Marketing Segmentation - Demographic Essay Example | Topics and Well Written Essays - 1000 words

Marketing Segmentation - Demographic - Essay Example The inclinations of the consumers are different for the same goods and services produced in the economy. Thus, it becomes crucial to categorize or segregate the buyers possessing same characteristic features of tastes and preferences. This process of grouping buyers in terms of several common determinants is known as market segmentation (Wind and Douglas, 1972). Market Segmentation It is believed by many scholars that market segmentation is an alternative of product differentiation. In today’s world, market segmentation plays a vital role for formulating all marketing strategies adopted by a firm. It creates different samples of buyers with same type of demand patterns that helps a company in designing separate marketing plans for each group and thereby facilitates them to win over customer loyalty for all the divisions. A particular market can be divided or categorized according to psychological, demographics, geographic and behavioral determinants. A proper marketing mix for mulated by a firm would help it to suffice the demands of each segment separately, in an economic and efficient manner. This paper will implicitly explain the concept of market segmentation based on demographics (McDonald, 2012). ... raphic determinants, an organization can create excellent strategies of marketing that would help it to park potential customer base in its retail segment. It becomes very convenient to apply demographic methodology of market segmentation because it is easy to calculate the demographic variables during the procedure of market segmentation. Moreover, the factors on the basis of which demographic market segmentation is introduced can generally be used for almost all the products (Tyan, 1987). Life-cycle and Age It is analyzed by the economists that the nature of demand created by a buyer changes with age and time in the life-cycle process. The companies while making their business plans target consumers on the basis of age to sell their manufactured products. If a firm produces land line telephones, then it should realize that the potential buyers of such a product would be consumers of age group 60 years and above. This is because the old consumers will have less skill to use modern c omplicated technologies in the mobile phones. On the other hand, it would be wrong on the part of the company to analyze that the buyers of landline phones would be young in age in general. So the market is segmented on the basis of landline and mobile phones, age and life-cycle becomes a vital mode of market segmentation (Hoek, Gendall, and Esslemont, 1995). Gender There is a significant difference in the likings of men and women. Thus, while marketing a product a company must first segregate the marketplace on the basis of sex. Men and women possess separate attitudes about same type of a commodity. Companies dealing with cosmetics, magazines etc should always segment their market while launching marketing strategies and plans. Like, if a company desires to sell a foundation base in