There are many advantages of demographic environment marketing as it takes a highly targeted approach. Demographic marketing focuses on the sector of the population who are most likely to be interested in the product or service for example, age, gender, location, class, income, race etc. The company will then target them directly with marketing and promotional campaigns. Advantages include:
- It focuses primarily on those most likely to be interested
- It is more cost effective than other methods as money is not wasted on those who will have absolutely no interest at all
- Market research will enable the company to focus their attention on a particular area of marketing, for example will a TV advert reach more of the target audience than a flyer delivered through the door?
- Marketing can be made more subtle and less intrusive; as opposed to techniques like cold calling
The disadvantages of this method tend to be outweighed by the many positives however as with everything it is not without its problems, disadvantages include:
- You are at risk of alienating people who fall between categories
- If you are marketing a product, for example a gift around Christmas, you may miss out the people who wouldn't be interested in the product themselves but would buy it for someone else
- If market research is flawed, the campaign could be targeting the wrong people
Marketing is very important to get right as it can mean the difference between success and failure; especially with a new product. There is no point for example, spending millions of pounds promoting a new over 60s magazine in high schools or prior to the latest Glee movie, when this money could be spent on adverts between gardening and antiques shows, or SAGA events. Similarly, there is very little point in sending flyers round studio apartments about baby accessories or babysitting services as the people in the flats are less likely to have a child. It is for these reasons why this type of marketing is so popular.
- It focuses primarily on those most likely to be interested
- It is more cost effective than other methods as money is not wasted on those who will have absolutely no interest at all
- Market research will enable the company to focus their attention on a particular area of marketing, for example will a TV advert reach more of the target audience than a flyer delivered through the door?
- Marketing can be made more subtle and less intrusive; as opposed to techniques like cold calling
The disadvantages of this method tend to be outweighed by the many positives however as with everything it is not without its problems, disadvantages include:
- You are at risk of alienating people who fall between categories
- If you are marketing a product, for example a gift around Christmas, you may miss out the people who wouldn't be interested in the product themselves but would buy it for someone else
- If market research is flawed, the campaign could be targeting the wrong people
Marketing is very important to get right as it can mean the difference between success and failure; especially with a new product. There is no point for example, spending millions of pounds promoting a new over 60s magazine in high schools or prior to the latest Glee movie, when this money could be spent on adverts between gardening and antiques shows, or SAGA events. Similarly, there is very little point in sending flyers round studio apartments about baby accessories or babysitting services as the people in the flats are less likely to have a child. It is for these reasons why this type of marketing is so popular.