Suppose you own Wellington Tow Truck and want to target customers and prospects around the Wellington area – how do you go about it? There are different ways to target a specific market for your products and services. Segmentation, in general, is a method of dividing a population based on a certain set of variables. For this particular case, the best way to go about it is through demographic segmentation.
Demographic segmentation refers to a marketing strategy of dividing your market according to race, age, family size, gender, religion, income, ethnicity, and education. The main aim of demographic segmentation is to help marketers understand their market better
Demographic Segmentation Explained
The word demographic is derived from the word demography which refers to the study of population. This form of segmentation helps a business divide its market into several segments which each group having a common variable. A marketer then aims at targeting each group in a bid to enhance performance. With demographic segmentation, an emphasis is placed on understanding the prospective market and taking all the necessary steps to ensure that all the needs of the specific group are catered for.
Why demographic segmentation
Demographic segmentation forms one of the most popular methods of segmentation today. This is because of the specific benefits associated with it. With this form of segmentation, a firm can easily categorize all the needs and wants of the customers on the bases of demographics such as age, gender among others. Another advantage is that the variables used are easier to obtain and measure. This is in comparison to other methods of segmentation.
However, demographic segmentation comes with some drawbacks. It is not the most prominent method of segmentation and is also not very targeted. Critics cite the method as being one-dimensional. There is the assumption that all prospects belong to a particular group that has the same needs – this is not obviously true.
All in all, demographic segmentation helps a firm in better understanding its customers and satisfying their needs. In our today’s market, segmentation is very important in understanding customers and what they want. All you need is to identify a potential market and divide it into various segments. You then use the data and variables that represent each of these segments to tailor your products and services to be in line with the needs of each segment. Demographic segmentation is the easiest form of segmentation you can carry out.