{"id":5480,"date":"2016-01-29T22:22:21","date_gmt":"2016-01-29T22:22:21","guid":{"rendered":"https:\/\/courses.candelalearning.com\/waymakerintromarketing1xmaster\/?post_type=chapter&#038;p=5480"},"modified":"2024-05-15T16:11:32","modified_gmt":"2024-05-15T16:11:32","slug":"reading-demographic-factors-shaping-the-global-marketing-environment","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/waymakerintromarketingxmasterfall2016\/chapter\/reading-demographic-factors-shaping-the-global-marketing-environment\/","title":{"raw":"Reading: Demographic Factors Shaping the Global Marketing Environment","rendered":"Reading: Demographic Factors Shaping the Global Marketing Environment"},"content":{"raw":"<div>\r\n<div>\r\n<h2>Using Demographics to Guide Global Marketing Strategy<\/h2>\r\n<\/div>\r\n<\/div>\r\n<div>\r\n\r\nWhether marketing to domestic or international markets, demographic information can provide important insights about a target market and how to address consumer needs. As discussed during this our\u00a0discussion of consumer behavior, demographics refer to statistical information about the characteristics of a population.\r\n\r\nMarketers typically combine several variables to create a demographic profile of a target market. A demographic profile (often shortened to a \u201cdemographic\u201d) is a term used in marketing and broadcasting to describe a demographic grouping or a market segment. Common demographic variables to consider for global and domestic\u00a0marketing purposes include the following:\r\n<ul>\r\n \t<li><strong>Age:<\/strong>\u00a0Age bands, such as 18\u201324, 25\u201334, etc.,\u00a0are\u00a0great\u00a0predictors of interest in some types of products. For example, few teenagers wish to purchase denture cream.<\/li>\r\n \t<li><strong>Social class:\u00a0<\/strong>Social-class bands such as wealthy, middle, and lower classes.\u00a0The rich, for instance, may want different products than middle and lower classes, and may be willing to pay more.<\/li>\r\n \t<li><strong>Gender:<\/strong> Males and females have\u00a0different physical attributes that require different hygiene and clothing products. They also tend to have distinctive\u00a0male\/female mindsets and roles in the family and household decision making.<\/li>\r\n \t<li><strong>Religious affiliations:<\/strong> Religion is linked to individual values as well as holiday celebrations, often tied to consumer preferences\u00a0and spending patterns.<\/li>\r\n \t<li><strong>Income brackets:<\/strong> Indicating level of wealth, disposable income, and quality of life.<\/li>\r\n \t<li><strong>Education:<\/strong> Level of education is often tied to consumer preferences, as well as income.<\/li>\r\n \t<li><strong>Geography:<\/strong>\u00a0Area\u00a0of residence, urban vs. rural, and population density can all be important inputs into marketing strategy and decisions about where and how to target advertising and other elements of the promotion mix.<\/li>\r\n<\/ul>\r\nDemographic research may include a\u00a0variety of other characteristics used to separate a country\u2019s population into groups that fit a company's target customer profile. 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, aged 18\u201324, college-educated demographic.\r\n\r\n[caption id=\"attachment_8152\" align=\"aligncenter\" width=\"1024\"]<img class=\"size-large wp-image-8152\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/295\/2016\/01\/24231617\/COB_data_Sweden-1024x474.png\" alt=\"Map of the world showing which countries foreign-born residents in Sweden were born as of 2001. Countries with 50,000 or more include Finland, Syria, Iraq, and Iran. Countries with more than 10,000 include the United States, Chile, India, the United Kingdom, and Somalia. Most countries have at least 1,000, with the exception of most African countries.\" width=\"1024\" height=\"474\" \/> Country of birth of Swedes in 2001: Demographics can be measured in a variety of ways. The map shows an estimation of foreign-born residents in Sweden.[\/caption]\r\n\r\n<\/div>\r\n<div><\/div>\r\n<div>\r\n\r\nResearchers examining demographics typically have two objectives in mind: first, to segment the market by determining which 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, marketers can use them to develop the targeting strategy and accompanying marketing strategy and marketing plan.\r\n\r\nWith demographic profiles about target segments in hand, marketers evaluate the marketing mix. They make recommendations about whether to change, decrease, or increase\u00a0the goods or services offered. Based on demographic data, marketers may adjust product features, distribution strategy, or\u00a0other factors in order to reach a market segment that has the most potential.\r\n\r\nA demographic profile can be very useful in determining the promotional mix and how to achieve maximum results. Advertising is usually part of the promotional mix, especially when businesses are still in the early stages of entering a global market and launching products that are new to that market. Advertisers want to get\u00a0the\u00a0most results for their money, and so in global markets as in domestic markets,\u00a0careful media research is conducted to match the demographic profile of the target market to the demographic profile of the advertising medium.\r\n<h3>Cautions About Demographic Profiling in Global Markets<\/h3>\r\nDemographic profiling is essentially an exercise in making generalizations about groups of people. As with all such generalizations, many individuals within these groups will not conform\u00a0to the profile. Demographic information is aggregate and offers probabilistic data about groups\u2014not specific individuals. Critics of demographic profiling argue that such broad-brush generalizations can only offer limited insight.\r\n\r\nMarketers must also be careful to avoid interpreting demographic information using the mindset of their own \"home\" cultures. For example, the generalizations that apply to \"tweens\" (9\u201312-year-olds) in the U.S. may not apply at all to children in this same age range in other geographies. Similarly, assumptions about how social class affects\u00a0consumer preferences\u00a0may be very different in a socially mobile society versus one with very rigid separation between groups from\u00a0different social classes. Marketing research should seek to understand a complete picture of how demographic characteristics tend to influence consumer behavior in a given market, rather than simply applying stereotypes from elsewhere.\r\n\r\n<\/div>","rendered":"<div>\n<div>\n<h2>Using Demographics to Guide Global Marketing Strategy<\/h2>\n<\/div>\n<\/div>\n<div>\n<p>Whether marketing to domestic or international markets, demographic information can provide important insights about a target market and how to address consumer needs. As discussed during this our\u00a0discussion of consumer behavior, demographics refer to statistical information about the characteristics of a population.<\/p>\n<p>Marketers typically combine several variables to create a demographic profile of a target market. A demographic profile (often shortened to a \u201cdemographic\u201d) is a term used in marketing and broadcasting to describe a demographic grouping or a market segment. Common demographic variables to consider for global and domestic\u00a0marketing purposes include the following:<\/p>\n<ul>\n<li><strong>Age:<\/strong>\u00a0Age bands, such as 18\u201324, 25\u201334, etc.,\u00a0are\u00a0great\u00a0predictors of interest in some types of products. For example, few teenagers wish to purchase denture cream.<\/li>\n<li><strong>Social class:\u00a0<\/strong>Social-class bands such as wealthy, middle, and lower classes.\u00a0The rich, for instance, may want different products than middle and lower classes, and may be willing to pay more.<\/li>\n<li><strong>Gender:<\/strong> Males and females have\u00a0different physical attributes that require different hygiene and clothing products. They also tend to have distinctive\u00a0male\/female mindsets and roles in the family and household decision making.<\/li>\n<li><strong>Religious affiliations:<\/strong> Religion is linked to individual values as well as holiday celebrations, often tied to consumer preferences\u00a0and spending patterns.<\/li>\n<li><strong>Income brackets:<\/strong> Indicating level of wealth, disposable income, and quality of life.<\/li>\n<li><strong>Education:<\/strong> Level of education is often tied to consumer preferences, as well as income.<\/li>\n<li><strong>Geography:<\/strong>\u00a0Area\u00a0of residence, urban vs. rural, and population density can all be important inputs into marketing strategy and decisions about where and how to target advertising and other elements of the promotion mix.<\/li>\n<\/ul>\n<p>Demographic research may include a\u00a0variety of other characteristics used to separate a country\u2019s population into groups that fit a company&#8217;s target customer profile. 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, aged 18\u201324, college-educated demographic.<\/p>\n<div id=\"attachment_8152\" style=\"width: 1034px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-8152\" class=\"size-large wp-image-8152\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/295\/2016\/01\/24231617\/COB_data_Sweden-1024x474.png\" alt=\"Map of the world showing which countries foreign-born residents in Sweden were born as of 2001. Countries with 50,000 or more include Finland, Syria, Iraq, and Iran. Countries with more than 10,000 include the United States, Chile, India, the United Kingdom, and Somalia. Most countries have at least 1,000, with the exception of most African countries.\" width=\"1024\" height=\"474\" \/><\/p>\n<p id=\"caption-attachment-8152\" class=\"wp-caption-text\">Country of birth of Swedes in 2001: Demographics can be measured in a variety of ways. The map shows an estimation of foreign-born residents in Sweden.<\/p>\n<\/div>\n<\/div>\n<div><\/div>\n<div>\n<p>Researchers examining demographics typically have two objectives in mind: first, to segment the market by determining which 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, marketers can use them to develop the targeting strategy and accompanying marketing strategy and marketing plan.<\/p>\n<p>With demographic profiles about target segments in hand, marketers evaluate the marketing mix. They make recommendations about whether to change, decrease, or increase\u00a0the goods or services offered. Based on demographic data, marketers may adjust product features, distribution strategy, or\u00a0other factors in order to reach a market segment that has the most potential.<\/p>\n<p>A demographic profile can be very useful in determining the promotional mix and how to achieve maximum results. Advertising is usually part of the promotional mix, especially when businesses are still in the early stages of entering a global market and launching products that are new to that market. Advertisers want to get\u00a0the\u00a0most results for their money, and so in global markets as in domestic markets,\u00a0careful media research is conducted to match the demographic profile of the target market to the demographic profile of the advertising medium.<\/p>\n<h3>Cautions About Demographic Profiling in Global Markets<\/h3>\n<p>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 conform\u00a0to the profile. Demographic information is aggregate and offers probabilistic data about groups\u2014not specific individuals. Critics of demographic profiling argue that such broad-brush generalizations can only offer limited insight.<\/p>\n<p>Marketers must also be careful to avoid interpreting demographic information using the mindset of their own &#8220;home&#8221; cultures. For example, the generalizations that apply to &#8220;tweens&#8221; (9\u201312-year-olds) in the U.S. may not apply at all to children in this same age range in other geographies. Similarly, assumptions about how social class affects\u00a0consumer preferences\u00a0may be very different in a socially mobile society versus one with very rigid separation between groups from\u00a0different social classes. Marketing research should seek to understand a complete picture of how demographic characteristics tend to influence consumer behavior in a given market, rather than simply applying stereotypes from elsewhere.<\/p>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-5480\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Revision and adaptation. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>The Global Marketing Environment: Demographic Factors. <strong>Provided by<\/strong>: Lumen Learning. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/courses.candelalearning.com\/principlesmktg1x2kscope\/chapter\/the-global-marketing-environment-demographic-factors\/\">https:\/\/courses.candelalearning.com\/principlesmktg1x2kscope\/chapter\/the-global-marketing-environment-demographic-factors\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>COB data Sweden. <strong>Authored by<\/strong>: Kransky. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/commons.wikimedia.org\/wiki\/File:COB_data_Sweden.PNG\">https:\/\/commons.wikimedia.org\/wiki\/File:COB_data_Sweden.PNG<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":20,"menu_order":12,"template":"","meta":{"_candela_citation":"[{\"type\":\"cc\",\"description\":\"The Global Marketing Environment: Demographic Factors\",\"author\":\"\",\"organization\":\"Lumen Learning\",\"url\":\"https:\/\/courses.candelalearning.com\/principlesmktg1x2kscope\/chapter\/the-global-marketing-environment-demographic-factors\/\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"original\",\"description\":\"Revision and adaptation\",\"author\":\"\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"COB data 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