DEMOGRAPHIC

AND ECONOMIC
FACTORS
LEARNING OBJECTIVES

 TO EXPLAIN THE IMPORTANCE OF

CURRENT DEMOGRAPHIC TRENDS.

 TO IDENTIFY THE REACTION OF

CONSUMERS AND MARKETERS TO
THE STATE OF ECONOMY.

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DEMOGRAPHIC
FACTORS

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 DEMOGRAPHY

▰ It is the study of population and population mix in terms

of age, gender, size, density, occupation, race, location
and other statistics.

*In order to develop successful marketing plans, it is

necessary to examine consumer characteristics, needs,
lifestyles and purchase decisions. In this way, a company
can identify and satisfy its target market, minimize
customer dissatisfaction and remain ahead of
competitors. 4
 DEMOGRAPHIC SEGMENTATION

▰ It is a common strategy where several socioeconomic

traits are used to categorize customers, including age,
gender, marital status, race or ethnicity, income,
education and occupation.
▰ Divides the market into groups based on variables
such as age, gender, family size, income, occupation,
education, religion, race, generation, and nationality.
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WORLD POPULATION
(SOURCE:WORLD POPULATION PROSPECTS)

World Population (as of 9/6/2019) 7,728,655,319

Last UN Estimate (July 1, 2019) 7,713,468,100

Births Per Day 383,656

Deaths Per Day 159,160

▰ LARGEST COUNTRY: China

▰ SMALLEST COUNTRY:Vatican

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 PHILIPPINE POPULATION

The population of Philippines (as of 9/6/2019) 108,393,103

Last UN Estimate (July 1, 2019) 108,116,615

Births Per Day 5,985

Deaths Per Day 1,735

Net Migrations Per Day -184

Net Change Per Day 4,066

▰ LARGEST CITY/MUNICIPALITY: Quezon city
▰ SMALLEST CITY/MUNICIPALITY: Carigara, Leyte
▰ PERCENTAGE OF MALE POPULATION: 50.1%
▰ PERCENTAGE OF FEMALE POPULATION:49.9% 7
 DEMOGRAPHIC FACTORS

1. AGE
2. GENDER
3. INCOME
4. RACE/ETHNICITY/RELIGION
5. FAMILY STRUCTURE
6. GEOGRAPHIC LOCATION
7. OTHERS 8
 AGE
A demographic component that impacts business-
marketers is age factor. The products and services of a
company are sold to attract to certain kind of age
groups.

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 MARKETING TO TRADITIONALISTS
AND BABY BOOMERS (55 years old and above)

-THEY RESPOND BEST TO MESSAGES THAT TALK ABOUT THE

FUTURE AND SPEAK TO THEIR GOALS AND DREAMS WHICH
THEY WILL PURSUE UNTIL THE DAY THEY DIE.

-GIVE YOUR MARKETING A MORE YOUTHFUL CONTEXT.

-ASSOCIATE YOUR PRODUCT OR SERVICE WITH DEEPER

VALUES AND PASSIONS TO BE MORE COMPELLING TO THIS
COHORT.
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 MARKETING TO GEN X (35-54 years old)

-EXPLAIN TO THEM WHAT THEY CAN EXPECT FROM

THE BRAND AND HOW THE PRODUCT CAN BENEFIT
THEM.

-THEY LOVE TO SAVE MONEY SO OFFER THEM

DISCOUNTS AND THEY RESPOND TO OFFERINGS THAT
WILL CORRESPOND TO THE NEEDS OF THEIR FAMILIES
PARTICULARLY THEIR CHILDREN.

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MARKETING TO GEN Y AND Z (34 years old and below)

-WORD OF MOUTH RECOMMENDATIONS AND ONLINE

CONSUMER REVIEWS HAVE THE MOST IMPACT ON
MILLENIAL PURCHASING DECISIONS.

-THEY ARE SEEKING HONESTY, HUMOR, ADVENTURE

AND STORIES THAT MAKE THEM FEEL A MEANINGFUL
CONNECTION TO YOUR BRAND.

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 GENDER
Under gender segmentation, the database is divided into male or
female. Both men and women have different interest in terms of
shopping for various products such as apparel, cosmetics,
perfumes, shoes etc. and even food habits. To overcome this
challenge, a company should have different marketing strategy for
both men, women and even to members of the LGBTQIA
community.

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 INCOME
Income is one demographic variable that can affect businesses. A
company's products usually appeal to certain income groups. For
example, premium products such as high-end woman's clothing
usually appeal to women with higher incomes. Conversely, people
with comparatively lower incomes are more sensitive to price and,
therefore, may prefer purchasing discount products.

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 RACE/ETHNICITY/RELIGION
RACE- refers to a person's physical characteristics, such
as bone structure and skin, hair, or eye color.
ETHNICITY- refers to cultural factors, including nationality,
regional culture, ancestry, and language.
RELIGION- a particular system of faith and worship.

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 FAMILY
STRUCTURE
Knowing whether a person is married, single or
divorced, is also an important demographic to
understand. Family structure affects buying habits
and also affects the sales process.

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 GEOGRAPHIC
LOCATION
People's buying preferences also vary by
geographic region, which is another type of
demographic. Those who meet buyers' needs and
requirements in certain geographic regions can
earn higher sales and profits.

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 THE VALUE OF
DEMOGRAPHIC TRENDS

1. An up-to-date demographic trends enables firms to classify existing

and emerging markets for selling their products and services.

2. The demographic trends can be applied to develop marketing

strategies effectively by helping marketers target new and existing
customers with the right message at the right time.

3. A regular study on the change in the demography for the times to

come is of essence as being the first to cater to the changing fashion
will only help keep the firm ahead always.
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ECONOMIC
FACTORS

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ECONOMY

▰ An economy encompasses all activity related to

production, consumption, and trade of goods and
services in an area.

*When developing a marketing strategy, businesses

need to factor in the economy of their target market to
ensure they prepare for the ramifications of an
economic downturn.
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ECONOMIC FACTORS

1. INTEREST RATE
2. EXCHANGE RATE
3. INFLATION
4. DEMAND AND SUPPLY
5. RECESSION
6. OTHERS
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ECONOMIC FACTORS
INTEREST RATE
An interest rate is based on
the amount of money a
lender, such as a bank,
lends to a borrower. In most
instances, the interest rate
is calculated as an annual
percentage based on the
outstanding loan.
EXCHANGE RATE
The exchange rate is the
price of a foreign currency
that one dollar can buy.
Businesses that import and
export goods are highly
sensitive to fluctuations in
the exchange rate
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ECONOMIC FACTORS

INFLATION LAW OF DEMAND AND

Inflation is one of the SUPPLY
primary economic marketing It's a fundamental economic
aspects that affect principle that when supply
customers' purchasing exceeds demand for a good or
power. It represents the rate service, prices fall. When
at which the price level of demand exceeds supply,
products and services are prices tend to rise.
rising.
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ECONOMIC FACTORS

RECESSION
Recession is characterized by a decrease in the rate of growth
of the economy. Unemployment rises and consumer buying
power declines. During a recession, consumers’ spending
power is low, as they are busy paying off debts incurred
through credit purchases during more prosperous time. During
recessions, marketing opportunities are reduced. Because of
reduced buying power, consumers become more cautious,
seeking products that are more basic and functional.
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CREDITS

▰ Lamb. Hair, Mcdaniel.(2011) Marketing.

11th edition.
▰ Smallbusiness.chron.com
▰ Bizfluent.com

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