Segmentation: age

The idea

Age segmentation means dividing a market into groups defined by how old customers are, because needs, incomes and buying habits change across a lifetime. A business might target children with toys, teenagers with streaming subscriptions, adults with mortgages or retired people with travel and health products. Age bands are usually chosen to match the product: for example, a cinema may price under-16 and over-65 tickets differently because willingness to pay and leisure time vary. Age is easy to measure and data is widely available, so targeting is straightforward. However, people of the same age can differ greatly, so age alone may be a weak predictor of behaviour. Businesses often combine age with income, lifestyle or location to sharpen the segment and avoid stereotyping.

What earns the marks

• Defines age segmentation as splitting a market by customers' age or age bands.
• Explains that needs, tastes, income and spending patterns often change with age.
• Gives a relevant example of a product or service aimed at a particular age group.
• Explains a benefit, such as easier targeting or clearer marketing messages.
• Explains a limitation, such as people of the same age behaving differently.
• Shows how age can be combined with other segmentation variables to improve targeting.

Common mistakes and how to put them right

• Treating everyone in an age band as identical.

  Put it right by noting that age is only one influence on buying behaviour.

• Confusing age segmentation with income segmentation.

  Put it right by checking whether the grouping is based on years lived rather than earnings.

• Assuming older customers always spend less.

  Put it right by recognising that retired people may have savings and free time for leisure spending.

Exam tips

• Name the age band you are discussing so the application is specific.
• Link each benefit or drawback to the business context given in the case.
• Use the phrase 'because' to turn a simple point into an explained point.