Demographic Market Segmentation: What Is It and Why Does it Work?

Introduction: Digital Marketing Agency Bristol

At DNRG, we specialise in demographic market segmentation and help businesses unlock the potential of targeted marketing. By understanding your audience’s unique characteristics and behaviours through smart data collection, we craft personalised strategies that maximise marketing ROI and foster deeper connections with your customers.

Demographic market segmentation is a fundamental concept in marketing that allows businesses to target specific groups of consumers based on their shared characteristics. This way products, services and marketing strategies can be moulded to seem more appealing to chosen groups. 

In this blog, we will explore demographic market segmentation and its role within the STP framework (Segmentation, Targeting, Positioning), first introduced by Kotler. Then we will explore examples of demographic market segments while acknowledging the benefits this method can bring to marketing efforts. Nearing the end, we will focus on generational marketing; a key demographic and best practices. If you stick around past that, I will detail our case study on Bristol City F.C. and Bristol Bears. Focusing on how our team utilised demographic market segmentation to drive record-breaking results. 

What is Demographic Market Segmentation? 

As stated, this is a process that divides a market into smaller, more manageable groups based on demographic factors. These factors are measurable characteristics that influence consumer behaviour and purchasing decisions. The most commonly used segmentation factors include: 

Age Marketing 

Targeting consumers within specific age ranges, such as children, teenagers, millennials or senior citizens.  

Gender Marketing 

Focuses on products or services that appeal to men or women. 

Income Marketing 

Dividing markets based on income levels such as low-income, middle-class or high-income groups. 

Education Marketing 

Segmentation is based on educational attainment such as high school graduates, college students or post-graduates. 

Family and Marital Status Marketing 

Targeting singles, married couples or families with children. 

Occupation Marketing 

Grouping consumers by profession, such as students, working professionals or retirees. 

Ethnicity and Religion Marketing 

Considering cultural or religious backgrounds that influence purchasing behaviour. 

By considering and implementing these factors, businesses can create highly targeted marketing campaigns that address the specific needs, desires and pain points of their audience. 

STP in Marketing 

STP is a critical framework used in modern marketing. It helps businesses identify the most relevant segments of their market and develop strategies to serve them effectively. 

Segmentation 

This is the first step, where the market is divided into smaller groups based on characteristics such as demographics, psychographics, behaviour or geography. Demographic market segmentation plays a central role here, providing a clear and measurable way to categorise consumers. 

Targeting 

Once chosen segments are identified a business evaluates the attractiveness of each segment, deciding which one to target. For instance, a luxury brand may focus on high-income individuals whereas a toy company would target the family demographic. 

Positioning 

After selecting the target segment, businesses can craft a unique value proposition to position their product or service in a way that appeals directly to that group. Demographic market segmentation directly feeds into this process by helping marketers group consumers based on shared characteristics, making it easier to determine which segments align with the company’s goals and offerings. 

Market Segment Examples 

Here are some quick examples of how demographic market segmentation is used in practice: 

1. Age: A skincare brand may create anti-ageing products targeted at older adults while promoting acne treatments to teenagers.  
2. Gender: Athletic wear companies like Nike design and market separate product lines for men and women, tailored to their preferences and needs. 
3. Religion: Halal or Kosher food brands cater to consumers with specific dietary requirements based on their religious beliefs. 

One should note the data a business collects and how it segments it, is the difference between success and failure in personalised marketing efforts like this. If this is an area you feel your business could improve, we are hosting a webinar early in the new year discussing this. It is entirely free to join, so head over to the page. 

Benefits of Demographic Market Segmentation 

Demographic market segmentation offers several advantages to businesses, including:

1. Improved customer understanding: By analysing demographic data, companies gain insights into the preferences, needs, and behaviours of their audience. 
2. Tailored marketing strategies: Businesses can create personalised campaigns that speak directly to specific demographic groups’ interests and pain points.
3.  Efficient resource allocation: Instead of spreading resources thin across a broad audience, companies can focus efforts on the most relevant and profitable segments. 
4. Enhanced customer satisfaction: Offering products or services designed for specific demographics increases the likelihood of meeting customer expectations and building loyalty. 
5. Competitive advantage: Businesses that understand and serve their target demographics effectively are better positioned to stand out in a crowded market.

 Generational Marketing  

Generational marketing is a marketing strategy that involves engaging with customers by age group. It is one of the most important demographic factors in consumer preferences. Different age groups have different values, preferences and ways of communicating. The more your marketing strategy can align with these preferences, the higher the rate of engagement and conversion.  

While implementing this can optimise your marketing effort by tailoring your strategies to different age groups, it’s equally important to adopt a broader perspective: considering the full spectrum of demographic market segmentation. You want to ensure you are avoiding reliance on age-based stereotypes and recognising the nuances that extend beyond generational boundaries.  

In this second section of the blog, we will explore the most effective channels (statistically) and methods to target different age groups. Consider it as a base foundation to build on your marketing strategy with other vital demographic factors. You can then refine it and mould the basis into a detailed and highly personalised marketing strategy, as after all, personalisation in 2025 is the key. 

What Age Group is Gen Z? 

Age Range: 12–27 years old. 

Characteristics: 

• Mobile-first and socially conscious. 
• Value authenticity and experiences over traditional marketing.
• Pragmatic and entrepreneurial, shaped by rapid technological changes and economic strife. 

Marketing to Gen Z 

• Attention Span: Known for an 8-second filter; content must be bold, visual, and interactive. 
• Recommendations: Peer and influencer endorsements carry significant weight. Avoid over-promotional or inauthentic collaborations with influencers or other businesses. 
• Influencer Marketing: Partner with individuals who genuinely align with your brand values. 
• Personalisation: Treat them as individuals with direct messages and custom content. 
• Shopping Experience: Seamless omnichannel experiences that integrate online and offline interactions are essential. 

What Age Group are Millennials? 

Age Range: 28–43 years old. 

Characteristics: 

• Tech-savvy and socially connected. 
• Value experiences over material possessions. 
• Influenced by peer reviews and social proof. 

Marketing to Millennials 

• Storytelling: Authentic stories that align with their values resonate deeply. 
• Content Types: Quality visuals, immersive videos, and interactive posts are effective. 
• Social Media Platforms: Instagram, Twitter, and LinkedIn often yield better engagement. 
• User-Generated Content: Encourage reviews and testimonials to build trust.
• Online Shopping: Expect streamlined processes, rapid delivery, and user-friendly websites. 

What Age Group is Generation X?

Age Range: 44–58 years old. 

Characteristics:

• Often called the “forgotten middle child” of marketing. 
• Grew up during economic shifts and the rise of personal technology. 
• Independent and sceptical. 

Marketing to Gen X 

• Preferred Platforms: Facebook, email marketing, and online forums. 
• Content Tips: Focus on detailed product descriptions, reviews, and value-driven messaging. 
• Authenticity, practicality, and reliability are key to capturing their attention. 

What Age Group are Baby Boomers?

Age Range: 59–77 years old. 

Characteristics: 

• Loyal, value-driven consumers who prioritise quality and customer service. 
• Grew up in a pre-digital era but have adapted to technology. 
• Traditional media remains influential. 

Marketing to Baby Boomers 

• Preferred Platforms: Facebook, email, and traditional media (TV, newspapers). 
• Content Tips: Long-form content, guides and traditional ads work well. Highlight your brand’s history and credibility. 
• Values: Trust, credibility, and personal attention. 
• Personal Touches: Phone support and well-crafted email campaigns are highly appreciated. 

What Age Group is the Silent Generation? 

Age Range: 78+ 

Characteristics: 

• Value respect, reliability, and personal attention. 
• Less digitally engaged but responsive to traditional marketing methods. 

Marketing to the Silent Generation 

• Preferred Platforms: Direct mail, in-person events, and traditional media. 
• Content Tips: Messaging should be simple, clear, and direct. 
• Values: Reliability and personal connections. 
• Strategies: Phone and mail campaigns are effective due to their preference for direct communication. 

Bristol City F.C. & Bristol Bears Case Study 

The Bristol City & Bristol Bears case study demonstrates how demographic market segmentation in action works. This campaign’s focus was on a highly segmented audience and DNRG tailored the creative messaging accordingly. 

Audience Segmentation 

DNRG developed 531 ad sets targeting distinct audience types, recognising the unique motivations of fan segments, from age to family status. By aligning messages with fan values and buying motives, DNRG created a customised fan experience that appealed to each segment’s interests and needs. 

Campaign Execution 

DNRG launched 85 campaigns, delivering 531 creatives across different channels where we knew the different demographics would respond best. We included family-friendly messaging that promoted weekend games as a family experience, with cosy visuals and inclusive messaging. To cater to younger demographics we pushed out Friday night games as social events, encouraging those groups and younger audiences to attend with punchy visuals. 

We leveraged first-party data for accurate segmentation while using digital channels to attract new audiences by promoting the excitement and community aspect of being part of Bristol Sport.  

The results were record-breaking due to our demographic market segmentation. We saw a 32.9% increase in group ticket purchases per game, a 12.4% increase in attendance by Under-12s and an 11.9% increase in Under-19. You can read the full case study and methodology on this page.

The Verdict: Data-Driven Demographic Market Segmentation

It should be clear now that demographic market segmentation is a powerful marketing tool that allows you to fine-tune your marketing strategy, connecting with your audiences in a meaningful way. By understanding the distinct characteristics and preferences of different consumer groups, companies can foster deeper customer loyalty, and maximise marketing ROI.

At DNRG, we’re dedicated to helping businesses unlock their full marketing potential through the power of segmentation. It’s easy to overlook your data when your marketing seems to be working, but is it performing at its highest potential? If you’re ready to take your marketing to the next level and gain a deeper understanding of how to elevate your efforts, book a free consultation today. Alternatively, feel free to contact us for a chat. Let us show you how to leverage smart data collection and targeted strategies to drive even greater success.