I have been a marketing professional in the natural products industry for more than two decades. Marketing is an inexact science to say the least. And, over my career, marketing has changed dramatically, most notably with the incorporation of social media.

That said, there are marketing strategies that can be utilized that will provide a greater chance for a return on investment (ROI). Businesses market products or services through targeted approaches to different segments of the population called demographics.

Demographics are the statistical component of marketing used to identify population segments or target markets by specific characteristics. Whether small or large, businesses need a targeted approach to their target market(s). In fact, demographics will impact the direction a business owner will take in developing a marketing plan.

Demographics

The importance of demographics cannot be understated. In fact, business startups will initially gather demographic information to include in their business plans in an effort to raise seed capital, which is vitally important to launching a business. Demographic information can include: age, location, gender, income level, education level, marital or family status, occupation, ethnic background.

You may also need local demographics about how many people own cars or homes, who attends college or what percentage of residents are internet or social media users. Furthermore, you can also consider the psychographics of the demographics you are targeting. These may include: personality, attitudes, values, interests/hobbies, lifestyles, behavior.

Whether the demographics describe national or local markets or small groups, such as those within an age range, the information helps to avoid the hit-and-miss marketing so often utilized by many businesses. As you can imagine, the ROI is generally uninspiring.

The process of strategically determining demographics to identify ideal customers can often be painful. Nonetheless, this is crucial as certain marketing strategies must be put into play that include targeted product packaging, advertisements and pricing, among other factors.  

That said, let's take a look at some common demographics and how marketers may find these initially useful to identify target markets.

It is important to understand that a number of factors are considered in selecting the ideal target market for a marketing campaign. In general, the goal is to go after the market that offers the best current or long-term profit potential. Market size, growth potential, number of competitors and company strengths are among the key factors. The larger the market, the more potential to earn profit. Markets that are fast growing and less competitive also offer advantages.

At the end of the day, demographics are just one of the primary ways to segment markets. Your industry, company and customers determine which strategy is the most appropriate to segment. Demographics have been one of the most traditional marketing approaches as they involve clearly defining potential customers. However, as I mentioned earlier, marketing is an inexact science. Believe me when I say the marketing process is a constant game of adjusting and tweaking. At times, it can be frustrating. It can definitely be costly. But, once you zero in on a campaign that is showing a definitive ROI, it can be golden for you and your business. Good luck!

Mark Becker is an account manager for Vivion, a raw materials distributor, based in Vernon, California. He has worked as a natural products sales and marketing executive for 20 years. Mark has written more than 300 articles and has hosted or been a guest on more than 500 radio shows. He obtained a bachelor's in journalism from Long Beach State University and did his Master’s work in communications at Cal State Fullerton. For more than 30 years he has participated in numerous endurance events, including more than 150 triathlons of Olympic distance or longer, 103 marathons and numerous other events including ultramarathons and rough water swims from Alcatraz to the mainland. He has relied on a comprehensive dietary supplement and homeopathic regimen to support his athletic, professional and personal endeavors. Follow Mark Becker on Facebook and Twitter. For more information, access www.vivioninc.com or www.EnergyatLast.com.