Demography is the study of human population which can be targeted for the marketing and promotions. Demographics can be in terms of size, density, location, age, gender, race, occupation and other statistics. The change in demographics over trend in a span of time clearly indicates the trend of demographics. It is very important for international marketers because they can study and know the market well before launching their product and also assess whether the product will be a success or failure and in which type of market they need to launch the product. This shall also make it easier to determine.
Demographics are the statistical components 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, business owners make in developing a marketing plan. Martin (2011) describes, “the rationale behind marketing segmentation is to allow businesses to focus on their consumer’s behaviors and purchasing patterns. If done effectively, marketing segmentation allows an organization to achieve its highest return on investment (ROI) in turn for its marketing and sales expenses. If an organization markets its products or services to a consumer or business, it should focus on the various types of segmentation. Segmentation as the classification of consumers within a market that share related needs and establish related purchasing behavioral habits”.
Demographics play crucial role in understanding previous trends and in preparing for upcoming development and policies. An explanation of observed economic and social trends is being provided by demographic development. Consequently, demography becomes an important ingredient in public policy analysis and development.
Legislative Assembly of New Brunswick believes, “New Brunswick’s changing population dynamics has significant long-term implications for economic and social policy and New Brunswickers will only make wise choices about their future if the effects of demographic change are better understood. Many economists and demographers believe the present slow rate of population growth in New Brunswick could have significant consequences. This, coupled with the anticipated changes in our fiscal arrangements with the Federal Government, and the deep restructuring of our global economy, will likely provoke economic and social challenges of some magnitude. Public policy makers in New Brunswick then, are under great pressure to understand the dynamics of economic and demographic change. All of these factors pose a challenge of great importance and consequence, thus demography, and demographic analysis is an obvious consideration if we are to achieve and maintain overall priorities. The most fundamental tenet of demographics is that society, to a large degree, creates demographic influences and trends with its present decisions, discoveries, policies, actions or inactions.”
All in all, in this modern scenario, demography plays significant role in marketing. Every organization or a company, whether it is big or small, needs to centralize their marketing focus based on demography, may it be location, age ,gender, population or any other statistics.
Martin, G. (2011). The Importance of Marketing Segmentation. American Journal Of Business Education, 4(6), 15-18.
Legislative Assembly of New Brunswickhttps://www.gnb.ca/legis/business/committees/previous/reports-e/demog/what-e.asp