In this case, common demographics include company size, industry, role, time working for the company, and more. 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. Families come in all shapes and sizes – single moms, single dads, gay couples with kids, childless straight couples, straight couples with one child or several kids. These are common examples of how businesses can segment their market by gender, age, lifestyle etc. Get inspired by real-world examples from household brands. Market Segmentation Definition. 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. The first variable used is a basic business description, splitting the market into the broad categories of manufacturing, services, and retailing. Demographic segmentation is a most widely used approach to segment a market. Typically we think that airlines will segment their customers by class of seating, such as economy class, business class and first class. It might be that there are other strategies that would work better. 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. Size of the company; Function of the job; A classic example for a B2B demographic segmentation would be that of a marketing platform brand. Demographic segmentation groups customers and potential customers together by focusing on certain traits that might represent useful markets for a business. One personal care company, for example, might make two deodorant products — one labeled as men’s deodorant and one labeled as women’s deodorant. He's also run a couple of small businesses of his own. To really dig deep enough, you also need to factor in behaviours and psychographics . 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. Another B2B example might be a brand that sells an enterprise marketing platform. Firstly, the most significant demographic target audience segmentation factor is age because of diversity. You may also see successful marketing campaign examples 2. Based on research, companies devise different ways to sell products to men and women by using different colors, music, spokespeople, and … There are five major types of marketing demographics that are used when … 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. Just like people, demographics come in all shapes and sizes. For example, the four types of segmentation are Demographic, Psychographic Geographic, and Behavioral. 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. For example, if you’re selling high-end luxury products segmenting your market by income makes sense. 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. Demographic segmentation also allows us to group our customers by ethnicity, religion, and nationality. One way to better explain how segmentation and targeting are different but work together is via the STP marketing model. A liquor vendor, for instance, might want to target its marketing efforts based on the results of Gallup po… 9 Examples of Geographic Segmentation posted by John Spacey , June 02, 2018 Geographic segmentation is the process of tailoring your marketing efforts to a geographical location or region. A hot arcade might look at the student demographics of a particular area when deciding to open a new store in an area or where to market their hottest game. Psychological Segmentation is a segmentation method that can be used in conjunction with or without behavioral and demographic Segmentation. Different groups may have different tastes in food, live in different neighborhoods and have different attitudes. He lives in Durham NC with his awesome wife and two wonderful dogs. As highlighted above using demographic segmentation may not be the right move for everyone. Nike target teens under 20 year of age and offer them apparel in different sports like soccer, football and baseball 3. The following are examples of the demographic variables in marketing segmentation. A big reason being that many companies depend solely on traditional approaches, such as geographical and demographic segmentation.. There’s no denying that knowing your average customer’s location, age, gender, etc. McDonald’s target consumer from 8 to 45 years of age. Income level: Under $15,000, $1… This is the primary reason for using age as a variable in demogr… Psychological Segmentation is a segmentation method that can be used in conjunction with or without behavioral and demographic Segmentation. Education 6. Taking this into account as you plan your marketing strategy can be a useful tool. Company conducted a survey in order to determine the segmentation of people who would like to prefer fragrance and moisturizing cream in the skin care products they use. B2B Customer Segmentation Best Practices #1. Income is an obvious way to segment the market. Technographic Segmentation – based on preferred technologies, software, and mobile devices. Whilst it isn’t a universal truth, it’s fair to say that people of different ages … Age Age such as a theater production with a target audience of adults over 40. Sample Demographic Market Segmentation Example What Are the Basis of Segmenting Consumer Markets? Companies that sell prepaid debit cards, for example, have found success marketing to customers who don't have bank accounts. They want a unique car, a guaranteed way to stand out and show-offtheir lavish lifestyle. Season and Climate (winter, summer, spring). Age: Under 12, 12 to 17, 18 to 24, 25 to 34... (these typically go on at 10-year increments) 2. Demographics are the breakdown of your customer personas in the market for cursory traits like age or gender. Similarly, publishers can use market segmentation to offer more precisely targeted advertising options and to customize their content for different audience groups. Families with kids might buy lots of children's movies on DVD. Population (Capital city, Metropolitan city, small town). How to Make a Market-Targeting Recommendation. Adidas target consumers of age from 14 to 40. By clicking ‘Subscribe’, you consent to Yieldify using the information you provide to us to contact you about our products and services. A youngster might want a mobile phone but an earning professional will want a communicator with lots of extra features such as email and file editing support. Saga Holidays sell travel packages exclusively to those over 50, and their marketing reflects this. If you're marketing luxury goods or services, you target a market segment with more disposable income. Agencies may choose to segment the market by industry when searching for prospective clients. Age 2. Let’s begin! Life Stage ... A list of market segmentation examples by type. Demographic segmentation is an excellent way to provide relevant and targeted messaging to potential customers and existing customers alike. Example Demographic Segmentation of Nike. Market segmentation isn’t about targeting specific customers, but about creating groups based on the different traits that they share. Nike target consumer from 15 to 40 years of age. Sex (gender): Male, female, other nonbinary identities 3. ... On the other hand, a company publishing women’s magazines will have to specifically target the female population. Demographic Divide. Family makeup can be a useful tool in segmenting the market: families that don't have babies don't need diapers, for instance. Learn how to effectively use demographic segmentation in your eCommerce marketing strategy. 7 Psychographic segmentation examples; What is Psychographic Segmentation. It's very easy, however, to slip into stereotypes and end up missing your target or worse, infuriating them. Stay-at-home moms do most of the family shopping for food and healthcare products. Using the wrong demographic variablesIn some cases it won’t make sense to use every demographic variable there is. 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. 1. Basic Explanation of Demographic Segmentation With Examples. Home Depot, for example, might want to advertise snow shovels to customers in New England, but it would be pointless to do so in Florida. Luxury vehicles are pricey but add incustomization options and it’s a whole new level. The most common example of using psychographicsegmentation by luxury vehicle corporations. As you can expect, these include information like annual revenue or number of employees. 1. Obviously, each of these segments would be of different sizes and attractiveness, but it does give a good overview of the range of consumer needs in the market. Geographic Segmentation. Example – a toddler will need infant food, a child will need dolls and toys, a middle age customer will need insurance and investment plans and finally an old age person might need retirement plans. 3. Market segmentation of the Nike company Demographic Segmentation Demography segmentation they include age, race, family income, and education level, among others. If you run a dollar store, your targets are probably consumers with lower incomes. Income level 4. An example of geographic market segmentation would be an electric scooter company aiming its products at people who live in crowded cities. 2. Demographic segmentation: The who Gender segmentation is the process of dividing of potential markets based on gender (male or female). Say, for example, you’re a market… This segmentation focuses on characteristics like age, gender, income, education, race, and more. It is common for a business to use demographics as a target market and/or target audience. 2. Race 7. Psychographic segmentation is a market segmentation technique where groups are formed according to psychology, lifestyle, personality, social status, daily activities, interests, and opinions. 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. 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. A generation implies a set of people who are born and grew up around the same time in history. What appeals to a 19-year-old Asian-American art history major may be completely different from what appeals to a 50-year-old black attorney. Demographic segmentation breaks down the market into different categories. 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. Market Analysis: The analysis shows the preference of people which products they would like to use. Closely connected to age, the life cycle stage of a consumer group defines what will be the need of that particular customer. So they would look to target their marketing towards the 25-30-year-old group in order to change this. For example, an online education company might use site demographics and traffic of a famous blogger with a reader demographic of 80% women to justify paying her to promote an online campaign. Demographic Segmentation – based on gender, age, occupation, marital status, income, etc. The following are common types of demographics. Students are the frequent target of marketers, as a segment who are easily defined and have unique interests and needs. Companies use it to create broad groupings of the population based on things such as age, sex, location, religion, family size, etc. Perhaps the most common of these strategies is income-related segmentation. There are 4 main types of market segmentation: demographic, psychographic, geographic, and behavioral. July 31, 2020 | By Stephen Rötzsch Thomas. Thus even though the basic functionality of the product is same, the wants are different. Gender segmentation is done when a company which manufactures products wants to focus only towards boys or girls, as the products are very gender specific. Large families might be more interested in low-cost products than a childless couple with the same income. 9 Examples of Geographic Segmentation posted by John Spacey , June 02, 2018 Geographic segmentation is the process of tailoring your marketing efforts to a geographical location or region. Demographic segmentation is an important and commonly used basis. Gender 4. Race 3. One of the first variable of demographic segmentation is age. Demographic segmentation is one of two other types of segmentation, geographic segmentation, and psychographic segmentation. Please note that this website contains quite a number of market segmentation examples (click here). Behavioral segmentation. Segmenting is dividing a group into subgroups according to some set ‘basis’. Local businesses may even segment by specific towns or counties. is essential to addressing their needs. Either way, they present themselves as a solution and allow for those in this particular life stage to feel catered for. 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. Few men wear makeup. It helps companies to break down the market into smaller groups and becomes easier for them to target the potential customers. Company conducted a survey in order to determine the segmentation of people who would like to prefer fragrance and moisturizing cream in the skin care products they use. Demographic Segmentation Examples. They belong to the same experiences with certain demographic segmentation. 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. But the people looking for this aren’t concernedabout price. 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. 9. It could be when asked to fill your location during a survey, grouped into a boys and girls group in elementary school, or filling your highest level of education during a job application, but you must have experienced demographic segmentation at some point in your lifetime. Behavioral segmentation: The how. The following are examples of this practice. Market Analysis: The analysis shows the preference of people which products they would like to use. Psychographic Segmentation Psychographic segmentation divides a market into different groups based on social class, lifestyle, or personality characteristics. Next, we choose which of those segments to, Finally, we use this information to guide our, Demographic Segmentation Defined with 5 Marketing Examples. 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. Fraser Sherman has written about every aspect of business: how to start one, how to keep one in the black, the best business structure, the details of financial statements. Adidas focuses on upper-middle, upper class, and upper lower. 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. Based on research, companies devise different ways to sell products to men and women by using different colors, music, spokespeople, and … Women are more likely to donate to causes than men. Market segmentation is the process of dividing prospective consumers into different groups depending on factors like demographics, behavior and various characteristics. If you’re selling food, segmenting by Gender may not be the most useful variable to use. How to Identify the Segmentation Criteria That Will Affect Your Target Market Selection, Up Front Analytics: Understanding the Importance of Demographics in Marketing, Bridge Corporation: Customer Segmentation, University of Michigan: How Markets Are Segmented, Inc.: 6 Rules You Need To Follow If You Target a Female Audience. Marketing built around stereotypes can offend your potential customers and drive them away. Demographic segmentation is a foundation of solid marketing strategy, but don’t fall into the trap of relying on demographics alone to identify unique groups. When creating a marketing campaign you shouldn't that assume all your customers are alike. This is perhaps most useful for those in the food sector, particularly for businesses selling food or products from specific cuisines. If you want an effective way to target your marketing, customer segmentation is an excellent entry point. Effective gender marketing isn’t about playing up gender stereotypes, but about presenting clear, effective, and targeted marketing. Marital Status 6. Obviously, each of these segments would be of different sizes and attractiveness, but it does give a good overview of the range of cons… For example, Ice cream company and blanket marketing company. Gender 2. Usually combined with geographic segmentation, demographic segmentation is one of the most popular segmentation types used by companies. Apple Inc Report contains a full analysis of Apple segmentation, targeting and positioning and Apple marketing strategy in general. So don’t. Demographic segmentation can also be used in B2B markets. 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 Examples Limited RangeFor example, just because we have two people in the same demographic segment doesn’t mean they want the same things. Demographic market segmentation will help your business reach to a more likely consumer. However, this is another type of segmentation that you need to use carefully. Religion Demographic segmentation is usually the most important criterion for identifying target markets, which means that knowledge of demographic information is crucial for many businesses. STP (Segmentation, Targeting, Positioning) is a three-step approach that combines each of the above practices to hone in and successfully market to consumers. Geographic segmentation means segmenting markets by region of the country, city or county size, market density, or climate. The key for your business is identifying which segments are most relevant to you, and how best to utilize the opportunities segmentation affords you. Subscribe to our resources. How demographic segmentation works. Here is a quick overview of some examples of how to segment a market. Gender-specific marketing can be a very powerful tool when done well, but it’s increasingly important to consider your messaging. Behavioral segmentation is possibly the most useful of all for e … Upsell Converted Users. Demographic Target Audience Segmentation Factors: process of dividing your market into segments based on things like ethnicity Demographic Segmentation. Beyond business and marketing, demographic segmentation is a phenomenon that is applicable to different aspects of life. Automotive companies often segment their audience by income and market different makes and models of cars to each segment. You may unsubscribe from these communications at any time. 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. Marketers know that individual consumers have wants and needs that are linked to their demographic and psychographic characteristics, past interactions with a company or … Demographic Segmentation of McDonald’s: McDonald’s is one of the largest fast-food chains serving millions of customers daily in more than 100 countries across the world. Geographic Segmentation – based on country, state, or city of residence. Demographic segmentation In demographic segmentation company divide customers on the biases of. The key for your business is identifying which segments are most relevant to you, and how best to utilize the opportunities segmentation affords you. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Apple. Demographic segmentation is the market segmentation strategy in which the total market is divided on the basis of customer demographics. 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. Be in the know. Demographic grouping is based on measurable statistics, such as: 1. The more customization youadd, the higher the price tag. There are many ways in which examples of segmentation based on demographics can be understood. Marital status 5. Learn all about psychographic segmentation definition, variables, examples, and advantages to implement it … What is demographic segmentation? This could include things like how far each child is into their education, whether the person is renting their home or owns it and, in the case of the latter, whether or not they have paid their mortgage off. Segment by Family. These are all examples of demographic variables and is considered one of the most common segmentation practice among the … Marketing segmentation has always been important. What that could look in real life is a hypothetical food company that segments its market by age group. Learn all about psychographic segmentation definition, variables, examples, and advantages to implement it … Some corporations, governments or nonprofits might look for unique or specific demographic data like income level, while others might explore several demographics at once. Different marketing for men and women makes sense as genders have different needs. Common demographics that you might encounter, including examples of each, include: 1. 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. Age, gender, marital status, family size, income, religion, race, occupation, nationality, etc. A segmented market allows you to present different messaging to different groups. A simple example of B2C demographic segmentation could be a vehicle manufacturer that sells a luxury car brand (ex. 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. 3+ Demographic Market Segmentation Examples. Market Segmentation Definition. 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.”. This first segmentation example uses age group (demographics) and then benefits sought to construct nine different market segments. Demographic segmentation separates your target market into specific, accessible groups of people based on personal attributes like geography, age, education, occupation, and income. Psychographic segmentation is a market segmentation technique where groups are formed according to psychology, lifestyle, personality, social status, daily activities, interests, and opinions. This first segmentation example uses age group (demographics) and then benefits sought to construct nine different market segments. Yet, only 33% of companies using it say they find it significantly impactful. In this business market segmentation example, the firm has used two segmentation variables to construct six market segments. As you’re only focusing on basic data that excludes actual customer behaviours and desires its effectiveness is limited. Each provides different ways to look at your customer base, and define what it is that will help you sell to them. Demographic segmentation divides the market on the basis of demographic variables like age, gender, marital status, family size, income, religion, race, ... A perfect example of this is Olay. Trying to market to women by painting some of your products pink comes off as both sexist and clueless, for instance. Customer Segmentation: Demographic B2B. The process is relatively simple because companies can easily get demographic data. Demographic segmentation FAQ: The following diagram outlines a possible segmentation tree for them. Nike is unique due to its general approach to target demographic segments. Age- Nappies are for infants (0 to 12 months), puzzles for kids (3 to 8 years), calculators (15 years … Demographic Segmentation Of H&M: Hennes & Mauritz as popularly known as H&M engaged in the sale of clothing, accessories, and footwear. This is a perfect example of market segmentation. Age, income, gender, ethnic background and family life cycle are all important factors of demographic segmentation. Getting users to convert is great, but to grow your business you need repeat … Some products are targeted explicitly towards a specific demographic. There are plenty of ways to segment markets using demographics. Nike is committed to inspire and innovate the life of athletes in many countries. Geographic data combined with behavioral data can point companies toward locations where customers are clustered who demonstrate behaviors that make them a good target for a company’s product. Improved product relevance. 1. This is a perfect example of market segmentation. Market segmentation can help you to define and better understand your target audiences and ideal customers. Demographic segmentation is the simplest and by extension the most widely used type of market segmentation. 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. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, please review our Privacy Policy. Some companies might go micro, segmenting different parts of town or even different streets. It also targets high-income customers with a monthly income of $15000. 1. 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. Is a basic business description, splitting the market segmentation example uses age group ( demographics ) and then sought. You should n't that assume all your customers are alike include information like annual revenue or number of employees you! The demographic variables in marketing segmentation likely consumer campaign you should n't assume... Content for different audience groups similarly, publishers can use market segmentation is a method... 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