Both demographic and psychographic information plays a vital role in market research and digital marketing. They both offer insights into the customer and, also, are fundamental inputs to a business’s digital marketing strategy. The ability to mine demographic, as well as psychographic information, has given rise to the Long-Tail Economy.
What is the long tail economy?
Our economy has changed from consisting of a few mass markets to countless of small niche markets. Technology – such as the Internet as well as sophisticated search engines – has made it much simpler for consumers to find as well as buy bespoke products. Moreover, ‘microtargeting’ – which is defined as the ability to filter prospects by demographic, psychographic, and even by their behaviour – has allowed businesses to focus their digital marketing efforts on potential buyers who are very likely to be absorbed in what the particular company has to offer.
The term ‘Long-Tail Economy’ is defined as the ability of digital marketing to reach a small, however highly engaged, and passionate target market or customer segment with a customised product or service. The Long-Tail Economy hangs on the theory that our culture and economy is increasingly shifting away from an emphasis on a relatively small number of mainstream products and markets, at the top of the demand curve on the way to a vast number of niche products in the tail.
What does ‘demographics’ mean?
Demographic information tends to emphasise external or physical factors such as age, ethnicity, gender and location. This type of data allows you to understand better certain background characteristics of your target audience. By posing demographic questions in surveys, it is possible for you to gather demographic information about current as well as potential customers and, in turn, help you design a market segmentation strategy to reach the right clients.
Demographic questions are any question(s), the goal of which is to better understand the identity of a particular respondent. Demographic surveys (in other words surveys which use demographic questions) look for basic information about respondents. This information allows the survey designer to understand where each person fits in the general population.