Dividing market into groups based on demographic variables such as, age, sex family size, family life cycle, income, occupation, education, religion, race and nationality.

Demographic factors are the most popular bases for segmenting customer groups, largely because consumer needs wants and usage. Rates often vary closely with demographic variables.

(i) Age and life cycle stage

Dividing a market into different age and life cycle groups

Consumer needs and wants changes with age, some companies use age and life cycle. Segmentation, offering different products or using for different age and life cycle groups. e.g. McDonald’s targets children, teens, adults and serious with different adds and media.

(ii) Gender Segmentation

Dividing a market into different groups based on sex.

Gender segmentation has long been used in clothing, cosmetics, toiletries and magazine.

(iii) Income Segmentation

Dividing a market into different income groups.