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Demographic Segmentation – Concept, Variables, Advantages and Examples

Demography is the study of the characteristics of populations.

What is Demographic Segmentation?

Demographic Segmentation

Demographic segmentation is a category of market segmentation. This is done by education, income, ethnicity, family size, religion, gender, race, and age.

Advantages of Demographic Segmentation

1. Identify potential market

Demographic segmentation makes customers identify with a brand. It makes them think the brand works for their needs. This urges them to purchase from the business for a longer time.

2. Simple to find

This process does not target the whole market. A business uses its resources to reach out to the needed group in that market.

3. Marketing

Companies reduce the chances of wasting a campaign by reaching out to disinterested consumers. This raises ROI. It lets a business make its marketing strategies more specific.

4. Customer Loyalty

This process inspires customer loyalty. This is done by reaching out to consumers at a human level.

Demographic Segmentation Variables

Age

  • Age is an important and basic demographic to target. This is because behavior changes a lot with age.
  • Most campaigns reach out to consumers according to their age and generation.
  • Example: millennials, gen X, baby boomers, etc.

Gender

  • Thought processes, needs, dislikes, and likes change according to gender.
  • Example- Boxers aren’t used by most women. Not many men use makeup.
  • It’s important not to fall into stereotypes of gender. This might wrongly target the customer base or upset them.

Ethnicity& Religion

  • International advertising requires in-depth segmentation according to religion, nationality, race, and ethnicity.
  • These individual groups have different interests that could change how they react to advertisements.
  • Example – Middle-eastern countries have little to no market for alcoholic drinks. This makes room for fizzy and non-alcoholic drinks.

Income& Occupation

  • Income also changes behavior. It impacts the price of a product.
  • It allows a business to understand the purchasing power of an audience.
  • Profession targeting is also crucial. Some products are meant for different job titles and industries.

Demographic Segmentation Examples

Example 1 – Nike Hijab

Demographic Segmentation

Segmentation based on – Religion & Gender

  • In 2017, Nike launched a hijab for female Muslim athletes
  • The product, which has been in development for a year, was tested by athletes including figure skater Zahra Lari.
  • The Nike Pro Hijab’s fabric is very breathable. It is light in weight, long-lasting, and soft.
  • The long back and the pull-on design ensures that it fits well and doesn’t untuck while working out or while competing.
  • The style of Muslim countries and the cultural function of the garment were taken into consideration while working on its new design.

Example 2 –Old Spice targeting both Men and Women

Old Spice targeting both Men and Women

Segmentation based on – Gender

  • Old Spice TV ads had a couple of masculine men – Terry Crews and Isaiah Mustafa.
  • Mustafa and Crews have starred in 3 campaigns: The Man Your Man Could Smell Like, Odor Blocker Body Wash, and the most recent Smellmitment.
  • If you look closer, the commercials of Mustafa and Crews differ when it comes to communication as they address two target audiences – men and women.

Example 3 – Ariel “Share the Load Campaign”

Ariel “Share the Load Campaign”

Segmentation based on – Gender

  • In Ariel’s ‘Share The Load’ ad, a father watches his daughter juggle work and household chores after her marriage.
  • After introspecting his own role at the house, he tries to bring a positive change in the family.
  • He agrees to share laundry duties with his wife – this ad is a perfect challenge to gender stereotypes in our society.

Example 4 – McDonald’s Happy Meal

McDonald’s Happy Meal

Segmentation based on – Age

  • 40% of children aged 2 to 11 want to go to McDonald’s weekly, as per a study by Washington Post.
  • McDonald’s gives out 1.5 billion toys across the globe annually.
  • McDonald’s worked with Universal Studio in 2013. They used Minions as their Happy Meal Toy. This was when Despicable Me 2 was a global hit.

Example 5 – Coca-Cola “Friendly Twist” campaign in Colombia

Coca-Cola “Friendly Twist” campaign in Colombia

  • Coca-Cola promoted the idea of ‘sharing’ with a new simple design solution for a bottle cap that was unveiled in Colombia.
  • The new cap allows opening a Coke plastic bottle only with another bottle.