What Are Demographics?
Demography is the study and analysis of populations. Demographics are the characteristics and data that describe and quantify those populations.
The word, demographics, finds its origins in Greece. In ancient Greece, demos referred to the people or population. The Greek origins of -graphy or -graphics is graphein, which means to describe, write, or record.
The first use of the term is accredited to Achilles Guillard in his 1855 work Elements Du Statistique Humaine Ou Demographie Comparee. Mr. Guillard defines demography as "The knowledge, provided by observation, of laws according to which populations form, sustain themselves, renew themselves, and follow one another."
What Is Demographic Data?
Demographic data is the specific piece of information that categorizes or identifies a subset of people in a population. The main purpose of demographic data is to characterize and quantify populations in terms of size, composition and distribution. Over time, demographic data can show population trends. Common examples of demographic data includes age, ethnicity, marital status, sex, birth rates, mortality rates, and migration patterns.
Why Are Demographics Important?
Demographics provide a scientific understanding of the character and trends of human populations. Any part of the community that needs to understand population trends needs demographic information to help make decisions, allocate resources, and influence policy.
In business, demographics are used to segment markets to identify specific needs particular to specific groups of people. Demographics are also used to determine if a market is big enough to sustain a particular type of business. As an example, a retail store may need to be located within a few miles of a minimum population size with a minimum household income to have enough customers to support their business.
Governments need demographic information for a multitude of reasons. An example would be a city who needs to plan for future development. Future development needs will be driven by local population composition, size and growth trends which the city needs to know to make budgets, determine necessary programs, and ensure appropriate land use policy.
Politicians even use demographic information to understand populations in their voting districts. Understanding who their voters are helps politicians identify the most important issues specific to their constituents.