The marketing science is filled with numerous approaches, models, strategies and terms which are called to perform the analyzing and observational function. One of the most important features marketing goes into is the nature of a market. Thus, it is important to understand the key processes which take place at the market. This paper aims at characterizing the demographic segmentation of the market and defining the advantages and drawbacks which are proper to the term.
Demographic segmentation is known to be one of the most complex notions in marketing. The term means the segmentation or division of the market in accordance with several criteria taken into consideration. Such aspects as income, family size, gender, age, ethnicity, education, and amount of income are generally regarded while observing and analyzing the demographic segmentation of the market (Sandy, Gosling, Durant 939).
One of the main positive sides the term possesses is the availability of the information on any sort of a product, including the data on who, how, where and why produces a product and promotes it. Secondly, the matter of the demographic segmentation is a pushing mechanism for the development, forecasting and analysis of the data. This is generally done in order to sustain the market’s ability to develop competitiveness and distribute the products and services in regard with the criteria which are proper to the term of demographic segmentation (Goyat 49).
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Thirdly, the demographic segmentation’s advantage consists in the loyalty and retention of a client. In other words, in those cases when an organization or a company is able to be focused on the possible needs and demands of their customers, the constant analytical work has to be performed. The outcomes of market analysis turn to be important for the future development of a service or a product which would satisfy the clients’ needs to a greater extent.
Regardless of the fact that the advantages of demographic segmentation are important, fruitful and numerous, there are several disadvantages of the notion. One of them – and the most important – is determined by an easy access of any company or an organization to the data which can characterize another company or organization. This fact has a tendency to influence the amount and level of competitiveness (Goyat 50). It is also known that the issue of competitiveness can cause the downfall of one organization, while the rise of another one is observed. This is generally regarded as a tool of influence for the economy.
There are numerous examples of demographic segmentation. One of the most important and sufficient instances is the level of a person’s income, or, in other words, a salary (or a wage). This aspect is of an importance since it depicts the product’s (or service’s) cost and, as a consequence, the amount of financial benefits which can be obtained. The income which comes from the product’s cost is the result of the product and its producers’ success, and shows how the market is vulnerable or, oppositely, strong. This index is a key subject of the market success.
Thus, it is possible to conclude that marketing is a versatile and complex science which is based on the analysis and forecast of the possible directions of the market’s development. The success of the data obtained while investigating the market’s particularities and trends are able to lead to the development of business an organization conducts and, as a consequence, influences the economy of a country and its essential indexes. In addition to this, an important aspect of the term consists in its global impact: the more successful the local economy is, the more successful the global economy is. Thus, it is important to regard the key concepts which influence the demographic segmentation of the market.