Income from the forest

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Demographic segmentation is the most common and traditional form of market segmentation. This is where customers are targeted based on shared traits. Age, race, gender, marital status, income, eduction and occupation are typical identifiers used in demographic segmentation. This approach works well if you have an easily identifiable customer profile. Minivans, for instance, are often marketed to couples in their 20s to 40s who have children, middle-class income, and professional occupations. Using demographics for segmentation doesn't make as much sense if your target market is more diverse on these qualities.


In lieu of clear demographic qualities, companies often turn to shared lifestyle interests and hobbies to target customers. Companies that sell camping equipment, for instance, might find it difficult to target customers demographically, since a wide range of people participate in outdoor recreation. Thus, trying to find TV shows, magazines and other media that camping enthusiasts use in common makes more sense. Outdoor living magazines or programming provides an efficient communication channel.

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