What is demographic segmentation?
Demographic segmentation in marketing is a type of consumer segmentation that involves grouping consumers based on shared demographic characteristics to create better marketing campaigns. These characteristics include age, gender, income, occupation, marital status, family size, and nationality. This is everything you need to know about the 6 types of market segmentation: demographic, geographic, psychographic, behavioural, needs-based and transactional. Demographic segmentation separates your audience by who they are.Demographics describe who your target customers are in terms of categories like their age, gender, employment status, life stage, family structure, religion and income. Here are a few examples of demographic descriptions of your target market: College students with a part-time job.The 4 main types of market segmentation variables include demographic, geographic, psychographic, and behavioral traits. For example, if you were to segment your audience based on their zip code, you would be using the geographic variable.Market segments can be demographic, geographic, behavioral, and psychographic. Each helps businesses target customers more precisely. Benefits include more accurate targeted marketing, improved customer engagement, and stronger brand loyalty.
Which is demographic segmentation?
Demographic segmentation is a marketing strategies employed by businesses to gain deeper insights into their target audience. This method involves dividing consumers into groups based on various factors like age, gender, income, education, and occupation, among others. The 4 main types of market segmentation include demographic, geographic, psychographic, and behavioral–which we’ll cover more in depth in the next section.Demographic, psychographic, behavioral and geographic segmentation are considered the four main types of market segmentation, but there are also many other strategies you can use, including numerous variations on the four main types.Market segmentation is the process of dividing the market into subsets of customers who share common characteristics. The four pillars of segmentation marketers use to define their ideal customer profile (ICP) are demographic, psychographic, geographic and behavioral.The four main types of behavioral segmentation are based around purchase behavior, occasion-based purchases, benefits sought, and customer loyalty.Demographic segmentation categorizes potential customers based on common demographic characteristics, such as age, gender, income, education, occupation, and family size. Example: A luxury car brand targeting professionals who earn in excess of a certain amount based on previous sales data.
What is an example of a company using demographic segmentation?
Nike is one of the world’s most well-known brands that uses demographic segmentation. It segments its customers by age, focusing on a target audience between 15 and 45 (teen years to middle ages), including men and women. Nike’s demographic segmentation primarily targets males and females aged between 15 and 40 years, ensuring a wide but specific consumer segment. The company realizes that this age group is most likely to be involved in sports, fitness and also has a propensity to follow fashion trends.What is an example of demographic segmentation by age? Nike is one of the world’s most well-known brands that uses demographic segmentation. It segments its customers by age, focusing on a target audience between 15 and 45 (teen years to middle ages), including men and women.Nike’s demographic segmentation primarily targets males and females aged between 15 and 40 years, ensuring a wide but specific consumer segment. The company realizes that this age group is most likely to be involved in sports, fitness and also has a propensity to follow fashion trends.
What is sociodemographic segmentation?
Socio-demographic characteristics enable you to segment your customers according to their age, sex, profession, education, etc. They are essential when designing targeted marketing campaigns. Essential but sometimes insufficient, as we will see. The main demographic variables that should be considered when segmenting an audience are age, gender, income, education/occupation, and family structure.What is the difference between demographic segmentation vs psychographic segmentations? Psychographic segmentation’s emphasis on characteristics like personality and values differs from demographic segmentation, which uses a specific trait (like gender, age, income, etc.The five types of market segmentation include demographic, psychographic, behavioral, geographic, and firmographic segmentation.Demographic segmentation divides your audiences based on data points such as age, gender, marital status, family size, income, education, race, occupation, nationality, and/or religion so you can target relevant ads at them.
What is behavioral segmentation?
Behavioral segmentation is the process of sorting and grouping customers based on the behaviors they exhibit. These behaviors include the types of products and content they consume, and the cadence of their interactions with an app, website, or business. Behavioral targeting is a combination of techniques that use people’s actions — like website interactions, purchase and browsing histories, and more — to deliver highly relevant marketing messages.A target audience is a specific group of people who are most likely to be interested in and benefit from your product, service, or message. It’s a defined segment of the overall population that shares common characteristics, demographics, interests, or needs.
What is psychographic segmentation?
What is psychographic segmentation? Psychographic segmentation is a market research method used to divide a market or customer group into segments based on their beliefs, values, lifestyle, social status, activities, interests and opinions and other psychological criteria. Geographic segmentation is when a business divides its market on the basis of geography. You can geographically segment a market by area, such as cities, counties, regions, countries, and international regions. You can also break a market down into rural, suburban and urban areas.
What are the 4 segmentation processes?
Market segmentation is the process of dividing the market into subsets of customers who share common characteristics. The four pillars of segmentation marketers use to define their ideal customer profile (ICP) are demographic, psychographic, geographic and behavioral. The key demographic variables include age, gender, income, education, occupation, and marital status. These characteristics paint a comprehensive picture of who your ideal customers are, evolving trends and how to meet the needs of your target audience.Marketing professionals divide consumers into four segments: Demographic: These are the main characteristics that define your target market. Everyone can be identified as belonging to a specific age group, income level, gender, occupation, and education level.