Demographic segmentation

Definition

Demographic segmentation is the process of dividing a market into smaller groups based on demographic factors such as age, gender, income, education level, or family size. This strategy helps businesses tailor their products and marketing efforts to more effectively meet the needs and preferences of specific customer segments.

Related terms

Market Segmentation:

The process of dividing a broad consumer or business market into sub-groups of consumers based on some type of shared characteristics.

Psychographic Segmentation:

Divides the market into groups based upon different consumer lifestyles, personalities, values, and attitudes.

Behavioral Segmentation:

The division of a market into groups based on consumer knowledge, attitudes, uses, or responses to a product