Imagine if the diaper manufacturer, or movie theater owner, did not incorporate market segmentation into their respective business plans. They would be hunting for needles in a haystack. The diaper manufacturer might spend millions of dollars on an advertising campaign that only reached a few parents with young children. The movie theater owner might start showing movies made for a teenage audience in a town filled with empty nesters . Even by using one of the simplest forms of segmentation, like demographics, these businesses can increase their chances of success.
Demographic segmentation is one of the simplest and most widely used forms of market segmentation.
By using demographics, you can target specific groups of customers or businesses. There are many ways to segment your markets, and create groups of potential customers. The table below summarizes the most common forms of segmentation. Diet plans target individuals who want to lose weight. Phone companies segment on monthly long distance charges.