DEMOGRAPHIC MARKET SEGMENTATION
MAXIMIZE THE IMPACT OF YOUR MARKETING SPEND
When it comes to optimizing the effectiveness of the marketing resources, proper targeting and personalization are critical to online success. Targeting starts with understanding the different groups of customers who need your products or services and with whom you want to do business.
Demographic market segmentation helps identify commonalities among prospects and customers and group them into clusters based on:
- ethnicity,
- age,
- gender,
- income,
- religion,
- family makeup,
- and education
Once the groups are identified, it becomes increasingly clear how to get more specific with your marketing strategies, and where to allocate the resources, time and budget to get the highest return on marketing spend.
At DirectiveGroup, we help clients in B2B industries grow sales and revenue from the highest profit-producing customer segments.
Don’t find customers for your products, find products for your customers.
-Seth Godin
Why Start with Demographic Segmentation
Demographic research is the most common type of customer research for several reasons.
- Available and cost-effective
The data can be easily obtained from public government census, and free and affordable online sources, as well as customer interviews and surveys. - Easy to measure and analyze
The categories and criteria are very straightforward to find patterns and draw conclusions. - Indication of trends and social shifts to come
Make market predictions for the future by monitoring changing societal trends overtime.
TYPES OF DEMOGRAPHIC SEGMENTATION
Age and Gender
Age and gender are two of the most common forms of demographic segmentation. Consumer needs and wants vary by age and gender so it makes sense that marketers need to group consumers based on these characteristics. Targeting by age can be tricky when your business offers products or services for kids. There are laws and regulations around advertising to children and they must be adhered to avoid legal consequences. Nonetheless, it is important to segment on these characteristics because what appeals to a pre-teen or adolescent is vastly different than what appeals to a middle-aged man.
Family Size
Family size is not a demographic that we typically think of when segmenting our markets yet it is a very important point of differentiation. Packaging and usage rates vary depending on the size of the family. Features and benefits that satisfy consumer needs will also need to be adapted based on family size.
Income, Occupation and Education
Markets can also be segmented by income, occupation, and education level. Pricing strategies are created based on how the target market will be divided using these demographics because income level influences product purchases and buying power. When a product or service is created to satisfy the needs of specific industries, the market will often be segmented by profession. Education level plays an important role in demographic segmentation because how a consumer goes about buying a product or service is influenced by their years of education. Education also affects product preferences and desired characteristics of the product. These demographic characteristics are also an important part of creating a persona.
Religion, Race and Nationality
As our communities become more and more integrated and less homogeneous, segmentation by religion, race and nationality become increasingly more important for businesses. Advertising messages in different countries or parts of the world are created specifically with the local customs and religion in mind. When such things are so uniquely different it is imperative that marketers create a segment based on such characteristics. A company can easily unintentionally offend a segment of the population if they are not aware of these differences and try to use the same advertising across all segments.
WHY
DirectiveGroup
No gimmicks. No fluff.
No meaningless data.
Strategy-based approach
We start with the end in mind. We work with you to establish clear, measurable outcomes and determine the right mix of data, tech and creative to keep moving your business forward.
Experience integrating with internal teams
We’ll work collaboratively hand-in-hand with your internal team and be involved as much or as little as you like.
Transparency at every step
You’ll always know what the next steps are, what is being done and by whom. We keep you updated on the status of your campaigns and work with you to make strategic changes for better results.
Your success is our success
Our team carries the attitude and mindset of “think like an owner”. As such, we work relentlessly to help your growing company become an industry leader.
WHY
DIRECTIVEGROUP
No gimmicks. No fluff. No meaningless data.
Strategy-based approach
We start with the end in mind. We work with you to establish clear, measurable outcomes and determine the right mix of data, tech and creative to keep moving your business forward.
Experience integrating with internal teams
We’ll work collaboratively hand-in-hand with your internal team and be involved as much or as little as you like.
Transparency at every step
You’ll always know what the next steps are, what is being done and by whom. We keep you updated on the status of your campaigns and work with you to make strategic changes for better results.
Your success is our success
Our team carries the attitude and mindset of “think like an owner”. As such, we work relentlessly to help your growing company become an industry leader.
Discover High-Value Opportunities and Multiply Profits with Products and Services That Sell Themselves
The amount of data, tactics, and approaches the marketers have to face daily increases the need for a strategic partner. We provide the surety of a big digital marketing agency but deliver results with the mastery, commitment, and passion of an in-house team.