a) Define the term demographics. b) How are demographics used to identify markets?

Expert Answers
pohnpei397 eNotes educator| Certified Educator

The term "demographics" refers to statistical data about the people of a given place.  This can include such things as their race, ethnicity, income, age, etc.

Demographics are important for identifying potential markets for a firm to move into.  For example, the town I live in wants to have a greater variety of retailers.  However, they have done demographic studies of the town and the surrounding area.  They have concluded that we do not have a sufficient population of people in the age and income categories that are important to them.  From these data, they can infer that they would not be successful here.

reitu | Student
They imply statistical characteristics of a group of people. They highlight both the quantitative and qualitative features and classify people using dimensions such as the age, the life span, the income brackets, the race groupings, the employment and the educational levels. They are used to categorise the customers depending on their potential to buy products, the usage patterns of each particular group, the affordability each group would have to purchase products, the preferences and tastes each would have, the demand levels each demographic unit would dictate.