Demographic studies illustrate how businesses are influenced by variables in demographics. It is the study of populations in terms of their size and characteristics. It can then be used by the businesses when assessing their target markets and will then enable them to reach them efficiently and effectively. Areas of interest include: -Age structure, the geographic distribution of its population, the balance between males and females and the likely size of the population and its characteristics. Demography is a very important marketing tool, which marketers should always study, when participating in any decision making because changes in any of the above will have, under no exception, an influence.
             Business focuses strongly on demographic factors for several reasons. Firstly, demography is used to predict the size of a market that a product is likely to penetrate. Businesses should be in a position to react positively to any change in for example, population. An increase in the number of elderly people would create an increased demand for retirement homes, and similarly a baby boom would require a need for more nursery care and a future demand on schooling, and not excluding the need for actual accommodation. Demographic factors are a popular methos if segmenting a products markets, in terms of the consumers needs, wants and desires.
             Another reason for studying demography is the understanding of the supply implications. The resource that a company requires should equal the opportunities that it expects, to meet the requirements of the consumer. For example, labour is a key resource within any business. Studying demography will allow early indications of resource availability
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