Question 9

Demographic Segmentation groups consumers according to:

spending habits

O physical location

age, income, gender, race, education and occupation

O number of employees, number of customers, number of offices, or annual revenue

Demographic segmentation is crucial because it enables businesses to tailor their marketing strategies to specific groups, ensuring that the right message reaches the right audience. For example, a luxury brand may target older, affluent consumers, while a startup might focus on younger demographics. By understanding the nuanced preferences and behaviors of distinct demographic segments, companies can more effectively craft their products, advertising, and customer experiences.

In the real world, companies like Coca-Cola or Nike leverage demographic segmentation to launch targeted campaigns. By analyzing factors such as age and income, they create ads that resonate with each group. For instance, Nike’s youth-focused campaigns often feature young athletes and influencers, appealing directly to a younger audience. This targeted approach maximizes their marketing effectiveness and fosters stronger consumer connections, ultimately driving sales and brand loyalty.