Demographics, the Basis of Marketing


Understanding who is buying your product, and how to correctly market to this consumer base, all start with demographics.

Demographics can include geographic area, age, income, race, gender, education level, etc. and allow businesses to define their target consumers, using that information to launch successful marketing campaigns. Obviously, targeted demographics can vary greatly between companies. A liquor producer and a toy producer would not be targeting the same demographic. Advertisements, packaging, and pricing are a few of the things that demographics help determine. Age is a big player in demographics and how businesses market their products; it is a generally accepted concept that when marketing to older audiences online, or in advertisements, it is important to use a font that is easy to read with a white or light-colored background and it should avoid excessive use of flash. This varies greatly from the eye-catching, colorful ads used to target younger audiences. This specialized form of advertising can help a business connect with their consumer base in the most effective way possible.

Joe Olmstead spoke about the importance of demographics at a Product Council event June 6th, 2017 that the LAB hosted. Olmstead talked about some of the experiences Alienware had when determining its demographics and how they specialized products to target certain consumers. Being the Head of Product at a company that specializes in computer gaming, Joe Olmstead, along with the rest of the team at Dell studying the company’s analytics, were confused when they realized the company’s biggest demographic were women ages 35-45. This was because the moms were the ones buying the computers for children, husbands, etc. and were the ones with the credit cards. This could’ve affected how Alienware markets its products; advertising could’ve been expanded to new places in the market to attract the attention of women looking to buy a computer as a gift. This, however, is not to say women do not buy gaming computers for themselves. According to Olmstead, around 44% of professional gamers are women. This is why Alienware came out with a 13-inch laptop that was thin and lightweight. Alienware’s computers can weigh up to 11 lbs. and they knew a lighter computer would appeal to women gamers, increasing sales. Understanding your demographic and how to properly act on their wants, needs, and opinions is an essential part of entrepreneurship. As always we hope you continue to learn, act, and build at the LAB Miami.