Without stereotyping anyone, men are more interested in financial trading and cryptocurrencies. For example, the razors marketed to men and women are fundamentally the same, but they have very different packaging and advertising messages. Market segmentation isn’t about targeting specific customers, but about creating groups based on the different traits that they share. Learn how to effectively use demographic segmentation in your eCommerce marketing strategy. It wouldnât be a stretch to position your offer as one thatâll help them achieve a lifestyle that they always dreamed about for their family. Do […], October 30, 2020 | Branding and Storytelling, Businesses donât exist solely to enrich the owners. Some corporations, governments or nonprofits might look for unique or specific demographic data like income level, while others might explore several demographics at once. It’s important to recognize that segmentation and targeting differ, though they can be closely linked. This paper discusses segmentation, targeting and positioning and illustrates the application of STP using different industry and company examples (with greater focus on car manufacturer, Volkswagen). As you’re only focusing on basic data that excludes actual customer behaviours and desires its effectiveness is limited. Age is also helpful when deciding which social platform you want to use. Itâs often paired with gender segmentation to create a more robust profile. 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. 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. Agencies may choose to segment the market by industry when searching for prospective clients. 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. Itâs important to combine demographic segmentation with other types of market segmentation to build a complete picture of your best customers. Age is also another common factor used to segment customers. A medical journal would naturally appeal to Doctors, nurses, pharmacists, and related educators. Basic demographic information about their users is freely available. Compare the bright and casual tone that mass-market wine brand Barefoot uses, above, with that of the luxury sparkling wine brand Nyetimber, below. Tell them about the options available to them. When segmenting based on education/occupation, itâs important to understand two things: Some products have education requirements before youâll receive the benefits. Messages targeted at them are flashy and abstract because their future is still up for grabs. process of dividing your market into segments based on things like ethnicity This site uses Akismet to reduce spam. 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 based on age: One of the most critical variables for demographic segmentation in marketing is age. Let me know how youâre using demographic segmentation in the comments and donât forget to share. A generation is a set of people born around the same time in history and grew up with a similar kind of experience with specific geographic segmentation. Copyright 2018-2020, KyLeads. 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. Â Beyond that, itâs a matter of experimenting. Demographic segmentation is an excellent way to provide relevant and targeted messaging to potential customers and existing customers alike. The needs of families are different when compared to the needs of individuals. This helps in creating groups exhibiting a similar need and want, and can be targeted in a much more better way by companies. Based on that, your product development can be derailed. Demographic data is important but itâs by no means the only information you need to create useful customer segments. Luxury vehicles are pricey but add incustomization options and itâs a whole new level. If you donât segment like this, you may get feedback from people who would never buy. Simply open your GA account, click on audience ->demographics -> overview. 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