Demographic Segmentation (Chapter 1 & 2) M

Demographic Segmentation
(Chapter 1 & 2)
Marketers combine age, income, and the stage a
person is at in the family life cycle when
targeting a particular segment in the
Marketers do segment based strictly on each of
the three (3) at times, but the segmentation is
frequently a hybrid of the
three (3) demographic segments.
Under 6 (Muppet Market)
Children and parents, both, have influence on
what is purchased, but parents definitely have
the final say (eg. toys, health care products).
6-12 (Pre Teen Market)
Children receive allowances and start to
make some of their own buying decisions (eg.
clothing, sports equipment, portable
12-18 (Teen or Generation Y
Parents will typically pay for necessities
and provide an allowance to allow
children to develop sound buying
decisions, but part time jobs provide
teenagers with substantial disposable
income which is very attractive to
marketers (eg. CD's, iPods, cell phones,
18-24 (Post Secondary Market)
Young adults are starting out on their
own and looking for different
products to satisfy this independence
(eg. cooking equipment, small
appliances, furniture).
25-45 (Nesters or Generation X)
Families are started in this age range, and
parents are focusing on products and
services to make a home and provide for
their families (eg. furniture, automobiles,
insurance, major appliances).
45-60 (Empty Nesters or Baby
Children are starting to leave home.
Coupled with maximum earnings, this
leaves parents with buying opportunities
that did not exist in the past (eg. luxury
products, investments, vacations).
60 plus (Seniors or Mature
Retirement, coupled with
less overall debt and financial
obligations, allow this group
to purchase products or
services that serve their
needs (second home,
traveling, comfort items).
Businesses may market certain products or
services to particular income segments.
These segments may be defined by:
-postal code
- occupation
- education
- or property ownership.
The automotive industry is a perfect
example of different types of vehicles being
marketed to different income segments.
There are not as many products that are marketed
exclusively to men as there are women.
Certain magazines, cologne, sporting goods or hobby
products are marketed mainly to men.
Products such as perfume,etc. are marketed exclusively to
The changing roles of men and women have made
marketers focus less on women for the marketing of
grocery items and less on men for marketing power tools,
but instead try to appeal to both genders for these items.
Family Life Cycle
Marketers are concerned with the stage that people are at in the
family life cycle. These stages are related to age and disposable
income. The products for each of these segments were outlined
above in the different age/income segments.
•Married with no children (DINKS - dual income, no kids)
•Married with small children (OINKS - one income, new kid(s))
•Married with adolescent children
•Separated or Divorced (on own, with small or adolescent
•Empty Nesters
Other demographic segmentation is done on the basis of geography,
ethnicity, or culture.
There are also marketing opportunities that are a result of certain
ethnic groups that have tended to populate certain geographical
Many specialty grocery stores located in urban areas target certain
ethnic or cultural groups.
Behavioural segmentation is also common. Marketers will track
product usage (heavy, medium, light, and non user) and the degree
of brand loyalty for the medium and heavy users. Consumer profiles
help with behavioural segmenting.
…refers to the study of consumer attitudes, beliefs,
interests, and lifestyles.
Lifestyle refers to the choice of hobbies, recreational
pursuits, entertainment, vacations, and other non-work
time pursuits.
Belief and value systems include religious, political, and
cultural beliefs and values.
Psychographic traits are less obvious and more difficult to
measure than demographic information, but equally as
important when a business is targeting their market.
Peter Drucker defined marketing as a discipline that "starts out
with the customers, their demographics, [and J related needs and
Research what Drucker meant by consumer needs and values,
and write a typed one-two page report to explain his definition
to students enrolled in an Introduction to Marketing class. (you
may use a particular product, ie, blackberry, iphone, to use as an
example for your report).
You need at least one source for a works cited page.
Due: Feb. 14/ 2013 (Thursday)
Also, please note, Quiz #1 (Chapter 1 & 2)
on Friday, February 15…