Demographic and age segmentation

Demographic segmentation divides a market by characteristics of the population. Common demographic variables are age, gender, income, family size, ethnicity, religion and education. Each variable creates groups that a business can study and target.

Demographic segmentation assumes that consumers in the same demographic group tend to share similar needs and wants. You might belong to several groups at once, and two people in the same group can still want different things, so it is a useful guide rather than a certainty.

Age segmentation

Age segmentation targets a product or service at a particular age group. A stationery retailer might sell chunky crayons and safety scissors for young children, but sell revision cards, highlighters and planners to teenagers. The products are differentiated so each age group gets features that suit it.

Needs change through the life cycle

As consumers move through stages of the life cycle, their needs and wants often change. A baby needs small portions and soft food; a school pupil may need a tough bag and stationery; an older adult may value easy-open packaging and large print.

Businesses can adapt products for these stages rather than offering a single version for everyone.