Customer Segmentation by Demographics

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Transcript

The consumer goods industry segments their customers by age. For example, manufacturers of the washing machine and refrigerators mostly target the homemakers. These products may not appeal, the young ones PlayStations are targeted to a more younger audience. If they target an elderly population, their product may fail to generate adequate sales. Do you know how Facebook earns revenue? One of the ways for Facebook to earn money is through advertisements.

You may have observed that a particular ad keeps showing up in your daily feeds on Facebook. This is because Facebook has created segments of its users by profession, by location, by gender, by languages, among others. It offers the advertisers an option of targeting a particular segment of its audience based on their product. Now you know how Facebook earns money. Demographics also include segmentation by geographic locations. Climate is one of the influencers when segmentation is done via geographic location.

I cannot imagine heavy sales of air conditioners, cold rings, ice cream, motorbikes in areas with cold climate Manufacturers of heaters, woollen wear. geezers will not consider warm climatic locations as their primary sales target.

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