What are Market Demographics? - Definition & Overview

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  • 0:03 What Is a Market Demographic?
  • 1:32 Example
  • 3:19 Lesson Summary
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Lesson Transcript
Instructor: Orin Davis
A market demographic is a complex slice of the population that is likely to purchase or use a product, and this demographic is the main target of marketing efforts.

What Is a Market Demographic?

Step aside, Mr. Infomercial! You have the best brand-new product to hit the market, and it's going to make you millions! All you have to do is get the word out there, and people will trip over themselves to buy your incredible new Ultrawowie!

Of course, not just anyone is going to buy the Ultrawowie, given that the people who use it tend to have their own homes and often have multiple children. Come to think of it, they probably also have a household income of at least $100,000, so your market demographic is decidedly not everyone. But, what is a market demographic?

As you may know, a demographic is a group or slice of the population, such as a gender, an ethnicity, or people born in a certain time period. People can be divided by social class or income, location, climate (like desert or tropical), language, and a host of other features that enable people to be classified together as a group. So, a market demographic is a slice of the population that's likely to buy or use a product, and thus, these are the people at whom marketing efforts are directed. Often, this is not as simple as a basic slice of the population, such as just women or just rich people. Market demographics tend to be rather complex, because no one buys or uses everything! An example of a market demographic is women who are 24-30 who have graduated college and own a home.


Now, let's explore a more specific example of a product to understand how a market demographic comes into play. Consider an action figure of a male superhero that was in a recent movie. Who would buy it? Who would use it? Mostly, it is likely to be boys between the ages of 4 and 10 who would use the action figure. But, might there be differences across cultures and ethnicities as to who might use it? For example, will it be mostly American children who use it? Also, how much does the figure cost? Who can afford it? Who has a sufficient amount of disposable income to buy a toy action figure for a child around the time that the movie will be popular? That set of people, based on all of those factors (and any other relevant ones) becomes the market demographic.

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