Usage. ONLY, on the other hand, is for women. An advertisement isn’t going to change their mind. Some demographic information is more important than others. Your email address will not be published. All their marketing, imagery, and products are for that gender. If people can’t afford your product or service, there is no point in targeting … This helps brands spend their advertising and marketing budget more efficiently. 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. This strategy enables the company to divide a large market into subsets based on distinct characteristics, need and wants. It might be that there are other strategies that would work better. July 31, 2020 | By Stephen Rötzsch Thomas. So don’t. Executives in large organizations would make different clothing choices when compared to designers in a marketing agency. Demographic Segmentation. As you’re only focusing on basic data that excludes actual customer behaviours and desires its effectiveness is limited. You can use this type of segmentation to your advantage like Convertkit. If you’ve gone to college, you can point to common experiences there as well. Â. Of course, you should be rewarded for all of your hard work […]. A good example of the STP process (segmentation, targeting, positioning) can be found during the Cola Wars in the 1980s between Coca-Cola and Pepsi-Cola. Occupation is obvious for trade magazines but not as useful for general consumer products. Business-to-business (B2B) marketers, however, are much more likely to rely on occupational segmentation to ensure they are pitching their products to the people who actually make purchases for their company, and not an intern who has no purchasing power. Luxury vehicles are pricey but add incustomization options and it’s a whole new level. Market segmentation. Instead of going after their entire market, they’re able to show relevant messages to people more likely to care. On average, external surveys have completion rates well below 20%. With that, you can craft clear messages that work – every time. Whether it s to launch a new product or introducing changes or implementing new services, businesses need to stay on board and up to date with this ever-changing market. Your messages are more effective and they’re more comfortable patronizing you. Perhaps the most common of these strategies is income-related segmentation. 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. You wouldn’t enroll in an MBA course before you did your bachelors. Toys are obviously for a younger demographic group but certain video games appeal to a mature audience as well. Males and females tend to have different preferences. Effective gender marketing isn’t about playing up gender stereotypes, but about presenting clear, effective, and targeted marketing. The data about you and your next-door neighbor is exactly the same. A good example of this type of segmentation is Mercedes. With that, you can choose the right social media platforms, create better marketing material, and grow your subscriber base more quickly. It’s important to recognize that segmentation and targeting differ, though they can be closely linked. Basic demographic information about their users is freely available. 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. You can see that most of the people present are males. As soon as someone lands on your websites do they know what you’re all about? Income level: Under $15,000, $1… While using geographic segmentation, the company might launch different products for that particular market or might also use different marketing strategy to attract the said geography. Juul, the electric cigarette that took the world by storm, and is under investigation for its advertising practices, targets a younger demographic. This helps in creating groups exhibiting a similar need and want, and can be targeted in a much more better way by companies. The five main demographic segments are age, gender, occupation, cultural background, and family status. Do a bit of research to inform which channel you should spend the most time on. They want a unique car, a guaranteed way to stand out and show-offtheir lavish lifestyle. When doing gender segmentation, you don’t have to exclude a gender. The difference between a quiz and a survey is that with quizzes, people want an outcome. In this case, common demographics include company size, industry, role, time working for the company, and more. companies that use demographic segmentation As you may be aware, Coca-Cola eventually took the dramatic act of reformulating their flagship Coca-Cola product and withdrawing it from the market to replace it with “new" Coke. 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. That’s what print and television advertising empires were built on. Luxury car brands focus on high-earning individuals, although they have diversified to reach nontraditional segments, such as younger female buyers. Older millennials and the 30+ crowd are more secure in the knowledge of what they want and need. Let’s look at how some of the variables might work for your business: Whilst it isn’t a universal truth, it’s fair to say that people of different ages often have very different desires and expectations. 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. Don’t tell them they need a new car. Example Demographic Segmentation of Nike. Demographic segmentation is the simplest and by extension the most widely used type of market segmentation. It is common for a business to use demographics as a target market and/or target audience. What are the pitfalls of demographic segmentation? The last type of demographic segmentation we’ll touch on is family makeup. 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. 1. Does your brand have a widespread reach around the country or perhaps … For example, if you’re selling premium online courses for photography, the gender of your audience isn’t as important as their age or income. 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. The most common example of using psychographicsegmentation by luxury vehicle corporations. The person who’s willing to pay half a million dollars may tell them to improve the performance or the finishing. 2. You can’t get away with asking seven demographic questions and calling it a day. Over time, you’ll understand whether age, gender, income, education, or family makeup is the most important variable for your specific products and services. Very informative. Females are greatly underrepresented. Demographic Divide. What are the main demographic segmentation factors? Their COVID-19 information page was presented in Chinese first to ensure maximum clarity for their customers. Either way, they present themselves as a solution and allow for those in this particular life stage to feel catered for. 2. When should you use demographic segmentation? Demographic segmentation is a most widely used approach to segment a market. Both quizzes and surveys allow you to ask your audience members direct questions. Agencies may choose to segment the market by industry when searching for prospective clients. The biggest issue you can encounter is not using demographic segmentation at all. Just like people, demographics come in all shapes and sizes. Instead of focusing on how people behave and what demographics they belong to, Psychological Segmentation focuses more on psychological characters such as conscious and subconscious beliefs, motivations, and priorities. WaNaHong is an online Asian supermarket selling primarily to Asian expats living in the UK. 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. While this may be true on the surface, it’s always a good idea to niche down and serve a group of people more closely. 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. Demographic segmentation is not always the most effective form of market segmentation to use. Definition: Demographic segmentation groups customers and potential customers together by focusing on certain traits such as age, gender, income, occupation & family status. Age is also another common factor used to segment customers. Age segmentation makes sense for alcoholic beverages but doesn’t seem to apply to soft drinks. The needs of families are different when compared to the needs of individuals. The 5 Types, Examples, and Use Cases, Target Market Examples, Definition, and Finding the Right one, The 11 Best Free YouTube to MP3 Converters, Behavioral Segmentation Defined + How to Use it for Explosive Results, 7 Data Collection Methods for Qualitative and Quantitative Data, Top 13 Demographic Survey Questions you Should be Using. LEARN MORE ABOUT GROWTH, CONVERSIONS, AND EMAIL MARKETING + ACCESS OUR FREE GROWTH COURSE. If you don’t segment like this, you may get feedback from people who would never buy. Subscribe to our resources. One group of businesses that uses market segmentation to great effect are manufacturers of hair care, beauty, and other grooming products. process of dividing your market into segments based on things like ethnicity Note: Be careful about using census data. They’re not doing it for themselves alone but for their entire family. The best results are achieved when you know which genders prefer specific products. Demographic Segmentation: Brand’s demographic segmentation includes women and men whom are older than 18 years. I am studying an online course in marketing, and I have gained further understanding of demographic segmentation. Segment by Family. The following are common types of demographics. But the people looking for this aren’t concernedabout price. It’ll give you gender and age information about a portion of your audience. Look into other types of segmentation such as behavioral and psychographic to build a better persona of your ideal buyer. Certain magazines also appeal to people with specific groups. Don’t stop at demographic segmentation alone. Just because two people are male and eighteen doesn’t mean they want the same things. Learn how your comment data is processed. As highlighted above using demographic segmentation may not be the right move for everyone. Some, on the other hand, have no requirements. Before and after their first child they’re more receptive to message about childcare. Geographic segmentation looks only at the physical location of a prospect, whereas demographic segmentation looks at specific traits. Log into your analytics tool and check if it’s gathering the data. While the south is passionate abo… 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. Before a wedding couples are more receptive to bridal advertisements. Age: Under 12, 12 to 17, 18 to 24, 25 to 34... (these typically go on at 10-year increments) 2. This site uses Akismet to reduce spam. Each provides different ways to look at your customer base, and define what it is that will help you sell to them. to psychographic factors like attitude, interest, values, etc. Demographic data is important but it’s by no means the only information you need to create useful customer segments. 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. Worthy of note is the fact that demographic market segmentation variables are the most popular bases for consumer market segmentation. All rights reserved. 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. Gender-specific marketing can be a very powerful tool when done well, but it’s increasingly important to consider your messaging. The owner of LCMS, Jin, uses a lot of imagery and testimonials on his homepage. Women are more interested in home décor and beauty supplies. 1. This is a perfect example of market segmentation. Nike target consumer from 15 to 40 years of age. If you have a website then you’re using analytics software to understand who visits and what they’re interested in. For example, if you’re selling high-end luxury products segmenting your market by income makes sense. Limited RangeFor example, just because we have two people in the same demographic segment doesn’t mean they want the same things. Required fields are marked *. 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. Having chosen this segment as its target, the company can start working on its positioning to make it youthful and its marketing mix to reach the audience via channels they use most. The key for your business is identifying which segments are most relevant to you, and how best to utilize the opportunities segmentation affords you. 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 marketing to older demographic works perfectly. Another B2B example might be a brand that sells an enterprise marketing platform. Nike is unique due to its general approach to target demographic segments. 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. This type of market segmentation divides the population on the basis of … Some demographic segmentation make sense for one product but not another. 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. However, while this gives some indication as to the willingness to pay for additional service and the consumers overall price sensitivity, it does not give us much insight into the consumers’ needs and motivations in terms of their needs for airline travel. Next, we choose which of those segments to, Finally, we use this information to guide our, Demographic Segmentation Defined with 5 Marketing Examples. Most analytics software allows you to see basic demographic information like gender and age. For example, a water delivery service with limited supply may use firmographic segmentation to market itself to smaller businesses that may not demand as much water. You can segment based on personal income or household income. There are plenty of ways to segment markets using demographics. 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. Dollar shave club created a movement (and sold to Unilever for a billion dollars) by creating a product exclusively for one gender – men. Income 5. Marketers find this tool useful as people in different income brackets can have drastically different approaches to making purchases. You wouldn’t target a family cruise at individuals and you wouldn’t target a night club or dating service towards couples. It’s important to combine demographic segmentation with other types of market segmentation to build a complete picture of your best customers. The older generations have traditionally been ignored because it’s thought that they’re set in their ways. For example – In a diverse and multi lingual country like India, global companies like Vodafone, Nike, Adidas have to come up with different marketing strategyfor different regions within the same country. Surveys allow you to ask direct demographic questions but the engagement rate is much lower. You can sprinkle in a few demographic questions with questions calculated to boost engagement and achieve a higher response and completion rate than surveys. Doctors and nurses may make different food choices when compared to truckers and construction workers. The following are examples of the demographic variables in marketing segmentation. Geographic Segmentation. Whilst it isn’t a universal truth, it’s fair to say that people of different ages … Taking this into account as you plan your marketing strategy can be a useful tool. If you’ve not accessed this area of your account before then you’ll need to activate it and check back in 24 hours. They almost exclusively use female models to showcase their products and the looks you can achieve. Gender 4. STP (Segmentation, Targeting, Positioning) is a three-step approach that combines each of the above practices to hone in and successfully market to consumers. Together, our education and occupation influence our buying decisions. That way, you can use your budget to market to them and leave off the other one. Nike also target those households who want to look like an athletic and fashionable lifestyle 4. Sex (gender): Male, female, other nonbinary identities 3. It’s often paired with gender segmentation to create a more robust profile. What that could look in real life is a hypothetical food company that segments its market by age group. Income and occupation. This aspect helps businesses stay ahead of their competitors and perform better. It wouldn’t be a stretch to position your offer as one that’ll help them achieve a lifestyle that they always dreamed about for their family. You may unsubscribe from these communications at any time. Demographic segmentation is an important starting point to understand your market and their needs. On the other side, your occupation can play a big role in how you purchase products and services. Demographic segmentation also allows us to group our customers by ethnicity, religion, and nationality. If you want more data – surveys and quizzes are best. Segmenting is dividing a group into subgroups according to some set ‘basis’. Demographic attributes like age, sex, gender, religion, and educational qualification, play an essential role in research. 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. Some common variables of demographic segmentsare 1. Copyright 2018-2020, KyLeads. Conversion rate optimization | July 8, 2020. It’s important to look at what you are selling, the size of your business, and who you are selling to. Demographic marketing is particularly useful for advertising kosher or halal products to the right audience. Demographic segmentation factors (and examples), Demographic segmentation frequently asked questions (FAQ). This is most effective when you have a specific product for a specific niche at a higher price point. One way to better explain how segmentation and targeting are different but work together is via the STP marketing model. As a result of this, you can ensure people seeing your marketing are presented with products more relevant to them. This company would likely target an audience that has a higher income. 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. Age. MY ACCOUNT LOG IN; Join Now | Member Log In. Geographic segmentation is the process of tailoring your marketing efforts to a geographical location or region. Geographic segmentation is also easier and cheaper to do than demographic, psychographic or behavioral segmentation while offering many of the same benefits. Use quizzes or surveys to get the demographic information and start experimenting with the information you unlock. Compare the bright and casual tone that mass-market wine brand Barefoot uses, above, with that of the luxury sparkling wine brand Nyetimber, below. Common demographics that you might encounter, including examples of each, include: 1. Whether or not you’re using the wrong segments depends entirely on what your product is, your branding, and goals. This is perhaps most useful for those in the food sector, particularly for businesses selling food or products from specific cuisines. One may come from a family that values education above all else so they’re keen on buying test prep courses. It divides the market into segments based market segmentation criteria that tell us something about the population: age, gender, family size etc. Use income segmentation when you have both expensive and inexpensive products. The more customization youadd, the higher the price tag. With the right demographic information, you can create assumptions to test and refine your messaging. Demographic segmentation is the process of dividing your market into segments based on things like ethnicity, age, gender, income, religion, family makeup, and education. Tell them about the options available to them. For example, the razors marketed to men and women are fundamentally the same, but they have very different packaging and advertising messages. Let’s begin! Age 2. This is something the average family can’t afford.That’s why these companies segment their audience based on personality, s… Demographic segmentation based on age: One of the most critical variables for demographic segmentation in marketing is age. With each tier of education, there are certain experiences they may have had. Behavioral segmentation. The campaigns are reminiscent of the ads the traditional cigarette industry used to target younger smokers. Once you have enough answers, you can use that as a sampling of your customer base. We can all point to common grade school experiences. They have to be able to afford your courses and age can give you an idea of their willingness to learn a new skill. You may feel like it doesn’t matter because you’re selling a product that can appeal to all people (like a digital course or software). Age Age such as a theater production with a target audience of adults over 40. 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. Improved product relevance. Age is also helpful when deciding which social platform you want to use. The age of the customers is a general indicator of how appealing certain goods and services are to them. The definition of geographic segmentation with examples. Demographic segmentation can also be used in B2B markets. Demographic segmentation slices the market on demographic variables like age of the customer, gender, income, family life cycle, educational qualification, socio-economic status, religion etc. Demographic segmentation is used by car industries to target consumers. Therefore, the study of how population-based demographic segmentation behaves towards changes in products or services is essential. In this article, we’ll look at what demographic segmentation is, how to get the information, and examples of how smart businesses are using it. The short answer is: it depends. Get inspired by real-world examples from household brands. 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.”. Race 3. LinkedIn, as I’m sure you’re aware, is one of the largest social media platforms in the world. Income segmentation wouldn’t make sense for a bargain product but it would make sense for a luxury product. Learn how to effectively use demographic segmentation in your eCommerce marketing strategy. Typically we think that airlines will segment their customers by class of seating, such as economy class, business class and first class. However, with the dynamic marketing trends and changing market, we can expect more kinds of grouping. Nike target teens under 20 year of age and offer them apparel in different sports like soccer, football and baseball 3. Demographic Segmentation Examples. If you want an effective way to target your marketing, customer segmentation is an excellent entry point. Messages targeted at them are flashy and abstract because their future is still up for grabs. Do you need to go to college or work in a design firm before you buy a nice pair of jeans? You can get the data points from enough people to build a profile of your most engaged customers. Simply open your GA account, click on audience ->demographics -> overview. Income Religion Gender; Education; Occupation; Marital Status; etc. It makes it easier to tailor your messaging to their needs. Take a look at Sephora’s Instagram page. Families come in all shapes and sizes – single moms, single dads, gay couples … Other segmentation methods such as psychographic and behavioral segmentation are more difficult to implement. Does that mean they’ll turn away everyone else? Examples: Market segmentation examples include senior living communities that aim their marketing efforts toward people aged 65 or older as well as their adult children. If you want an easy way to get the data – analytics are your friend. I’d be forced to agree with you because it seems like you just repeated what we wrote :). A fashion brand would care more about gender but a software company that sells to other businesses may care more about income. The largest group of Twitter users are between 25 – 34. After a wedding, they’re more receptive to messages about home furnishings. Gender segmentation wouldn’t make sense for food but it would make sense for a beauty product. If you’re selling food, segmenting by Gender may not be the most useful variable to use. McDonald’s target consumer from 8 to 45 years of age. Many of the fastest growing companies on the Inc. 5,000 list use occupational segmentation to position their companies and reap the largest benefits. Without stereotyping anyone, men are more interested in financial trading and cryptocurrencies. 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. Every social media platform has an age group that uses it more than others. Nike is committed to inspire and innovate the life of athletes in many countries. 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 Are the majority of your customers likely to be in a specific education or occupational segment? Students are the frequent target of marketers, as a segment who are easily defined and have unique interests and needs. We’re going to look deeper at the type of demographic segmentation information to collect and prioritize. This category can be a strong predictive indicator of loyalty or churn and, therefore, lifetime … 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. A new skill the company to divide a large market into subsets based on characteristics. 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