Last time we explored why smart businesses focus on specific customer groups. Now let's dive into the most common way to create those groups: demographics.
Demographics are the basic statistical characteristics of your customers like age, gender, income, and education level.
Engagement Message
What demographic factors do you think matter most for a luxury car brand?
Think of demographics as your customer's "vital statistics." Just like a doctor needs your basic health info, marketers need basic customer info to make good decisions.
Age, gender, income, and education are the big four that most businesses start with.
Engagement Message
Why do you think age might be the most commonly used demographic variable?
Let's see demographics in action. A retirement community obviously targets older adults, while a trendy clothing brand might focus on 18-35 year olds.
The product itself often suggests which demographic variables matter most for your business.
Engagement Message
Which single demographic factor is likely most important for a student loan company?
Income segmentation is huge in marketing. Walmart targets budget-conscious shoppers while Whole Foods targets higher-income customers who prioritize quality and organic options.
Same product category, completely different demographic strategies.
Engagement Message
Can you think of two restaurants that target different income levels?
Education level affects how people make decisions and what messages resonate. A technical software company might target college-educated professionals, while a home improvement store appeals to all education levels.
Your messaging should match your audience's background.
Engagement Message
How might education level affect someone's response to advertising?
