Age segmentation


Age segmentation consists of grouping markets using the age of the population as a reference.

It is important to mention that age is a very simple variable to use because the information is easy to obtain and can be easily identified. For that reason, it is very useful when you want to perform a market segmentation.

Generally, this information can be found in the data managed by the organizations that carry out population censuses. This, given that it corresponds to the demographic variables that are handled both nationally and internationally.

In addition, this type of segmentation is important because, according to age, each person has very different needs, interests and preferences. All these differences influence your decision and your ability to buy within the market. That is, considering the age of the consumers, certain habits and customs can be identified at the time of making a purchase action.

How can the population be divided using the age of the people?

If we use the age of the people we could divide them into the following groups:

  • Babies: Includes newborns and children under five years of age.
  • Children: This group includes children over five years old and under twelve years old.
  • Adolescents: This group includes people over twelve years of age and under eighteen years of age.
  • Youth: The youth group are people over eighteen and under twenty-five years of age.
  • Young Adults: This segment includes people over the age of 25 and under the age of 40.
  • Adults: They are people over forty years of age and under fifty-five years of age.
  • Older adults: We find in this group people over the age of fifty-five and under sixty-five.
  • Elderly: They are people with more than sixty-five years and less than seventy-five years.
  • Long-lived: They are all people seventy-five years of age and older.

Why is it important to use the age targeting marketing strategy?

Using the age targeting strategy is very important for any business. This, since it helps to better understand the needs and desires of the market consumers.

Without a doubt, this segmentation helps us to know and understand some important aspects of consumers according to age. Among them we can find:

1. How they make their purchasing decisions

First, age allows a company to understand how these groups make their purchasing decisions. For example, if we find a segment made up of children, we will understand that when buying they do not make significant decisions. If they are teenagers, they make buying decisions on impulse.

Whereas, if the buyer is in the adult stage, we are faced with buyers whose decisions are very rational. If the group of people are elderly or long-lived we will realize that their level of effective purchases is very low.

2. What interests move each group

Secondly, according to age, it is possible to understand the different interests that drive each group and thus be able to know their personal priorities. Personal priorities are related to family, professional and work aspects.

We could exemplify, if we refer to the group of young people between eighteen and twenty-five years old, their main interest is their professional training. While, in the group of young adults who are in the age range of twenty-five to forty years, their main interest is to become independent, as well as to formalize a relationship with a partner.

For his part, an adult between the ages of forty and fifty-five worries about the future. For that reason, try to increase your wealth by acquiring a house and other assets. But, it also increased your savings and investments in real estate.

Now, an older adult, who is people between the ages of fifty-five and sixty-five, is concerned about their financial security. For this reason, they acquire insurance and pensions that assure them a decent life in future years.

3. Who is the customer and the consumer

Third, age helps companies determine which of their segments act as customers or consumers. Babies, children and adolescents are only consumers because they only consume and use the products, but have no purchasing power.

Generally, young people, adults and the elderly act as consumers and customers, since they use and consume the products they need and can also pay for them. These people have income, either because they are of productive age or because they receive funds and pensions as is the case with retirees.

Products according to age

Some products target age-specific people. You can talk about some products such as the following:

  • Babies: Diapers, formulas, clothes and baby food, bottles, etc.
  • Children: Toys, clothes, educational material, etc.
  • Teens: Music, video games, clothing, accessories, sporting goods, etc.
  • Young people: Technology, sporting goods, aesthetic products, travel, etc.
  • Young Adults: Travel, shows, entertainment, etc.
  • Adults: Houses, apartments, vehicles, furniture, etc.
  • Older adults: Insurance of all kinds, preventive medicine products, etc.
  • Elderly: Food supplements, medicinal products, medical services, etc.
  • Longevity: Medical services, curative health products, etc.

New age classification according to WHO

As a curious fact, the WHO (World Health Organization) in 2021 has just reclassified the ages of people into the following groups:

  • Minors: from 0 to 17 years old.
  • Youth: 18 to 65 years old.
  • Average age: from 66 to 79 years.
  • Elderly: from 80 to 99 years old.
  • Older long-lived: more than 100 years.

In conclusion, it can be said that age segmentation is a strategy widely used by companies, since age is a very important reference to know the needs, interests and priorities of consumers. In addition, it is possible to know how age affects the purchase decision process and the purchasing power of the person. In this way, the company can adapt its most suitable marketing mix for each segment.

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