What is the benefit of having an age demographics analysis of the target market of Monroe County in the business plan for Real Estate Funding Solutions?
The age demographics of a target market like Monroe County gives the reader of the business plan a very good summary view of what the age composition of the target market of Monroe County looks like. The reason we think that age demographic analysis is important is that the prime purchasers of most goods and services tend to be folks who are in the age range of between 18 and 65 and hence we ought to know just what percent of the population of the target marketx
What is the age demographic analysis for Monroe County compared to?
The age demographic analysis for Monroe County is compared to the age demographic analysis for the entire state of New York. The reason for this is fairly obvious. If we don't compare our findings of the local target market to a regional, state or national trend, we will never be able to understand if there are deviations and discrepancies from the larger averages. For example if the statewide average for the percentage of the population over 65 is 14%, and we find that the target market has that number at 23% - it obviously means that there are more retired senior citizens in the target market than the state as a whole.
In order to conduct our analysis we have the following age classifications for the target market of Monroe County:
What if the target market has a much larger proportion of people under the age of 18? How can you market to them?
Having a large part of the population in the target market of Monroe County in the age bracket of less than 18 has many implications for all businesses. If you happen to be in retail, you must understand that if the target market has a lot of young people, you will need to carry lines of things that will interest them - this ranges from clothing, music, electronics and every other consumer purchase category that you can think of including cars. The interests and tastes of the under 18 crowd tend to be vastly different from the rest of the market and special effort has to be made to be able to tap into this market and benefit from it. Even food businesses will need to have items on the menu that are favorites with the younger crowd. Large franchise based businesses in the food industry understand this very well. McDonalds is a classic example of how a large company has been able to tap into the younger crowd by changing its image and advertising and marketing to them.
What about folks in the age bracket of more than 65 years - how does that affect a business?
One thing that the under 18 crowd does not tend to buy in any significant quantity is of course things that older folks will spend their money on - namely health care and retirement lifestyle oriented products and services. Thus if you are were planning to start a business that specialized in providing transportation services to the elderly, and your target market had a much smaller proportion of retired folks as compared to the state, you would have to understand what you are getting into and realize that you will probably have a tough time building a book of business since the market for your services is smaller when compared to the rest of the state.
Yet another important aspect of catering to a target market that has a lot of retired folks and senior citizens is understanding that their lifestyles and interests are dramatically different from the younger age groups. For example, it is fairly well known that most retired folks tend to eat very early and sleep early as well. Thus if you are a restaurant in a target market with a lot of older folks, you will most certainly need to have an early dinner specials to be able to capture some of the business. If you decide to open for dinner later, you will certainly miss out on some of the business that you could get from 'early birds'.
Advertising on radio and television to the elderly also has its own special understanding of which kind of programs have a significant older audience. It would not make any sense for a business advertising their products or services targeted at older folks on say MTV or other local channels and stations aimed at younger folks - why - because they will not be listening!
Having all paperwork printed up in larger and clearer typeface is yet another example of a business adapting to an older client base. It is well known that as folks get older their ability to hear and see diminish and having larger and clear lettering and signage may be a good idea. The home health care industry for example is well aware of the special challenges and care that is needed by older folks and has been able to grow quite well over the years as senior care becomes a larger and larger part of our lives.
Why are folks in the target range of 18 and 65 the most coveted target market?
The reason why the age range of 18 to 65 is the most desired range by most marketers is simply because that is the age when people are earning a living. Most people retire at 65 and even if they don't, they are saving away for their retirement. In fact in the world of small business, it is well known that the age bracket of 25 to 45 is when most folks start their businesses and a lot of focus is paid to the tastes and preferences of that age bracket when marketing products and services geared towards helping entrepreneurs start their own business.
When folks earn an income, they pay income tax and they also tend to spend money into a local target market like Monroe County. This of course means that more money is going into the local economy along with sales tax and other fee revenues for the local and state governments. The changing and shifting demographics of age has implications for all these parts of the economy including investing, real estate and insurance.
For example in the insurance business, we know that the time that most folks buy whole life policies is between the ages of 30 and 50. Before the age of 30 most young folks don't tend to think of life insurance since they are mostly only recently married or still single; on the other hand once you pass the age of 50 most folks find it very difficult to afford the life insurance premiums that insurance companies want from them to insure them given that they are getting older.
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