What are demographics?
Satisfying a customer needs and wants is the key to good marketing. Businesses use demographics to increase their chances of satisfying their customers by serving a more targeted audience. Demographics mean a segmentation of the market based on numerous categories such as age, gender, income, occupation, lifestyles, or needs. A demographic simply means a market segment with common traits. Segmenting the market makes it easy for companies to choose their target audience.
The approach of every brand is different
Some businesses target older, higher income people with better education so they can charge more. On the other hand, other businesses appeal to the masses by going after a larger range of lower income people so that they can sell more. Location can also differentiate demographics for companies in the same industry. For example, a janitorial company in Beverly Hills might brand themselves as sanitation engineers, while a similar company might list themselves as custodians in a less income area.
The psychological need of a product can also be a deciding factor. If you’re in the denim pants industry but sell designer pants for $200, your demographics will be much different than that of a company that sells denim pants for toddlers. A great and easy way to determine your target market is to check your analytics.
Demographics define your brand
Trying to appeal to everyone in the marketplace is expensive and almost impossible to do. A good brand manager knows that analysis and strategy is needed to choose the right audience to focus on. Demographics can help paint a picture of your target customer in your mind. Understanding what distinguishes you from your competitors can help you choose the right segment for your business. Having a general idea of what your customers want also allows you to create better-targeted marketing campaigns and increase your ROI. By understanding the psychological need of your product, your brand can produce content that highlights the benefits your products or services can offer them.