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DF (demographic factors)

Demographics, including age, gender, race, and location, significantly influence buyer behavior and market expansion. Different age groups, from adolescents to those above 60, exhibit distinct spending habits and priorities, impacting how marketers should approach them. The politico-legal environment also plays a crucial role in shaping marketing strategies, requiring businesses to navigate legal frameworks while remaining innovative.

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11 views5 pages

DF (demographic factors)

Demographics, including age, gender, race, and location, significantly influence buyer behavior and market expansion. Different age groups, from adolescents to those above 60, exhibit distinct spending habits and priorities, impacting how marketers should approach them. The politico-legal environment also plays a crucial role in shaping marketing strategies, requiring businesses to navigate legal frameworks while remaining innovative.

Uploaded by

srinegowsi3027
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Demographic factors

Demography is the study of people in terms of age, gender, race, ethnicity


and

Location. Demographics are significant because people constitute markets.

Demographic characteristics strongly affect buyer behaviour. Faster growth


of

Population accompanied with rising income means expanding markets. The


longer

Life span means a growing market for products and services targeted at the
elderly.

(i) Adolescents

The new-age teens are a marketer’s delight. They do not earn, but they are
fond

Of spending and most of them have their own budgets. They spend lavishly
on

Clothes, eating out, going out, buying latest gadgets, etc., and are very keen
to

Catch on with their friends in terms of possessions and lifestyles. They do not
feel

Guilty of spending their parents’ money and put on real pressure on their
parents to

Shell out more money for them. They will put their parents in financial
inconvenience

But they will have their motorbikes and fanciful mobiles, and will hang out at
eating

Joints, theatres and malls. They are stylish and fashion conscious and submit
to

Peer pressure. They will latch on to the next hot item. They feel they need to
have
A life of their own and it should not be denied to them just because they are
not

Earning.

(ii) Youth

Youngsters today are growing in a more media-influenced, brand-conscious


world

Than their parents did. They respond to advertisements differently and prefer
to

Encounter these advertisements in different places. Companies have to take


their

Messages to the places where these youngsters frequent, whether on the


Internet,

In a cricket stadium or on television. The advertisements may be comical or

Disarmingly direct. But the advertisements should never suggest that the
advertiser

Knows these youngsters better than they know themselves. These


youngsters know

What they want from their lives and the products and services they buy. They
do

Not mind information reaching them but will reserve their right to make their
choices.

They hate to be persuaded and influenced. Companies would do well to


leave

Them alone to make their decisions. They will access and process the desired

Information themselves and will let their choice known to the marketers. For
these

Youngsters, anyone can be a star and most of them count themselves as


one. They

Believe that everyone deserves to have his say and own space. For them,
getting
Heard and becoming well known are not only easy, but a natural way to go
about

With their lives. They create their own websites, make a movie with their
own

Webcam or digital camera and post their thoughts and pictures online. Since
they

Are sure about themselves and know what they want, they prefer customized

Products and services. Companies are realizing that they have to provide
something

Unique and deeply personal to win the loyalty of current youngsters.

(iii) People between 35 and 45

People in the age group of 35 to 45 years are settled in their professions and
have

toddlers and growing children at home. They exert themselves in their


profession

because they realize that their career is likely to take off at this stage. They
put

long hours at office and have to juggle endlessly between their


responsibilities as

spouses and parents and growing responsibilities at work. They may also
have

old parents to look after. Parents may be staying with them or living in
another city.

The income of people in this group rises at a good rate, and they are good

spenders. Some of them may be buying their first cars but most of them will
be

thinking of upgrading their cars. Similarly, they will upgrade their household
gadgets

like refrigerators, televisions and kitchen appliances when better products


come
along. They are also open to new gadgets for themselves and their
households.

People in this age group want to live a good life and are constantly on a
buying

spree to improve their lifestyles. They dress well, dine out frequently and
look for

opportunities to go on holidays. These days they are also keen to buy houses
very

early in their lives. They also plan to retire early and they plan their finances

accordingly. They have a taste for good life and they do not want their lives’

pleasures to be disturbed by pressures of job.

(iv) People between 45 and 60

Some people in this age group are at the peak of their careers while some
others

are struggling to keep their jobs. Children become a major priority for people
in

this age group. Children are ready to go to colleges and professional schools,

some of them will be willing to make sacrifices in their careers to avoid


unsettling

their children. People in this age group will spend less as they will be saving

resources to fund the higher education of their children. They will also be
worried

about their own future and making last-ditch efforts to put a retirement plan
in

place because they do not see many years of career left ahead of them.

(v) People above 60

People in this age group live on a steady income. Some of them live with
their

grown-up children as part of their households. They contribute to the


requirement
of the joint household and do not spend much on themselves. The family
looks

after their requirements. Most of their money is spent on buying gifts for
their

children and grandchildren. But quite a few of these people live alone and
are

visited by their children infrequently. They maintain their own households


and their

major spending is on running their households. They have to spend a


substantial

part of their earnings on health-related issues and domestic help. Sometimes


their

children also supplement their income.

(V) Politico-legal environment

Politico-legal environment provides the legal framework within which the


marketing

department has to function. The politico-legal environment of a country is


influenced by political structures and organizations, political stability,
government’s intervention

in business, constitutional provisions affecting businesses, government’s


attitude

towards business, foreign policy, etc. The viability of businesses depends on


their

ability to understand the laws of the land and abide by them, while not
becoming

less innovative in their marketing endeavours due to the fear of infringing on


some laws.

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