Demographic Segmentation consists of diving the market into groups on the basis of demographic variables such as age, sex, family size, family life cycle, income occupation, education, religion, race and nationality demographic variables are the most popular bases for distinguishing customer groups. One reason is that consumer wants preferences and usage rates are often associated with demographic variables. Another is that demographic variables are easier to measure than most other type of variable. Even when the target market is described in non-demographic terms, the link back to demographic characteristics is necessary in order to know the size of the target market and how to reach it efficiently eg. Sex segmentation is applied in clothing, cosmetic and magazines. Income segmentation is used in products like automobile etc.