Now, people of all ages use mobile devices daily. However, our focus is on the demographic segmentation, which generally involves grouping the markets into sub-categories based on demographic variables such as occupation, age, religion, nationality, gender, income, race, family size and education. This process involves taking a larger target . Marketing demographics frequently focus on gender, income level, and race and ethnicity as well. Business Managers have challenges to develop such marketing strategies that minimize the risk caused by these macro factors both in present and future. 3] Risk of Technological Environment. Engagements are unique opportunities to find and attract new business in the social media world, as most platforms allow you to target on the primary keywords that are associated with this major life event. A thorough understanding of customer demographics is essential to successful . For example, demographics can give you specifics like how many 20-year-olds live in Chicago or the number of married couples in Manhattan. For example, laws covering issues such as environmental protection, product safety regulations, competition, pricing etc. A buyer persona is a profile of a typical customer based on real data. Marketing includes a broad range of business activities that range from research and development to promotion and support after the sale. The greatest danger is in the poorest countries where poverty contributes to the difficulties. Sometimes (but not recently), the news is cause for optimism—the economy's improving, unemployment's declining, consumer confidence is up. Why are people important? Demographic forces relate to people. Marital status. The examples of the macro-environment are demographic environment, social-cultural environment, economic environment, political-legal environment, physical environment, and technological environment, etc. The goal of Nike is to bring inspiration and innovation to every athlete in the world. They can determine their key customers or target market and create marketing materials. OCTOBER 23, 2016. The business operations of an organization are controlled by the laws and policies decided by the government. Despite problems, they're the most optimistic generation about their financial futures. Wealth based demographics such as families with more than $1 million in net wealth. Demographic Environment. These factors or forces influencing marketing decision-making are collectively called marketing environment. For example, If the retail seller holds a reputable name in the market then their reputation can impact the marketing of company's product. Marketing includes a broad range of business activities that range from research and development to promotion and support after the sale. This helps in creating groups exhibiting a similar need and want, and can be targeted in a much more better way by companies. Socio-Demographic Examples . You can use demographic segmentation and socioeconomic characteristics of your market niche to classify customers and determine an effective product development and marketing strategy. Some more interesting ones are. A demographic refers to distinct characteristics of a population. The map shows an estimation of foreign-born residents in Sweden. Improved advertising effectiveness. Race. Such new products enter the market every year. • The word population is growing at an explosive rate. Country of birth of Swedes in 2001: Demographics can be measured in a variety of ways. Demographics refer to the socio-economic characteristics of a population that businesses use to identify the product preferences and purchasing behaviors of customers. Profession Targeting a profession such as an price promotion for teachers. Using Demographics to Improve Business . Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics. Economic trends include changes in income and income distribution, and changes in consumer . However unlike in the past, to date McDonald . However, our focus is on the demographic segmentation, which generally involves grouping the markets into sub-categories based on demographic variables such as occupation, age, religion, nationality, gender, income, race, family size and education. All these factors are under the control of the firm. For corporate marketing goals, demographic data is collected to build a customer base profile. Organizations utilize it to form broad segments of the population in terms of age, gender, location, religion, family size and so on. For example, when mobile phone companies emerged in the 1990s, their marketing efforts focused on young, successful professionals. We will discuss here some of them which have the major influence. An environmental factor, ecological factor or eco factor is any factor, abiotic or biotic, that influences living organisms. Demographics refer to the socio-economic characteristics of a population that businesses use to identify the product preferences and purchasing behaviors of customers. Nationality. • Demography is very important because it involves people, and people make up markets. Although that may be true in the overall scheme of things, there are certain athletes that Nike targets more often because they are more profitable. Depending on the product or service, one of these factors might become the dominating factor for marketing campaigns. Country of birth of Swedes in 2001: Demographics can be measured in a variety of ways. Age. Nike has an average annual worldwide revenue of $27.7 billion. Many live at home, due to debt and weak labor market. It is fast becoming very popular in markets as far away as India and China and Brazil. Trends, for example, are ever changing, which means both researchers and strategists need to constantly keep up to date with dynamic factors while remaining flexible. Cocacola. Today's demographic environment shows a changing age structure, shifting family profiles, geographic population shifts, a . Firms must monitor six major forces in the broad environment: demographic, economic, sociocultural, natural, technological, and political-legal (see Table 3.4). Examples of demographics can include factors such as the race, sex and age of a population that is being studied. To concentrate on a particular type of customer, many businesses engage in market segmentation. Demographic Segmentation. Lifestyle Lifestyle based demographics such as urban versus small town residents. The tool tasked with conducting an external analysis of the macro environment . For example, clothing brands frequently focus on age in devising campaigns, and income level is often the driving factor for large . The Customers: The success of marketing strategy also depends on the customers of company's product. For example, a company would have little success trying to influence geographic population shifts, the economic environment, or major cultural values. High population results in tough competition and people get ready to even at low wages which is good for the business as they can hire more people to increase their production. The market environment is all factors that impact the strategy, decision making and tactics of a firm. The external marketing environment consists of social, demographic, economic, technological . 1. For a firm, the only option is to accept and respect these factors, and adopt and adjust with them. One danger of demographic environmental analysis is getting caught up in the details, or missing factors that may indicate change. Most racially diverse generation in US history, with 43% being non-white. Demographic segmentation allows you to get more specific with your marketing strategies. With their target market's traits, companies can build a profile for their customer base. The Economic Environment. Demographic segmentation is the easiest and the most popular applied type of market segmentation. Demographics is the study of the traits of different groups for the purpose of targeting marketing messages. And to capture this market a firm has to be aware of its technological environment. 2. This includes all internal and external conditions that impact your business. Socio-demographics include age, education, religion, employment, marital status, income levels, migration background, race, and ethnicity. Demographics are statistical data that researchers use to study groups of humans. example, McDonald . 1. Demographic Factors. These forces include wholesaler, retailers etc. Demographic segmentation is extremely important to all marketing departments since the data is easily available and does drastically affect buying patterns. 1). The external marketing environment consists of social, demographic, economic, technological, political and legal, and competitive variables. Gender. Macro Environment in Marketing Definition Factors Examples Marketing environment consists both internal and external environmental factors affect the organization success. Some of the changes in this area that can affect marketing decisions and strategies are: - Changes in age structure - For example, populations becoming older Many believe you can get a full understanding of your customers by studying demographics (e.g., age, race, job title) alone; others suggest that you also must add the most common psychographics characteristics (e.g. DEMOGRAPHIC ENVIRONMENT. With their target market's traits, companies can build a profile for their customer base. 3. The name refers to the term Demography. On the other hand, a company publishing women's magazines will have to specifically target the female population. Every day, marketing managers face a barrage of economic news. Based on such demographic variables, the firm can decide which group they need to cater to. Demographics that affect business decisions and processes include: Age. Highest student debt, due to increased education expenses. Occupation. The size of the population A country's population normally increases over time and will vary according to such factors as changes in the birth and death rates and in the rate of net migration (see below). 3. ADVERTISEMENTS: Marketing activities are influenced by several factors inside and outside a business firm. High growth rate of population is also tells us high rate of supply of laborers. They must digest it, assess its impact, and alter marketing plans accordingly. 2. Demographics within the macro-environment are age, sex, race, occupation, location and other statistics of the population that marketing strategies target (Slideshare, 1999). External Environmental Management. Size of population. According to Philip Kotler, marketing environment refers to "external . Marketing & Demographic Factors. Twitter. For example, India has around sixteen percent of the world's population and is second to China. These are the following: 1. These types of classifications can help us to target the right kind of marketing to . Because, on the whole, their needs is the reason for businesses to exist. To concentrate on a particular type of customer, many businesses engage in market segmentation. Social and cultural factors are important to consider while creating and implementing a marketing strategy of a company. Most marketers prefer segmenting a market based on demographic variables, partly due to the fact . With opportunities come threats.