Henry Replies

Hello Henry,

This is a great post. I learned a lot from your post. I realized that a popular marketing tactic is segmentation, which divides a sizable target market into more manageable, homogeneous groups of consumers. By investing in communication that resonates with customers most likely to purchase your product, you may increase the effectiveness of your marketing efforts while avoiding wasted spending on customers who are unlikely to do so. Market segmentation is done using a number of standard methods.

I agree with you about the use of demographics in segmentation. Demographics-based segmentation strategy is the most popular and traditional technique to segment a market. Customers are targeted here based on shared characteristics. In demographic segmentation, common identifiers include age, race, gender, marital status, income, education, and employment (Madzík et al., 2021). This strategy works best if you have a clearly defined consumer profile. Minivans, for example, are frequently sold to couples in their twenties to forties with children, middle-class income, and professional employment. If your target market is more diversified in these aspects, using demographics for segmentation makes less sense.

References

Madzík, P., Čarnogurský, K., Hrnčiar, M., & Zimon, D. (2021). Comparison of demographic, geographic, psychographic and behavioural approach to customer segmentation. International Journal of Services and Operations Management, 40(3), 346-371. https://www.inderscienceonline.com/doi/abs/10.1504/IJSOM.2021.119802