Demographic Market Segmentation Examples
Each major demographic category can be used to inform a marketing strategy. Consider the following examples:
Age group can be used to tailor a digital ad to young adults, parents of young children or older people looking to enroll in Medicare, for example. Age group is also important because certain generations comprise more people than others; in fact, millennials will soon outnumber baby boomers, according to Pew Research Center.
Gender can be used to determine whether a social media platform is more likely to expose your product to men or women. For example, a makeup brand may choose a platform that reaches more women, whereas a necktie brand might choose a platform with a user base of mostly men.
Race and ethnicity may be trickier demographics to use, as brands are under pressure to take a stand against racism. It is advisable to use race and ethnicity as market segments only if you can prove that your product is bought primarily by, or made for a specific race, such as shampoos designed for Black women.
Location may explain why a department store might, during the winter, target digital ads for its gardening tools at consumers in the Southeast while aiming its ads for snowblowers at people in the Northeast or Midwest.
Marital status is a useful demographic for a tourist attraction that’s popular among couples, for example. In that case, marketing efforts that target married people instead of single people may have a higher return on investment.
Education level can be helpful for book publishers that are marketing young adult novels, children’s picture books and political essay collections. Age group also would be a prominent demographic segment in this example.
Occupation can be relevant for a school supplies brand, because teachers, instead of education systems, are often responsible for stocking their classrooms. Targeted marketing that reaches an audience of teachers going back to school for the year may have a larger return on investment.
Employment status can be important to a temporary staffing agency’s marketing efforts, since employed people are less likely to require these services than unemployed people are.
Income level is of primary interest for companies that sell expensive items, such as luxury watches, yachts and private planes. Likewise, a nonprofit that works primarily to restore wealth imbalance may want to market itself to lower-income audiences.
Key takeaway: Demographics relate to virtually every aspect of your potential customers’ lives. Determine which characteristics are important to consider when you are marketing to your customers.