BUSINESS DEMOGRAPHY

UNIT 1

Demography
Statistical study of human population. It is related to the study of size, structure, and distribution of population and temporary and permanent changes in population due to birth, death, migration, aging etc.

Demography
Study of both quantitative and qualitative aspects of human population. Quantitative aspects include composition, density, distribution, growth, movement, size, and structure of the population. Qualitative aspects are the sociological factors such as education quality, crime, development, diet and nutrition, race, social class, wealth, well being.

 Demography is the study of the growth, change, and structure of the human population. Changes in a population's size and structure are caused by changes in the birthrate, the death rate, and the net migration rates. Demographic research focuses on why people have the number of children they do; on factors that affect death rates; and on the reasons for immigration, emigration, and geographic mobility.

Definition of Demography
Dr. K. Park (1998) Demography is a scientific
study of human population. It focuses on 3 readably observable human phenomenachange in population size (Growth and Decline), Composition of Population and distribution of Population. It deals with 5 demographic processes-Fertility, mortality, marriage, migration, social mobility which works continuously within the population determining its size, composition and distribution.

 Houses an Duncan (1959) Demography is the study of the components of the population variation and change

Importance of Demography
Demography is useful to Government for allocating different resources or making plans for the welfare of masses, balanced growth of the economy. Demographic information is useful for research purpose. Demography is useful for businessman for advertising and launching of new products in different markets.

Cont..

Demographers provide information to the government which is essential for it to take rational decisions. Demography is useful for understanding social and economic problems and finding their solutions.

BUSINESS DEMOGRAPHY
When the demographic concepts, data and techniques are applied as an aid to business, it is called Business Demography.

Need of Demographic Studies for Business

MARKET AND RETAILING

Consumer is the king of market. Businessman must have thorough knowledge about diversified consumer groups. Example: launching a series of hotels in different regions, the group must consider the standard of living of the society of various areas of the regions, lifestyles of the people, financial positions of the people etc.

HUMAN RESOURCE PLANNING

Workforce required in business- Skilled, Semi skilled, unskilled. Big and eminent companies spend billions of dollar on the health care of their present and former employees. Business Demography helps in furnishing useful information of the workforce.

BUSINESS SITE SELECTION AND EVALUATION

Composition of Population Average Income Level of the People Likes and Dislike of the consumer Various habits of the consumer Cultural background of the consumers Literate and illiterate people Availability of skilled and unskilled workers Area or land on which business has to be constructed.

TRACKING EMERGING MARKETS

Globalization has led to expansion of market boundaries to international level. Countries like China and India, are growing rapidly and there is a constant and continuous improvement in consumerism. Therefore, emerging markets can be identified only by proper demographic analysis.

INVESTMENT
When any business is to be launched in any particular area, region or country, it is absolutely necessary for its management to think about investment in it. Return on Investment