What are the various Examples of Demographic Segmentation:

Demographic segmentation examples explain how a market is divided into smaller groups according to age, gender, family income, race and ethnicity, qualification, marital status, nature of employment etc.  

It is an extremely tedious task to accommodate customers belonging to different demographics and develop an exhaustive marketing plan. Demographic examples ease the process of creating a strategy for a marketer and is thus, one of the most commonly implemented marketing segmentation methods in comparison to other methods such as geographic segmentation, behavioral segmentation or psychographic segmentation. As the details required for demographic examples are easily accessible, it has gained popularity among marketers to gather and analyze immense data in brief time periods.

demographic segmentation examples

Dividing the target audience according to demographic diversity will help a marketer in designing an accurate marketing plan which will yield effective results. The products or services that interest a White, 13-year-old boy, might not interest a 40-year-old Asian woman.

Here are a few demographic examples:

  • Age Segmentation – Age is one of the most common demographic segmentation elements. Every age group has their peculiar characteristics and needs. Generally, teenagers might be more inclined towards latest, good looking cars but working professionals would require a car that caters to his/her family and also fits a particular budget. 
    Every age group has a specific requirement which will be extremely different to the requirement of the other age groups. Babies require a constant supply of diapers, special clothing, formula and other such products while toddlers require educational toys, coloring books, products that stimulate their mental and physical growth. Middle-aged adults may invest a lot more in an expensive technological gadget than a teenager. An old-aged person would rather spend their money in buying health-related products. As seen in all these examples, every segment has specific requirements and organizations can develop marketing strategies on the basis of these requirements to obtain effective results.
  • Family Segmentation – There is a lot of variation in this segmentation type. A lot of families have one or multiple children, some have single mothers or fathers, some have gay parents with one or more children, some are child-free and straight etc. Child-free families will never purchase products related to children such as baby lotion, toys or diapers. A multinational organization which is into developing these products will conduct the demographic examples on the basis of the type of family. Single parents will be more inclined in saving cost at various products that might not be a concern for most child-free people.
  • Gender Segmentation – Gender is quite a basic category to conduct segmentation. Every gender has specific characteristics which are distinct and instrumental in decision making. It is very natural for males, females, transgenders, to have different likes and dislikes. Men might not be as interested in makeup or fashion accessories in a manner that women will be. There are a lot of preference differences that are based on gender. Females are usually into makeup products and there are currently more females who show interest in latest fashion products. On the basis of these characteristics, makeup or fashion brands can create a marketing strategy that targets women to get better business results.
  • Race and Ethnicity Segmentation – Race and ethnicity are sensitive categories. Promoting a product depends on that target race or ethnicity as it may be adapted differently by each one of these races/ethnicities. People belonging to various races will have different food preferences, clothing habits, and many other different attributes. Stereotypical segmentation may hurt sentiments which may cause harm to a business.
  • Family Income Segmentation – One of the most straightforward segmentation types is based on income. Income of an individual or a family would govern their ability to purchase products/services of different cost categories. A person who can barely afford to provide food and shelter for his/her family would definitely not be able to afford an iPhone. Companies that offer luxury cars or watches must target customers who have a considerable amount of superfluous earnings. The most likely target audience of an organization that affordable mobile phones will be mid to low income customers.

Learn about: Demographic Survey Questions

Advantages of Demographic Segmentation:

There are several advantages of dividing the target audience according to demographics.

  • As the census is carried out regularly by the government, demographic data can be easily retrieved. An organization can easily divide data into required categories which can be the basis of creating an effective marketing strategy for each of these demographics.  
  • According to the demographic data requirement of an organization, age, gender, income, race, etc. can be adjusted and implemented.
  • Factors such as family income, type of family etc., gives insights that will decide the purchasing power of the consumers. An organization can decide whether or not to target a particular group of consumers on the basis of these classifications.
  • Considering the fact that a lot of effort goes into dividing a target audience into demographic segments, an organization modifies marketing strategies on the basis of the requirements of each of these segments. Due to this, there are high chances of increased customer satisfaction, loyalty as well as increased retention rates.
  • In the longer run, demographic examples will help in reducing cost and time invested in developing and implementing a marketing strategy as all marketing efforts will be carefully calculated according to the various segments.
  • This method is better at understanding a target market and creating strategies that pertain to each of these markets.