Demographic Targeting: The Essential Role of Population Groups in Retail Marketing

Citation

Feldman Barr, T. (2004), "Demographic Targeting: The Essential Role of Population Groups in Retail Marketing", Journal of Consumer Marketing, Vol. 21 No. 1, pp. 67-69. https://doi.org/10.1108/07363760410513987

James Pooler, a professor at the University of Saskatchewan, provides a comprehensive look at consumers in this easy and interesting read. Based on the premise that like consumers are relatively consistent in their purchases of products and services, Pooler presents detailed information for retailers to consider when developing marketing strategies for each group. Called “demographic targeting”, Pooler suggests that identifying groups who are similar in their shopping goals and patterns provides retailers with the greatest opportunity to effectively reach consumers. More strongly, Pooler says that the retailer that ignores these differences “does so at his peril” (p. 2).

The notion that consumers differ in their wants and needs over the course of their lifetimes is not a new one. Consumer researchers have utilized the typology of a “family life cycle” for a number of years. This typology suggests that consumers who are alike in their life cycle stages – young marrieds, empty‐nesters, etc. – will have similar wants and needs, and therefore will purchase similar products and services.

Pooler suggests that marketers can use consumer sex and age to develop different consumer groups, and then extends his typology by utilizing Maslow’s Hierarchy of Needs to further explain the differences in purchasing. (Maslow’s hierarchy is based on the notion that individuals are motivated by different levels of needs, and that lower‐level needs must be fulfilled before higher needs. Lower‐level needs are more basic – physiological and safety – while higher‐level needs are more psychological. Maslow ultimately suggests that all shopping behavior is a function of the consumer’s need to “self‐actualize”, his highest level of needs.) Retailers must then take these differences into consideration in order to successfully market to each population group.

This nine‐chapter book is an extremely easy read. The book is built around eight distinct population groups that Pooler has identified and to whom he dedicates a chapter each. Chapter titles disclose the eight groups. Each chapter also reveals the stage in Maslow’s hierarchy that Pooler suggests the group is seeking to fulfill with their purchase behaviors.

Chapter 1: Demographics and Shopping: Introduction. Pooler, in this introductory chapter, establishes the groundwork for readers by explaining what demographic groups are and the important role that demographics play in retailing. He suggests that “different demographic groups … take entirely different approaches to their shopping goals … they also have different budgets and their shopping schedules and patterns are completely dissimilar” (p. 1). Understanding these differences and utilizing demographic targeting “is the key to success for modern retailing” (p. 2), according to Pooler.

Chapter 2: The Young Parenting and Infant Demographic: Time‐Pressed. The demographic group of new parents (particularly new mothers) provides retailers with their first challenge – provide a way to shop (with babies in tow) that is time‐efficient and simplifies their consumers’ lives. Driven by their need to fulfill the most basic of needs – food, clothing, infant car seats, appropriate toys, etc. – these parents look for both convenience (fast, one‐stop shopping) and good prices for quality products and services will excel. Also, this group is also looking for ways to get more time for themselves, whether it is to relax or to concentrate on careers, so service providers will want to examine and add to their offerings in that arena.

Chapter 3: Young Children: The End of the Age of Innocence. Retailers must understand that parents have goals for their children that begin almost at birth. As a result, retailers have the opportunity to endear themselves to parents by helping those goals be fulfilled. Many of those goals are reflected in the products that parents purchase for their children. Image, even at early ages, is important to this demographic group, and designer labels are already significant signs of the parents’ goals to make sure that their children both fit in and develop a sense of self. The parents will define themselves, too, through their children. The successful retailer will carry name‐brand labels in clothing, toys, and entertainment.

Chapter 4: Pre‐Teens: The Shopping Pressures of Growing Up. The demographic group of the preteen is the foray into independent shopping by children. Pressured by fashion trends and designer apparel, this group of children has very definite tastes and tremendous impact on today’s retail environment. While in the past, these children influenced their parents’ purchases for them, today, they are making the purchases, and it is in the retailer’s best interest to recognize the buying power of this group, and how they shop. They are “relentless shoppers” (p. 42), with lots of time to browse. Ignoring this behavior or making it difficult or uncomfortable for these young shoppers is a sure road to failure with this group, as they are clearly making purchase decisions.

Chapter 5: Teens: Shopping for an Identity. Teens are an extremely important demographic to market to effectively because of their tremendous clout. They are selective in their purchasing behaviors and have their own ideas and thoughts about what they like and dislike. They are “persistent and dedicated shoppers” (p. 56) with lots of time to shop. Teens are also among the most difficult shoppers in the market as well, spending a great deal of time comparison‐shopping. Retailer patience is a key to being successful with this demographic. Teens are also obsessed with designer labels and trend‐setting style. Their tastes change quickly, and retailers must be willing to adjust quickly too, to retain this market segment.

Chapter 6: The Young Single Demographic: Shopping for Self‐Esteem. As today’s teens move into young adulthood they represent a group with independence, few responsibilities, lots of time, and huge disposable incomes. As a result, retailers should work to make sure that they understand why and how this market segment shops. This group shops for self‐esteem but may be unsure of their decisions when making purchases. In many ways, this is the first time that these consumers are really shopping on their own. In the past, they have had peers and parents to support their shopping decisions. Now, they must rely on their own discretion, providing retailers with the opportunity to help.

Chapter 7: The Young Married Demographic: Shopping as Grown‐ups. This demographic group dramatically changes both the reasons and the ways that they shop. Transitioning from the life of being single, these young marrieds are buying their first homes, making “grown‐up” purchases of hard goods like washers and refrigerators for the first time in their lives, yet are hesitant to completely give up all of the amenities of single life. As a result, retailers need to offer products that fit both of these wants. This group, while busy, has plenty of free time to shop. Where the groups before this have wanted to fill a need to belong, the young married demographic is looking for self‐esteem, status, self‐reward, and pride.

Chapter 8: The Busy Demographic: The Most Important Group. Named the busiest group because the young adults in this segment are pursuing both career‐building activities, working longer hours and harder than other groups, and raising their families at the same time. This group, according to Pooler, is the most important group for retailers to consider. Time‐starved but economically‐able, these consumers will appreciate personal shopping services and specialized services such as lawn care and house cleaning, as they struggle to keep up with everything in their lives. Convenience is the watchword for retailers.

Chapter 9: The Baby Boomers: Shopping for Emotional Reasons. The baby boomers, born between 1946 and 1964, constitute the largest of the segments that retailers should consider. Because of the sheer numbers of consumers in this group, retailers must pay attention to their wants and needs, as they have “had a decided effect on patterns of consumption over the last fifty years and they continue to do so today” (p. 111). Boomers are financially stable. They like expensive luxury items and are willing to pay for them. They are shopping to self‐actualize, according to Pooler, and will not deny themselves things that they want. Shopping is a leisure activity and quality of service is of key importance to them.

Each chapter elaborates on factors that Pooler believes are critical to meeting the needs of each of these demographic groups. It is unclear, however, whether or not Pooler has data to back‐up the typology that he presents here. As a result, retailers may want to take the advice presented accordingly.