Demographics Examples (Types, Importance, and Uses)

By Indeed Editorial Team

Published June 10, 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

An effective marketing strategy that most companies use is categorizing customers and showing products to them based on their interests. Various factors determine these customer groups, such as age, financial status, location, and ethnicity. Understanding the importance of these demographics can help you increase sales for the company and build a successful career as a marketer. In this article, we highlight demographics examples, review their importance, and explain their uses.

Demographics examples

Here are some demographics examples that you can use to categorize customers:

Age

Age is a popular customer demographic as each age group has its particular needs and characteristics. As a result, marketing teams typically categorize customers into age groups such as senior citizens, adults, young adults, teenagers, and children and advertise age-related products to these groups. They may also advertise to a related group such as parents, guardians, and caregivers. When creating online campaigns, it's possible to further segment these groups into sub-sets that have an interest in specific products, such as new retirees, college students, and fresh graduates.

Example: Suppose you want to create a campaign for vacation packages to a new resort. In that case, you can create specialized ads depending on the age groups of potential clients. For example, one of your campaigns may feature young adults playing on the beach. You can target this ad to teenagers, young adults, and adults. In another campaign, you may feature people having fun after retirement and target this ad to older adults.

Related: What Is Generation X? (Characteristics and Careers)

Gender

Gender is another important demographic when conducting market segmentation. Based on market surveys, people of different genders may have differing interests, opinions, and needs. As a result, they respond to specific campaigns differently. It's essential to avoid stereotypes when using gender to create marketing campaigns. You may create campaigns that differentiate between gender-specific clothes, holidays such as father's day and mother's day, and other products that your surveys show varying interest levels between genders.

Example: ZenSport, a company that markets sports products may market the products differently to different genders. In its focus groups, the company's representatives observe that the men tended to identify with themes of strength and victory, while women aligned with themes of resilience and empowerment. The company uses these insights to create different marketing campaigns to target the different motivations and desires of these genders.

Income level

You can also categorize customers based on their income level. Categorizing customers based on income level typically involves using online data to target people who can afford the company's products. Income classes include low-income earners, lower middle class, middle class, upper middle class, and upper class. You can use an individual's social media presence and online search history to get relevant information about their income level and the products to market to them.

Example: Suppose you work in a car dealership and want to market a new, luxurious car model. Although teenagers and young adults may have an interest in the car because of its sleek look and new features, it may be more beneficial to you to target adults with a higher income level to improve the chances of making a sale.

Geographical location

If you run a small business with a local audience or offer localized product discounts, consider segmenting your clients based on geographical location. You can effectively target customers by location using customers' IP addresses or information gathered from online histories. You can then narrow the reach of your campaigns by geographical boundaries. Your geographical boundaries may include countries, provinces, territories, or cities. You may also create custom boundaries to accommodate more customers.

Example: If you work for a company that offers delivery services to selected countries, you can successfully target relevant customers by advertising only in countries where the company operates.

Related: What Is a Market Segment? Definition, Benefits, and Steps

Family structure

There's a lot of variation in the family structure demographic as each unit may differ. As a result, this segmentation allows you to target leads who have different wants and needs regarding the company's products simultaneously. For example, you can target ads to families with children or people with different relationship statuses who may use the products to improve their lives. You can get data about customers' family structure through organic means like search engine results or their online search history.

Example: Suppose a large grocery chain store asks you to create a marketing campaign for their products using the family structure of its target audience. You can use sub-categories of unmarried college students and families with children. For example, the campaign for unmarried college students may feature products such as single-serve meals, while the campaigns for families may include child care products.

Religion and ethnicity

This demographic example allows you to categorize customers based on their religious and cultural needs. Targeting these groups may include creating localized advertisements for communities with a large population of people of a particular ethnic and religious group. You can also consider targeting people during religious holidays or when you want to sell culturally significant products.

Example: During Lunar New Year, you may target Asian Canadian communities with your ads about parades, food stalls, and local festivals celebrating the holiday.

Occupation and education level

This consumer demographic allows you to target customers of different education and occupation levels in particular industries or educational needs. People may include details about their educational status or occupation on their social media platforms. You can use this information to recommend training programs or tertiary institutions to continue their education. Using this demographic allows you to offer specific services or products directly related to the customer's career.

Example: Suppose you work for a trade school's marketing team. You can target your marketing campaigns about courses to recent high school graduates or individuals who work as trade apprentices.

Importance of using demographics

Demographic examples are helpful for these reasons:

  • Differentiates between wants and needs: Using demographics helps you market products effectively by distinguishing between different needs and wants of similar people within the target audience.

  • Converts quality leads: With demographic marketing, you may convert more high-quality leads. This is because potential customers who have an interest in the company's products can easily see the company's advertisements, which may motivate them to seek information or make purchases.

  • Saves money: More specific and direct campaigns targeted to demographics within the target audience help reduce the cost-per-click of each ad. This reduces the overall marketing costs and saves money by showing ads to individuals who are more likely to patronize the company.

  • Distinguishes the brand: Creating targeted ads for specific demographics within the target audience helps distinguish the brand from competitors who create generic marketing campaigns for customers.

  • Fulfills niches: Using demographics is ideal for marketing to specific niches like young mothers or people over a certain age. This is because you can use data about these groups to create appealing and effective ads and display them at the right times of the day.

  • Focuses your efforts: Marketing to a specific demographic allows you to focus your efforts on essential groups within the customer base. This helps you effectively maximize your resources rather than attempting to cater to all customers simultaneously.

Uses of demographics

You may use demographic marketing for the following reasons:

Tailoring business practices

You can use demographic marketing to streamline the company's processes to suit existing and potential customers. You can create a basic client persona as a reference point for making marketing decisions. For example, a cosmetics company can create a client persona of a college-educated woman between 21 and 41 years old and an annual income of $40,000 to $55,000.

Marketing campaigns and strategies

Knowing who's engaging with your content may make it easier to tailor your content to suit the audience. For example, suppose the market research shows that most of the company's customers are teenagers. In that case, you can target issues related to adolescence and young adult lifestyles.

Sales offers

You can plan sales offers to appeal to particular demographics. For example, suppose you find out that most of the company's customers do their Christmas shopping during the last week of November. In that case, you can plan sales and discount programs around that time to encourage existing customers to purchase more goods and attract new customers.

Product development

You can identify common issues customers may have with the company's products when you know who the customers are. You can use this knowledge to adapt existing products and make upgrades based on the customer's requests. You may also use this knowledge to create a new product to fill up a gap in the market.

Product pricing

Businesses may use customers' financial data to determine the price points for products or services. For instance, suppose a company sells luxury products. In that case, the most likely customers to buy the company's products are high-income individuals. Conversely, if the customers are middle-class people, selling affordable products may be the best way to maintain the customer base.

Related: Target Market Examples (With Considerations for Your Own)

Location scouting

Companies may use the community's demographics to decide on a new location for the business. For instance, suppose a new coffee shop wants to open a new location. In that case, the owners may select a location within walking distance for residents to help increase foot traffic.

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