Markets can be broken into different segments based largely on demographics. Among the demographic categories we can look at are such things as:
- Age. I, as a person in his 40s, am likely to want different things than a 22 year old.
- Sex. I'm male so I'm likely to buy different things than women do.
- Household type. As a married person with children living at home, I will be in a different market segment than an unmarried person or one with no kids.
- Income. There is no point in sending me brochures for Rolls-Royce cars as I could never afford one.
Non-demographic factors could include:
- Geographic location. I live in a rural area and will presumably buy things a person in a big city would not.
- Spending habits. I am very frugal and a marketer would want to know that to know what sorts of things to try to sell me.