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Demographic characteristics can refer to age, sex, place of residence, religion, educational level and marital status. Whether marketing to domestic or international markets, demographic information can provide important insights about a target market and how to address consumer needs. SimplyMap is an online GIS product that maps demographic and market data in the United States. The declining birth rate means that married couples will not be forming families as early as before. Many businesses are using contemporary technology via social media and online analytics programs to closely target the demographic down to a focused niche. A demographic profile is generally defined by the following categories: Age has a major effect on consumer behavior. They also have learned from the ex… It is also important to understand and respect the different holidays and cultural traditions of specific ethnic demographics. Demographics is the practice of identifying groups of people in a population by their characteristics. … Highly educated consumers are more skeptical of advertisements and question the information being presented. 1. Older people spend less on these things; they are less active, they stay indoors more and they have more needs for medical treatments. Consumers' preference for certain products and brands change with age. Penn State Extension: Understanding Your Customers: How Demographics and Psychographics Can Help, Forbes: The Importance of Really Knowing Your Target Audiences, Up Front Analytics: Understanding the Importance of Demographics in Marketing, Baker University: Conducting Market Research, University of Pennsylvania: Consumer Behavior and Demographics, How to Profile Your Customer With Five Key Questions, Sociocultural Factors That Affect Marketing, Examples of Market Needs in a Marketing Plan. One in five Americans, about 60 million people, now reside in multigenerational households. A demographic profile (often shortened to \"a demographic\") provides enough information about the typical member of this group to create a mental picture of this hypothetical aggregate. These and other characteristics categorize us without describing our personality. Demographic analysis is useful in understanding purchasing characteristics for different market segments. Demographic characteristics include gender, generation, race … Demographics is the collection and study of data regarding the general characteristics of specific populations. What are the Primary Demographic Characteristics? Asians, for example, have their own style of clothing and like for certain foods; Italians certainly have their own favorite recipes. Many demographic characteristics … A haberdashery in New York would not be wise to carry a large stock of cowboy hats. Businesses market products or services through targeted approaches to different segments of the population. They don't have unlimited funds, so the money for one purchase may be at the expense of not buying something else. According to a study from Pew Research Center, while older people are using technology more, they are still less digitally inclined than millennials and buy fewer digital products. The mindsets of singles versus married couples are different. Demographic information allows you to better understand certain background characteristics of an audience, whether it’s their age, race, ethnicity, income, work situation, marital status, etc. Pretty much anything you can think of regarding buyer preferences is available data. Marketers segment their target market … It is common for a business to use demographics as a target market and/or target audience.The following are common types of demographics. The characteristics of the customers are defined by the demographics. This age range spans several generations and is contingent on the common thread of having a baby. Income and occupation. The differences are obvious in this comparison. This is a good target for pet service and supply providers. With more than 15 years of small business ownership including owning a State Farm agency in Southern California, Kimberlee understands the needs of business owners first hand. Age: Demographic Target … The demographic factor is a set of characteristics of the audience, such as age, gender, ethnicity, education, religion, economic, status, and group membership. One in 10 children lives with a grandparent as head of the household. Middle-income consumers make their buying decisions with due consideration to the utility of money. The demand will increase for homes with more square feet, bedrooms and baths. A youngster might want a mobile phone but an earning professional will want a communicator with lots of extra features such as email and file editing support. We see that Van's customer demographic is … For example, digital products, such as iPhones, are marketed more toward millennials than toward the elderly. Related to gender or sex: These questions are as sensitive as questions on race and ethnicity. Business owners are always looking for an edge in marketing products and services to generate more revenue and profit margins. 4.What behavioral characteristics are shared by your target market? Their jobs give insights into the type of person they are. One of the first variable of demographic segmentation is age. Thus even though the basic functionality of the product is same, the wants are different. It may surprise you to know HOW much age demographics for advertising effects your marketing efforts in this always on world. The factors affecting the growth rate are fewer births, a lower death rate and the decline in the number of immigrants. The sizes of garages may even be affected. Age also defines market segments. Demographics describe who we are as individuals, for example: ethnicity, age/generation, gender, income, marital status, education, and homeownership. Industry Analysis of Retirement Communities, Penn State University: Understanding Your Customers: How Demographics and Psychographics Can Help, Pew Research: 7 Demographic Trends Shaping the US, Forbes: 9 Demographic Trends Shaping Retail's Future, Population Reference Bureau: Eight Demographic Trends Transforming America’s Older Population, Pew Research Center: The American Middle Class Is Losing Ground, Pew Research Center: Technology Use Among Seniors, The Demographic Variables That Affect a Business, Shifting the Demand Curve Vs. Moving Along the Demand Curve. Age ranges may seem like they are another way to say generational groups, but it goes a bit farther than that. Commonly-used … Macys, Nordstrom and The Gap all have departments that carry clothing aimed at teenage girls. The Importance of Demographics to Marketing. While single parents still buy life insurance, the key demographic that we looked at in the age section was that of married couples. Home owners are willing to invest and make improvements in their property. The theory of this marketing strategy is that the more focused your demographic is, the better you can speak to their emotions and get them to buy. As an example, they represent a good market for lawn and garden supplies, such as flower seeds from Burpee or outdoor furniture from Wayfair. Not only do demographics encompass the study of human populations, they represent the impact that these populations have on the market. A 2017 study by the Council on Contemporary Familiesfound that high school seniors increasingly believe that the man should be the bread-winner in a relationship and a woman should care for the home. This is not a generational thing, but is more likely an age range target for couples between the ages of 20 and 50. How Does the Generation Gap Affect Marketing. One effect of this trend is the impact on types of housing. Sometimes products are targeted toward both genders, as with retired couples. Younger consumers are healthy, and will spend more on fun, fashion, entertaining and movies. How do these impact your marketing strategy? Higher educated people will take more time to become better informed before spending their money. Farmers are interested in any kind of tool or machine that will make their work easier or more productive. One trend that is affecting consumer demographics is the change in population. Demographic data is used by businesses to … Males and females have entirely different needs and preferences that affect their buying selections of lifestyle products and fashion. Demographics is the collection and analysis of general characteristics about groups of people and populations, such as age, gender, and income. Find those who need what you have, and you will be more successful in selling. People from different cultures have different tastes and have different buying habits from one another. Ranges can actually transcend generations. Marketing needs to target the couple and to lean toward the most common decision-maker for that purchase. Understanding your target customers' demographics helps you determine exactly what your products or services will be, and what kind of customer service tactics work best. Demographics finds those people. A restaurant selling fried catfish will do better in Macon, Georgia, than in San Francisco. What Is the Target Market for Fitness Gyms? Both young males and females may like the same fast foods and movies. ... interests, values, and other lifestyle factors. Age does not just affect buying behavior, it is also an important factor affecting market segmentation and marketing strategy. Marketers typically combine several variables to define a demographic profile. 3.What psychographic characteristics define your target market? Not only do different generations have different buying habits from each other, but they also have different ways of speaking and alternative ways of buying. Products are made to appeal to specific genders. James Woodruff has been a management consultant to more than 1,000 small businesses. They never stay the same, and marketers must be aware of these changes and adapt to them. As a senior management consultant and owner, he used his technical expertise to conduct an analysis of a company's operational, financial and business management issues. Renters and home owners have different motivations. What that really means to a business owner is that it enables her to find the group of people who fit the mold of the ideal customer. If people can’t afford your product or service, there is no point in targeting … The geographic location of the consumer makes a difference. Since most downtown professionals may not be experts in GIS, you will probably want to enlist consultants, planners and/or marketing data providers to offer technical mapping assistance. A lower death rate means elderly people will live longer and need more health care. it is important to understand which generation your target market belongs to. Buyers with higher incomes spend more money on luxury items, vacations, jewelry and cars. Knowing whether or not you are targeting a group that can afford your products and services is important. Home Depot and Lowes sell construction supplies to building contractors, and Michael's has just about everything a teacher could want for the classroom. For example, Tractor Supply Company sells to farmers and has locations in the South and Midwest selling fencing, pumps, sprayers, chemicals and tractor parts, of course. Demographics are the statistical … DEMOGRAPHICS. Target markets share common characteristics that help shape the message for marketing communications. To be successful, every business owner has to know the demographics that describe the customers and what trends or changes are happening in those specific characteristics. Millennials tend to be a generation of contradictions. The characteristics of the customers are defined by the demographics. Demographic, psychographic, and behavioral marketing all work together to set up intent — and help marketers make sense of it. One common characteristic of target markets is a similar demographic profile, or … Travel and Leisure magazine has a list of recommended vacations for retirees; they suggest trips to Ireland, Sicily, Thailand and Costa Rica. The Demographic Variables That Affect a Business, How to Identify the Segmentation Criteria That Will Affect Your Target Market Selection. These demographic characteristics are also an important part of creating a persona. Demographics are a key factor in getting that edge. Ferrari will target its red model 458 Italia at up-and-coming single guys, while John Deere wants to sell riding lawn mowers to young married couples who just bought their first home. When you know the income range of clients, you can also find data to support how those groups spend money on both the higher and lower end of the spectrum. A retailer of hoodies, for instance, needs to take stock of the race and ethnicity of the people living in a neighborhood before opening a new store. Seiko has a line of diver watches for men. While demographics can be collected and analyzed without the use of geographic information systems, GIS often aids and enhances the analysis. Religion, Race, Nationality As our communities become more and more integrated and less homogeneous, … Studies from the Pew Research Center show that the number of middle-class households has been in a steady decline for the past 40 years. The factors that make up the demographics of a consumer market are constantly changing. According to the article in Forbes magazine, more people are living in households with more than one generation. In this way, age becomes one of the fundamental demographic factors affecting consumer behavior and buying decisions. Even worse, their share of total national income has dropped from 62 percent in 1970 to 43 percent in 2014. What are the demographic characteristics of Vans' target market? If the husband is the decision maker and you are speaking to the wife, you have the wrong person in front of you. Niches can look at political affiliations, hobbies and favorite sports teams. The Stages of Family Life Cycle Marketing, Explain the Difference Between Decrease in Demand & Decrease in Quantity Demanded. 1.What are the demographic characteristics of your target market and why are they important? 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