effective if the authority targets Indian women to promote cheongsam. Hence, ethnicity is a crucial factor in market segmentation.

4. Education

Education level is a sophisticated demographic example of target audience segmentation that divides people into subgroups based on their education level. The difference between an educated and uneducated person is 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.

Education Segmentation Example

For example, Global Assistant is an education consultancy firm that assists students in getting admission to several universities worldwide. It starts Facebook paid advertising to collect potential customers. The students are the only their customers. So, the management has selected only students to reach their advertising message.

In addition, education level is a significant demographic example in the research questionnaire.

Demographic Target Market Segmentation Questionnaire Examples

5. Religion

Religion is another sensitive demographic example that divides people into identical subcategories based on their religions, such as Christianity, Muslim, Hinduism, Buddhism, Taoism, Sikhism, etc. It is one of the sensitive variables in demographic market segmentation.

Religion Segmentation Examples

For instance, advertising for alcoholic beverages is taboo in the Muslim religion, whereas marketing for alcoholic liquor is highly accepted in the Christian. The researcher should focus on religion before starting marketing for alcoholic liquor.

6. Economic Status

Economic status refers to the socio-economical condition of the audience. It separates people into similar subgroups based on their income. Income denotes a prime example of target market segmentation that affects people’s behaviors and attitudes.

Economic Segmentation Examples

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.

 7. Experience

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.

Experience Segmentation Example

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 some specified people who share common interests. The most common examples of social groups in society are primary groups, self-help groups, educational groups, service groups, virtual groups, political groups, and so more. Group members are also examples of demographic segmentation. 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.

Group Member Segmentation Example

For example, as a marketing manager, it would be a worse decision to sell football players’ accessories among cricket players. A group of people shares common interests, therefore; market researchers should focus on marketing relevant products to the same group.

9. Nationality

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.

Nationality Segmentation Example

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 marriage situation admittedly. There are many types of marital status: single, married, divorced, widow, separated, single parent, and conditional partnership.

Marital Status Segmentation Example

For example, married people’s lifestyle differs from single people.

11. Employment Status

The employment status refers to the professional condition of the audience. It determines the profession of the target audience, such as service holders, people in business, and the unemployed. Employment status seems a crucial demographic variable to the target audiences in marketing. It indicates what types of products they use and do not use.

Employment Segmentation Example

Employment people lead a happy life more than unemployed people in society.

12. Family Status

Family status describes the condition of the family background where they grew up. The most common types of families are extended, nuclear, and single parents families. People represent different characteristics who are come from diverse families. The surveyor focuses on the family status significantly for marketing products.

Family Segmentation Example

For example, the royal family member uses aristocratic products.

13. Living Status

The living status also somewhat represents the economic condition of the target audience. The most common two types of living situations are achieved status and ascribed status.

Living Status Segmentation Example

For example, children grow up with ascribed status and adults grow up with achieved status.

Conclusion

The most common examples of demographic segmentation are age, gender, ethnicity, education, religion, economic status, experience, group member, nationality, marital status, employment status, family status, and living status. These target market demographics examples assist the market researcher in deciding whether the customer will buy the product or not. It also provides the needs of the audiences.

VALS Segmentation Model in Consumer Behaviour- VALS 2 Model

VALS Segmentation Model in Consumer Behaviour. Vals segmentation examples. The Eight Segments of the VALS Model. Marketing Model of VALS, Vals 2 model, and also Vals framework examples.

VALS Segmentation Model

VALS Segmentation Model refers to the VALS 2 model that segments people into eight categories based on their lifestyles, psychological characteristics, and consumption patterns. Therefore, people term it as the Vals audience segmentation model in consumer behavior. The VALS is the acronym of Values, Attitudes, and Lifestyles also psychographic factors.

However, demographic and geographic psychographic segmentation is the most significant market segmentation technique to divide people into identical subgroups.

In 1978, the research institute of Stanford established Maslow’s hierarchy of needs to develop a VALS (Values and Lifestyles) typology to categorize American consumers. In 1989, they created a quietly modified system that considers individuals’ lifestyles, psychological characteristics, also consumption patterns.

Another name of the VALS Segmentation Model is the VALS 2 Model. VALS Segmentation Model divides people into eight categories: survivors, makers, strivers, believers, experiencers, achievers, thinkers, and innovators.

VALS Framework Examples
8 Segmentations of the VALS 2  Model are:
  1. Survivors
  2. Makers
  3. Strivers
  4. Believers
  5. Experiencers
  6. Achievers
  7. Thinkers
  8. Innovators
VALS Segmentation Model in Consumer Behaviour- VALS 2 Model
Figure 1: VALS Segmentation Model in Consumer Behaviour

Demographic Segmentation Example

1. Survivors/ Strugglers

Firstly, Survivors or strugglers are financially needy people. In contrast to innovators, they are poor, low-skilled, ill-educated, without strong social bonds, elderly and passive. They avoid risk because of feeling powerless. It seems like their prime motive is to meet safety and security demands.

For example, students are survivors.

2. Makers

Makers are practical people with strong traditional values, constructive skills, self-sufficiency, and enough income. They live within a conventional context of family, practical work, and also physical recreation. Makers are suspicious of new ideas, politically conservative, and respectful of government authority but resentful government intrusion on individual rights.

For example, a religious leader has traditional values.

3. Strivers

Strivers are attracted to others who exhibit qualities that they don’t have but that they admire. They inquire about motivation and self-definition. They expect to achieve goals through wealth and often feel that life has dealt them a bad hand because of the less money. Strivers feel easily bored because they are very impulsive.

For example, an unemployed person is looking for a job after completing graduation.

4. Believers

Believers belong to a very conservative and profoundly moral mentality similar to makers. They seem like makers because of having conservative and traditional values. They follow established routines organized by the family, social and religious organizations. Their income, education, and energy are enough to meet demands.

For example, an adult person retired from government service.

5. Experiencers

Experiencers are very young, energetic, enthusiastic, impulsive, and rebellious people. They seek a variety of excitements but are politically uncommitted and highly ambivalent about what they believe. They like to be associated with outdoor activities, sports, recreational, and social activities.

For example, a teenager is an experiencer.

6. Achievers

Actually, achievers are work-oriented successful people. They like to feel in control of their lives. They are also deeply committed to work and keep promises to family, society, and career. Achievers respect authority because they prefer to keeping the promise but are politically conservative.

For example, an employed person is an achiever.

7. Thinkers/ Fulfilled

Thinkers are enough adult and mature, well-educated, professional people with satisfying income. They stay current with international and national events and are often tended to increase knowledge. They are usually calm and self-assured because they depend on their decisions.

For example, a successful business is a thinker.

8. Innovators/ Actualizers

Finally, Innovators are highly successful people with self-esteem and considerable resources in contrast to strugglers. Innovators are supervised by both their principle and by the dreams around them. They want to be a leader in government and business because of having enormous power and social consciousness.

For example, a political leader is an innovator who can change society with power.

Conclusion

The Eight Categories of the VALS Segmentation Model are survivors, makers, strivers, believers, experiencers, achievers, thinkers, and innovators. VALS Framework has become a crucial strategy to target audiences for political campaigns and product marketing. Nowadays, many organizations conduct digital marketing campaigns on social media platforms such as Facebook, Instagram, Twitter, YouTube, etc.