Demographics concerns the measurement of the population.  Demographic segmentation involves '...segmenting markets by:

• age;

• gender;

• family life cycle;

• income; and

• ethnic background

(Summers et al. 2009, p. 135).

Demographic variables are popular for segmentation purposes as they are the easiest to measure.  For example, a good deal of demographic data on the Australian market can be accessed through the Australian Bureau of Statistics.  Moreover, demographic segmentation can be quite useful as needs and wants do tend to differ across different demographic groups. 

Activity 3

What sorts of products are likely to be segmented on the demographic variables listed above?   Print out and then fill in the table below.

Warning: demographic segmentation can be misleading

Using a single demographic variable, such as age and/or gender is isolation can be misleading.  For example, a 21 year old female could be a full-time student, a professional career woman, a skilled labourer, unemployed, or a mother with small children etc.   Depending upon their circumstance, they would have quite different needs and wants.  Therefore, a multivariate segmentation approach based on a mixture of variables such as gender, age and family life-cycle (age and lifecycle segmentation) would be far more useful for segmenting the market for most products. 

Some products that were traditionally targeted at the female market such as perfume and skincare products are now making inroads into the male market.  Skincare for men is a rapidly growing market.  For example, Nivea for Men have recently launched a viral online campaign titled "How smooth are you?  Users can visit the site to go on a virtual date with cyber babe Amber.  Sunsilk has also recently released their Base Elements range of products specifically designed for men and targeting the 'metrosexual' man.

Activity 4

Refer to exhibit 5.3, p. 137 of Summers et al. (2009).  Family life cycle stages include amongst others:

• young single

• young married, no children

• young married, children

• middle-aged married, children

• empty nest - married and children have left home

• widowed

Depending upon the stage in your family lifecycle your needs and wants will change. 

Using examples, discuss how the need for a car might differ across the various family lifecycle stages.

Feedback on Activity 4

Next step - Click here to read about psychographic segmentation

Return to top

Return to market segmentation home