Why is demographic segmentation important?

Why is demographic segmentation important?

Demographic segmentation is defined as a market segmentation method based on variables such as age, gender, income, etc. This segmentation helps organizations understand consumer behavior accurately that in turn, helps them perform better.

Why are demographics important in marketing?

Demographics are important so that you can understand how customers search for information and purchase products and services online. Being able to measure such characteristics allows you to identify the number of people to which you could potentially target your products or services.

What are the advantages of Geographic segmentation?

Geographic Segmentation Base Advantages Considers cultural differences of different regions Good for firms with limited geographic reach needing to select a specific target market Great when there is significant socio-economic diversity and significant consumer behavioral differences across regions

What are the four bases of market segmentation?

The four bases of consumer market segmentation include Demographic Segmentation, Geographic Segmentation, Psycho-graphic Segmentation and Behavioral Segmentation (Chand, 2016).

What is the importance of market segmentation?

The importance of market segmentation is that it empowers businesses with the ability to reach out to end users with specific requirements. However, this proves to be beneficial in the long run as employing different types of market segmentation strategies enable the effective use of corporate resources and strategic decision making.

What is the importance of marketing segmentation?

Market segmentation is the practice of dividing up your company’s audience into different groups with varying needs and interests. Market segmentation is important because it helps you understand the subgroups that make up your audience so you can tailor your products and your marketing.