Products that practice income based demographic segmentation include all designer labels. 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. Nike focusses on all socioeconomic classes. Similarly, certain products such as pharmaceutical goods are targeted towards a specific profession, or education e.g. These are also known as demographic factors. When combined with other types of segmentation like behavioral, psychographic, geographic and demographic segmentation starts the procedure by dividing the overarching target customer groups into more manageable sections. If you are an online clothes retailer you might want to consider if you have enough data to implement behavioral marketing, which potentially offers even more personalization opportunities. It’s important to look at what you are selling, the size of your business, and who you are selling to. Income and family structure are particularly useful factors for retailers, allowing them to single out certain groups that might be interested in purchasing a specific product or service. Demographic segmentation is the simple process used by marketers to divide the total potential customers based on their different demographic factors such as gender, age, family, income, educational background, religion, socio economic status, race, etc. If a product centres the middle income market, its price level will consider the income of that target market. These methods have primarily been developed to study human populations, but are extended to a variety of areas where researchers want to know how populations of social actors can change across time through processes of birth, death, and migration. This segmentation is very helpful to determine what segmented people want for example general or specific health care products. 3. The short answer is: it depends. Compare the bright and casual tone that mass-market wine brand Barefoot uses, above, with that of the luxury sparkling wine brand Nyetimber, below. It’s important to recognize that segmentation and targeting differ, though they can be closely linked. A generation is a set of people who were born during the same era, grew up with the same type of experiences with some geographic segmentation . The company core considered to be education and an average age of 42. For example, if you want to market Vegemite to Australians, geographic segmentation would allow you to reach people living in Australia, whereas demographic segmentation would select people who are Australian, regardless of which country they currently live in. Demographic segmentation allows you to target the most relevant customers, and ensure that there is minimal waste in your advertising budget, higher ROAS, and lower CACs. Each provides different ways to look at your customer base, and define what it is that will help you sell to them. Demographic marketing is particularly useful for advertising kosher or halal products to the right audience. So your marketing strategies should resonate a lot better. Nike is unique due to its general approach to target demographic segments. Saga Holidays sell travel packages exclusively to those over 50, and their marketing reflects this. Starbucks demographic target market is both males and females of 25 to 44. In the United States Starbucks has more 13000 locations. An advert showing a non-halal meat product to a Muslim could risk isolating the customer and putting them off making future purchases from you. The simplest way to adopt demographic segmentation is by using factors like age gender income, but there are many non-character traits that you can focus on. Gender segmentation is another common market strategy, where customers are divided into categories of male and female. Demographic analysis includes the things that allow us to measure the dimensions and dynamics of populations. These brands follow a market segmentation strategy where different fashion clothing lines are offered for different age groups, e.g. Age is the most basic demographic segmentation variable. Every product that contains some kind of differentiation which caters to the different needs of the two genders is divided based on this type of market segmentation. The term originated in the world of data analysis, and business analysis. By clicking ‘Subscribe’, you consent to Yieldify using the information you provide to us to contact you about our products and services. 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. STP (Segmentation, Targeting, Positioning) is a three-step approach that combines each of the above practices to hone in and successfully market to consumers. Segmentation groups customers based on different factors and allows you to apply messaging that speaks directly to their needs. The different demographic segmentation variables with examples. Geographic segmentation looks only at the physical location of a prospect, whereas demographic segmentation looks at specific traits. An excellent example of this is our client War Paint for Men, a men’s make-up brand that provides clear and effective marketing towards their chosen market segment: from the brand name to the imagery to the content, their message is crystal clear. Let’s look at some demographic segmentation examples in action. Demographic segmentation is not always the most effective type of segmentation to use. Because there is such a wide variety of demographics that you can use to segment your market, there’s also a wealth of options for utilizing the strategy. It can also help you segment audiences with different needs based on income, gender, location, and other factors. One way to better explain how segmentation and targeting are different but work together is via the STP marketing model. 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. Demographic segmentation groups customers and potential customers together by focusing on certain traits that might represent useful markets for a business. Taking this into account as you plan your marketing strategy can be a useful tool. Companies also design their market strategies towards potential customers based on their marital status, education level and other demographic segmentation such as occupation, etc. So they would look to target their marketing campaigns towards the 25-30-year-old group in order to change this. Market segmentation isn’t about targeting specific customers, but about creating groups based on the different traits that they share. It also targets high income and nigh spenders people with average annual income of $90,000. Crudely speaking, those in lower brackets are more likely to be swayed by good value, whereas those with more disposable income will be happier to spend more for a better product. Similarly, high-end designer products target the high-income customers, offering them unique one of a kind product. There are 4 main types of market segmentation: demographic, psychographic, geographic, and behavioral. This won’t necessarily appeal to all over 50 year-olds, but those who are still looking for busy, exciting adventures are not Saga’s target market anyway, so using demographic segmentation in marketing this way makes a lot of sense. For example, any food that contains pork or any of its additives will not be consumed by Muslims and Jews, as it is forbidden in their religion. 24 ... demographic availability ... among other factors. In this way, not only the company will benefit from the product but the purchasing power of customers will also not be affected. Example Demographic Segmentation of Starbuck. A segmented market allows you to present different messaging to different demographic segments. Environmental factors can be explained as identifiable elements within the cultural, economic, demographic, physical, technological or political environment which impacts the growth, operations and survival of an organization.Environmental factors can be both internal as well external for the business. Demographic information examples where this can ring true, include: income level, employment status, race, and ethnicity. Demographics will always play an important role in identifying your target customer but it’s vital to combine demographics with other types of market segmentation to get the complete view. What Are Examples of Demographics?. This is perhaps most useful for those in the food sector, particularly for businesses selling food or products from specific cuisines. As highlighted above using demographic segmentation may not be the right move for everyone. Next, we choose which of those segments to, Finally, we use this information to guide our, Demographic Segmentation Defined with 5 Marketing Examples. Definition. Products offered by a company, sets its product price based not only on the cost of production but also on the income level of its target market segment. The same product can be shown in different ways – for instance, a car might be marketed as a family-friendly vehicle to parents, whilst couples who don’t have children are shown other benefits, like its suitability for long driving holidays. Income and family structure are particularly useful factors for retailers, allowing them to single out certain groups that might be interested in purchasing a specific product or service. Subscribe to our resources. For example, baby products from Mothercare a British retailer for mother and babies, are directed towards married couples who have or expectedly will be having a family and will require purchasing baby products. Examples of demographic in a Sentence. Definition: Demographic segmentation groups customers and potential customers together by focusing on certain traits such as age, gender, income, occupation & family status. Demographic segmentation allows you to collate your customers in a way that then lets you identify the best way to promote your goods or services to them. As a result of this, you can ensure people seeing your marketing are presented with products more relevant to them. Get inspired by real-world examples from household brands. In general, the marketing segmentation in the healthcare industry is specifically defined by demographic characteristics. Be in the know. If you’re selling food, segmenting by Gender may not be the most useful variable to use. 2. Either way, they present themselves as a solution and allow for those in this particular life stage to feel catered for. Demographic Segmentation Examples What is Demographic Segmentation? doctors, pharmacists, who are capable of understanding their proper use and suggesting them to patients. In demographic segmentation, an organization has an advantage because it can drill its target market down to a specific demographic targeting factors such as age, gender, or ethnicity. Definition of Environmental Factors. feeling it is acceptable for a man to beat his Perhaps the most common of these strategies is income-related segmentation. Improved advertising effectiveness. Religion market segmentation is the parameter where the target market is classified based on their mutual religious beliefs and other associated spiritual needs. 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. The images they use to show their holidays are serene and peaceful, the people represented in the lifestyle shots are well in the target audience’s age range, and the company goes out of its way to highlight the USPs important to their age segment: airport pick up, door-to-door travel service, insurance, etc. Designer products thus are priced high, rendering them purchasable only by the high income individuals, and placing them out of reach of other lower income market segments. If you’re surveying for broad demographic patterns or trends, consider making responses anonymous—and be sure to let your respondents know that’s the case. The five main demographic segments are age, gender, occupation, cultural background, and family status. Generally, they are expected to live longer compared to senior citizens and thus prove to be more beneficial customers. For example, if you’re selling high-end luxury products segmenting your market by income makes sense. Famous fashion designers such as Chanel, Gucci and Burberry all formulate their fashion collections targeting demographic market based on age, gender and income. Demographic segmentation also allows us to group our customers by ethnicity, religion, and nationality. Example Demographic Segmentation of Nike. If you want an effective way to target your marketing, customer segmentation is an excellent entry point. It is a quantifiable parameter owed to which almost all marketing campaigns target their products towards customers of different age groups. Demographic definition is - the statistical characteristics of human populations (such as age or income) used especially to identify markets. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, please review our Privacy Policy. We can find our final group of demographic traits in the home – looking at marital statuses, family structure (for instance, how many children a family has), and the life stages of those in each family. Students are the frequent target of marketers, as a segment who are easily defined and have unique interests and needs. Demographic Transition Stage 4 Case Study: Argentina Since the middle of the 19th Century, Argentina has maintained a strong economy, keeping on par with Western Europe and North America. Demographic segmentation is the simple process used by marketers to divide the total potential customers based on their different demographic factors such as gender, age, family, income, educational background, religion, socio economic status, race, etc. 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.”. The most commonly used demographic segmentation factors are: The simplest way to adopt demographic segmentation is by using factors like age gender income, but there are many non-character traits that you can focus on. Demographic survey question examples Age (or birth date) Socio-Demographic (Social) Factors. 19+ Creative Real Estate Marketing Plans; 19+ Marketing Plans for Bakery Business Examples; Just like a real estate agent marketing plan, any kind of marketing project plan can help you present the specific activities and processes for development that will occur within all the marketing project stages which is a great way to make your desired audience more involved and enthusiastic. July 31, 2020 | By Stephen Rötzsch Thomas. For 2020, the general fertility rate stood at … 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. It might be that there are other strategies that would work better. Nike target teens under 20 year of age and offer them apparel in different sports like soccer, football and baseball, Nike also target those households who want to look like an athletic and fashionable. Effective gender marketing isn’t about playing up gender stereotypes, but about presenting clear, effective, and targeted marketing. Their COVID-19 information page was presented in Chinese first to ensure maximum clarity for their customers. Examples of such lists include state and federal sex offender registries and lists of individuals with outstanding warrants. Collecting demographic information will enable you to cross-tabulate and compare subgroups to see how responses vary between these groups. 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. Examples of Success factors Sample Critical Success factor templates Critical Success Factors for Projects. It is time spent between jobs when a worker is searching for a job or transferring from one job to another. Life Cycle is another parameter of demographic segmentation used by companies to divide potential customers. Those who can afford will opt expensive healthcare plans and other will go individual services. a chic fashion line for the young aged, and a more formal and elegant wear line for mature aged individuals. Let’s begin! Socio-demographic factors are short for social and demographic factors, which concern population demographics and the characteristics of a company’s target customers. Department store Kohl’s presented brilliantly conceived Back to School marketing campaign during the COVID-19 pandemic that both spoke to parents’ needs to buy equipment for the new school year, but also acknowledged the very specific and unique situation they were facing – highlighting that children might be heading back to school, but might also just be logging on for remote learning at home. Demographic segmentation divides the market into segments based on variables like age, gender and family and offers the product and services that satisfy their mutual needs. Starbucks is an American coffeehouse chain operating in 6 continents and 75 countries and territories. This is done because their product offers something that satisfies a mutual interest to these segments. Learn how to effectively use demographic segmentation in your eCommerce marketing strategy. Improved personalization. Companies consider this way to be the least costly way to segment their target market. Demographics are a common basis for market segmentation -- the process of breaking a large target customer audience down into … Improved product relevance. The Starbucks company also target teenagers from 18 to 24. There are plenty of ways to segment markets using demographics. Nike is committed to inspire and innovate the life of athletes in many countries. Nike target consumer from 15 to 40 years of age. The ability to buy general and specific products rely on customer income segmentation. Nike and Adidas are good examples of footwear brands that offer different sports footwear, apparels and related accessories for men and women and youth. Demographic segmentation is an excellent way to provide relevant and targeted messaging to potential customers and existing customers alike. As the saying goes men are from Mars and women are from Venus, naturally, there is a lot of differentiation between their likes, dislikes and preferences. 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