Demographic segmentation is the division of a target market into smaller groups of people who share demographic characteristics. For instance, a luxury jewelry company looking to target customers in the Northeast may divide this massive target audience by location (state or city) or income level (a lower-income consumer may not be able to afford the company’s products). Demographic marketing, which is one of the four market segmentation types, can streamline your business’s promotional efforts and help direct your work toward a narrower, but likely more receptive, customer base.
The five main segments for demographics
Although there are many examples of demographics, there are five main segments for demographic targeting: age group, gender, income level, education and occupation. While all of the major demographics have merits when it comes to your marketing strategy, a demographic segmentation strategy that prioritizes the five main segments may prove more fruitful, since these demographics tend to most strongly inform consumer behavior, interests and needs.