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Demographic Environment of Business

In demographic environment of business, we can include following things

1. Size of population


All these elements are relating to business. If size of population is increasing with high growth rate, demand is increased.


2. Growth rate


High growth rate of population is also tells us high rate of supply of laborers. Many companies motives to invest money in developing countries due Cheap labor power and developing market.


3. Age composition


Before producing the product, we see what age group will use this. For example, young population are interested to wear jeans but old age population are interested to wear curta and pajama.

4. Sex composition


Sex composition are two one is male and other is female. We also study the number of our customers who are female and no. of our customers are female. If female are more than male, we will care their need specially  in making of our products.


5. family size


Suppose, we are making residential rooms. For making residential rooms, we should study the number of family members who will live in it.


7. Educational level


Educational level of our customer may also affect our marketing techniques. If our customers are very educated, we can use online advertising, if they are not educated we have to use old means of advertising. 

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