Marketing Trend: Demographic Segmentation

Large group of people in a pie chart shape split into different segments

To effectively market your product or service, you need to create content that truly speaks to your defined target market.

However, your target market may be so diverse that your marketing doesn’t hit home to anybody in it. There’s one way to change that, and this technique is called “Demographic Segmentation”

Demographic segmentation groups your target market into specific groups of people based on attributes like location, age, education, occupation, and income bracket. By using information from demographic segmentation, you can create personalized marketing campaigns for each part of your target market.

These more personalized approaches can lead to a better distribution of resources and more conversions because the specific messages resonate more than a non-direct generic message to your whole audience might.

There are 5 main demographics most businesses segment their audience with. This is how to leverage each one.

Age

Harkening back to Generational Profiling, segmenting by age allows you to change a campaign so it resonates with who you need it to. The thing about generational segmentation is that each age group, from Baby Boomers to Gen Z, have unique experiences and references that tie them together. Music, celebrities, movies and other pop culture references can help campaigns with the nostalgia factor for each generation.

Education

Segmenting by education lets you divide your target market by school, area of study, and degree. Successful campaigns that have done this generally play into the loyalty many have for their alma mater.

Occupation

Certain types of professionals have more value to certain marketing campaigns and occupations segmentation can separate your target market by job function, job title, and job seniority. This is particularly useful for B2B brands, as occupation segmentation makes it easy to target individuals with buying power at a company.

Location/Geography

Geographic location is an easy way to split your target market based on what they need and what they’re interested in. Landscape, distance from locations and climate can impact the messages you send. Advertising shorts or sandals in the middle of a Minnesota winter just doesn’t work for us here.

Income Bracket

Income segmentation divides your target market by income. Knowing how much discretionary income your base has, allows you to market to those that can afford your product or service, help you to set or your prices in accordance to how much is realistic to expect your target market to spend, and may inspire pricing levels for each segment of your target market.

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