Demographic Environment - Meaning & Definition

Published in Marketing and Strategy Terms by MBA Skool Team, Last Updated: December 31, 2014

What is Demographic Environment?

The demographic factors like gender or ethnicity of the market are useful to segment the target population for impactful marketing. The focus lies mostly on the people who are most likely to buy the product. This ensures that the company does not waste money in people who have no interest in buying the product.

Demographic approach provides very specific information about different populations. Based on the data, the company can develop well defined strategies helpful to reach more population. For example if the demographic environment tends to be busy, young workers, then the company might intend to promote the quick use and convenience available with the product.


Populations are never constant. They always migrate from place to place and die or are born. Hence, marketers cannot just collect demographic data at one time. They have to continuously collect the information about people in order to have an instantaneous picture of what is happening in the real world at any given point of time.


Sometimes the focused approach may lead to loss of potential customers who do not fit the general demographic trend because the company does not concentrate on bringing in those customers. This also includes the loss of sales from those persons who might buy the product/ service for some other person who is not aware of the product/ service.


Hence, this concludes the definition of Demographic Environment along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.

Continue Reading:

Share this Page on:
Facebook ShareTweetShare on Linkedin