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