It is impossible to bespoke a product to the exact requirements of each possible consumer, as buyers in any market differ in their specific wants and needs. Market segmentation allows marketers to identify distinct groups of customers whose actions and responses differ from others, and to cater specially to those different market segments (Goyat, 2011). The four most popular segmentation variables are:

  1. Geographic
  2. Demographic
  3. Psychographic
  4. Behavioural

market-segmentation

Demographic segmentation is the most commonly used method on the internet, providing a clear profile on consumers (Blythe, 2009). Variables include (but are not limited to) age, gender, income, occupation, religion, education, ethnicity and life-cycle stage (Brassington and Pettitt, 2013). Demographic targeting, is unique but in return, can provide more direct marketing efforts to customers for things that are relevant and of interest to them.

Having access to the internet makes finding information on consumers easier, with cookies and web browsing history available to first and third-party data collectors. There is no escaping online advertising now! Even social media sites use browsing history to advertise “relevant” information to their users.


Lunch Crunch

Restaurants have been known to use demographic segmentation, advertising to a specific customer base to maximize sales, even if it meant alienating other potential customers. Looking specifically at lunch, some restaurants have made their menus and service more appealing to those on a short break from work: lunchtime_special

  1. 15-Minute Lunch Promise (corporate clients)
  2. Takeaway / Delivery Option (students = NO DELIVERY CHARGE with Uni Days and can be delivered on campus!)
  3. Discount on daytime bookings

Through demographic segmentation, offering a benefit attractive to only one group/type of customer can often lead to repeat buyers!


References:

Beal, V., 2008. What are Cookies and What do Cookies Do? [online]. Available from: http://www.webopedia.com/DidYouKnow/Internet/all_about_cookies.asp [Accessed: 28 December 2016].

Blythe, J., 2012. Essentials of Marketing. 5th Edition. Essex: Pearson Education Limited.

Brassington, F. and Pettitt S., 2013. Essentials of Marketing. 3rd Edition. Essex: Pearson Education Limited.

Brooks, C., 2014. Facebook to Target Ads Based on Internet Browsing History [online]. Available from: http://www.businessnewsdaily.com/6591-facebook-targeting-ads.html [Accessed: 28 December 2016].

Deliveroo, 2016. Students: Get £2.50 off your Next Order [online]. Available from: http://blog.deliveroo.co.uk/uncategorized/students-unidays-get-2-50-off-next-order/ [Accessed: 28 December 2016].

Goyat, S., 2011. The Basis of Market Segmentation: A Critical Review of Literature. European Journal of Business and Management [online], 3, (9), p. 45-46

Kotler, P., Armstrong, G., 2014. Principles of Marketing. 15th edition. Essex: Pearson Education Limited.

Marshall, J., 2014. WTF is Third-Party Data? [online]. Available from: http://digiday.com/platforms/what-is-third-party-data/ [Accessed: 28 December 2016].

Revolution Bars, 2016.  6 Awesome Things You Can Do in 15 Minutes [online]. Available from: http://www.revolution-bars.co.uk/blog/5-awesome-things-you-can-do-in-15-minutes/ [Accessed: 28 December 2016].

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