Demographic segmentation is one of the prevalent methods that businesses use to compartmentalize markets. A target market is a particular or definitive group of people who are the target of a particular ad campaign. A demographic market is generally a likely section of a population which you can identify through research.
You then subdivide this market into population sections that are clear as segments.
The Connect Between Demographic Market And Target Market
You will get your target market from your present customers and also your likely customers who show potential. Business entities generally aim their advertising objectives and promotional efforts on what can be called the essence of their customers.
They pay attention to a specific category of customers who becomes their target. Target markets have specific identical traits that determine the messages that marketers use in their campaigns.
One prevalent feature of target markets is an analogous demographic profile. A demographic is one major descriptor that helps to delineate your target market.
Understanding Demographic Segmentation
Demographic segmentation is where specific features such as age, race, religion, gender, family size, income or education segment a particular market. Demographics can be partitioned into numerous markets to assist a business to target its consumers more precisely.
Using this type of segmentation helps a business to determine the needs of customers based on their classifications. The terminology refers to a market segment that has generally known characteristics.
A good example would be a company that produces products for married people. The company would use the term “married people” in reference to their segment.
This is in contrast to a target market where you need to break the market into segments and then market to the customers in that segment. Demographic marketing is most effective when a product or a service has customers who have distinctly perceptible personal attributes.
How Target Marketing Works
The mass marketing approach is no longer feasible as an alternative for business entities. Mass media marketing is very limiting in terms of costs because it is expensive.
In addition to that, media choices are highly disintegrated when the population has cable TV and the internet as options. In target marketing, what matters in any given campaign is the viability in terms of the best present long term potential for profit.
Marketers also look at the size of the market, the potential for growth and how many competitors are in a particular segment. If a market is growing very fast and has a huge potential, this can be a good advantage as well.
Thus, unlike demographic segmentation where you need to consider specific traits, target marketing has to look at many considerations.
The Importance Of Segmentation Strategies
While demographics are one of the elementary approaches for the segmentation of markets, there are other strategies such as lifestyle and behavior.
Demographics have been the most established marketing method because they distinctly define potential customers. Segmentation has however evolved with businesses trying to determine which customers to market to depending on lifestyles, shared interest and activities to reach potential customers with more personalized communication.
The role of marketing in business continues to evolve with strategies becoming highly sophisticated. Businesses are focusing their energies on marketing to a highly segmented audience.
This is in order to reach the people who have an interest in their message and have a need that they can fulfill. Target marketing helps you to reach customers effectively.