Business demography importance

Demographic information allows you to better understand certain background characteristics of an audience, whether it's their age, race, ethnicity, income, work situation, marital status, etc.

Why are demographics important?

Demographics are also important for the following functions.
Business plans: Demographics give you the information you need to determine the likely size of your target market for your business plan.
Market research:

helps you identify the consumer subgroups that will probably buy your product or use your service.

Why is business demography important?

Business demography aims to clarify and inform business decisions rather than to advance knowledge.
For example, geodemographic segmentation systems can classify neighborhoods with similar demographic characteristics and consumer preferences into lifestyle clusters (Weiss, 1988 ).

Why are demographics important?

Demographics are also important for the following functions

Business plans: Demographics give you the information you need to determine the likely size of your target market for your business plan

Market research: helps you identify the consumer subgroups that will probably buy your product or use your service

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