Davido Digital Solutions

Market Segmentation and Consumer Trends: How Businesses Connect with Customers

Discover how businesses use market segmentation, generational insights, and content marketing to connect with customers. Learn about customized marketing, digital natives, and more.

Customized vs. Differentiated Marketing

Businesses don’t all market the same way. Some use customized marketing, tailoring products for one or a few large clients with unique needs. Others adopt a differentiated targeting strategy, offering multiple products for different customer groups—like a soda brand creating regular, diet, and zero-sugar options. Both approaches rely on segments being measurable, meaning their size and purchasing power can be clearly determined.

Why Demographics Still Matter


Marketers often start with demographic segmentation because it’s easy to identify and readily available. Age, income, education, and gender provide quick ways to group people. At the same time, evolving trends—like gender-bending products that adapt traditionally male or female items for the opposite gender—show how marketers move beyond demographics to capture shifting identities.

Generational Differences in Marketing

Understanding generations is key to connecting with audiences:

Generation X is famously skeptical, often resisting being seen as a “target market.”

Generation Z, known as digital natives, grew up immersed in technology, shaping how they consume content and engage with brands.

Other groups, like Asian Americans, are growing rapidly in influence. With higher-than-average family incomes, they receive increasing attention from marketers.

From Competitive Advantage to Content Marketing

Once a brand defines its competitive advantage, the next step is to finalize the marketing mix—product, price, place, and promotion decisions. Today, many companies leverage content marketing as part of this mix. By publishing blogs, videos, infographics, and social posts, brands establish thought leadership and connect with audiences in authentic ways.

The Bottom Line

Successful marketing is all about relevance. Whether tailoring products for a single client, segmenting by measurable demographics, or creating content that resonates with digital natives, businesses thrive when they understand who their customers are and how they want to engage.

When the size and purchasing power of a target segment can be determined, the segment is measurable. Measurable means the segment’s size, purchasing power, and characteristics can be quantified.

Asian Americans do receive significant marketing attention, especially given their rapid growth and high average income.

Once a 
competitive advantage is defined, the next step in positioning is for marketers to finalize the marketing mix. After identifying what sets them apart (competitive advantage), marketers finalize the 4Ps to deliver on that positioning.

Content marketing is the strategy of establishing thought leadership in the form of bylines, blogs, commenting opportunities, videos, sharable social images, and infographics. Content marketing uses valuable, shareable content to establish brand authority and attract customers.

An industrial manufacturer that works with one or a few large clients and develops products that only these clients will use is most likely to implement a customized marketing strategy. Because the products are tailored for just one or a few large clients, this is essentially a one-to-one or customized marketing strategy.

Gen Z ,born mid-1990s onward, grew up with the internet and digital technology from childhood, hence called digital natives.

Gender-bending products are traditionally sex-typed items adapted to the opposite gender. Gender-bending products are items like pink tools for women or makeup for men that challenge traditional sex-typed associations.

Demographic variables are so frequently used in market segmentation because they are easy to identify. Demographics such as age, income, gender, education, etc. are simple to measure and widely available, making segmentation practical.

Which generation has a cynical attitude toward marketing that was reflected in the chapter title "I Am Not a Target Market!" in a famous book? Gen X (born mid-1960s–1980) is often characterized by skepticism and cynicism toward marketing and institutions.

Using a 
differentiated targeting strategy, a company develops one or more products for each of several customer groups with different product needs. Differentiated targeting = multiple products for multiple segments e.g., Coca-Cola has Diet Coke, Coke Zero, Coca-Cola Classic.

Previous Post Next Post
Davido Digital Solutions