Demographics is the statistical data on the human race. It includes information such as sex, age, and income, and it is used by business to identify the target markets for their products or services. Demographics are used to tell you who your customer is, where they reside, what sex they are, and whether your products are likely to be purchased by them.



You can use demographic data to study both your existing customer and your potential customer. Demographics allow you to target a specific demographic group with your marketing. It also lets you know when things are changing which then allows you to make changes in your marketing. Demographics is a critical tool for small business who have very little room for error.

You need to use your demographic data to identify characteristics in the population to determine who your potential customer actually is, and to locate the geographic area where the most potential customers live. This information is then used in your marketing to identify which products to carry, how to use your advertising dollars, and what the buying habits of these people are.

So for example, you wanted to market a new line of denture cleaners, you would want to know where the majority of elderly consumers live, how many wear dentures, and whether they were on fixed income. Getting the answers to these types of questions is what demographic data studies will do for you.

In the past we saw a rather shotgun approach used to attempt to market a product or service, by targeting a mass market. This was done by using the radio or television. The idea was not to find who wanted what you had to offer, but rather about spreading the news to huge numbers of people. This is by far the most ineffective marketing eve, yet it is still widely used today.

Do you know what that means? It means you can gain the upper edge with your open minded way of doing business. It means you can use demographic data to target your market and thus to a much more effective job of finding customers that are interested in your product.

Using demographic data in your marketing allows you to build a customer profile. This means you learn as much as possible about the customer you have now and the potential customer and they you act accordingly with your business. You can then run specialized marketing or advertising campaigns that are targeted at the demographic market you've identified.

Once you collect demographic data you sit down and review it thoroughly and decide which direction you now want to take your business. You can then decide which products you will carry or what services you'll offer. You'll decide what you'll charged based on the demographic information collected. You'll also decide things such as hours of operation, promotional campaigns, and advertising budgets.

Now that you why and how to use demographic data in your marketing, what are you waiting for?