Demographic segmentation, in marketing, is when a firm uses data
about the demographic characteristics (age, sex, race, and others) of its customers in an effort
to better target its marketing efforts. Demographic segmentation strategies can lead to better
targeting by identifying the types of people who are most likely to buy a firms products.
Advertisments and other efforts to reach them can be placed in media or places that segment of
the population is likely to see.
For example, in the United States,
one of the most coveted demographics is relatively young men (two demographic characteristics).
Many products (especially ones like beer and pickup trucks) target this audience. Therefore,
they place ads in the broadcasts of sporting events since this demographic is likely to watch
those events.
By doing this, firms can more efficiently use their
marketing budgets. They can be as sure as possible that their ads will reach the demographic
that they want.
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