Age and gender segmentation

Age segmentation groups customers by how old they are, or by their life stage, because what people need changes as they get older. A five-year-old needs a bike with stabilisers; a fifteen-year-old wants one they can ride to a friend's house. Life stage can be more useful than an exact age, because a student living away from home, a parent with young children and someone who has retired have very different needs even when their ages are similar. For example, a company that rents out flats might aim at students moving to a new city, rather than at everyone aged 18 to 25.

Some products are aimed at obvious age groups. A shop selling nursery products stocks toys and waterproof coats for toddlers, and a coach company that plans short days with plenty of rest stops is aiming its trips at retired customers.

Gender segmentation

Gender segmentation groups customers by gender. Many products are gender-neutral, such as a reusable water bottle or a desk lamp, and are sold to everyone in the same way. Even so, a business may design a product for a particular gender or aim its marketing at one. A running shoe brand might make a version with a narrower fit, and a swimming pool might advertise women-only sessions to attract customers who would not otherwise come. Gender segmentation does not mean every product has to be gendered: a business only uses it when it believes the difference affects what people buy or how they choose.

Age and gender are often combined with another base, such as income or lifestyle, so the business builds a clearer picture of its customer. A garden centre could target retired customers who have a comfortable income, rather than every retired person.