Role of Demographic Factors in Marketing
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Added on 2019-09-24
Role of Demographic Factors in Marketing
Added on 2019-09-24
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Demographic FactorsIntroductionDemographic factors play a very significant role in marketing and marketing management. The success of the product and services of the organization significantly depend on the demographic factors. Hence, it is very important for the organization to understand the concept of demographic factors and their role in marketing management. It can be defined as the socio-economic characteristics of a population which are expressed statistically. For example, age, education level, sex, marital status, level of income, religion, occupation, rate of birth and death, the average age at marriage, as well as the average size of a family. These factors significantly affect or influence the taste and preference of the people. So, these factors should be studied by the organization in order to identify the trend of consumer taste and preference. Analyzing and studying these factors helps the organization in segmenting as well as targeting the market in order to serve the market effectively and efficiently. There are several studies conducted on demographic factors in order to understand the impact of different factors on the taste and preference of the consumer. It has been identified by the researcher that these factors affect the choice, taste and preference of the consumer. For example, high-income group people always prefer luxury products whereas middle-income group people do not always prefer the luxury product. Lower-income group people prefer to purchase inferior products as they cannot afford the luxury product. Similarly, the taste and preference of male and female also vary. Apart from this, the taste and preference of old vary from the taste and preference of youth and children. So, it is very important to analyze these factors so that the organization can effectively segment the market into different sub-group and target the one of more than one market accordingly.
Importance of demographic factorsAnalyzing different factors of demographics significantly help the organization in several ways. Therefore, the organization should always strive to analyze these factors. The importance of analyzing these factors effectively and efficiently has been discussed below; With the help of these factors, the organization can understand its ideal customer. Each organization has a profile of ideal customer with special characteristics as well as traits. Every customer exhibits certain traits as well as characteristics while purchasing a product or service of the organization. So, the organization tries to understand the trait and characteristics of the potential customer. As the organization creates a profile of the ideal customer, it delves deeper into the taste and preferences of the ideal customer as well as the potential issues with the goods and services. It helps the organization in improving as well as creating marketing opportunities which target the potential customer of the organization. Analyzing and studying different factors of demographics helps in lowering the marketing costs of the organization. Marketing product and services can be very expensive. The medium of marketing is one of the essential factors which decide the marketing budget of theorganization. So, if the organization knows it’s demographic, the organization can stretch the budget by going where the organization can find the ideal customer. If the organization is looking to target millennials, so it would not make a sense to spend money on a direct mail marketing campaign. It also helps in identifying new opportunities for the business. Demographics do not only help the organization to define as well as find the ideal customer of the organization. With the help of demographic analysis, the organization can also identify the gaps in its marketing strategy.
Apart from this, it also helps in creating unique selling points. It helps in increasing sales of the product and services of the organization. Demographic Factors and Marketing There is a wide range of activities in marketing which range from research and development to promotional as well as support services after the sale. It is not possible for any organization to serve all customers and hence the organization segments the market in different sub-groups. It helps the organization in concentrating on a particular type of customer. But segmenting the target market into different sub-groups is a lengthy process. The process of segmenting the market involves taking a larger target audience and breaking down it into a smaller market and then selecting the most appropriate market which the organization can serve better. In order to segment the market, the organization uses traits to categorize the customer such as age, gender, race, income, occupation, ethnicity, education, as well as marital status. Some of the demographic factors which are significantly considered by the organization to segment the market. Age There are some personality traits which have more significance in marketing segmentation than other traits. Age is one of the most important factors which are used to segment the market. Age is an integral element in homing in on a consumer type. For example, colleges target traditional-aged students who are coming out of high-school at ages around 18 years.Gender as well as Marital Status
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