Demographic Segmentation

Definition of ‘Demographic Segmentation’

When preparing a business plan, every business identifies a market and in particular a target market for their product. However, the customers in the target market are not all the same, and need to be broken down into different market segments by a process called market segmentation.

The target market segmentation strategy depends on the business and the product, but one method of grouping customers is by using demographic segmentation.

Each market segment identified by demographic segmentation will have a group of customers with distinct characteristics and needs from the product.

By identifying market segments the business can formulate a different marketing plan for each group of customers, dealing with questions such as distribution channels, marketing activities, product usp, and price.

Demographic segmentation categorizes the target market into customer groups along the lines of key population variables using the following characteristics:

  • Gender
  • Age
  • Social class
  • Income
  • Education
  • Ethnicity
  • Job
  • Size of family
  • Religion
  • Generation
  • Nationality

For further information see the Wikipedia demographic segmentation definition.

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Demographic Segmentation December 17th, 2015Team

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