Demographic segmentation is not always the most effective form of market segmentation to use. Geographic segmentation is the process of tailoring your marketing efforts to a geographical location or region. 2. It’s an accessible form of market segmentation, as it requires fewer data points to implement than psychographic or behavioral segmentation, whilst offering more selective nuance than geographic segmentation. Income and family structure are particularly useful factors for retailers, allowing them to single out certain groups that might be interested in purchasing specific products. The difference between a quiz and a survey is that with quizzes, people want an outcome. Race 3. Do a bit of research to inform which channel you should spend the most time on. A generation is a set of people born around the same time in history and grew up with a similar kind of experience with specific geographic segmentation. This is a perfect example of market segmentation. Based on that, your product development can be derailed. You can see that most of the people present are males. Income segmentation wouldn’t make sense for a bargain product but it would make sense for a luxury product. There are a number of ways to unlock this information. The needs of families are different when compared to the needs of individuals. marketing segmentation allows users to personalize their campaigns, focus on what’s necessary, and to group similar consumers to target a specific audience in a cost-effective manner LinkedIn, as I’m sure you’re aware, is one of the largest social media platforms in the world. 3. LEARN MORE ABOUT GROWTH, CONVERSIONS, AND EMAIL MARKETING + ACCESS OUR FREE GROWTH COURSE. MY ACCOUNT LOG IN; Join Now | Member Log In. Their website features many familiar products from China, Japan, Taiwan, and other Asian nations, and is also skewed heavily towards providing the best experience for their customers, with many headings and products described in both Chinese and English. They’re an email marketing company that targets creators. So they would look to target their marketing towards the 25-30-year-old group in order to change this. It’s important to look at what you are selling, the size of your business, and who you are selling to. Age. In a broader sense, different age groups have different values, norms, and ways they interpret messages. Before a wedding couples are more receptive to bridal advertisements. Conversion rate optimization | July 8, 2020. As you’re only focusing on basic data that excludes actual customer behaviours and desires its effectiveness is limited. Demographic segmentation groups customers and potential customers together by focusing on certain traits that might represent useful markets for a business. What that could look in real life is a hypothetical food company that segments its market by age group. People achieve different levels of formal education. Very informative. Age: Under 12, 12 to 17, 18 to 24, 25 to 34... (these typically go on at 10-year increments) 2. A company that only has the infrastructure to service a local area might be better served using geographic segmentation, and one that sells hobby-centric products like canoes or rock-climbing equipment will likely benefit more from psychographic segmentation. Income demographic segmentation is when people are segmented by their monthly or yearly income. A good example of this type of segmentation is Mercedes. Segmentation groups customers based on different factors and allows you to apply messaging that speaks directly to their needs. The short answer is: it depends. Pen manufacturers Bic have twice been called out for using lazy stereotypes to sell to women: first by producing a Bic for Her that was nothing more than a pink pen; and second with an International Women’s Day campaign that told women to “Look like a girl, act like a lady, think like a man, work like a boss.”. Segmenting is dividing a group into subgroups according to some set ‘basis’. Geographic segmentation looks only at the physical location of a prospect, whereas demographic segmentation looks at specific traits. Instead of attempting to sway their opinions, target this demographic segment in a way that informs them about things they already want or need. Products that benefit from family segmentation: These are just a few suggestions, this list is by no means exhaustive and you could come up with a creative angle to take advantage of family makeup. Don’t tell them they need a new car. You can sprinkle in a few demographic questions with questions calculated to boost engagement and achieve a higher response and completion rate than surveys. Demographic attributes like age, sex, gender, religion, and educational qualification, play an essential role in research. Income 5. Perhaps the most common of these strategies is income-related segmentation. That’s what print and television advertising empires were built on. If you want an easy way to get the data – analytics are your friend. Nike target consumer from 15 to 40 years of age. Compare the bright and casual tone that mass-market wine brand Barefoot uses, above, with that of the luxury sparkling wine brand Nyetimber, below. Demographic segmentation is the simplest and by extension the most widely used type of market segmentation. This site uses Akismet to reduce spam. Students are the frequent target of marketers, as a segment who are easily defined and have unique interests and needs. When doing gender segmentation, you don’t have to exclude a gender. The most common example of using psychographicsegmentation by luxury vehicle corporations. Once you’ve segmented your market, you might look to target a segment – targeting itself is the action of looking at an already defined market segment and asking yourself how you can reach them specifically. Demographic segmentation also allows us to group our customers by ethnicity, religion, and nationality. Juul, the electric cigarette that took the world by storm, and is under investigation for its advertising practices, targets a younger demographic. The age of the customers is a general indicator of how appealing certain goods and services are to them. To take the above example further, you’ve also wasted your marketing budget in advertising that non-halal product to a Muslim, as they are never going to be a buying customer. surveys have completion rates well below 20%. Demographic segmentation is an important starting point to understand your market and their needs. By definition, market segmentation is the division of market into small segments in order to make marketing easier and avoid the waste of resources. Basic demographic information about their users is freely available. A fashion brand would care more about gender but a software company that sells to other businesses may care more about income. Definition: Demographic segmentation groups customers and potential customers together by focusing on certain traits such as age, gender, income, occupation & family status. Demographic Segmentation Examples. Demographic segmentation can also be used in B2B markets. It’s important to recognize that segmentation and targeting differ, though they can be closely linked. companies that use demographic segmentation In this blog post, we’re going to do a deep-dive into demographic segmentation, and see how generic non-character traits like age, religion, or level of education can help guide your eCommerce marketing strategy. Advertisements aimed at this group are more concrete because they’re experiencing the reality of the world in full force. One may come from a family that values education above all else so they’re keen on buying test prep courses. A very useful marketing tool is to segment by occupation or related demographics, such as income bracket or the level of education the person has reached. Also, different cars are targeted at different genders. Customer Segmentation: Demographic B2B. Some demographic information is more important than others. We can all point to common grade school experiences. With that, you can craft clear messages that work – every time. Â. Demographic Segmentation. Usage. You’re able to build a profile of your ideal customers and improve the products based on what they care about. This is something the average family can’t afford.That’s why these companies segment their audience based on personality, s… Their COVID-19 information page was presented in Chinese first to ensure maximum clarity for their customers. Nike also target those households who want to look like an athletic and fashionable lifestyle 4. However, with the dynamic marketing trends and changing market, we can expect more kinds of grouping. Other segmentation methods such as psychographic and behavioral segmentation are more difficult to implement. Look into other types of segmentation such as behavioral and psychographic to build a better persona of your ideal buyer. For example, if you’re selling high-end luxury products segmenting your market by income makes sense. If you have a website then you’re using analytics software to understand who visits and what they’re interested in. So don’t. Another B2B example might be a brand that sells an enterprise marketing platform. Income Religion Gender; Education; Occupation; Marital Status; etc. This helps in creating groups exhibiting a similar need and want, and can be targeted in a much more better way by companies. This is most effective when you have a specific product for a specific niche at a higher price point. Just because two people are male and eighteen doesn’t mean they want the same things. Use income segmentation when you have both expensive and inexpensive products. Typically we think that airlines will segment their customers by class of seating, such as economy class, business class and first class. Younger groups are more impressionable. The five main demographic segments are age, gender, occupation, cultural background, and family status. Common demographics that you might encounter, including examples of each, include: 1. If you’ve not accessed this area of your account before then you’ll need to activate it and check back in 24 hours. The best results are achieved when you know which genders prefer specific products. Agencies may choose to segment the market by industry when searching for prospective clients. There are plenty of ways to segment markets using demographics. Demographic segmentation is an excellent way to provide relevant and targeted messaging to potential customers and existing customers alike. Messages targeted at them are flashy and abstract because their future is still up for grabs. Occupation is obvious for trade magazines but not as useful for general consumer products. Don’t stop at demographic segmentation alone. Doctors and nurses may make different food choices when compared to truckers and construction workers. Your email address will not be published. The key for your business is identifying which segments are most relevant to you, and how best to utilize the opportunities segmentation affords you. Demographic marketing is particularly useful for advertising kosher or halal products to the right audience. Demographic Divide. Age Age such as a theater production with a target audience of adults over 40. Before we had things like Facebook and Google that let you target your customer’s interests, intent, and behaviors, - the things that make up psychographic segmentation - all we had was demographic data. It's best to use demographic segmentation when your products have appeal for many different types of people such as young, old, well-educated, etc. Older millennials and the 30+ crowd are more secure in the knowledge of what they want and need. These bases range from age, gender, etc. Life Stage ... A list of market segmentation examples by type. Best LinkedIn Bots and Automation Tools for 2020, 5 Ways to Increase Your Conversion Rates Using Facebook, How to Craft a Damn Good Unique Value Proposition (UVP), 21 Compelling Vision & Mission Statement Examples (+How to Make Yours). Required fields are marked *. Both quizzes and surveys allow you to ask your audience members direct questions. Geographic segmentation is also easier and cheaper to do than demographic, psychographic or behavioral segmentation while offering many of the same benefits. The data about you and your next-door neighbor is exactly the same. The customers for the forty thousand dollar car may never buy the half a million dollar car. You may not be able to get demographic information for every one of your customers or audience members. Behavioral segmentation. Segment by Family. It’ll give you gender and age information about a portion of your audience. Just like people, demographics come in all shapes and sizes. Your email address will not be published. The following are examples of the demographic variables in marketing segmentation. When you segment the groups that can afford the products away from the ones that can’t, you get clearer feedback. The most commonly used demographic segmentation factors are: The simplest way to adopt demographic segmentation is by using factors like age and gender, but there are many non-character traits that you can focus on. If you’ve gone to college, you can point to common experiences there as well. Without stereotyping anyone, men are more interested in financial trading and cryptocurrencies. Instead of going after their entire market, they’re able to show relevant messages to people more likely to care. It’s unique in […], Social media is the new marketplace, and Facebook is its most important landmark. Limited RangeFor example, just because we have two people in the same demographic segment doesn’t mean they want the same things. 1. Either way, they present themselves as a solution and allow for those in this particular life stage to feel catered for. I am studying an online course in marketing, and I have gained further understanding of demographic segmentation. This is perhaps most useful for those in the food sector, particularly for businesses selling food or products from specific cuisines. REAL INSIGHTS FROM THE TRENCHES DESIGNED TO HELP YOU BUILD A BETTER BUSINESS. It’s important to combine demographic segmentation with other types of market segmentation to build a complete picture of your best customers. They’re not doing it for themselves alone but for their entire family. The other eighteen year old may have dropped out of school so test prep is the last thing on their mind. You can understand how we use them by clicking learn more. Copyright 2018-2020, KyLeads. S gathering the data – analytics are your best customers each provides different ways to segment the market age! 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