Marketers use demographic information to segment markets because it is widely available and often related to consumers' purchasing and consumption behavior. List five common bases used by marketers for demographic segmentation. For each base listed, give an example of a product specifically targeted to the needs and wants of the segment identified within the base.
What will be an ideal response?
Common bases used in demographic segmentation include:
| · | age |
| · | gender |
| · | income |
| · | ethnic background |
| · | family life cycle |
Text examples include the following:
AGE. Cell phones, magazines, and clothing marketed to teens; beer, wine, and spirits marketed to people 20-40 years of age; retirement properties, health and wellness products, and Vespa scooters marketed to baby boomers are examples of products/services targeted at specific age groups.
GENDER. Marketers of clothing, cosmetics, personal-care items, magazines, jewelry, footwear commonly use gender as a segmentation variable.
INCOME. The housing, clothing, automobile, and food markets are often segmented by income. Sam's Club is aimed at lower-income consumers, while Costco attracts more upscale consumers.
ETHNIC BACKGROUND. Many products are targeted specifically to various ethnic groups, especially African Americans, Hispanics, and Asian Americans.
FAMILY LIFE CYCLE. Marketers target people in different stages of the family life cycle by noting spending needs. Young singles and marrieds buy more cars, furniture, appliances, and vacations. Marrieds with children buy more toys, baby products, and appliances. Middle-ageds buy more luxury items and home improvements. The elderly focus spending on medical care.
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