What is Demographic Segmentation and What is its Key Areas?

During Week 2 of the Consumer Behaviour unit, we learnt about Demographic Segmentation which is market segmentation based on age, gender, family size, ethnicity, income, social class, generation grouping and education.

Organisations must question themselves and say, 'Do we know why and how consumers make decisions on products and services?' This could be tricky for them but also could be easy based on how well organisations know their consumers. For organisations, they need to be making sure they are hitting their consumers as accurately as possible which means that Demographics must be used to help them.

External variables help determine Demographic Segmentation. These are Demographic factors, Geographic factors, Psychographic factors and Behavioural factors.

Demographic Factors include market segmentation. Geographic factors look at region and country differences. Psychographic factors look at self-concept, personality and lifestyle. Behavioural factors look at loyalty, extent of usage, situation and benefits desired.

An example of Demographic segmentation could be taking Topshop (One of the most popular young shopping retailers who sell lovely clothing) and looking at what and who would buy from there.

In terms of focus groups for getting interest in Topshop, their teams would need to run it for 18-24-year olds as this matches its target audience.

Teens aged 13-17 look for in products what they need to belong and to find their own voice. They would use their style in this way to represent themselves. Their consumption of clothing may be different to what their parents might’ve picked out at their age. There is no wrong in this.

People in their 20’s want it all and live in the moment so if they see something they like, they’re going to pick it up. That’s how Topshop would attract them. In terms of marketing, they would have to use social media the most as these age groups range within the millennial’s generation and generation x.

What’s your views on Demographic Segmentation?