The main demographic segmentation variables

” Product brand can grow and become dominant by attracting consumers away from the competition and by developing new users and segments”

To segment you have to see the people who agree and who do not agree like smoker vs., non-smoker. Or parents magazine vs., playboy magazine. Church vs., nightclub – they are all contrasting, and they represent different segments.

Market segmentation is the process by which marketers divide potential customers onto smaller groups that seek similar benefits from a product.

Choices of segments

First level of analysis which one can measure the competitiveness of an enterprise, To be effective on market segmentation we must define needs on which group strongly differ. Then define needs that can be filled by adjusting variables in the marketing mix.

The four basis of segmentation are 1. A customer needs, wants, and expectations, 2. Behaviorist profile, like product usage: light, medium, heavy use, brand loyalty. 3. Demographics profile, 4. Psychographics profile.

Demographic segmentation consists of dividing the market into groups based on variables such as age, gender family size, income, occupation, education, religion, race and nationality.

As you might expect, demographic segmentation variables are amongst the most popular bases for segmenting customer groups.

This is partly because customer wants are closely linked to variables such as income and age. Also, for practical reasons, there is often much more data available to help with the demographic segmentation process.

The main demographic segmentation variables

Age

Consumer needs and wants change with age although they may still wish to consumer the same types of product. So marketers design, package and promote products differently to meet the wants of different age groups. Good examples include the marketing of toothpaste (contrast the branding of toothpaste for children and adults) and toys (with many age-based segments).

Life-cycle stage

A consumer stage in the life cycle is an important variable – particularly in markets such as leisure and tourism. For example, contrast the product and promotional approach of Club 18-30 holidays with the slightly more refined and sedate approach adopted by Saga Holidays.

Gender

Gender segmentation is widely used in consumer marketing. The best examples include clothing, hairdressing, type of toys for kids like Barbie for girls, toy guns for boys and toiletries.

Income

Many companies target affluent consumers with luxury goods and convenience services. Good examples include Chan don champagne and Elegant Resorts – an up-market travel company. By contrast, many companies focus on marketing products that appeal directly to consumers with relatively low incomes. Examples include Air tours holidays, and discount clothing retailers such as TK Maxx.

Social class

Many marketers believe that consumers “perceived” social class influences their preferences for cars, clothes, home furnishings, leisure activities and other products & services. There is a clear link here with income-based segmentation.

Lifestyle

Marketers are increasingly interested in the effect of consumer “lifestyles” on demand. Unfortunately, there are many different lifestyle categorization systems, many of them designed by advertising and marketing agencies as a way of winning new marketing clients and campaigns!

To produce a rage of educational toys to satisfy the ever changing tastes of young consumers we must concentrate on the four basis of segmentation, we musk ask question to our self what is new? What does kids want to play with? What kind of educational toy we can offer that will make them smart, happy, and enjoy the product?

This type of game is like finding treasure, like for example your favorite pet have been kidnapped by an evil spirit and you’ll travel to another dimension were the terrain is weird and you have to go through obstacles to save your favorite pet, particularly dog or cat.

 

This game is obviously fighting game, were you choose what kind of martial arts you want to be, like judo, jujitsu, karate kick boxing wresting. And you have to master the control key and have the skill to defeat your opponent.

This game makes the children safe because they don’t have to go out to play on the streets, because on the streets theirs a lot of danger like they might hit by a car while playing in the streets or something else, this type if game also make them a good problem solver, because when you play the game you must think critically to solve the problem to end the game and by ending it, it will make them feel good because they had solved the mystery.

Ones the segment and the target customers have been defined, we must now decide on their product positioning. Product positioning is like a woman dressing up beautifully to be different from all the rest. But now you want to ask and answer the question: do I have the product for my target market? It is a question of your products superiority or parity.

Product positioning is the compliment to the market segmentation. While market segmentation looks at the demand side where marketers isolate key variables that distinguish groups of buyers, positioning looks at the supply side, which emphasizes key attributes that differentiate products in customers minds. Then when you chose which market you’re going to target we must then introduce the new product, by product testing.