Have you ever seen an ad aimed at an audience that clearly didn’t include you? If so, you’ve witnessed the power of demographics in marketing. Demographic data can help brands to narrow the scope of their marketing efforts so that their time and money aren’t spent pursuing people who are unlikely to become customers. After all, not everybody will be interested in that website ad for a dating website.
Any business owner or marketing expert can harness the power of demographic segmentation in marketing. Below, learn all about demographics and how to use them in marketing segmentation.
Here are some examples of demographic data and variables for consumers:
- Age group
- Marital status
- Education level
- Employment status
- Income level
For businesses, demographic data and variables (also known as firmographic data when collected for businesses) may include the following:
- Company size
- Products or services provided
All of these demographics reflect basic qualities that can be used to determine the market segment to which your target audience, whether businesses or people, best belongs. In other words, demographic segmentation allows you to divide a larger target market into smaller subgroups that may be more receptive to certain products or marketing strategies.
Key takeaway: Demographics include a wide range of characteristics, such as age, ethnicity, education level and income.