Demographic Segmentation

In marketing, it is very difficult that a single organization to meet the needs of all consumers, and therefore has to rely on the concept of "market segmentation". Through segmentation of the market, it is possible that the Organization for the needs of all consumers who belong to a particular niche, rather than trying to meet the needs of the market - which is virtually impossible. Several market segmentation strategies are being used by different organizations today, and "demographic segmentation" seems to be the most coveted of all of them.

Why segmenting your market?

Market segmentation is basically the market division into smaller segments to make marketing easier and avoid the waste of resources. Helps your organization leverage the resources available to meet the needs of a particular sector of the market that caters to. In a nutshell, helps companies to identify potential customers and direct them - which, in turn, translates into an efficient use of resources. Market division is carried out using one of the five strategies of segmentation

» Behavior segmentation

» Utility segmentation

» Segmentation psychographic

» Geographic segmentation

» Demographic segmentation

In the case of the geographic segmentation, market is divided into different geographical regions. It helps a company dedicated to air cooling systems, identify and focus on the tropical market in which consumers are expected to buy air coolers, rather than go to cold regions where air coolers are of no.

Demographic segmentation

Demographic segmentation is, basically, the market segmentation executed through the adoption of various demographic factors such as age, gender, social class, etc, into consideration. ('Demographic' the word is derived from "demographics" of the word, i.e., the study of the population.) It helps the Organization divided the market into several segments or groups, each with a common variable, and point to each of these groups to improve the performance of the organization. This strategy of market segmentation aims to understand the potential market, and take the necessary measures to ensure that the needs of a population group that are met.

Variables

Segmentation variables are essentially the factors that help the organization in the determination of the target group. Demographic segmentation, variables are mainly composed of factors demographics such as age, ethnicity, occupation, etc then we have given a list of variables that are commonly used to divide the market into smaller segments.

» Age

» Sex

» Family size

» Family life cycle

» Rent

» Occupation

» Education

» Ethnicity

» Nationality

» Religion

» Social norms

Based on these variables, an organization can decide which group they should be addressed. An organization that focuses on sports cars, for example, will need to refer to persons of the age group 20-40. On the other hand, the magazine a publication of the women's organization has to focus on white to the female population. It helps these companies to identify their respective consumer and efficient to meet their needs.

Advantages and disadvantages

If the demographic segmentation is one of the most popular methods in today's market segmentation, is because of certain benefits that make it the first choice for various organizations. The two major advantages of this segmentation strategy are:

The organization can categorize the needs of consumers on the basis of factors demographics such as age, gender, etc.

Its variables are much easier to obtain and measure, in comparison with other strategies of segmentation variables.

One of the disadvantages highlighted in this segmentation strategy of market, which is often cited by critics, is the one-dimensional approach that follows it. In this segmentation strategy, it is generally believed that all individuals who belong to a particular "group" have the same needs - which is not necessarily the case. If an organization is using only demographic segmentation, it is more likely to be vulnerable to competitors.

Demographic segmentation helps the Organization to understand customers and their needs. In a market driven by intense competition, market segmentation analysis can be of great help. Basically, the market segmentation is based on the simple fact that you can not please all consumers with a single product, and therefore you have to identify the market pot