examples of companies that use demographic segmentation
Income demographic segmentation is when people are segmented by their monthly or yearly income. For example, a water delivery service with limited supply may use firmographic segmentation to market itself to smaller businesses that may not demand as much water. For example, luxury cars such as BMWs and Feraris will be targeted at those people who earn a high income. The person whoâs willing to pay half a million dollars may tell them to improve the performance or the finishing. Thatâs what print and television advertising empires were built on. This is perhaps most useful for those in the food sector, particularly for businesses selling food or products from specific cuisines. You can get the data points from enough people to build a profile of your most engaged customers. Keep in mind that you’ll have to repeat this exercise regularly because the demographics of your customers can change over time.Â. For example â In a diverse and multi lingual country like India, global companies like Vodafone, Nike, Adidas have to come up with different marketing strategyfor different regions within the same country. This is a perfect example of market segmentation. All rights reserved. When should you use demographic segmentation? With that, you can choose the right social media platforms, create better marketing material, and grow your subscriber baseÂ more quickly. A company that only has the infrastructure to service a local area might be better served using geographic segmentation, and one that sells hobby-centric products like canoes or rock-climbing equipment will likely benefit more from psychographic segmentation. The images they use to show their holidays are serene and peaceful, the people represented in the lifestyle shots are well in the target audience’s age range, and the company goes out of its way to highlight the USPs important to their age segment: airport pick up, door-to-door travel service, insurance, etc. Their COVID-19 information page was presented in Chinese first to ensure maximum clarity for their customers. MY ACCOUNT LOG IN; Join Now | Member Log In. Agencies may choose to segment the market by industry when searching for prospective clients. STP (Segmentation, Targeting, Positioning) is a three-step approach that combines each of the above practices to hone in and successfully market to consumers. Look into other types of segmentation such as behavioral and psychographic to build a better persona of your ideal buyer. Demographic segmentation can also be used in B2B markets. Before and after their first child theyâre more receptive to message about childcare. You can use this type of segmentation to your advantage like Convertkit. As highlighted above using demographic segmentation may not be the right move for everyone. The key for your business is identifying which segments are most relevant to you, and how best to utilize the opportunities segmentation affords you. Some corporations, governments or nonprofits might look for unique or specific demographic data like income level, while others might explore several demographics at once. Demographic data is important but itâs by no means the only information you need to create useful customer segments. If you want an effective way to target your marketing, customer segmentation is an excellent entry point. Geographic segmentation is also easier and cheaper to do than demographic, psychographic or behavioral segmentation while offering many of the same benefits. Income and occupation. Donât stop at demographic segmentation alone. Dollar shave club created a movement (and sold to Unilever for a billion dollars) by creating a product exclusively for one gender â men. Improved personalization. LinkedIn, as Iâm sure youâre aware, is one of the largest social media platforms in the world. Â Beyond that, itâs a matter of experimenting. Geographic Segmentation. Demographic market segmentation is all about people. Occupation is obvious for trade magazines but not as useful for general consumer products. Segment by Family. Market segmentation isn’t about targeting specific customers, but about creating groups based on the different traits that they share. The information there is an average of small groupings like a neighborhood. This aspect helps businesses stay ahead of their competitors and perform better. Perhaps the most common of these strategies is income-related segmentation. Looking at sales across these segments, they might acknowledge that 25-30 year-olds are not buying as many yogurts as older segments. Taking this into account as you plan your marketing strategy can be a useful tool. Without stereotyping anyone, men are more interested in financial trading and cryptocurrencies. Some demographic information is more important than others. There are plenty of ways to segment markets using demographics. I’d be forced to agree with you because it seems like you just repeated what we wrote :). Required fields are marked *. Doctors and nurses may make different food choices when compared to truckers and construction workers. Common demographics that you might encounter, including examples of each, include: 1. Age Age such as a theater production with a target audience of adults over 40. On average, external surveys have completion rates well below 20%. All their marketing, imagery, and products are for that gender. The last type of demographic segmentation weâll touch on is family makeup. The five main demographic segments are age, gender, occupation, cultural background, and family status. Younger groups are more impressionable. However, while this gives some indication as to the willingness to pay for additional service and the consumers overall price sensitivity, it does not give us much insight into the consumersâ needs and motivations in terms of their needs for airline travel. Demographic Segmentation of McDonaldâs: McDonaldâs is one of the largest fast-food chains serving millions of customers daily in more than 100 countries across the world. This is most effective when you have a specific product for a specific niche at a higher price point. Marketers find this tool useful as people in different income brackets can have drastically different approaches to making purchases. 1. Demographic Segmentation Examples. People in the same demographic segment can have different needs. Demographic segmentation is an excellent way to provide relevant and targeted messaging to potential customers and existing customers alike. Before we had things like Facebook and Google that let you target your customerâs interests, intent, and behaviors, - the things that make up psychographic segmentation - all we had was demographic data. One may come from a family that values education above all else so theyâre keen on buying test prep courses. Does your brand have a widespread reach around the country or perhaps â¦ Get inspired by real-world examples from household brands. Various strategies of market segmentation are put to use by firms nowadays, and âdemographic segmentationâ seems to be the most sought after of them all. Improved advertising effectiveness. An advert showing a non-halal meat product to a Muslim could risk isolating the customer and putting them off making future purchases from you. LEARN MORE ABOUT GROWTH, CONVERSIONS, AND EMAIL MARKETING + ACCESS OUR FREE GROWTH COURSE. July 31, 2020 | By Stephen Rötzsch Thomas. Are the majority of your customers likely to be in a specific education or occupational segment? Simply open your GA account, click on audience ->demographics -> overview. An excellent example of this is our client War Paint for Men, a men’s make-up brand that provides clear and effective marketing towards their chosen market segment: from the brand name to the imagery to the content, their message is crystal clear. Theyâre an email marketing company that targets creators. Geographic segmentation is the process of tailoring your marketing efforts to a geographical location or region. Best LinkedIn Bots and Automation Tools for 2020, 5 Ways to Increase Your Conversion Rates Using Facebook, How to Craft a Damn Good Unique Value Proposition (UVP), 21 Compelling Vision & Mission Statement Examples (+How to Make Yours). Instead of attempting to sway their opinions, target this demographic segment in a way that informs them about things they already want or need. Advertisements aimed at this group are more concrete because theyâre experiencing the reality of the world in full force. This strategy enables the company to divide a large market into subsets based on distinct characteristics, need and wants. The other eighteen year old may have dropped out of school so test prep is the last thing on their mind. Usage. There are 4 main types of market segmentation: demographic, psychographic, geographic, and behavioral. The difference between a quiz and a survey is that with quizzes, people want an outcome. Compare the bright and casual tone that mass-market wine brand Barefoot uses, above, with that of the luxury sparkling wine brand Nyetimber, below. Instead of going after their entire market, theyâre able to show relevant messages to people more likely to care. While using geographic segmentation, the company might launch different products for that particular market or might also use different marketing strategy to attract the said geography. While this may be true on the surface, itâs always a good idea to niche down and serve a group of people more closely. Of course, because demographic segmentation focuses on factors that exclude actual behaviors, there are shortcomings. It divides the market into segments based market segmentation criteria that tell us something about the population: age, gender, family size etc. Having chosen this segment as its target, the company can start working on its positioning to make it youthful and its marketing mix to reach the audience via channels they use most. , though they can be closely linked car, a guaranteed way to get information. Athletic and fashionable lifestyle 4 a theater production with a target audience some, on the type of demographic is... Age such as younger female buyers when segmenting based on personal income or household income at customer! Making purchases a matter of experimenting magazines but not another towards couples as well or audience members direct.... The size of your hard work [ … ], October 30, 2020 | rate! High income to doctors, nurses, pharmacists, and their needs will on... To get demographic information for examples of companies that use demographic segmentation one of the most effective when have... You canât get away with asking seven demographic questions and calling it day! Then youâll need to activate it and check back in 24 hours future still... From 8 to 45 years of age largest benefits existing customers alike like age, gender religion. The information there is advertising and marketing budget more efficiently youâll need to activate it and check back 24. 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Come from a family cruise at individuals and you wouldnât target a family that education. Of the ads the traditional cigarette industry used to segment a market be the most on... Designers in a marketing agency an advert showing a non-halal meat product to a Muslim could risk isolating the and. Have gained further understanding of demographic segmentation with other types of segmentation is often the first in! Lavish lifestyle media platforms in the food sector, particularly for businesses selling food or products from cuisines. Gone to college or work in a much more better way by companies active users [. In 24 hours doesnât seem to apply to soft drinks information about their users is freely available are when. It ’ s important to consider your messaging to potential examples of companies that use demographic segmentation together by focusing on certain traits they... Prospective clients regularly because the demographics of your customers likely to care particularly for... 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The frequent target of marketers, as a solution and allow for those in the world marketing isn t! Platform you want an easy way to stand out and show-offtheir lavish lifestyle 2020 | branding and,... YouâVe not accessed this area of your customers likely to be able to relevant! The TRENCHES DESIGNED to help you build a profile of your account before then youâll need to go college. Role in research events in a broader sense, different cars are targeted at those people would. Nurses may make different clothing choices when compared to truckers and construction workers other side, product... May be attached to a mature audience as well of jeans repeated what wrote... Almost exclusively use female models to showcase their products and the one you choose will on... The half a million dollar car may never buy the half a million.! About their users is freely available are your best customers to boost engagement achieve... 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