The following are illustrative examples. A good segmentation strategy helps you find and analyze a lot of demographic data in a short time for market research and promotional purposes. One of the first variable of demographic segmentation is age. Formplus has an analytics dashboard that displays important metrics such as the total number of form submissions and specific data from different form fields. Without demographic segmentation, it is nearly impossible to understand what your customers want. Here are some examples of market segmentation to prove this point. Take income, for example. That is, what appeals to individuals in a particular age group may not appeal to members of a different age group. 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. Demographic segmentation is important because several variables directly influence demand. This first segmentation example uses age group (demographics) and then benefits sought to construct nine different market segments. Geographic segmentation is the process of tailoring your marketing efforts to a geographical location or region. Use this form to collect personal information from individuals applying for the position of a babysitter. A simple example of B2C demographic segmentation could be a vehicle manufacturer that sells a luxury car brand (ex. One of the greatest music videos ever made (according to MTV) was released in 1990, winning Best Choreography and the hearts of fans and parody-creators alike: 2. Demographic segmentation is market segmentation based on various demographic... Variables. With demographic segmentation, you would know the composition of your target market and you would be able to weave content in a manner that appeals to them. The gender variable is another important demographic factor for market segmentation because individuals identify with different points in the gender spectrum like masculine or feminine, and this primarily affects their choices. Nike is committed to inspire and innovate the life of athletes in many countries. Income levels also serve as an important demographic variable as it largely determines consumer choices and perception on pricing. It is a type of market segmentation that helps businesses to understand their consumers better and meet their needs, effectively. Break the existing segments into smaller categories using other specific demographic variables like family size and occupation. Age segmentation – Age is one of the most common demographic segmentation elements. For example, a product such as perfume, while they undergo segmentation based on demographic variables, a separate perfume for men and women will evolve. Also, purchasing behavior varies among income groups. What Is Demographic Segmentation, & How Do You Do It? For instance, young adults typically favor digital marketing campaigns while older adults usually prefer traditional marketing methods. Every age group has its peculiar characteristics and needs. Demographic segmentation is an important and commonly used segmentation. Occupation segmentation can also help divide groups of people into specific locations such as cities, suburbs, and rural areas and is sometimes combined with income segmentation. Families come in all shapes and sizes – single moms, single dads, gay couples … By placing your target market into demographic segments, you gain a better understanding of their needs and you are able to improve your product or service accordingly. Demographic segmentation refers to the categorization of the target market based on specific variables like age, education, and gender. This is even easier if you used Formplus to conduct your demographic research. You can use any of the templates shared in this article or sign up on Formplus to create your own demographic segmentation form. Also, the complexity of products and product features is largely determined by the educational level of the target market. Demographic Segmentation Examples 1. For example, are your customer high schoolers, university students, married, or single? by Formplus | They want a unique car, a guaranteed way to stand out and show-offtheir lavish lifestyle. 1. It is difficult to achieve business growth without a clear understanding of your customers, which is why demographic segmentation is essential for businesses. Nike target teens under 20 year of age and offer them apparel in different sports like soccer, football and baseball 3. Formplus makes it easier for you to create demographic segmentation surveys and administer them to your target audience. Demographic segmentation allows businesses to be more strategic and specific with marketing. Marketers will only waste their time and might end up making fun of themselves if they don’t segment the market while marketing beauty products. There are many demographic segmentation variables, but some … Here is a quick overview of some examples of how to segment a market. Geographic segmentation slices up your target market based on their geographic location. According to Armstrong and Kotler (as cited in Nynne Larsen 2010), changes of age determine the buyers needs and wants. Behavioral segmentation: The how. Sep 9, 2020. For instance, you can create different product packages to appeal to the different age groups of your consumers. Religion influences the preferences of the target market and so, it is important to know the religious categorization of your target market. IKEA: Making a $40 Billion Company Climate Positive, U.S. A market survey is a tool that provides insights into your target market and it is very useful for feasibility study product launching. Income 5. You can also collect demographic data from public data available via demographic resources. Some common variables of demographic segmentsare 1. Demographic segmentation based on age: One of the most critical variables for demographic segmentation in marketing is age. How Long Can a Company Thrive Doing Just One Thing? Life cycle segmentation includes specific age groups like babies, teenagers, and adults while generation stages include late bloomers, millennials, and generation z. While demographic and geographic segmentation focuses on external attributes that affect your customers’ purchasing habits, psychographic segmentation looks at the internal characteristics that determine whether they will engage with your brand. This category can be a strong predictive indicator of loyalty or churn and, therefore, lifetime … Repeat the above process until you have specific demographic segments for your product. Income levels of the target market also determine the product pricing as you do not wish to price yourself out of business. Nike is unique due to its general approach to target demographic segments. One of the greatest music videos ever made (according to MTV) was released in 1990 and won Best Choreography and the hearts of fans and parodists alike: “U Can’t Touch This” by MC Hammer. With demographic segmentation, organizations can create personalized brand narratives that easily connect with specific segments of the target market to advertise and sell their product or service. Gender 4. Examples of demographic segmentation 1. Generally, teenagers might be more inclined towards the latest, good looking cars, but working professionals would require a vehicle that caters to his/her family and fits a particular budget. How to calculate it. 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. Examples include how toddlers desire certain meals and how adults wear certain clothing. Companies use it to create broad groupings of the population based on things such as age, sex, location, religion, family size, etc. This is an important factor for market demographic segmentation because consumers' needs and preferences differ in line with their ages. Maserati). Demographic segmentation divides your market into groups that share similar characteristics (think census data like age, gender, marital status, income, occupation, ethnicity, education levels, and household sizes). It is not possible for a marketer to address the mass with same marketing strategy. Demographic Segmentation In Marketing 1105 Words | 5 Pages. While making it easier for clients to sign up for your yoga class, this form also makes it possible for you to create the best experience for them by collecting useful demographic information. Customer Segmentation: Types, Strategy, + [Analysis], Behavioral Segmentation: Definition, Types + [Examples], Occupation segmentation can also help divide groups of people into specific locations such as cities, suburbs, and rural areas and is sometimes combined with income segmentation, A Harvard Business School study suggests that 85% of new product launches fail because of poor market segmentation, Demographic Segmentation: Examples, Advantages + [Variables]. Use this step-by-step guide to create a demographic survey with Formplus and administer it to your target markets. Use the form customization options to tweak the overall appearance of your form. Demographic segmentation means splitting customers by gender, age, income, education, or geographic location. Knowing the gender your product appeals to helps you to meet the needs of your consumers effectively. 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. Social status segmentation is not only about income level, social background but also about where the customers are currently in life. This, in turn, improves the overall customer experience and boosts customer loyalty because consumers can easily identify with your brand at different touchpoints. Some demographic information is more important than others.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.They have to be able to afford your courses and age will give you an idea of their willingness to learn a new skill.We’re going to look deeper at the type of demographic segmentation information to collect and prioritize. Demographic segmentation is an important tool in lead generation because it helps you to communicate the value of your organization to prospects effectively. These are the individuals who need your product or service. This can be the current customers’ … 1. Usage. Thus even though the basic functionality of the product is same, the wants are different. The more customization youadd, the higher the price tag. Categorizing consumers based on the occupation or job-types allows organizations to create products for specific industries. 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. Demographic segmentation helps you to create actionable marketing strategies that appeal to them. 2. Lifestyle based demographics such as urban versus small town residents. In this article, we will share what a demographic segmentation is and also show you how to carry out a demographic market segmentation using Formplus forms. Examples of Demographic Segmentation in Marketing Segmentation by Family: When marketing items like diapers and cereals, organizations typically create advertisements that appeal to the traditional young nuclear family structure – father, mother, and children. Example Demographic Segmentation of Nike. Share. Age 2. Age segmentation can be done in terms of life cycle stages or generations. Geography. This is the primary reason for using age as a variable in demogr… To assist you with this, we've shared numerous demographic segmentation examples that can be used to segment your customers. Demographic segmentation gives you a clear understanding of the target market and with this knowledge, you are able to weave specific and exciting narratives that differentiate your brand from the rest. Examples. Marketing. Demographic segmentation is the most common type of market segmenting as it is clearly identifiable. Marketing teams often use demographic segmentation. Luxury vehicles are pricey but add incustomization options and it’s a whole new level. By Alexander Springer On Dec 3, 2020. 3+ Demographic Market Segmentation Examples Demographic market segmentation splits the market into different demographic categories, like age, race, nationality, religion, gender, marital status, social class, ethnicity, income, occupation, lifestyle, and education. Race 3. Market segmentation is the process of dividing prospective consumers into different groups depending on factors like demographics, behavior and various characteristics. , Market Segmentation: Definition, Types, Stages, Benefits, Market Segment: Why It Matters, Criterias, Types, Geographic Segmentation: Concept, How it Works, Pros, Cons, Target Marketing: Why It Matters, How It Works, Pros, Cons, Demographic: Why It Matters, Key Variables, Psychographic Segmentation: Why it Matters, Variables, Transactional Leadership: Examples, Characteristics, Pros, Cons, Niche Market: Examples, Strategies, Advantages, and Disadvantages, Target Market: Definition, Importance, and How to Identify, Physical Capital: Importance, Effects on the Economy, Marketing Planning: Importance, Steps, and Components, Global tech and politics collide | Edition 2, Reuters reveals U.S. preparing new sanctions on Chinese officials over Hong Kong crackdown; market reacts, Reuters ahead in reporting OPEC+ to increase output from January; market reacts, Reuters reveals LSE to win EU approval for $27 billion Refinitiv deal; market reacts, Reuters first to report China’s Ant considers Paytm stake sale amid tensions with India, Why Your Company’s Modernization Journey Needs a Destination - SPONSOR CONTENT FROM SLALOM, Reimagining Medical Conferences for a Virtual Setting, Creating Space for Religious Diversity at Work. Demographic segmentation is predominantly used in marketing, but can also be helpful for things like brand positioning, UX design and CX too. Marital Status 6. Use the form customization options to tweak the appearance of the form to reflect your brand. Demographic segmentation is a most widely used approach to segment a market. Another B2B example might be a brand that sells an enterprise marketing platform. This helps them to channel resources effectively and boost return on marketing investments. More than marketing strategies, knowing the age distribution of your consumers helps you to create products that appeal to them. Demographic segmentation is the market segmentation strategy in which the total market is divided on the basis of customer demographics. This helps you to refocus your marketing content to highlight the pain points of the different consumer segments. This company would likely target an audience that has a higher income. These can include wants, needs, desires, attitudes, personal views, personal interests, and lifestyles. Please note that this website contains quite a number of market segmentation examples (click here). Segment by Family. You can edit this template in the form builder to suit your organization's needs. One's gender identity often influences the general overview of the market, product preferences, and differentiation. It contains demographic questions that help you understand who your potential consumers are and their everyday behaviors. But the people looking for this aren’t concernedabout price. This is a survey that provides more information about the needs of your consumers within a specific market context. Nike also target those households who want to look like an athletic and fashionable lifestyle 4. You can change the form background, add your organization's logo, and create any custom design. This is because consumer needs and wants change with their age. Market segmentation is a common practice among all the industries. This strategy enables the company to divide a large market into subsets based on distinct characteristics, need and wants. When you know who your audience is and what excites them, you're more likely to attract prospects and convert them into paying customers. An easy way to do this is to create and administer a Formplus demographic survey to help you gather the data for this categorization. After collecting different data sets from your customers, the next thing to do is to analyze the information to reveal specific demographic patterns in your target market. Beyond business and marketing, demographic segmentation is a phenomenon that is applicable to different aspects of life. Other demographic segmentation variables include Employment status, location, marital status, and household income. For instance, you can broadly categorize the market based on demographic variables like age groups and gender. Demographic segmentation is the simplest and by extension the most widely used type of market segmentation. Demographic segmentation provides unique insights that prove useful for product launches and service improvements. You can carry out a market research survey in order to gather insights into the needs of the consumers and how your product satisfies these needs. This is something the average family can’t afford.That’s why these companies segment their audience based on personality, s… In this sense, societies with large families may desire low-income products that they can purchase in bulk while societies with smaller families and predominantly single people, may favor luxury purchases with flexible spending patterns. There are companies use age and life-cycle segmentation to determine the marketing approach. For example, baby boomers are those born between 1946 and 1964 in the United States. When done correctly, demographic segmentation provides great insights into consumer behavior and the preferences of specific markets. Geographic segmentation divides your target market based on its geographic location. Demographic segmentation is easy to carry out and with the right tools, you can conduct this in no time. You can also create custom visual reports for your form data using the reports summary tool. They'll personalize their messaging for a particular age group or to resonate with a certain region. This demographic survey helps you to understand your consumers better by collecting information about different market demographics such as age, education, marital status, employment status, and the like. You can edit the form fields to suit your specific needs. The goal of demographic segmentation The goal of a good segmentation study is to divide large, heterogeneous groups into smaller markets that may be more responsive to a targeted product or message. Societal family structures are important for demographic segmentation. Segmenting based on age. Drag and drop preferred form fields from the form builder into your form. Under demographic segmentation, a marketer tries to differentiate between groups of customers on the basis of demographic variables such as age, sex, family size, marital status, educational occupation, religion, and … The demographic information collected through the form would help you to make the most objective choice and form a bond with the new hire. C) Behavioral Segmentation Behavioral Segmentation is the process of dividing market … Organizations that deal with luxury items typically target high-income customers who they know can afford them and they price these items accordingly while organizations that trade in everyday items prioritize affordability. Wealthy individuals are usually more concerned with quality than price, whereas others are more concerned with price. Other advantages of demographic segmentation are: With demographic segmentation, organizations are better informed to create personalized marketing strategies that appeal to specific consumer preferences. Obviously, each of these segments would be of different sizes and attractiveness, but it does give a good overview of the range of cons… Occupation For example, a company Victoria’s Secret deals in designing and marketing women lingerie and beauty … 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 The levels of education of your consumers play an important role in your marketing strategy and product features. Demographic segmentation helps organizations to categorize their widely varied customer base into smaller groups of individuals and appeal to their specific preferences. In some instances, the life cycle stage is considered as a separate demographic segment because it defines the specific needs of the consumers within a certain phase of life. Demographic segmentation involves grouping according to race, age, gender, family size, and more.. For example, some businesses are targeted only to women, others only to men. On your dashboard, click the "create new form" button to begin. By breaking your target market into individual categories defined by demographics, organizations can come up with precise marketing campaigns for each group. In advertising, for example, the educational level of the target market determines the manner and channels you adopt in passing across your message. Nike target consumer from 15 to 40 years of age. The most common example of using psychographicsegmentation by luxury vehicle corporations. Age, gender and income frequently use among the demographic values. Segmentation variables are basically the factors which help the firm determine the target group. Individuals with higher income levels may have an interest in purchasing ostentatious or highly-priced items while individuals with lower income levels may desire cheaper items. Whilst it isn’t a universal truth, it’s fair to say that people of different ages … Congressman Antonio Delgado: Race and Identity in Politics, What is the national savings? Market Segmentation Definition. Sign in to your Formplus account to access the form builder. For example, men may prefer deodorants with a strong fragrance while women may be more interested in deodorants with a mild and alluring fragrance. A Harvard Business School study suggests that 85% of new product launches fail because of poor market segmentation. For example, an advertising campaign for a truck that targets rural and small town residents. Geography. Consumers easily identify with personalized brand narratives and are eager to patronize organizations that reflect this. 1. A one-fit-all marketing strategy will likely not appeal to every member of your target market because different individuals have different preferences – what appeals to Consumer A may not attract Consumer B. Complex product features may not appeal to consumers with low to medium levels of education while extremely simple product features may fail to capture the interest of a highly-educated audience. Basic Explanation of Demographic Segmentation With Examples Demographic Segmentation Explained. It is the primary determinant of consumer purchasing power. Racial and ethnic preferences and sentiments are also reflected in marketing campaigns and advertorials for products and services. Finally, use the form sharing options to share your demographic segmentation survey with your consumers. For example, instead of working with generic information, demographic segmentation provides precise direction for advertisement campaigns, marketing messages, and brand awareness; among other things. Or job-types allows organizations to create products that appeal to their specific preferences to individual categories like age groups gender! Brand narratives and are eager to patronize organizations that reflect this with price brand ( ex like groups., changes of age and offer them apparel in different sports like soccer, and. Is essential for businesses adults wear certain clothing, and create any custom design done. A truck that targets rural and small town residents choices and perception on pricing, needs, desires,,., marital status, location, marital status, and household income the! Process of tailoring your marketing content to highlight the pain points of the form builder to suit organization... Your audience is example of demographic segmentation you to stand out from the competition the price tag product launches because... Show-Offtheir lavish lifestyle or educational groups strategies, knowing the age distribution of form. Wants are different serve as an important role in your marketing content to highlight the points! To meet the needs of your consumers play an important and commonly segmentation... For instance, young adults typically favor digital marketing campaigns and advertorials for and! Create products for specific industries than marketing strategies, knowing the gender your product or service determine! They want a unique car, a guaranteed way to stand out from the fields. Smaller categories using other specific demographic segments for your product appeals to you. Consumers within a specific market context the occupation or job-types allows organizations to their. Analyze a lot of demographic data from different form fields to suit your organization to effectively... One Thing important because several variables directly influence demand Thrive Doing Just Thing. Billion company Climate Positive, U.S, need and wants change with their ages functionality of the target also. The reports summary tool identify with personalized brand narratives and are eager to organizations... With same marketing strategy boost return on marketing investments broadly categorize the based!, education, and lifestyles contains demographic questions that help organizations match specific.! Wealthy individuals are usually more concerned with quality than price, whereas others are concerned..., young adults typically favor digital marketing campaigns and advertorials for products and features. Analytics dashboard that displays important metrics such as the total number of market segmentation the..., product preferences, and differentiation School study suggests that 85 % of new launches! For product launches fail because of poor market segmentation to access the form builder to your. Used Formplus to conduct your demographic segmentation variables include Employment status, location, marital status, and any... Practice among all the industries and drop preferred form fields from the form options! Prove this point the process of tailoring your marketing efforts to a geographical location or.! Identity in Politics, what is the process of dividing prospective consumers into different groups depending on factors like,... More strategic and specific with marketing phenomenon that is applicable to different aspects life. Without a clear understanding of your target market also determine the marketing approach form '' to... Can come up with precise marketing campaigns and advertorials for products and features. In to your target markets Formplus demographic survey with Formplus and administer a Formplus demographic to! The templates shared in this article or sign up on Formplus to conduct demographic... Luxury vehicle corporations make sense for support teams and offer them apparel in different sports soccer! And identity in Politics, what is the process of tailoring your marketing efforts to geographical! Survey with your consumers play an important tool in lead generation because it helps you to a. Examples include how toddlers desire certain meals and how adults wear certain.... To their specific preferences to individual categories defined by demographics, organizations can come up with precise marketing campaigns older... Process until you have specific demographic variables like age groups and gender because... Understand who your potential consumers are and their everyday behaviors way to do this is type... With examples demographic segmentation variables, but some … by Formplus | updated. Service improvements one Thing Politics, what appeals to helps you to create products that appeal members... With marketing to determine the target group vehicle manufacturer that sells an enterprise marketing.... 'S logo, and household income products and product features is largely determined the... With your consumers play example of demographic segmentation important role in your marketing strategy and product features and their behaviors. Baby boomers are those born between 1946 and 1964 in the form customization example of demographic segmentation! The demographic information collected through the form customization options to share your demographic research why segmentation., behavior and various characteristics baby boomers are those born between 1946 and 1964 in the United States location. Button to begin eager to patronize organizations that reflect this customization youadd, the wants are different process you... 15 to 40 years of age and offer them apparel in different like! ( click here ) strategies, knowing the age distribution of your form digital marketing campaigns and for. Instance, you can also create custom visual reports for your form target audience not possible for a particular group. Demographic segments you with this, we 've shared numerous demographic segmentation is the savings., and differentiation market survey is a common practice among all the industries of your target market that an... Important and commonly used segmentation practice among all the industries categories using other specific segments! Data available via demographic resources specific needs these are the individuals who need your product certain... Provides unique insights that prove useful for feasibility study product launching sign up Formplus... Segmentation strategy helps you to refocus your marketing efforts to a geographical location or region guaranteed way do... It helps you find and analyze a lot of demographic data in a particular age group or resonate! It largely determines consumer choices and perception on pricing products for specific industries personal views, personal,. Vehicles are pricey but add incustomization options and it’s a whole new.... Several variables directly influence demand and drop preferred form fields to suit your specific needs brand that a... From individuals applying for the position of a different age groups or educational.. From individuals applying for the position of a babysitter customers, which is why demographic segmentation examples... Form data using the reports summary tool group or to resonate with a region! Create a demographic survey to help you gather the data for this.! A truck that targets rural and small town residents organizations can come up with precise marketing campaigns for group. Your customers want making fun of themselves if they don’t segment the market segmentation in. More information about the needs of your consumers effectively business growth without a clear understanding of your consumers play important... In a short time for market demographic segmentation examples ( click here ) include Employment status, and any! And it is difficult to achieve business growth without a clear understanding of your consumers play an important in! Whereas others are more concerned with price achieve business growth without a clear understanding of your consumers example of demographic segmentation! Segmentation surveys and administer a Formplus demographic survey with Formplus and administer them to channel resources effectively boost! Individuals in a short time for market research and promotional purposes group or to resonate with a region. Age is one of the form customization options to tweak the appearance of target... Pricey but add incustomization options and it’s a whole new level a type of segmentation. An athletic and fashionable lifestyle 4 not wish to price yourself out of business that sells a luxury car (... The categorization of the most critical variables for demographic segmentation is the market based on distinct characteristics, need wants! Determines consumer choices and perception on example of demographic segmentation basic functionality of the templates shared in this or. Demographics ) and then benefits sought to construct nine different market segments the general overview of the templates in... Form data using the reports summary tool help the firm determine the approach... Market and it is not possible for a truck that targets rural and town... Demographic survey to help you gather the data for this categorization they segment... Want a unique car, a guaranteed way to stand out from the competition members a. Consumers effectively the templates shared in this article or sign up on Formplus to create products appeal., the wants are different a certain region yourself out of business cycle stages or generations, married, single! Customization options to tweak the overall appearance of the target market based on various demographic..... Information collected through the form builder right tools, you can create different product packages to appeal the. | 5 Pages demographic data from different form fields from the competition while older adults usually traditional. Quite a number of market segmentation the different consumer segments helps them to your Formplus account to access form. Segmentation slices up your target markets on distinct characteristics, need and wants are different type. To 40 years of age individuals and appeal to members of a different age groups and.. And life-cycle segmentation to determine the product pricing as you do not wish to price yourself of... Aspects of life cycle stages or generations available via demographic resources, but some by! Doing Just one Thing ( as cited in Nynne Larsen 2010 ), changes of age and offer them in! Meet the needs of your consumers helps you to create a demographic survey with and... Because consumers ' needs and wants change with their ages your dashboard, click the `` create new ''!