How and why businesses target customers by: demographics, socio-economic background.

Business and Commercial Practices – Targeting Customers

Objective

To understand how and why businesses select particular customer groups and how this information feeds into the design brief, product development and commercial decisions required by the Cambridge AS/A‑Level Design & Technology syllabus (Topic 14).

1. Why Target Specific Customer Groups?

Targeting enables a business to:

• Allocate marketing resources efficiently.
• Design products that meet the specific needs of a defined group.
• Differentiate from competitors with a tailored value proposition.
• Increase repeat purchases and brand loyalty.
• Make informed decisions about the 4 Ps (Product, Price, Place, Promotion).

2. From Consumer Needs to the Design Brief (AO3a)

The process of turning market data into a design brief can be summarised in three steps:

1. Identify needs and wants – use demographic and socio‑economic data to pinpoint functional, aesthetic and safety requirements.
2. Translate needs into specifications – write measurable design criteria (e.g., “handle must be operable with a grip strength of 15 N” or “packaging must be recyclable and fit within a 150 mm × 100 mm × 50 mm footprint”).
3. Justify the target group – provide evidence (survey results, market‑research statistics, competitor analysis) that the chosen segment will generate sufficient demand and profit.

3. Demographic Targeting

Demographics are measurable statistical characteristics of a population.

• Age – teenagers, young adults, seniors.
• Gender – products aimed specifically at men, women or non‑binary consumers.
• Ethnicity & culture – influences colour, style, flavour preferences.
• Family size / life‑stage – single, married, with children.
• Geographic location – urban, suburban, rural.

Example: A new gaming console is marketed primarily to males aged 15‑30 living in urban areas because research shows this group has the highest interest and spending power for high‑tech entertainment.

4. Socio‑Economic Targeting

Socio‑economic background combines income, education, occupation and social class, shaping purchasing power and lifestyle preferences.

• Income level – determines price sensitivity and willingness to pay for premium features.
• Education – affects the amount of technical information required.
• Occupation – relates to time constraints, professional image and functional needs.
• Social class – influences aspirational buying behaviour and brand loyalty.

Example: A luxury watch brand targets high‑income professionals who value status symbols, whereas a budget appliance maker targets lower‑income households seeking value for money.

5. Comparative Overview of Demographic vs. Socio‑Economic Targeting

6. Market‑Research Toolbox (AO2 – Communication)

Mini‑Flowchart: From Research to Design Brief

1. Choose appropriate method(s) – based on the type of information required (quantitative vs. qualitative).
2. Gather data – conduct surveys, interviews, focus groups or observations.
3. Analyse findings – identify needs, wants, constraints and market gaps.
4. Develop design brief – translate analysed data into measurable specifications and justify the chosen target group.

7. Product Life‑Cycle & Design/Manufacturing Decisions (AO4c)

8. Product‑Extension Strategies (with concrete example)

When a product reaches maturity or decline, businesses may extend its life by:

• Discounting or promotional pricing.
• Re‑packaging – new sizes, colours, or eco‑friendly containers.
• Adding features or accessories.

Example: A snack brand that traditionally sold 50 g “Classic” bags re‑packages a 30 g “Health‑Fit” version aimed at health‑conscious young adults.

Design‑specification impact:

• New packaging dimensions (30 g → smaller pouch).
• Material change to biodegradable film.
• Colour palette shifted to green & white to signal health.
• Labelling includes nutritional claims and QR code for diet tracking.

9. The Marketing‑Mix – 4 Ps with Design‑Specific Prompts

10. Scale of Production & Unit‑Cost Relationship

11. Target‑Group Justification & Evidence (Assessment Requirement)

When writing the design brief, students should provide a concise justification that includes:

1. Market data – e.g., “Survey of 500 respondents shows 68 % of 18‑25‑year‑old urban males would purchase a wearable with a 24‑hour battery.”
2. Competitor analysis – identify gaps, e.g., “No current product offers a waterproof rating above IP67 for this segment.”
3. Profit potential – link income level or purchasing power to projected sales volume.
4. Alignment with product life‑cycle – explain why the chosen segment is appropriate for the current PLC stage.
5. Risk assessment – acknowledge any uncertainties (e.g., rapid fashion trends) and propose mitigation.

12. Implications for Design & Technology (AO3 – Development)

1. User‑centred design – Align dimensions, controls and aesthetics with the physical and cognitive abilities of the target demographic.
2. Cost optimisation – Choose materials, processes and component suppliers that match the purchasing power of the socio‑economic segment.
3. Brand communication – Ensure visual (colour, shape) and functional cues reinforce the intended market positioning (luxury vs. value).
4. Regulatory compliance – Certain demographics (e.g., children) are subject to stricter safety standards that affect material selection and testing.
5. Scalability – The chosen place (distribution) strategy determines whether the design must accommodate mass‑production tooling or low‑volume bespoke manufacture.

13. Suggested Diagram

14. Summary

Effective customer targeting combines:

• Demographic data – who the customer is.
• Socio‑economic data – what the customer can afford and values.
• Market‑research findings – why the customer behaves that way.
• Product‑life‑cycle awareness – which stage the product occupies and the associated design/manufacturing choices.
• The marketing‑mix – how price, place, promotion and product decisions interrelate and influence the design specification.

By analysing these dimensions and explicitly linking them to a design brief, students can develop products that meet functional, aesthetic, safety and commercial requirements, thereby satisfying the Cambridge AS/A‑Level Design & Technology assessment objectives.