Market Segmentation by Age – The Complete Guide

Market segmentation by age is one of the most important types of market segmentation due to the great difference between the needs and tastes of different age groups.

Market segmentation by age refers to the segmentation of potential customers according to the age factor. To further focus the company’s resources on a specific market segment. This makes targeting customers easier and more effective.

Market segmentation by Age

Companies resort to dividing the market to focus their resources on a specific segment of customers to raise their competencies in the market. Market segmentation by age is one of the most important and well-known types of market segmentation. This article will show you all the important information about market segmentation by age. Let’s go.

Importance of marketing segmentation by age

Age is the most important factor in the market segmentation process (as a segmentation variable).

Therefore, it is essential to take into account the age factor in segmenting the market. Even for a company that chooses another segment factor such as geography or gender, for the following reasons:

  1. Age often divides clients into groups with different behaviors and different requirements, unlike other factors. For example, providing a product or service in one geographic region may not differ from another. But as for the age factor, it is completely different.
  2. Taking the age factor alone or adding to any other factor in dividing the market greatly facilitates administrative and technical work for you.

    For example, if your products can be offered to children and adults, It is a big mistake not to take the age factor into consideration. Because the method of providing and marketing the service is completely different for each age group. In the children segment, you need a different team for production and marketing than you need for an adult.
  3. Age does not only reflect the biological growth of humans. It reflects other important variables and characteristics that must be taken into account in the marketing and production process.

    For example, age means that this age group is raised with similar experiences in various fields. They often listen to the same style of music and watch a certain type of TV programs and movies. So they share the same characteristics and thought processes. So the teen generation in the 1990s is not the same as the teen generation in the 2000s, they act completely separately
  4. The age groups in each generation differ from the other generation in their purchasing habits and how they respond to advertisements. For example, the generation of 2000 tends to spend most of their time on Facebook, while the same age group in the previous generation tends to check their email frequently.

How is the market segmented by age?

The market can be divided by age into several different groups. These groups reflect the customer (human) life cycle in general. For example infants, children, teens, adults, middle-aged and elderly people.

If your product or service can be used by different age groups, you should start with segmenting the market by age

The method and steps involved in segmenting the market by age are not different from the steps for market segmentation in general

The process begins with data gathering. Then analyze it and turn it into information and statistics about the different age groups in your market. This information and statistics will enable you to create various groups of customers.

For more detailed information about the steps and activities of market segmentation by age, you can refer to these two articles

  1. Market Segmentation Activities – Definition – Steps
  2. Market Segmentation Data – The Best Guide

The results of the market segmentation process differ from one company to another. Because the division process depends on the type of products and services offered by each company.

For example, some pharmaceutical companies may divide the market into two main divisions, for example, young people 5-17 years old. And adults from 18-80 years old. This is because the product offered to customers is suitable for these age groups only.

Other companies divide clients into several different sectors. The following table shows an example of some of the customer’s age segments.

Age segmentsAge Range
Baby0-2 Years
Young Adults Group13-12 Years
…………………….. Group213-19 Years
…………………….. Group320-29 Years
…………………….. Group430-39 Years
Middle-aged Adults Group140-49 Years
………………………………… Group250-59 Years
Old Adults Group160-69 Years
………………… Group270-79 Years
………………… Group380-89 Years
………………… Group490-99 Years
Sources

Example of market segmentation by age

There are many examples of the age segmentation of the market. These examples are evident from everyday life and can be viewed on a daily basis before you.

Clothing companies:

For example, clothing companies divide their customers according to age. Each age group has different specifications, production and marketing processes. This is imposed by the nature of the customers.

Some clothing companies choose only one specific age group, for example kids. And others choose more than one segment to provide products and services to them, for example children and adults. Thus, according to the capabilities of the companies and their resources.

Medical services

Another example: Medical services as an example on market segmentation by age, clinics and hospitals, these institutions provide their services to each age group with specific specifications and standards different from the other age group.

We notice that there is a children’s hospital, a reproductive hospital, another hospital for adults, and so on. There may be one hospital that serves all previous age groups but in different departments and branches.

As previously mentioned, the medical field divides customers according to age groups. In addition, it divides these age groups according to the type of disease. For example, there is a pediatric cardiologist and another adult cardiologist, etc.

ِAdvantages of market segmentation by age

Market segmentation by Age has many advantages and benefits. In these paragraphs, we will show you some of them:

Easy to get data

The data of market segmentation by age is easy to obtain. It is available mostly from government institutions. This greatly facilitates the process of market segmenting by age.

Also, if you use online business, you can get a lot of information about your customer age easily. Through various monitoring tools such as Google Analytics, this information can be obtained easily and conveniently

For more about market segmentation data, you can refer to the following article: Market Segmentation Data – The Best Guide

Data is obtained free of charge or at a low cost

In addition to easy to get the data of market segmentation by age, it can also be obtained for free or at a small cost.

Most of the data regarding age groups are included in government releases of demographics. It’s also easy to get data through surveys, whether offline or online.

Disadvantages of market segmentation by age

Despite the many advantages of age segmentation in the market, it has some disadvantages. Here we will show you the most important ones

Age segmentation may occur at a superficial level

Due to the relative ease of segmentation compared to the rest of the segmentation, sometimes each age group is considered one group without studying the behaviors in detail.

Variable data

Nothing sticks in this life. However, the age data is considered more variable with time. For example, infants after two years were no longer considered infants, but rather children. If the birth rate is not stable in the community, the data needs to be reassembled and analyzed

Other market segmentation factors

  1. Geographic factors: These factors divide customers according to their geographic location as region or area.
  2. Demographic factors:  These factors divide customers according to their age, gender, family size, income, or life cycle. You can read Market Segmentation by Income for more details.
  3. Psychographic factors: These factors divide customers according to their social class, lifestyle, or personality.
  4. Behavior factors: these factors divide customers according to their benefit from the product or services, use of product or services, or response to the market promotions.

Conclusion

Market segmentation by age refers to the segmentation of potential customers according to the age factor. To further focus the company’s resources on a specific market segment. This makes targeting customers easier and more effective.

Age is the most important factor in the market segmentation process (as a segmentation variable). So, it is essential to take into account the age factor, even for a company that chooses another segment factor such as geography or gender, for the following reasons.

The process of market segmentation by age begins with data gathering. Then analyze it and turn it into information and statistics about the different age groups in your market. These steps enable you to create various groups of customers.

Market segmentation by Age advantages are:

  • Easy to get data
  • Data is obtained free of charge or at a low cost

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