What Are Demographics?

Demographics are statistics that describe populations and their characteristics. Demographic data is socioe🌱conomic information regarding employment, education, income, marriage rates, and birth and death rates that are expresse𝄹d statistically.

Governments, corporations, and non-government organizations use demographics to learn more about a population's characteristics for many purposes including policy development and economic 澳洲幸运5开奖号码历史查询:market research. A company that sells high-end RVs might want to reach peo🌺ple who are near🥀ing or at retirement age and the percentage of those who can afford their products.

How Demographics Work

Demographic analysis is the collection and study of data regarding the general characteristics of specific 澳洲幸运5开奖号码历史查询:populations. It's frequently used as a businesཧs marketing tool to determine the best way to reach customers and assess their behavior. Segmenting a population🌊 by using demographics allows companies to determine the size of a potential market.

The use of demographics helps determine whether its products and services are being targeted to that company's most influential consumers. Market segments might identify a particular age group with specific buying patterns and characteristics such as baby boomers who were born from 1946 to 1964 or millennials who were born from 1981 to 1996.

The advent of the internet, social media, 澳洲幸运5开奖号码历史查询:predictive algorithms, and big data has had dramatic implications for collecting and using demographic information. Modern consumers give out a flood of data, sometimes unwittingly. It's collected and tracked through their online and offline lives by myriad apps, social media platforms, third-party data collectors, retailers, and financial transaction 𒅌processors.

Types of Demographic Information

For corporate marketing goals, demographic data is collected to build a cu𒁃stomer base profile. The common variables gathered in demographic research include a♛ge, sex, income level, race, employment, location, homeownership, and level of education. Demographic information makes certain generalizations about groups to identify customers.

Additional demographic factors include gathering data on preferences, hobbies, lifestyle, and more. Governmental agencies collect data when conducting a national census and may use that demographic data to forecast economic patterns and population growth to better 🦄manage resources.

Special Considerations

Most large companies conduct demographic research to determine how to market their product or service to the target audience. It's valuable to know the current customers and where potential customers might come from in the future. Demographic trends are also significant because the size of different demographic groups changes over time due to economic, cultural, and political circumstances.

Demographic information helps a company decide how much capital to allocate to production and advertising. Each market segment can be analyzed for its consumer spending patterns. The aging U.S. population has specific needs that companies want to anticipate. Older demographic groups spend more on healthcare products and pharmaceuticals. Communicating with these customers differs from doing s𒀰o with their younger counterparts.

The Bottom Line

Demographics and demographic analysis are used to describe the distribution of characteristics in a society or other population to make policy recommendations and predictions about where a society or group is🐲 headed in the future.

Demographic data can come in many forms but it most often describes the distribution of characteristics found in populations such as age, sex or gender, marital sta🐼tus, household structure, income, wealth, education, and religion and to see how these are changing over time. Birth and death rates are♓ also used to understand if a population is growing and how this might affect economic growth, employment, and government programs like Social Security.