Reviewed by Sep 30, 2020| Updated on
Demographics is a population study based on factors, such as age, race, and gender. Demographic data refers to statistically expressed socio-economic information, including employment, education, income, marriage rates, rates of birth and death, and more.
Governments, corporations, and non-governmental organisations use demographics for many purposes, including policy development and economic market research, to learn more about the characteristics of a population.
Demographics is the compilation and analysis of data on particular populations' general characteristics. As a business marketing tool, it is often used to determine the best way to meet consumers and analyse their actions.
Using surveys to classify a population, companies may determine the size of a potential market. Use of demographics helps determine if its products and services are aimed at the most relevant customers of that business.
Demographic data is collected to create a profile for the organisation's customer base for corporate marketing goals. The common variables gathered in demographic research include age, sex, level of income, race, work, location, homeownership, and educational level.
Demographic information generalises groups in order to classify consumers. Many demographic factors include the array of tastes, hobbies, lifestyle, and more. By conducting a national census, government agencies collect data and may use demographic data to predict economic trends and population growth for better resource management.
Many large companies carry out consumer research to determine how to sell to the target audience the product or service and best position. Understanding the existing customer and where the potential customer will come from in the future is important.
Demographic trends are also important because, due to economic, cultural and political circumstances, the size of different demographic groups evolves over time.
This information helps businesses to determine how much capital production and advertising should be allocated. Each market segment can be analysed for their consumer spending habits. Older demographic groups are spending more on healthcare goods, and pharmaceuticals, and the way these consumers interact varies from their younger counterparts.