Helping Entrepreneurs Find and Use Demographics

1. Bob Scardamalia
RLS Demographics, Inc. March 20, 2012

2.  Geography
 Demographics, Psycho-graphics, and
business data - why are they important
 Define your ideal customer – who and where
they are
 Locate sources of demographic data
 Navigate Census demographic and economic
data
March 20, 2012 RLS Demographics, Inc.

3.  Governmental Areas
 States
 Counties
 Cities
 Towns
 Villages
 “Places”
March 20, 2012 RLS Demographics, Inc.

4.  Statistical Areas
 Metropolitan Areas
 Census Tracts
 Zip Codes
 Congressional
Districts
March 20, 2012 RLS Demographics, Inc.

5. Census Tracts
March 20, 2012 RLS Demographics, Inc.

6.  “Demography is the study of the size,
distribution, and composition of the
population”
 Size:
 How large is my market (people/houses)
 Growing/Shrinking
 Distribution:
 Where is my market located - geographic
 Composition:
 What are the important characteristics
 Age, gender, race, income, education
March 20, 2012 RLS Demographics, Inc.

7.  You’rein business to solve your customer’s
problem
 You need to deliver a benefit
 You need to differentiate yourself
 Understanding trends can help you:
 Position your product
 Tailor your service
 Change with your customers
March 20, 2012 RLS Demographics, Inc.

8.  “The measurement of attitudes, values, lifestyle,
beliefs, buying habits and opinions”
Interests, Activities, Opinions
 Variation even within demographic groups
 Everyone doesn’t think the same!
 Wants and desires:
 Trends, the influence of advertising
 How and why people buy:
 What motivates people to buy your product or service
 Market segmentation:
 Based on geography, demographics, consumer
behavior
March 20, 2012 RLS Demographics, Inc.

9. March 20, 2012 RLS Demographics, Inc.

10.  We can paraphrase and call business
demographics the study of the size, industry,
distribution, and composition of businesses
 Size:
 How many businesses
 Competitors or Collaborators
 Industry (SIC/NAICS):
 What do they do (retail, service, const., manuf.)
 Distribution:
 Where are businesses located
 Supplier networks
 Composition:
 Sales/revenue, employment, product types
March 20, 2012 RLS Demographics, Inc.

11.  Male/Female
 Is Age Important?
 Baby Boomers, Gen X, Gen Y defined by their age
 Single, Married, Children, Families
 Income sensitive?
 Educational Background
 Industry characteristics
 Growing or transforming
 High-tech/Low-tech
 On-lineor big box buyers
 What others…?
March 20, 2012 RLS Demographics, Inc.

12.  Your neighborhood, regionwide, statewide
 Walking distance to your store
 Is drive time important?
 Downtown location
 Suburban mall, strip mall
 Boutique shop
 Where people live vs. where they work
 Global Internet market
March 20, 2012 RLS Demographics, Inc.

13.  The people/businesses who DO buy your
product or service
 You may not have much information – How do
you get it?
 Mail list sign-ups
 Coupons/offers
 Survey a sample of customers
 Measure at multiple points in time to understand
change
March 20, 2012 RLS Demographics, Inc.

14.  Public – i.e. “free” U.S. Bureau of the Census
(factfinder.census.gov)
 Population estimates
 Decennial Census
 American Community Survey
 Economic Census
 Business statistics
 Surveys
 Consumer Expenditures
 Computer usage
 Time Usage
 County/Regional Planning Dept.
 Google!
March 20, 2012 RLS Demographics, Inc.

15.  Private – i.e. “not so free”
 DemographicsNow (www.demographicsnow.com)
 Population, industry, marketing reports
 Subscription service to data updates
 Nielsen/Claritas (www.claritas.com)
 Media stats
 Consumer demographics/psychographics
 Buying habits
 Environmental Systems Research Inc. (www.esri.com)
 Mapping
 Consumer demographics/psychographics
 Buying habits
 Forecasts
 Market research firms
March 20, 2012 RLS Demographics, Inc.

16.  The Census data comes from:
 an enumeration like the 2010 Census just taken
 a survey of the population
 mathematical estimates of the population
 It’s taken on the basis of housing address
 It’s reported on the basis of geographic areas
(like we talked about earlier)
 To access the right data you need to think about:
 the characteristics you’re looking for, and
 the geographic area you want
March 20, 2012 RLS Demographics, Inc.

17.  The 2010 Census
 Basically a headcount of all residents
 Very little characteristics detail
 The most accurate population base
 The American Community Survey
 Detailed socio-economic data
 Annual updates
 Confusing results
 Population Estimates
 Best updates of the basic count data – but limited
geography
 Annual Updates
March 20, 2012 RLS Demographics, Inc.

18.  Taken every 5 years
 count of businesses
 Characteristics like employment, industry, sales
 The most comprehensive business data
 Other establishment data
 Establishments versus business
 Based on surveys and administrative records
 Usually annual updates
 County/Zip Business Patterns
 Establishments by industry
 Basic characteristics
 Non-employer statistics
 Sole proprietors – businesses with no employees
March 20, 2012 RLS Demographics, Inc.

19. March 20, 2012 RLS Demographics, Inc.

20.  CapitalDistrict Regional Planning
Commission
www.cdrpc.org
 State Data Center
www.empire.state.ny.us/NYSDataCenter.html
 Small Business Development Center
March 20, 2012 RLS Demographics, Inc.

21.  Demographics define the “who” of your
market and customer
 Psychographics define the “why” of buying
desires and habits
 Pay attention to geographic distribution of
your market and customers
 Learn how to access demographic data and
profile your market
March 20, 2012 RLS Demographics, Inc.

22. Bob Scardamalia
P.O. Box 160
Rensselaerville, NY 12147
(518) 703-0724 (cell)
(518) 797-3163 (home)
bob@rlsdemographics.com
March 20, 2012 RLS Demographics, Inc.