From ArticleWorld

Demographics may be described as objective and quantifiable population data that are easily identifiable and measurable. These are common characteristics used for segmentation of targeted population. Typical demographic data points include age, gender, postal code, and income but they may differ according to requirements of different studies for which the demographics may be needed.

Demographic inputs and their usage

The term demographics is many times erroneously interchanged with demography in common usage. Demography is used to study whole populations and their time cycles, i.e. how populations change over time because of births, deaths, aging and even migration while demographics are used in connotation with certain select characteristics of certain select populations for market research studies and targeted advertising. Thus, some typical demographics may include - Age, sex, race, nationality, and religion or socio economic status.

This demographic structure comes in useful in the segmentation of the population into groups and further sub groups, groups that are homogeneous for the purpose of market research which is further used for targeted marketing. Marital status, family size, occupation, education, socio economic structure and also life cycles are some other common variables that are required for segmenting populations

All this helps in creating demographic profiles which are the audience breakdowns based on various characteristics

These may include deaths, births, life expectancy migration, occupations, income and anthropological categories of people, or other demographic profiles such as education, nationality or religion or ethnicity.

A market niche or area may be carved out and also newly created with the help of these demographic profiles. Therefore, if a high rate of birth is indicated through demographics it will lead to an instant increase in the requirement of diapers or baby food or cribs. A few years later this would lead to an increased production of toys and children’s clothes and again a few years later a demand for good schools followed by a demand for good universities and then housing facilities and so on and so forth.