250 The Marketing Book
supporting characteristics rather than as the
main segmentation base. We start by exploring
some demographic characteristics within the
applied context of a hypothetical case study.
Demographics
A drinks company has researched potential
markets for its new drink, a cross between an
alcopop and ‘mixer’. The product might appeal
to the youth market as a stronger ‘soft’ drink
and to older markets as a sweet mixer for spirit-
based drinks. The company discovered that
several market reports such as MINTEL, KEY-
NOTE and Market Assessment have conducted
some research into the usage of alcopops and
spirits. The company also conducted its own
survey and qualitative group discussion
research amongst consumers, and discovered
that those most likely to be interested in their
product are 16–24, females from C1 households
either as dependent children or in a first
household of their own. The next most likely
segment was found to be 50–60, males from AB
households in which children have grown up
and left home.
These are demographic characteristics but
respondents to this form of market research are
(and should be to comply with the Market
Research Society’s Code of Conduct) anony-
mous and not added to any database for, for
example, mailing list creation.
The value of these characteristics depends
upon the extent to which they satisfy the above
criteria for segmentation.
For instance, in terms of estimating market
size within the substantial criterion, it would be
usual for the demographic profile to be used to
estimate the size of this segment in the popula-
tion as a whole – based on the incidence of their
demographic characteristics in the total popula-
tion. For the accessible criterion it has been
traditional for a demographic market profile to
be matched with media profiles in order to
select appropriate advertising media to reach
the selected segment. Similar demographic
profiles exist for those frequenting different
retail outlets and therefore selection of channel
can be based on demographics as well.
As for understanding why segments
behave as they do, demographics are less clear.
If there is a relationship between an age group,
or gender or social grade and purchasing
behaviour, is this a causal relationship or mere
coincidence?Age
Age is still a valid base for many markets. The
drinks company here has identified ‘young
adult’ and ‘teenage’ segments, for example. In
general terms, these have become important
spenders, for example, demanding their own
products and searching for their own identity.
A complicating factor is that this group has
been found to be especially individualistic and
sceptical of marketing activity. This doesn’t
make them difficult to reach, but it is proving
harder to influence them. A decade ago they
were labelled as ‘Generation X’, and Coupland
(1991) and Ritchie (1995) have analysed their
behaviour and attitudes; these have been fur-
ther reported by Bashford (2000). It is possible
that marketing can provide some of what
Generation X might be looking for – greater
interactivity and participation in marketing
communications. The current 16–24s have been
termed Generation Y or the Millennial Genera-
tion (Adam Smith Institute, 1998). Many in this
category have been found to be materialists,
brand orientated, risk takers, keen on business,
hedonism, illegal drugs and have a disrespect
for politics. The Future Foundation (2000)
extended this research and found them to be
more accepting of multinationals and less
interested in protesting.
Further analysis of Generation Y has been
conducted by Shepherdson (2000) and Gofton
(2002).
If this group were targeted, this profile
could provide useful clues as to the sort of
message and media to use and reach them.
The older potential segment for the drinks
company is composed of those in their fifties –