Market Segmentation

Demographic Segmentation Example Company. Demographic segmentation product examples. Advantages and Disadvantages of Demographic Segmentation

Demographic Segmentation Examples

Demographic Segmentation examples refer to separating people based on demographic variables such as age, gender, ethnicity, education, religion, economic status, experience, and group membership. The example of demographic segmentation is also known as a demographic factor and variable in product example. It is an effective strategy for target audience segmentation. The three market segmentation techniques are demographic, geographic, and psychographic segmentation. People utilize demographic examples for marketing, political, and social campaigns. The demographic segmentation example company is the most significant way to divide potential customers in marketing. Market researchers use it to identify a particular group of people.

Demographic Segmentation Example Company

The demographic segmentation example in the company refers to the audience segmentation factors, including age, gender, ethnicity, education, religion, economic status, etc. The demographic segmentation example company is also known as the demographic segmentation product example.

For example, a company is conducting a marketing campaign to sell shaving cream. The company intends to target and persuade only adult males. Adult males only use shaving cream, so they want to separate males to drive the marketing campaign. It will be worthless if they spend time behind women; because women do not buy and use shaving cream. In this regard, gender is a demographic example in marketing. There are many more examples of demographic, such as age, gender, race, education, etc. Demographic examples assist the company in targeting specific customers to sell the products. It is one of the most crucial ways to target specific customers in marketing products and services.

Demographic Segmentation Product Examples

The 13 Demographic Segmentation Examples in the Company are:

Age
Gender
Ethnicity
Education
Religion
Economic status
Experience
Group Member
Nationality
Marital Status
Employment Status
Family Status
Living Status
Political Affiliation
Voting Status
Language
Sexual Orientation

1. Age

Age is the most significant demographic example in marketing because it divides people into similar subgroups based on their age boundary. Customers 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 Demographic Segmentation Example in Company

For example, Generation X refers to the people 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 market researcher will not use the same strategic plan for both of these generations because they are distinguished in their different ages.

2. Gender

Gender is another significant example of a demographic in marketing that divides people into similar subgroups based on their sexes( Males or Females). It is a natural factor that sets people’s sex, whether male or female. Males are also called men, and females are known as women. Therefore, the market and audience researchers choose different social, political, and advertising campaigns between males and females.

Gender Demographic Segmentation Example in Company

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 separates people into a similar subgroup based on their tradition, culture, language, history, etc. However, many market researchers have suggested avoiding ethnicity 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 Demographic Segmentation Example in Company

For example, Indian women prefer to wear Saree in the cultural festival due to their traditional values. On the other hand, Malay women wear scarves and Chinese dress cheongsam. So, market researchers should focus on ethnicity in marketing products. The marketing policy will not be effective if the authority targets Indian women to sell cheongsam; because it is a Chinese dress. Hence, ethnicity is a crucial factor in product marketing.

4. Education

Education level is the most popular demographic example in market segmentation that divides people into subgroups based on their education level. The interests, attires, mentalities, and behaviours differ between educated and uneducated people. Therefore, the company’s advertising team uses a different approach for product marketing campaigns.

Education Demographic Segmentation Example in Company

For example, the Global Assistant Education Consultant assists students in getting admission to several universities worldwide. It starts with Facebook paid advertising to collect potential customers. The students are the only customers. So, the management has selected only students to reach their advertising message.

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

Demographic Questionnaire Example

Demographic Target Market Segmentation Questionnaire Examples

5. Religion

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

Religion Demographic Segmentation Example in Company

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 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 is a prime example of target market segmentation affecting people’s behaviors and attitudes.

Economic Demographic Segmentation Example in Company

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 others’ needs, such as hobbies, passions, etc. Researchers suggested that the higher the family income, 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 Demographic Segmentation Example in Company

For example, the experience is not similar among the potential newcomer, expert, and veteran employees. Similarly, students in the first, second, and final year 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 are primary groups, self-help groups, educational groups, service groups, virtual groups, political groups, and so on. 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 comprises a limited number of people who share a common independent goal. For instance, football team members share a common goal and represent similar attitudes and behaviour.

Group Member Demographic Segmentation Example in Company

For example, as a marketing manager, it would be worse to sell football players’ accessories to 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, known as nationality. According to international law, It is a legal identification of the people under a sovereign state.

Nationality Demographic Segmentation Example in Company

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 Demographic Segmentation Example in Company

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

11. Employment Status

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 to be a crucial demographic variable to the target audiences in marketing. It indicates what types of products they use and do not use.

Employment Demographic Segmentation Example in Company

Employment people lead a happy life 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-parental families. People represent different characteristics who come from diverse families. The surveyor focuses on the family status significantly for marketing products.

Family Demographic Segmentation Example in Company

For example, the royal family uses aristocratic brands such as BMW cars, Apple phones, Rolex watches, Gucci Bags, etc.

13. Living Status

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

Living Status Demographic Segmentation Example in Company

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

Conclusion

Demographic Segmentation Examples in Company are age, gender, ethnicity, education, religion, economic status, experience, group member, nationality, marital status, employment status, family status, and living status. These demographic examples assist the market researcher in deciding whether the customer will buy the product or not. It also provides the needs of potential customers.

Demographic Segmentation Product Examples

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

Advantages and Disadvantages of Demographic Segmentation

Advantages of Demographic Segmentation

Demographic segmentation allows you to find out potential clients for selling products. It also reduces unnecessary marketing costs.

VALS Model in Consumer Behaviour Examples. The Eight Segments of the VALS Model.

VALS Model

VALS Model refers to separating people into eight categories based on their lifestyles, psychological characteristics, and consumption patterns. It is also known as the Vals framework of psychographic segmentation, which segments people for marketing purposes. It is the most crucial framework for understanding clients’ values and lifestyles. Therefore, people call it the Vals audience segmentation model in consumer behavior. The VALS is the acronym for Values, Attitudes, Lifestyles, and psychographic factors.

VALS-2 is the extended model that renames strugglers for survivors, actualizers for innovators, and fulfilled for thinkers.

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

In 1978, the research institute 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.

Different between VALS and VALS-2 Model

VALS model includes the following eight elements: Survivors, Makers, Believers, Achievers, Strivers, Experience, Thinkers, and Innovators,

Similarly, VALS 2 Model divides people into eight categories: Strugglers, Strivers, Makers, Believers, Achievers, Experience, Fulfilled, and Actualizers.

VALS Framework Examples

Eight Segmentations of the VALS Model are:

Survivors
Makers
Strivers
Believers
Experiencers
Achievers
Thinkers
Innovators

VALS Segmentation Model in Consumer Behaviour- VALS 2 Model — Figure 1: VALS Segmentation Model in Consumer Behaviour

1. Survivors/ Strugglers

Firstly, Survivors or strugglers are financially needy people. In contrast to innovators, they are low-skilled, educated, without strong social bonds, 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 because they are financially needy and powerless.

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 of government intrusion on individual rights.

For example, religious leaders have traditional values and live in society’s traditional context.

3. Strivers

Strivers are attracted to others who exhibit qualities they don’t have but 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. Therefore, job seekers are real-life examples of strivers.

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. The retired person is an example of a believer.

5. Experiencers

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

For example, a teenager is an example of an experience in the Vals segmentation model.

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 keep the promise but are politically conservative.

For example, an employed person is an achiever. The CEO of the company, artist, political leader, and businessman is the example of achievers in the Vals segmentation model.

7. Thinkers/ Fulfilled

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

For example, a successful businessman is an example of a thinker in the Vals segmentation model.

8. Innovators/ Actualizers

Finally, Innovators are highly successful people with self-esteem and considerable resources compared to strugglers. Innovators are supervised by both their principle and the dreams around them. They want to be government and business leaders because they have enormous power and social consciousness.

For example, a political leader is an innovator who can change society with power. Therefore, a political leader is an example of an innovator in the Vals segmentation model.

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. Many organizations conduct digital marketing campaigns on social media platforms such as Facebook, Instagram, Twitter, and YouTube.