DEMOGRAPHICS

Demographics are the statistical component of marketing used to identify population segments by specific characteristics. Whether small or large, businesses need a targeted approach to consumers. Demographics affect all the choices a business owner makes in developing a marketing plan. Using demographics gives you a head start in understanding your market.

Demographics

Business owners often first gather demographic information to include in the business plans used to raise start-up funds and guide the launching of the business. Demographic information includes geographic area, age, income, race, gender and education level. It also may include shopping habits, marital status, number of children and other information about consumer characteristics. You might need local demographics about how many people own cars or homes, who attends college or what percentage of residents are Internet users. Whether the demographics describe national or local markets or small groups such as those within an age range, the information helps you avoid the hit-and-miss marketing method.

Marketing

A small business owner needs demographics to identify the ideal consumer for his product or services and develop marketing strategies such as product packaging, advertisements, business location and pricing. A business owner who is trying to adjust her marketing plan to the country’s changing demographics might find it useful to know how the consumers will react to their product and or service. Since businesses cannot target their marketing to each individual consumer, demographics are the most effective method for targeting marketing to groups of people with similar characteristics.

Applications

Demographics can help you avoid costly mistakes in your marketing plan. They can reveal that placing fliers on car windshields is not the best marketing plan for your errand business, which needs to target small and single-owner businesses. A survey can provide information about gym membership preferences that draws in more customers. You can use demographics to identify subscribers of your city’s largest newspaper as the ideal consumer market for your new magazine. A dry cleaning business owner might base her decisions on a chamber of commerce survey that shows residents of a specific moderate- to high-income community drive at least 10 miles to the nearest dry cleaner. A survey of carpet cleaning customers might reveal that most customers search the Internet first for local businesses. The number of homeowners in a community influences your decision about where to locate your hardware store.

Sources of Demographics

Demographic information is gathered by several sources, including the concerned governmental department,   your local chamber of commerce can provide demographic information about your city, county and district, Look to professional and trade associations for demographics related to specific industries or professions. Your local librarian can point you to statistical and demographic collections.

It’s important that before you start a business create a business plan or commission an Ad for your product and or service, decide on a location for your business, you consider the demographic factors that may affect the operation of your business.