Demographics is a study of a group of people based on divisions by age, race, and gender. Demographic data includes criteria such as income, employment, education, marriage rates, etc.
Many companies and organizations analyze demographic data to compile a more detailed description of potential clientele, develop population policies, and research markets. In simpler words, population segmentation and subsequent comparison with demographic data enable the company to better understand the size of the potential market and select the optimal target audience.
This kind of information gives a hint to the business on how much budget is better to invest in advertising and how much in production, etc. Each segment of the market lends itself to analysis and calculation of consumer spending within it. For example, people in the older demographic spend a lot more money on pharmaceuticals and healthcare products.
In addition, using demographic information helps to make long-term plans for a business based on demographic trends. Therefore, demography today is an essential tool for businesses, internet marketers, and marketing companies.
