Introduction:

Demographic analysis is the study of a population-based on factors such as age, race, and sex. Demographic data refers to socioeconomic information expressed statistically, including employment, education, income, marriage rates, birth and death rates, and more. Governments, corporations, and non-government organizations use demographics to learn more about a population's characteristics for many purposes, including policy development and economic market research.

• Demographic analysis is the collection and analysis of broad characteristics about groups of people and populations.
• Demographic data is very useful for businesses to understand how to market to consumers and plan strategically for future trends in consumer demand.
• The combination of the internet, big data, and artificial intelligence is greatly amplifying the usefulness and application of demographics as a tool for marketing and business strategy.
• Market segments are often grouped by age or generation.
• Demographic information can be used in many ways to learn more about the generalities of a particular population.

Types of Demographic Information:

For corporate marketing goals, demographic data is collected to build a customer base profile. The common variables gathered in demographic research include age, sex, income level, race, employment, location, homeownership, and level of education. Demographical 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.

Why do they matter?

Demographics refers to the description or distribution of characteristics of some target audience, customer base, or population. Governments use socioeconomic information to understand the age, racial makeup, and income distribution (among several other variables) in neighborhoods, cities, states, and nations in order to make better public policy decisions. Companies look to demographics to craft more effective marketing and advertising campaigns and to understand patterns among different audiences.

Demographics in businesses:

Demographics are key to businesses today. They help identify the individual members of an audience by selecting key characteristics, wants, and needs. This allows companies to tailor their efforts based on particular segments of their customer base. Online advertising and marketing have made enormous headway over the past decade in using algorithms and big data analysis to micro-target ads on social media to very specific demographics.