demographic segmentation Flashcards
demographic segmentation is…
dividing the market into segments based on variables such as age, life stage, gender, income etc… the most common method of segmentation
Kotler
what customers are
capturing demographic info is…
relatively easy (easy to see how big a segment is)
simple or advanced multivariate segmentation
combining variables to form a segment
examples of demographics
age, gender, education, religion, nationality, occupation, income, life stage AND socio-economic class
education:
when you entered the workforce, can map quite well onto different demands
age:
demands can sometimes breakdown quite well with age e.g. LEGO for adults and kids
problem with age
we are sometimes less inclined to behave like our age
gender example
e.g. clothes or magazines, can lead to controversial stereotyping
race example
e.g. clothes or magazines, can lead to controversial stereotyping
race example
darker foundations for darker skin colours
religion example
food: Halal or Kosher
nationality
reflection of cultural background which can influence market demands
nationality example
Coca-Cola in Japan comes in smaller bottles because of smaller houses and smaller fridges
occupation
type of work
income idea
larger income means buying more expensive things, luxury products target at people with more income
problems with income
poor guide: some people prefer to save, and gross income is not representative of disposable income
life stages
single, married, full nest 1, full nest 2, full nest 3, empty nest, sole survivor
life stage is not the same as…
age!
good example of life stage segmentation
holidays
socio-economic classes
ABC1/C2DE now more commonly grouped into 2
socio-economic class explained
divided society into 6 classes based on occupation
socio-economic class does by
the UK market research society
A=
A=
Upper middle: successful business/professional/senior manager
A %
3%
B=
middle: middle management, professional, lecturers
B %
20%
C1=
white collar, small traders, supervisory
C1 %
28%
C2=
skilled workers: e.g. plasterers and plumbers
C2 %
21%
D=
semi skilled and un skilled workers: labourers etc.
D %
18%
E=
lowest subsistence level: controversial
E %
10%
criticisms of socio-economic class
- not relevant: good reflection of society 50-100 years ago
- poor guide to aspirations/potential: upward mobility
- poor guide to disposable income
- Occasionally modified to cope with change
- Classes often grouped and used as broad indicators e.g. ABC1
