Demographics: The key to effective market research
August 27, 2013Ashton Bridges
Every company, brand and sector is affected by public opinion. But it is the opinion of your target audience that reveals key truths about how to run your business. That’s why demographics are such an important part of marketing research. Not only do demographics encompass the study of human populations, they represent the impact that these populations have on the market.
Every company, brand and sector is affected by public opinion. But it is the opinion of your target audience that reveals key truths about how to run your business. That’s why demographics are such an important part of marketing research. Not only do demographics encompass the study of human populations, they represent the impact that these populations have on the market. Companies seeking direct consumer feedback often utilize common demographics in their economic and marketing research. Identifying and prioritizing relevant demographics can enable you to maximize your research initiatives and radically improve your business.
Demographic profiles can provide an excellent means of discerning which aspect of the population would be a likely target for a particular product or service. Moreover, they can provide a clear view of how key brands are perceived by consumers in terms of advantages and disadvantages. In addition to creating competition, demographic profiling can reveal strategic insights into why consumers prefer one brand to another within a given sector. Ultimately, these insights can be used to increase sales for the company sponsoring the research.
Any number of variables can be applied to a demographic profile. Common demographics include age, gender, income, education, mobility, environment, and technological savvy. Each of these demographics can be broken down into a potentially limitless range of subcategories pending the level of specificity required by the research at hand. Regardless of how many demographics are being measured, the goal should always be the same: to better discern your target. Demographics can potentially reveal not only who your consumers are, but what makes them tick. Since demographics – like trends – tend to change over time, it is recommended to conduct demographics-based research on a regular or semi-regular basis.
All marketing research services should be subjected to rigorous analysis in order to evaluate what is working and what is not. This applies to demographics as much as any other component of market research. When creating a demographic profile, it is important to target groups from the outset that are most likely to be attracted to the product or service in question. One of the most effective methods of identifying a particular group is a survey, which can take the form of either a custom or omnibus (shared) poll submitted to a cross-section of a given population. Once the survey has been conducted and the market audience discerned, marketing efforts can be focused in an even more efficient and timely manner.
That demographics constitute an integral aspect of marketing research is clear. Identifying and prioritizing key demographics, however, is what takes marketing research to the next level. In addition to yielding crucial insights into how your company, products or services are perceived by your target audience, the right demographics will enable you to better serve your existing consumer base and maximize future growth. Partnering with a market research agency that will truly understand your business is imperative. A credible agency will customize research to meet your company’s needs – often by identifying and emphasizing the needs of your target audience.