What Is Demographic Segmentation?

Demographic segmentation is an approach to breaking up a company's target audience into more narrowly defined market segments based on personally-identifiable traits. It is one of several common strategies used in segmentation. Demographic factors include age, race, gender, education, occupation, marital status, religion and income.

When a company applies demographic segmentation, it does so on the basis that primary customers share similar demographic qualities. For instance, a company selling feminine hygiene products might naturally identify its target market as female. The number of demographic traits included in describing a particular segment can vary. A company might identify a demographic segment based on common gender, age and income, for instance, with no other factors being relevant.