Demographic Segmentation

Demographic segmentation divides your market into segments based on ethnicity, age, gender, income, religion, family makeup, and education. Companies can therefore target their promotional messages and marketing budget more efficiently. Instead of going after a mass market, they're able to show relevant messages to people who are more likely to respond to the messages. Demographic segmentation is the most common type of segmentation strategy. Marketers find that responses are more likely when they can obtain demographic data on market segments. For example, life insurance is normally targeted to people aged 30-35 when they marry and begin a family of dependents. Promoting life insurance products to younger or older age segments is largely ineffective because the needs of these demographic segments are not as strong for life insurance products.

This video explains demographic segmentation rather comprehensively. Demographic segmentation is the most used type of market segmentation. There are 11 different dimensions on how to segment demographically.