Demographic Segmentation Example & Definition in Marketing. Demographics Examples. Target Market Demographics Examples.
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.
Example of Demographic Segmentation
The 13 examples of demographic segmentation are:
- Economic status
- Group Member
- Marital Status
- Employment Status
- Family Status
- 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.
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.
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.
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.
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.
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.
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.
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.
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.