A socio-economic status is the concept of ‘class’ based on where you might be in society according to your social outlook on life, your household income, political preferences, education plus a number of other factors.
Businesses like to use socio-economic statuses to ensure that they can get a good grasp of the market. A target customer’s socio-economic status for example may have an impact on whether they would be interested in a company’s products or services or not. Companies like Global Demographics can make predictions based on this information.
Targeting customers is one of the main benefits of using socio-economic status. By looking at a potential customer’s social class or education, some businesses like to make a prediction about the type of product one type of demographic would prefer over another.
Rather than targeting all customers at once, a company that uses socio-economic forecasts i.e. predictions will be able to help a business make a decision about upcoming market trends. It will generally include the analysis of marketing trends and money spent by different social groups based on gender, age and location etc.
By making predictions, the benefits for your business can be huge. Rather than taking a gamble and advertising then releasing a product you hope your target demographic would like, you can instead use the analysis of their socio-economic status in order to present your target market with your new product in the right location, at the right time and to the group that has the appropriate amount of money.
The benefits here are obvious – instead of blowing a marketing budget on an advertising campaign that doesn’t target the right customers, you can instead monitor the market and plan your advertising and products accordingly.
Create Business Plans and Budgets
Budgeting is a huge part of running your business, and by using a socio-economic forecast from a reliable demographics source, you will be able to organised a marketing strategy and create a good business plan to target your ideal demographic.
Budgeting for your marketing campaign can be based on whatever is relevant to your business. For example, if you were creating an energy saving solution for a product in the home, you might want to use socio-economic analysis to look at average household income in specific locations, how much people already spend on energy bills etc so that you can create a strategy to explain how beneficial your product would be to those that need it.
By using a demographic company, you can take advantage of these many benefits and create a more successful business strategy. These companies will have a huge amount of databases which they will draw information from. Statistics will mostly likely been gathered over a number of years, and the details that the company holds could be anything from work to education, to gender, to income to monthly expenditure.
You can request the information that you need and get the answers you need from these databases and base your upcoming business strategy on the information you find.