demography of a region includes population size and composition,
as well as key socio-economic attributes such as literacy
levels and wide or narrow disparities in a society's distribution
of income. Theoretically, the larger the total population
in a region, the larger the potential market that will exist.
In addition, the composition of a population in terms of
age and sex will also influence the potential demand for
specific products. For example, if a company wishes to market
disposable nappies abroad, the number of women in a particular
target market who are of child-bearing age is an important
influence on the potential demand for that product.
In effect, demographic factors such as literacy
levels serve to stratify the total population into two
different segments - those people who are likely to be
potential consumers and those who are not.
An overall increase in population size
is therefore relevant to potential demand. Stratification
of the overall market by demographic characteristics also
helps to identify significant changes in potential marketing
opportunities. For example, the ageing of the post-War
'baby-boomers' is creating a growing worldwide market for
products and services geared to affluent and middle-income