Critical analysis on the demographic status of a target population is very important before unleashing a new product in the market. Demographic analysis indicates the measurements and dynamics of the target population. It can be used in planning business to analyze the population related to the geographic positioning of the business. Basically due to the load the demographic reports are usually subdivided into different categories depending on the specification of the report. An example is the AMA report that is generated from the US census decennial data. However, some of these categories can be subdivided to generate smaller comprehensible categories.
In 60614 census trend general summary report, the category of means of transportation to work can be collapsed to generate subgroups which can be understood well. The category can be broken in two, the ones using natural and manmade means, manmade means can further be Brocken down to fuel consuming means and non fuel consuming means. Fuel using means can be again collapsed to road or water means .Then each percentage composition is calculated separately, this will enable the analyst to know which kind of means is preferred most and more economical in relation to his financial status of the business. This can aid the sales manager to know what type of transport to use and the time it will take to distribute the snacks.
On the general report of race and ethnicity, the total population race can be broken down first to white and black populations, further breakdown can be done to determine the exact origin of the population which will later be broken down to determine if the population is native or exotic. By calculating the total composition of each population the analyst will be able to know which population is the largest and will therefore pick that population as a target population by considering their tastes and preferences.
The general report in educational attainment can be collapsed according to the level of education .A category of college and other school attainments can be made. The college category can be divided into those with associate bachelors, with graduate degrees and with no degrees while other schools attainment can be classified into those with grade 11 and have no diploma, those with grade K-9 and high school graduates. This is a very critical analytical skill that will enable the sales manager evaluate the educational levels and relate it to the kind of personnel his business needs to employ in that area.
In the family status: family households’ category, the family can be collapsed in to two major categories, married couple or single parents. Married couples can be further classified in terms of having or not having children, if children are there are they natural born or are they adopted, if natural children, they can be classified according to if they are grand children or adopted. Such kind of analysis is very important in determining the sizes of the families and in turn determining the purchase power of the people living in that particular area. This will give the sales manager an overview on the purchasing power of the target population.
Collapsing of demographical reports gives the analyst a closer view in the data helping him avoid costly mistakes in the marketing plan. It helps to identify potential customers their location and the purchasing power of the target lot thus helping in planning.
louis G.Pol, R. K. (1997). Demography for Business Decision Making. Westport: Greenwood Publishing.
Sessoms, G. (2013). The importance of Demographics to Marketing. Chron , 2.