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Target Marketing Using Demographics

How Are You Segmenting Your Market?

Is your target market broken down by variables such as age, gender, family size, income, occupation, education, as well as religion, race and nationality? If so you have been using the most common form of market segmentation known as demographic segmentation.

It is important to segment your market because different groups of consumers have different needs based on their varying demographics. These needs are what will drive your integrated marketing strategy.

Understanding the Types of Demographic Segmentation

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 together 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 it is important that they be adhered to in order 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 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.

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 a consumers 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.

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 You Should Consider Demographic Segmentation First

While this method of segmentation assumes that consumers in the same demographic group will have similar needs, the information is fairly easily obtained; it is one of the least costly ways to segment your market. Best combined with other forms of segmentation like psychographic, behavior, and geographic characteristics, demographic segmentation starts the process by chunking your overarching target market in more manageable pieces.

Get Started Segmenting Your Market; LocalDirective Can Help

Just about every company could benefit from specialized targeting using demographic, psychographic, behavioural or geographic methods. At LocalDirective, our goal is to deliver maximum volume of business from the highest profit-producing segment. Thus, your national advertising may have some local or regional components to achieve the highest ROI, utilizing the capability of all of the major search engines (Google, Yahoo & Bing) to allow your ads to be shown to visitors located in the US, in targeted metros or states within the US, or even a radius around particular locations.

Why LocalDirective? Unlike other digital marketing agencies that have one specialty or one point of view, LocalDirective has a rich and widely dimensional body of expertise in marketing strategy development, marketing plan development, online marketing and advertising, and website development You need marketing segmentation to be effective, so why not choose a digital agency that has the in-house experience to deliver what you need?

Make Contact. Either complete the Brief Information Contact Form or give us a call, toll-free at 1.866.925.9524 today.