Marketers use zip code demographic data to segment the population and develop targeted marketing strategies based on location-based demographic information. This information is used to forecast trends and develop a profile of the typical person living in a community, guiding marketing strategy and advertising placement.
Marketers use zip code demographic data to segment the population and develop targeted marketing strategies. ZIP code segmentation is one of the most popular ways researchers present data because codes are in use across the country. Location-based demographic information is particularly relevant in retail marketing because presentation, local conventions, consumer tastes, and buying habits tend to be specific to a geographic region.
Demographics are specific characteristics of a target population, such as race, gender, income level, age, and education. Researchers record this data for a group of people and compare it to an applied criterion, such as a behavior, to reach a conclusion about the condition or habits of the population. This information is also used to forecast trends by comparing historical demographic data with current data in a specific location or for a defined group.
Location is particularly important for studying demographics. By design or accident, zip codes tend to track the parameters of a definable community. Even though a zip code is not the best way to analyze related communities, it is one of the easiest ways to do this at a local level. Some of the most widespread demographic surveys that are conducted at the national level use zip codes as the most local level of analysis, such as US Census data and the Zip Code Community Reference Book of Demographic Data.
Marketers use zip code demographic data to segment the market. This means that in an entire market such as a city or a state, the marketer finds pockets of consumers who would be interested in and able to buy their products by looking at income and other factors relevant to where they live. The marketer uses demographic data to develop a profile of the typical person living in that community. This profile will guide the type of marketing strategy adopted for the area and the development and placement of advertising.
For example, if a billboard appears in a community with a predominantly Spanish population, the company knows to put the billboard text in Spanish and use Spanish templates because marketers used demographic data by zip code. They created a profile and found the most appropriate way to bond with most of the people who live in that neighborhood. The availability of this type of information has been instrumental in changing marketing over the years from reactionary to strategic.
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