Question

Provide two examples of problems that could occur if a business segments a market based on demographics or usage.

PLEASE DO NOT COPY FROM OTHER CHEGG ANSWERS OR INTERNET. 150+ words

Answer 1

1. Wants and desire of the customers varies within the same Demographic Segment

Example- If a chocolate manufacturer targets its product to females, then it is not essential that all females have same taste and choice. Therefore, targeting based on demographics may not always be successful as each individual has its own choices and cannot be generalized. So, targeting all females with a common marketing strategy could not result in revenues as desired.

2) Demographic considerations would not always be correct and there may be overlap between segments.

Example- It is a stereotype that younger generation are digital savvy and spend a lot of time on internet. This stereotype cannot be generalized to segment the market because today people of all generations spend time on internet. So, if a social media platform marketer segments the market based on age and targets just younger generation, this could lead to lesser revenue. If the social media platform marketer instead targets all the generations, then it could lead to higher revenue.