Demographic factors such as size of the population, population growth rate, age composition, life expectancy, family size, spatial dispersal, occupational status, employment pattern etc, affect the demand for goods and services.
2. Prepared By
Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com
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3. Demographic Environment
• Age structure.
• Gender.
• Income distribution.
• Family size.
• Family life cycle.
• Occupation.
• Education.
• Social class.
4. Demographic Environment
Demographic factors such
as size of the population,
population growth rate,
age composition, life
expectancy, family size,
spatial dispersal,
occupational status,
employment pattern etc,
affect the demand for
goods and services.
5. Demographic Environment
Markets with growing
population and income are
growth markets. But the
decline in the birth rates in
countries like the United
States have affected the
demand for baby products.
Johnson and Johnson have
overcome this problem by
repositioning their products
like baby shampoo and baby
soap, promoting them also to
the adult segment,
particularly to the females.
6. Demographic Environment
The occupational and spatial
mobilities of population have
implications for business. If
labour is easily mobile between
different occupations and
regions, its supply will be
relatively smooth, and this will
affect the wage rate. If labour is
highly heterogeneous in respect
of language, caste and religion,
ethnicity, etc., personnel
management is likely to become
a more complex task. The
heterogeneous population with
its varied tastes, preferences,
beliefs, temperaments, etc. gives
rise to differing demand patterns
and calls for different marketing
strategies.
