Question

How can firms use customer demographics like income, market size, education, and ethnicity to market to their customers better?

Answer 1

Answer:

Demographics are a key part of your small business marketing strategy. Demographics help you identify the individual members of your audience by key characteristics, wants and needs. ... You can use demographics to refine your marketing budget and make more targeted investment decisions about how to engage your audience.

Answer 2

Firms use customer demographics like income, market size, education, and ethnicity to market to their customers better than other customers from England devising an effective marketing strategy.

Explanation:

• Demographics such as income, market size, education, ethnicity, etc are helpful in understanding the nature of customers and their possible demand.
• This is not only helpful in preparing a marketing strategy but also helps the firm in making products as per the needs of the customers.
• When the products are made as per the requirements of the customers, there is always a hike in demand.
• For example, when significant data about the income of the customers is available, a firm can invest in more research to improve the quality of the products. They can also increase the price of their products as the customers will be willing to pay more for better products.