demographics vd
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DEMOGRAPHICS-Application in Marketing
Vaibhav D. Kale
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Compass
Introduction
Application of demographics in
marketing Variables under demographics
Rural Vs. Urban
Shift from2005-2020 in India
Impact on marketer
Conclusion
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Introduction
Demographics:
Size, structure and distribution of population
Economic demography:
study of economic characteristics of nations
population
Demographic segmentation:
dividing market into groups based on variablessuch as age, gender , family size, income,
occupation, education, religion, race, nationality
etc.
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Application of Demographics in
marketing To do segmentation of the market
To identify the target market of the product
It tells about who are our customer, where they
are, of what sex etc.
It allows you to target a specific demographic
group
It is critical tool for small business where errorscannot be neglected
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Market can be divided into groups based
on variables such as Age
Gender
family size
income
occupation
education
religion
race
nationality
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Age Consumer needs and wants change with age although they may still wish to consumer the
same types of product.
So Marketers design, package and promote
products differently to meet the wants of different
age groups.
Example
marketing of toothpaste (contrast thebranding of toothpaste for children and adults)
toys (with many age-based segments).
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Generation
Z
Silent
generation
(above 61yrs)
Baby
Boomer
(44-61)
Generation
X
(27-43)
Generation
Y
(8-27)
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Gender
Gender segmentation is widely used in consumer
marketing.
Male, Female
example-clothing, hairdressing, magazines and andcosmetics.
male female
world 50% 50%
India 53.35% 46.65%
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Income
Another popular basis for segmentation.
Many companies target affluent consumers with
luxury goods and convenience services.
Upper upper
Middle upper
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Family size
Family type:
-Nuclear(60.5% )
-Non nuclear(39.5%)
Av. family size of India- 4.8
-Urban-4.6
-Rural-4.9
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Occupation
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Religion
World
Christian-33%
Muslim-18%
Hindu-16%
Buddist-6%
Jews-1%
Non religious-16%
Other-10%
India
Christian-2.3%
Muslim-13.4%
Hindu-80.5%
Buddist-.8%
Shikhs-1.9%
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Race
Non white-85
White-15
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Few facts of world
If population of globe reduce to 100 then
61-Asian, Europe- 12, Africa-13, rest-14
60% wealth is with 6 people
13- are under malnutrition
4-internet user
2- college educated
14- would able to read 25-less than $1 a day live
46- in urban, 54-rural
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Few facts of India
Median age: 25.1 years
Population growth rate -1.548% (2009 est.)
Birth rate - 21.76 births/1,000 population (2009 est.)
Death rate- 6.4 deaths/1,000 population (2009 est.) Literacy rate- 79.9%
under the poverty line- 22% (2006 est.)
Unemployment Rate- 7.8%
Life expectancy
total population: 69.89 years
male: 67.46 years
female: 72.61 years (2007 est.)
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Rural Vs. UrbanRural-72.2%
Urban-27.8%
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Rural Vs. Urban
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income
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Shift from 2005 to2020
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Impact of demographics on
world
World population will peak in 2035 and will
decline after
World population growth is off course positive,
but growth rate has reduce.
Most attractive market is which show growth in
population as well as economic resources This is happening in pacific rim, parts of Asia,
Latin America
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Pacific rim- Australia, japan, China
Parts of Asia- India, China, Southey Arabia,
Pilli pines
Latin America- Peru, Cuba, Brazil, Mexico
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Australia- small but well developed,
immigration, income high
Japan- per capita consumption high,
more ethnocentric
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References:
India Vision 2020, by S.P.Gupta, Chairman,
Planning Commission
Population Bulletin, PRB report, vol. 65, no.2,
July 2010
Population Bulletin in India, vol. 61, no.3, Sep.
2006
Demographic Transition and demographicimbalance in India,
Ashish Bose
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Thank U.
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