demographic segmentation

Question 1

demographic segmentation is…

Answer 1

dividing the market into segments based on variables such as age, life stage, gender, income etc… the most common method of segmentation

Question 2

Kotler

Answer 2

what customers are

Question 3

capturing demographic info is…

Answer 3

relatively easy (easy to see how big a segment is)

Question 4

simple or advanced multivariate segmentation

Answer 4

combining variables to form a segment

Question 5

examples of demographics

Answer 5

age, gender, education, religion, nationality, occupation, income, life stage AND socio-economic class

Question 6

education:

Answer 6

when you entered the workforce, can map quite well onto different demands

Question 7

age:

Answer 7

demands can sometimes breakdown quite well with age e.g. LEGO for adults and kids

Question 8

problem with age

Answer 8

we are sometimes less inclined to behave like our age

Question 9

gender example

Answer 9

e.g. clothes or magazines, can lead to controversial stereotyping

Question 10

race example

Answer 10

e.g. clothes or magazines, can lead to controversial stereotyping

Question 11

race example

Answer 11

darker foundations for darker skin colours

Question 12

religion example

Answer 12

food: Halal or Kosher

Question 13

nationality

Answer 13

reflection of cultural background which can influence market demands

Question 14

nationality example

Answer 14

Coca-Cola in Japan comes in smaller bottles because of smaller houses and smaller fridges

Question 15

occupation

Answer 15

type of work

Question 16

income idea

Answer 16

larger income means buying more expensive things, luxury products target at people with more income

Question 17

problems with income

Answer 17

poor guide: some people prefer to save, and gross income is not representative of disposable income

Question 18

life stages

Answer 18

single, married, full nest 1, full nest 2, full nest 3, empty nest, sole survivor

Question 19

life stage is not the same as…

Answer 19

age!

Question 20

good example of life stage segmentation

Answer 20

holidays

Question 21

socio-economic classes

Answer 21

ABC1/C2DE now more commonly grouped into 2

Question 22

socio-economic class explained

Answer 22

divided society into 6 classes based on occupation

Question 23

socio-economic class does by

Answer 23

the UK market research society

Question 24

A=

Answer 24

A=

Upper middle: successful business/professional/senior manager

Question 25

A %

Answer 25

3%

Question 26

B=

Answer 26

middle: middle management, professional, lecturers

Question 27

B %

Answer 27

20%

Question 28

C1=

Answer 28

white collar, small traders, supervisory

Question 29

C1 %

Answer 29

28%

Question 30

C2=

Answer 30

skilled workers: e.g. plasterers and plumbers

Question 31

C2 %

Answer 31

21%

Question 32

D=

Answer 32

semi skilled and un skilled workers: labourers etc.

Question 33

D %

Answer 33

18%

Question 34

E=

Answer 34

lowest subsistence level: controversial

Question 35

E %

Answer 35

10%

Question 36

criticisms of socio-economic class

Answer 36

• 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