Evaluating the demographic profile of a country can help assess whether or not there is demand for the product or service being marketed.
New Market Demographics
Marketers typically combine several variables to define a demographic profile. A demographic profile (often shortened to a “demographic”) is a term used in marketing and broadcasting to describe a demographic grouping or a market segment. This typically involves age bands (as teenagers do not wish to purchase denture fixant), social class bands (as the rich may want different products than middle and lower classes, and may be willing to pay more) and gender (partially because different physical attributes require different hygiene and clothing products, and partially because of the male/female mindsets). It can also include religious affiliations, income brackets, and a variety of other characteristics used to separate a country’s population into groups similar to a company’s core customer. A demographic profile also provides enough information about the typical member of this group to create a mental picture of this hypothetical aggregate. For example, a marketer might speak of the single, female, middle-class, age 18 to 24, college-educated demographic.
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Researchers typically have two objectives in this regard: first, to determine what segments or subgroups exist in the overall population; and second, to create a clear and complete picture of the characteristics displayed by typical members of each segment. Once these profiles are constructed, they can be used to develop a marketing strategy and marketing plan. The five types of demographics for marketing are age, gender, income level, race, and ethnicity.
After evaluating the demographic information, determining what segment or subgroup exists within the population, recommendations are made to change, increase, decrease or expand on the type of goods or services offered. Marketers data may alter the way or where a product or service is sold in order to reach a market segment that has the most potential as buyers.
A demographic profile can be used to determine when and where advertising should be placed so as to achieve maximum results. In all such cases, it is important that the advertiser get the most results for their money, and so careful research is done to match the demographic profile of the target market to the demographic profile of the advertising medium. For instance, shortly after the cancellation of Star Trek in 1969, NBC’s marketing department complained that it was premature. They explained that their newly instituted demographic audience profiling techniques indicated that the series’ main young urban audience was highly desirable for advertisers. In 1971, CBS acted on their own marketing department’s demographic findings about their television network’s programming and canceled several series that appealed primarily to older and rural audiences. This move was nicknamed “the rural purge. ”
A good way to figure out the intended demographic of a television show, TV channel, or magazine is to study the ads that accompany it. For example, in the United States, the television program “The Price is Right” most frequently airs from 11 a.m. to Noon. The commercials on it (besides the use of product placement in the show itself) are often for things like arthritis pain relievers and diapers. This indicates that the target demographics are senior citizens and parents with young children, both of whom would be home at that time of day and see that show. Another example would be MTV, with its many ads for digital audio players, indicating that the channel is targeted to young adults and teenagers and/or fans of music.
Criticisms of Demographic Profiling
Demographic profiling is essentially an exercise in making generalizations about groups of people. As with all such generalizations, many individuals within these groups will not confirm to the profile. Demographic information is aggregate and offers probabilistic data about groups, not about specific individuals. Critics of demographic profiling argue that such broad-brush generalizations can only offer a limited insight, and that their practical usefulness is debatable.
Most demographic information is also culturally based. The generational cohort information above, for example, applies primarily to North America (and to Western Europe, to a lesser extent), and it may be unfruitful to generalize conclusions more widely as different nations face different situations and potential challenges.
Key Points
- A demographic profile typically involves age bands, social class bands, and gender delineations. It can also include religious affiliations, income brackets, and a variety of other characteristics used to separate a country’s population into groups similar to a company’s customer .
- Researchers want to determine what segments or subgroups exist in the overall population, in order to develop a marketing strategy and marketing plan specific to the population.
- Critics of demographic profiling argue that such broad-brush generalizations can only offer a limited insight, and that their practical usefulness is debatable.
Term
generational cohort
A group of individuals (within some population definition) who experience the same event within the same time interval. The notion of a group of people bound together by the sharing of the experience of common historical events developed in the early 1920s. Today, the concept has found its way into popular culture through well-known phrases like “baby boomer” and “Generation X”.