21 Dec Understanding Demographics: Critical Skill For Entrepreneurs
If you are a business owner and you you don’t have a clear picture of the demographics of your target audience then you are blindly marketing. Chances are you are wasting a lot of time, energy and other resources chasing prospects without having this critical information about your ideal audience in mind before you attempt to market to them.
In order to gain demographic knowledge you first need to understand what you are seeking. Demographics definition is statistical data relating to the population and particular groups within it. You want to learn as much as you can about your ideal prospects including their ages, incomes, where they work, what they do for hobbies, what talents and skills they have, what they read, where they eat, what types of movies they see, where they hang out, and who they hang out with, etc. Learn everything you can about your ideal target audience before you spend a dime marketing to them.
The Demographics Transition Model
During the later 1700s death rates declined because of improvements in agriculture and better sanitation. People began to live through adolescence and the average life expectancy shifted as did the birth and death rates. This demographics transition began to evolve and gave way to what is known as a demographics transition model. This model explains population changes by country based on five different stages. This data is used to address economic as well as social policy. The demographic transition model looks at birth and death rate and the population growth rate cycle of a country. The five stages are characterized by the relationships between birth and death rate and the country’s total population because as a country changes their population, their social and economic forces will shift. Being aware of the demographics transition model is important to your business especially if you do business globally.
Demographics and Marketing
Demographics data helps you speak to a specific segment of prospects you want to target. In fact it is so important in your marketing, research and planning that if you miss this step your marketing is likely to fail. Apple knows who buys the iPhone and studies their market so they know who to target with their ads and commercials. Do you know exactly who to get your message in front of? If you don’t have these critical statistics like Apple does you might be getting your message in front of a disinterested audience and wasting marketing dollars.
Looking at zip code demographics can help compare trends in marketing as well. Zip code marketing helps you look at specific neighborhood behaviors and even study trends block by block. I urge my clients to learn all they can about their marketing areas by ages of their prospects, sex, race, consumer trends and even zip codes. The demographics of USA differs greatly depending where you do business so you must be alert and aware of the trends of your target audience. By using this research you will be able to make important marketing decisions and speak to those who are the right prospects for you and stop wasting marketing dollars on hit or miss marketing.