demographic segmentation
Demographic segmentation divides the market into groups based on demographic variables including age,gender, family size and life cycle.
The following four variables are examples of demographic factors used in market segmentation:
1. Age : Consumer needs and wants change with age. The marketing mix may therefore need to be adapted depending on which age segment or segments are being targeted.
Case Study : The lure of generation Y
With a plethora of anti-ageing products flooding the market, catering for society's baby boomers would appear to be at the fore of new trends within the cosmetics and toiletries industry. However, manufacturers have also set their sights firmly at the other end of the spectrum, on the tweens and teens market, as they increasingly segment products across all age groups.
The underlying factor making Generation Y an ever attractive demographic is its growing purchasing power. The trend is being fuelled by higher disposable incomes resulting from more generous allowances and teens opting to work part-time during schooling, less reliance on parents to make purchases, and heightened media awareness.... click to read more
2. Gender : Dividing a market into different groups based on sex, has long been common for many products including cosmetics, clothing and magazines. In the 1960's car companies such as Toyota began to realise the purchasing power of women, creating marketing campaigns, and then cars, specifically targeted at the female market. Many suggest that the range of interior and exterior colours schemes, and emphasis placed on safety factors by car manufacturers today, is due to in no little part to their desire to market cars to women, as well as men.
3. Life-cycle stage : Dividing a market into different groups based on which stage in the life-cycle, presented in the table below, reflects the fact that people change the goods and services they want and need over their lifetime.
Life-cycle stages
Bachelor Stage
The following four variables are examples of demographic factors used in market segmentation:
1. Age : Consumer needs and wants change with age. The marketing mix may therefore need to be adapted depending on which age segment or segments are being targeted.
Case Study : The lure of generation Y
With a plethora of anti-ageing products flooding the market, catering for society's baby boomers would appear to be at the fore of new trends within the cosmetics and toiletries industry. However, manufacturers have also set their sights firmly at the other end of the spectrum, on the tweens and teens market, as they increasingly segment products across all age groups.
The underlying factor making Generation Y an ever attractive demographic is its growing purchasing power. The trend is being fuelled by higher disposable incomes resulting from more generous allowances and teens opting to work part-time during schooling, less reliance on parents to make purchases, and heightened media awareness.... click to read more
2. Gender : Dividing a market into different groups based on sex, has long been common for many products including cosmetics, clothing and magazines. In the 1960's car companies such as Toyota began to realise the purchasing power of women, creating marketing campaigns, and then cars, specifically targeted at the female market. Many suggest that the range of interior and exterior colours schemes, and emphasis placed on safety factors by car manufacturers today, is due to in no little part to their desire to market cars to women, as well as men.
3. Life-cycle stage : Dividing a market into different groups based on which stage in the life-cycle, presented in the table below, reflects the fact that people change the goods and services they want and need over their lifetime.
Life-cycle stages
Bachelor Stage