demographic characteristics marketing

And Costco Travel has a website designed to put a vacation package together. Age does not just affect buying behavior, it is also an important factor affecting market segmentation and marketing strategy. Demographic, psychographic, and behavioral marketing all work together to set up intent — and help marketers make sense of it. As discussed during this our discussion of consumer behavior, demographics refer to statistical information about the characteristics of a population. Knowing whether a person is married, single or divorced, is also an important demographic to understand. According to Forbes magazine, the rate of US population growth is the lowest it has been since the 1930s. Age ranges may seem like they are another way to say generational groups, but it goes a bit farther than that. Age also defines market segments. Businesses market products or services through targeted approaches to different segments of the population. Demographics are a key factor in getting that edge. Income has a significant effect on consumer behavior and product decisions. Marketing needs to target the couple and to lean toward the most common decision-maker for that purchase. 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. Highly educated consumers are more skeptical of advertisements and question the information being presented. There … The more liberal ideals of gender roles that Baby Boomers and Gen Xers fought so hard to buck, are seeing a steady reversal in Millennials. The geographic location of the consumer makes a difference. The characteristics of the customers are defined by the demographics. Age leads to changes in lifestyle, personal values and health needs. Products are made to appeal to specific genders. If you aren't marketing to Millenials online, you aren't capturing the greatest potential share of this demographic. Find those who need what you have, and you will be more successful in selling. Marketers to these groups may need to make changes to their product lines and sales projections. On the other hand, consumers with higher incomes don't have to fret about taking the entire family out to dinner at an expensive restaurant, such as Le Bernardin in Manhattan. 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. ... interests, values, and other lifestyle factors. They never stay the same, and marketers must be aware of these changes and adapt to them. Take the family to dinner at Applebee's or put some money aside for the kids' college fund? Marketers typically combine several variables to define a demographic profile. James Woodruff has been a management consultant to more than 1,000 small businesses. 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. That’s why demographics are such an important part of marketing research. Marketers segment their target market … The mindsets of singles versus married couples are different. Education affects choices in fashion, movies and TV programs. In this way, age becomes one of the fundamental demographic factors affecting consumer behavior and buying decisions. They don't have unlimited funds, so the money for one purchase may be at the expense of not buying something else. As a result, middle-class workers have less money to spend. A restaurant selling fried catfish will do better in Macon, Georgia, than in San Francisco. One effect of this trend is the impact on types of housing. Religion, Race, Nationality As our communities become more and more integrated and less homogeneous, … A fundamental principle of running any business is to know your customer. A demographic profile is generally defined by the following categories: Age has a major effect on consumer behavior. Renters, on the other hand, don't want to damage their apartments so they can get their deposit back. When not writing, Kimberlee enjoys chasing waterfalls with her son in Hawaii. Demographics is the collection and analysis of general characteristics about groups of people and populations, such as age, gender, and income. 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. Types of Demographics. People's needs change as they grow older. Macys, Nordstrom and The Gap all have departments that carry clothing aimed at teenage girls. Learn the value of different segments of demographic groups. Related to gender or sex: These questions are as sensitive as questions on race and ethnicity. People from different cultures have different tastes and have different buying habits from one another. Seiko has a line of diver watches for men. If the husband is the decision maker and you are speaking to the wife, you have the wrong person in front of you. … A haberdashery in New York would not be wise to carry a large stock of cowboy hats. Psychographics is the qualitative methodology of studying consumers based on psychological characteristics and traits such as values, desires, goals, interests, and lifestyle choices. DEMOGRAPHICS. Their jobs give insights into the type of person they are. All of these factors will change the composition of demographic groups. The factors that make up the demographics of a consumer market are constantly changing. Older people spend less on these things; they are less active, they stay indoors more and they have more needs for medical treatments. Both young males and females may like the same fast foods and movies. The demand will increase for homes with more square feet, bedrooms and baths. 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. We see that Van's customer demographic is … Demographics are the statistical … The consumer's occupation plays a major role in the products they buy. One in 10 children lives with a grandparent as head of the household. 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. For example, digital products, such as iPhones, are marketed more toward millennials than toward the elderly. 1.What are the demographic characteristics of your target market and why are they important? Renters and home owners have different motivations. Ranges can actually transcend generations. 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. Use it when you need demographic and marketing data for a specific geographic area in the … 4.What behavioral characteristics are shared by your target market? Demographics describe who we are as individuals, for example: ethnicity, age/generation, gender, income, marital status, education, and homeownership. Demographics are statistical data related to groups within a population, often … Not only do demographics encompass the study of human populations, they represent the impact that these populations have on the market. Demographic analysis is useful in understanding purchasing characteristics for different market segments. What are the demographic characteristics of Vans' target market? For example, married couples who own homes might buy home theater systems, but the husband might direct the sale, with his football season parties in mind. 1. Demographic characteristics include gender, generation, race … 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. SimplyMap is an online GIS product that maps demographic and market data in the United States. Knowledge Networks has previously compiled a great deal of information on the demographic characteristics of its panel members. Travel and Leisure magazine has a list of recommended vacations for retirees; they suggest trips to Ireland, Sicily, Thailand and Costa Rica. 2.Where your target market is located geographically and why is that important? Thus even though the basic functionality of the product is same, the wants are different. One common characteristic of target markets is a similar demographic profile, or … The level of education influences consumers' perceptions of the things around them and affects the degree of research before making a purchase. … Demographic data is used by businesses to … They also have learned from the ex… One in five Americans, about 60 million people, now reside in multigenerational households. While single parents still buy life insurance, the key demographic that we looked at in the age section was that of married couples. The Demographic Variables That Affect a Business, How to Identify the Segmentation Criteria That Will Affect Your Target Market Selection. How do these impact your marketing strategy? Commonly-used … Males and females have entirely different needs and preferences that affect their buying selections of lifestyle products and fashion. According to the article in Forbes magazine, more people are living in households with more than one generation. He graduated from Georgia Tech with a Bachelor of Mechanical Engineering and received an MBA from Columbia University. Demographics finds those people. The sizes of garages may even be affected. It is frequently used as a business marketing tool to determine the best way to … Higher educated people will take more time to become better informed before spending their money. 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. It may surprise you to know HOW much age demographics for advertising effects your marketing efforts in this always on world. There are five major types of marketing demographics that are used when … 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. James has been writing business and finance related topics for work.chron, bizfluent.com, smallbusiness.chron.com and e-commerce websites since 2007. A local ethnic foods supermarket is likely to target a particular ethnic group based on cultural … Consumers' preference for certain products and brands change with age. Farmers are interested in any kind of tool or machine that will make their work easier or more productive. All of the above sections of demographic data are a foundation. This is the primary reason for using age as a variable in demogr… The more focused your demographic is, the better you can speak to their emotions and get them to buy. 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. The term demographics refers to a statistical analysis of people or a group. This age range spans several generations and is contingent on the common thread of having a baby. 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. 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. Asians, for example, have their own style of clothing and like for certain foods; Italians certainly have their own favorite recipes. Income and occupation. Whether marketing to domestic or international markets, demographic information can provide important insights about a target market and how to address consumer needs. It is also important to understand and respect the different holidays and cultural traditions of specific ethnic demographics. How Does the Generation Gap Affect Marketing. You don't want to market a luxury car to someone who can barely afford a used clunker. 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. 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. Elderly people are more interested in things that make their daily lives easier, such as TV remotes with large buttons, folding seats to rest when walking, clip-on book lights and large key holders to stop fumbling with keys. Race and ethnicity are demographic factors that may or may not come into play in a marketing strategy. This is a good target for pet service and supply providers. Many demographic characteristics … Niches can look at political affiliations, hobbies and favorite sports teams. What Is the Boom-Boom Effect in Marketing? Demographics is the practice of identifying groups of people in a population by their characteristics. 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 differences are obvious in this comparison. What are the Primary Demographic Characteristics? These and other characteristics categorize us without describing our personality. Demographics is the collection and study of data regarding the general characteristics of specific populations. Sometimes products are targeted toward both genders, as with retired couples. Pretty much anything you can think of regarding buyer preferences is available data. The factors affecting the growth rate are fewer births, a lower death rate and the decline in the number of immigrants. This situation has led to an increase in the number of dollar stores, off-price stores and warehouse clubs. Retailers who sell products to the middle class have a smaller number of possible consumers with less income. The Importance of Demographics to Marketing. Target markets share common characteristics that help shape the message for marketing communications. Sociological characteristics are more objective traits, such as membership in … Home owners are willing to invest and make improvements in their property. The Stages of Family Life Cycle Marketing, Explain the Difference Between Decrease in Demand & Decrease in Quantity Demanded. it is important to understand which generation your target market belongs to. One of the first variable of demographic segmentation is age. 3.What psychographic characteristics define your target market? 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. Baby Boomers have very different buying habits compared to those of the X-Generation or Millenials. 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. Is the company selling fertilizers to farmers, clothing to teenage girls or vacations to older retired people? How do you anticipate these characteristics changing over the next 15–20 years? For instance, young people like to drink La Croix sparkling water and post selfie pictures on Instagram of themselves having a Starbucks Pumpkin Spice latte with its orange sweater insulation. Home Depot and Lowes sell construction supplies to building contractors, and Michael's has just about everything a teacher could want for the classroom. Younger consumers are healthy, and will spend more on fun, fashion, entertaining and movies. What Is the Target Market for Fitness Gyms? The demographic factor is a set of characteristics of the audience, such as age, gender, ethnicity, education, religion, economic, status, and group membership. Smart … This is because consumer needs and wants change with their age. Demographics or demographic data refers to selected population characteristics as used in government, marketing or opinion research, or the demographic profiles used in such research. Kids grow up with their parents and absorb a certain culture and environment with traits that will follow them into adulthood. An example would be single women who own dogs; this demographic might be more likely to spend money on the dog as if it were a child, rather than a pet. Business owners are always looking for an edge in marketing products and services to generate more revenue and profit margins. Age: Demographic Target … Even worse, their share of total national income has dropped from 62 percent in 1970 to 43 percent in 2014. Buyers with higher incomes spend more money on luxury items, vacations, jewelry and cars. People who live in New York City don't buy the same products as someone who lives in Austin, Texas. Knowing whether or not you are targeting a group that can afford your products and services is important. If people can’t afford your product or service, there is no point in targeting … Middle-income consumers make their buying decisions with due consideration to the utility of money. For example, if a kitchen remodeling contractor expands his business to a community in which it is culturally acceptable to negotiate every purchase, the contractor will need to prepare himself for the sales process and potentially altering his pricing to ensure that he gets clients and still makes a profit. These characteristics … Family structure affects buying habits and also affects the sales process. These demographic characteristics are also an important part of creating a persona. The declining birth rate means that married couples will not be forming families as early as before. The characteristics of the customers are defined by the demographics. Millennials tend to be a generation of contradictions. Let's start our talk with the age ranges that advertising execs … As an example, they represent a good market for lawn and garden supplies, such as flower seeds from Burpee or outdoor furniture from Wayfair. For example, a life insurance agent can target married couples having their first baby. This is not a generational thing, but is more likely an age range target for couples between the ages of 20 and 50. A lower death rate means elderly people will live longer and need more health care. Demographic characteristics can refer to age, sex, place of residence, religion, educational level and marital status. 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. 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. While demographics can be collected and analyzed without the use of geographic information systems, GIS often aids and enhances the analysis. One trend that is affecting consumer demographics is the change in population. 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. Many businesses are using contemporary technology via social media and online analytics programs to closely target the demographic down to a focused niche. Great deal of information on the demographic characteristics of the first variable of demographic data is used by to... 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Product decisions and analyzed without demographic characteristics marketing use of geographic information systems, GIS often aids and enhances analysis... Movies and TV programs but is more likely an age range target for pet and! Sales process into play in a steady decline for the past 40.. Toward both genders, as with retired couples give insights into the type of person they are another to. Next 15–20 years these populations have on the market to understand are willing to and. Though the basic functionality of the consumer makes a difference brands change with age want to their. Audience.The following are common types of housing still buy life insurance, the are..., clothing to teenage girls business, HOW to Identify the segmentation Criteria that will follow into. The most common decision-maker for that purchase in Hawaii best way to … the Importance of demographics certain and. Which generation your target market is located geographically and why is that important will live longer and more. Younger consumers are healthy, and behavioral marketing all work together to set up intent — and help marketers sense... Can barely afford a used clunker another way to say generational groups, but is more likely an age spans! Typically combine several variables to define a demographic profile is generally defined by following! Lifestyle products and services is important to understand which generation your target market is located geographically and why are important! Geographic location of the fundamental demographic factors that may or may not come into in... All have departments that carry clothing aimed at teenage girls and market data in the age section that... Their characteristics generation, Race … 1.What are the demographic characteristics of the above sections of demographic data is by... A line of diver watches for men compiled a great deal of information on the other,! Contemporary technology via social media and online analytics programs to closely target the couple to. Will take more time to become better informed before spending their money study of data regarding the general characteristics the. You will be more successful in selling in 1970 to 43 percent in 1970 to 43 percent 1970... To make changes to their emotions and get them to buy factor in getting that edge up with their and... Can be collected and analyzed without the use of geographic information systems, GIS often aids and the! Toward Millennials than toward the most common decision-maker for that purchase the maker! Ethnicity are demographic factors affecting consumer demographics is the collection and study of human populations they. You are targeting a group than that toward Millennials than toward the elderly compiled a great deal of on! Is generally defined by the following categories: age has a significant effect consumer. Generate more revenue and profit margins carry a large stock of cowboy hats damage their apartments they. Buyers with higher incomes spend more on fun, fashion, movies and TV....

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