Editing Demographic profile (section)

{{Short description|Form of demographic analysis used by marketers}}
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A '''demographic profile''' is a form of [[demographic analysis]] in which information is gathered about a group to better understand the group's composition or behaviors for the purpose of providing more relevant services.

In business, a demographic profile is usually used to increase marketing efficiency. This is done by using gathered data to determine how to advertise products or services to specific audiences and identify gaps in marketing strategy.<ref name="measureevaluation">{{cite web |title=Lesson 3: Creating a Demographic Profile |url=https://www.measureevaluation.org/resources/training/online-courses-and-resources/non-certificate-courses-and-mini-tutorials/population-analysis-for-planners/lesson-3 |website=[[MEASURE Evaluation]] }}</ref> By focusing on a specific audience, a company can more efficiently spend advertising resources to maximize sales.<ref name="Arnott, D., & FitzGerald, M. 1996">{{cite journal |last1=FitzGerald |first1=Maureen |last2=Arnott |first2=David |title=Understanding demographic effects on marketing communications in services |journal=International Journal of Service Industry Management |date=August 1996 |volume=7 |issue=3 |pages=31–45 |id={{ProQuest|233640609}} |doi=10.1108/09564239610122947 }}</ref> This tactic is more direct than simply advertising on the basis that everyone is a potential consumer; while this may be true, it does not capitalize on the increased returns that more focused marketing can generate.<ref name="Jothi, A. L. 2015">{{cite journal |last1=Jothi |first1=A. L. |year=2015 |title=A study on influence of demographic factors on customers' preference towards cosmetic products |journal=Sumedha Journal of Management |volume=4 |issue=4 |pages=39–48 |id={{ProQuest|1776777815}} }}</ref>

Traditional demographic profiling involves gathering information on large groups of people in order to identify common trends,<ref name="GfK. 2016">{{cite web |title=Tech Trends 2016: Understanding the driving forces behind the connected consumer |url=https://www.warc.com/content/paywall/article/gfk/tech_trends_2016_understanding_the_driving_forces_behind_the_connected_consumer/106693 |website=WARC |url-access=subscription }}</ref>{{unreliable source?|date=July 2020}} such as changes in population size or composition over time. These trends can be identified by analyzing data gained through surveys, censuses, in-store purchase information, records, registries, and so on.<ref name="Arnott, D., & FitzGerald, M. 1996" /> Analysis of this information may promote change in services for a population subset, such as children, the elderly, or working-age people.<ref name="measureevaluation" /> Newer methods of collecting and using information for demographic profiling include target-sampling, quota-sampling, and door-to-door screening.<ref>{{cite journal |last1=Treiman |first1=Donald J. |last2=Lu |first2=Yao |last3=Qi |first3=Yaqiang |title=New Approaches to Demographic Data Collection |journal=Chinese Sociological Review |date=8 December 2014 |volume=44 |issue=3 |pages=56–92 |doi=10.2753/csa2162-0555440303 |pmid=23844330 |pmc=3704565 }}</ref>

A comprehensive demographic profile is a powerful tool for marketing. Detailed information about potential customers provides insight into how to best sell them a product.<ref name="GfK. 2016" /> The term "demographic profiling" is sometimes used as a euphemism for [[industrial espionage]].<ref name="Hudson, J. 2002">{{cite journal |last1=Hudson |first1=John |title=Demographic profiling |journal=Ubiquity |date=1 December 2002 |volume=2002 |issue=December |pages=1 |doi=10.1145/764008.763951 |s2cid=28020979 |url=https://ubiquity.acm.org/article.cfm?id=763951 |url-access=subscription }}</ref>