Marketers need to identify the market needs to promote products effectively. For easier market targeting, marketers engage in market segmentation, which is dividing people into subgroups based on some common characteristics. Consequently, effective segmentation enables the marketers to approach the different segments uniquely (Hayes, 2019). Effective segmentation must bear the following characteristics; homogeneity, where the people in the segment share common needs, distinction in that each segment is distinguishable from others, and reaction where individuals in each segment respond to the market similarly (Tarver, 2020). Managers use several segmentation techniques, including behaviorally, geographically, demographically, and Psychographically (Tarver, 2020). Literature suggests that launching a market campaign using a single strategy may not yield the expected outcomes since the technique may not appeal to everyone. Therefore, marketers need to understand the similarities and differences between different segments, enhancing the creation of specific selling points (Community Tool Box, 2018). This is the most effective way to influence the market behaviors leading to conversions. This article will discuss how Acadia Park Equipment Co. can use demographic segmentation based on age to improve outdoor camping products' declining sales.
Demographic segmentation entails sub-grouping people into various groups based on specific variables, such as gender, age, or income (Community Tool Box, 2018). Segmenting the market demographically allows the marketers to study consumer behaviors, enhancing the sale of a product.
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18- to 24-year-olds
This group consists of Generation Z, born after 1996 (Parker & Igielnik, 2020). Most of these teens are in colleges. In 2018, 57% of the teens were enrolled in 2–4-year colleges (Parker & Igielnik, 2020). Likewise, this is the first generation to grow up in the era of computers and the internet; over 90% of this generation has a computer or a cell phone (Conedera, n.d.). Being digital savvy, they do not know much about the world before smartphones (Parker & Igielnik, 2020). Therefore, most of them spend time on social media platforms. Furthermore, this generation comprises 25.9% of the US population (Law, 2020). Moreover, they have $44 billion buying power, making them a favorable market segment (Law, 2020). According to Maryville University (2019), Generation Z is not loyal to any brand. In fact, over 50% of this generation considers the brand’s social reputation before making a purchase (Maryville University, 2019).
Most teens love outdoor activities, spending time with family and friends, keep physically fit, and improve their emotional well-being. In fact, most teens have a passion for camping; 90% of teen campers have plans to camp even in adulthood. Therefore, this is a perfect market to target. The best time to target this generation is during Summer and Spring holidays. This is the best time for product sales when the schools break for holidays.
25- to 34-year-olds`
Age has always been a contradictory topic of discussion. The traditional definition of youth by chronological age is when young people transition to adults has evolved (Omelchenko et al., 2017). People worldwide are delaying adult responsibilities by preferring to continue participating in youthful pursuits, phenomenon marketers have to consider in their marketing. Unlike Generation Z, who are considered to be experimenting with new experiences, individuals in the 25- to 34 years bracket feel contented with life experiences. Some millennials have some employment; some are married, while others pursue their personal interests. In other words, this is considered the ideal age to shape one’s destiny.
Therefore, although some people in this bracket may consider themselves young, most people in this bracket seek products that can improve the affirmation of their identity, unlike teenagers who are after material gains. Faw (2018) states that most millennials with children are more likely to camp than single millennials. Therefore, with the need to spend time with family members, Condor Ferries (2020) reports that over one million families start camping every year in the US. Likewise, life events, such as economic advantages, increased salaries, have led to an increased number of 25 to 34 years bracket campers (Condor Ferries, 2020). Therefore, these consumers will purchase the products during holidays take their families camping.
When it comes to marketing, this generation, although also tech-savvy, like campaigns relevant to them. This generation is brand-conscious and will go for products to enhance their experiences (Maryville University, 2019). Therefore, this segment requires authentic and relevant ads for conversions.
35 and Older
Generation X comprises older adults, those between baby boomers and millennials. According to Kagan (2020), this generation makes up 65 million of the entire US population. Likewise, most people in this generation have settled for families and are in their peak earning years; this population constitutes 16% of the nation’s wealth (Kagan, 2020). With high income, this population is more likely to camp during holidays to spend time with their families or friends. Moreover, this segment is more inclined to traditional advertisement media than digital media. Older adults are likely to use the outdoor products for camping with their families and friends, especially during the holidays.
Distribution Channels
The Generation Z, shop in stores 39.0% and online 61.0% (Digital Commerce360, 2019). Therefore, direct sales of camping products to this segment are more effective. Therefore, transacting with this segment directly through online platforms is more effective in selling the products. On the other hand, millennials 25-34 years make purchases in stores (38%) and online (62%) (Digital Commerce360, 2019). Therefore, using the internet as a distribution channel to sell camping products to this segment is more effective. There has been an increase in online shopping popularity by this segment, partly influenced by price sensitivity. With other responsibilities, such as family, millennials are price sensitive; thus, compare prices between vendors before making a purchase (Digital Commerce360, 2019). Contrary, the adults, those aged 34 years and above, shop both online (57%) and in stores (43%) (Digital Commerce360, 2019). Therefore, this segment is more likely to make purchases in stores than the others; thus, the company may use retailers to sell the camping products to this segment.
Conclusion
As discussed earlier, Gen Z spend more time on social media platforms. Therefore, companies can easily reach with ease. According to Maryville University (2019), teens can be effectively reached by triggering their emotions. Therefore, the company could use social media influencers, especially on Instagram, to communicate to this segment. The influencer should use a lighthearted tone that resonates with the audience. For instance, they may use slang language to communicate with teenagers. For the ads to feel authentic, the ads should be ‘in the moment’, rather than looking too edited. This communication method's effectiveness will be measured by the number of shares, likes, and shares.
The millennials also spend more time online. However, companies need to be wary when using online platforms to target this generation. Using traditional communication approaches, such as running irrelevant ads or influencers, may not help reach this group since this segment is after products that enhance their experiences. Therefore, with increased over-advertisement of products, this segment has developed mistrust in the traditional media and consider the internet as the primary source of credible information (Naumovska, 2017). Thus, to communicate and engage with this segment, the company could use social media platforms to deliver an authentic message about the product humorously. A lighthearted tone that is authentic and transparent should be used when making adverts targeting this audience. This communication channel's success will also be measured by the number of likes, shares, and views.
The older segment spends less time online than millennials; however, although digitally curious, Facebook is the main social media platform for interacting (Koch, 2019). Therefore, the use of Facebook to promote the product could be more useful to reach this segment. A highly professional tone with quick-hit sentences should be used to establish authority. However, the tone used should not appear forced as it could lead to loss of credibility. The tone should emphasize the quality of the products. This communication method's effectiveness could be measured by the number of new customers acquired per advert, the number of shares, and the product's likes.
References
Community Tool Box. (2018). Chapter 45. Social Marketing of Successful Components of the Initiative . Ku.edu. https://ctb.ku.edu/en/table-of-contents/sustain/social-marketing/reach-targeted-populations/main
Condor Ferries. (2020). Camping Statistics 2020 . https://www.condorferries.co.uk/camping-statistics
Conedera, N. (n.d.). Reaching 18-24 yr old College-aged Millennials! Retrieved February 6, 2021, from http://static1.squarespace.com/static/533f971ae4b0258f1159c770/t/557df14fe4b014e8c7586f79/1434317135866/millennial_guide.pdf
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Faw, L. (2018). Why Millennials Are Now Going Crazy For Camping . Forbes. https://www.forbes.com/sites/larissafaw/2018/04/17/where-millennials-are-now-shacking-up-its-not-where-you-expect/?sh=3ba61a2c2b10
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