Demography:- Is the study of human populations in terms of size, density, location, age, gender, race occupation, and other statistics. Demography is very important because it involves people, and people make up markets. The word population is growing at an explosive rate. This population explosion has been of major concern to governments and various groups.

1. DEMOGRAPHIC
ENVIRONMENT

2. DEMOGRAPHIC ENVIORNMENT
• Demography:- Is the study of human populations in terms of size,
density, location, age, gender, race occupation, and other statistics.
• Demography is very important because it involves people, and
people make up markets.
• The word population is growing at an explosive rate. This
population explosion has been of major concern to governments
and various groups.

3. • The less-developed regions of the world currently account for
76%of the world population.
• The explosive world population growth has major implications
for business due to
growing human needs to satisfy.
growing market opportunities.
• It is good to keep close track of demographic trends and
developments in their markets, both at home and abroad.

4. IMPORTANCE OF DEMOGRAPHIC
ENVIRONMENT
• Market is people in the sense that the demand depends on the people and their
characteristics.

5. DEMOGRAPHIC BASES OF MARKET
SEGMENTATION
• Age structure
• Gender
• Income distribution
• Family size
• Family life cycle
• Occupation
• Education
• Social class
• Religion
• Language
• Population size

6. • Baby boom: A major increase in the annual birth rates. It
started after world war II and lasted until 1960’s. This segment
of the market represents an opportunity.
• By mid 1970’s the birth rate had fallen sharply due to the
smaller family sizes resulting from the desire to improve the
personal living standards, from the increasing desire of women
to work outside home and from improved birth control.
FALLING BIRTH RATE AND
CHANGING AGE STRUCTURE

7. • The changes in the age distribution have a lot of implications
for the business. The pharmaceutical companies may pay
attention to the requirements of the aged population.
• Increasing proportion of the aged would have implications for
the government, it may increase the welfare burden of the
government.

8. • The already mentioned facts had generated changes in the
family structure and the market.
• Nowadays people tend to marry less and have less children.
• Changes in the value system and roles assumed by the
members of the family have great impact.
• The percentage of people living alone has increased
considerably in the past years.

9. • The population shift have been from rural to urban areas
• Another population shift has occurred from less developed
countries to industrialized countries.
• Movements from the cities to the suburbs.
• In general terms the concern for education has increased so
the education itself has improved.
• Racial and ethnic diversity play a really important role.
MIGRATION AND ETHINCITY

10. • United states has been a great nation of immigrants and on
the other side Japan which has never allowed any immigration
whatsoever.
• Immigration has brought about very remarkable ethnic
changes in various countries. A number of localities are
concentrated by immigrant communities.

12. Gender Inequity..?
Gender inequality refers to unequal treatment or
perceptions of individuals based on their gender
It tries to understand the nature of gender inequality,
and examines women's social roles, experiences,
and interests
Gender inequality is still a huge issue today, where
males are considered superior to females
Women had to fight to vote, for equal pay, and to
have male dominant jobs, but still have lower
incomes, fewer prestigious jobs.

13. Inequality in the Home
Most ads usually show women cooking or cleaning the house or
bathrooms, etc.
Domestic abuse is another issue in the home, many women flee their
homes due to this and
end up living in poverty
women work all day, usually with less pay than their fellow male co-worker
and are expected to do
everything at home. Still clean the house, make the meals, do all the
laundry, etc.

14. GENDER INEQUALITY AROUND THE WORLD
Limited Access to Resources
Women are responsible for 60-80% of food production, but have limited access to
resources such as land, credit and new technologies
Lack of Education
Education and poverty reduction go hand in hand. Progress is being made, but
there are still less girls in school or finishing school. This also has to do with living
in rural areas.
Access to Healthcare
Many women die in childbirth in the developing world and is usually completely
avoidable if proper healthcare was available.
In the Workplace
Still more men than women in paid employment, business and politics. Women
work two-thirds of the world’s working hours and earn only 10% of the world’s
income.

15. Gender Based Violence
Gender-based violence is one of the most
tolerated abuses of human rights worldwide. It is
a contributor to poverty and ill-health and
prevents many women, from reaching their
potential.

16. Income distribution
Often the single most important piece of
information needed by international business
about a country is its income level.
Income level provides clues to the purchasing
power of residents. The technological
sophistication of local production processes, and
the status of the public infrastructure.

17. The unequal distribution of household or
individual income across the various
participants in an economy. Income
inequality is often presented as the
percentage of income to a percentage of
population.
Lorenz curve often used to represent
income distribution

18. One important source of income statistics is the World Bank,
which divides the world’s countries into high-income,
middle-income, low-income categories.
High-income countries are those that enjoy annual per
capital incomes of at least $ 9,266.
Middle-income countries have per capital incomes of more
than $ 755 but less that $ 9,266.
Low-income countries have per capital income of $755 or
less.
• Middle-income and Low-income countries are less attractive
to international business because they offer less consumer
demand and lack the public infrastructure necessary for
reliable production and distribution of goods and services.

19. LANGUAGE
• Number of languages the world range from 4000 to 10000.
• The African continent has the largest number of languages spoken.
• Some of the same words of the same language have different meanings or
connotations in different place.
• In the Spanish speaking Latin America the language vocabulary varies widely. For
example, while Tambo mean a roadside inn in several countries like Colombia , a
diary farm in some countries like Argentina, in Chile stands for brothel.
• The difference between the American and British spellings are well known.

20. • India has numerous languages and their dialects, besides
the 18 officially recognised languages, of the 1652 mother
tongh listed by the census of India, 33 are spoken by people
numbering a lakh or more.
• Languages also cause problems related to brand names and
other names, marketing communication. For example, fords
truck brand name fiera meant “ugly old women” in Spanish.
Fords another product named Cliente has got another
meaning in Mexico were clinte is a slang for street walker.
• Reebok unveiled a new women sneaker name “Incubus”, not
knowing that in medieval folklore Incubus was a demon who
ravished women in their sleep. Reebok was forced to
discontinue the brand.

21. • The Arabic language is read from right to left and many
Arabians sequence things from right to left.
• In the area of translation of advertisement etc. there are two
important problems. The appropriate word is not there in
some languages.
• The second problem is that literal translation many at time
do not convey the right meaning. Sometimes they convey
quite different meanings.
• Non verbal communication create equally, perhaps even
more difficult problem.
• The same symbols and gestures may mean different things
in different countries and sometimes different regions of the
same country.

22. RELIGION
• Religion is a system of shared beliefs and rituals that are
concerned with the realm of the sacred. Religion shapes and
influences lifestyles, beliefs, values and attitudes and has a
significant bearing on the behaviour of people with each other
and with society.
• There are approximately 15000 distinct religions and religion
movements in the world today.
• The leading religions of the world include Christianity, Hinduism,
Islam, Buddhism, Confucianism, and Jainism etc..
• The Asian sub-continent has been the birth place of seven
religions. Four of them originated in India ( Hinduism, Buddhism,
Jainism, and Sikhism ), two in china (Confucianism and Taoism ),
and one In japan (Shintoism).

23. HINDUISM
• Hinduism is practised by more than 80% of India's
population and also in parts of Nepal, Bangladesh, and Bali.
• An important aspect of Hinduism is the caste system which
has been the basis of social division in India since ancient
times.
BUDDHISM
• Buddhism began in India as a reform movement against the
tyrannies of Hinduism. Its origin may be traced to the
enlightenment of prince Gautama as the Buddha at the age
of 29.
• It is said that he rejected the plesures of a royal life to follow
the path nirvana.

24. JAINISM
• The Jain religion was founded by Mahavira, a contemporary
of Buddha.
• It believes that the universe is self-regulated and every soul
has the potential to achieve divine consciousness through
its own efforts.
• The path to salvage can be attained by following the path
of right faith, right knowledge and right conduct.
• In the modern context, it is a small but influential religious
minority with as many as 4.2 million followers in India.
• There are also successful, growing immigrant communities
in North America, Western Europe, the Far East, and
Australia.

25. ISLAM
• Islam is the second largest religion in the world after
Christianity with about 1.57 billion followers comprising
about 23% of the world’s population.
• The teachings of Islam are based on the Koran, a collection
of Allah’s (god’s) revelations to Muhammad, who is viewed
by Muslims as the messenger of God.
• Islam’s code of conduct contains formal prescriptive rules
for all aspects of life including social relations, social
behaviour, rules for the consumption of food and drink, and
the role and acceptance of women in society.

26. RELIGION AND INTERNATIONAL
BUSINESS
• Religion influences international business in many ways .
• Religious holidays and rituals can affect employee
performance and work scheduling.
• When members of different religious groups work together
, there may even be strife within the workforce.
• Managers must respect the religious beliefs of others and
adapt business practices to the religious constraints present
in other cultures.
• National institutions and business firms try to adopt
practices that will satisfy religious decrees without
undermining modern business practices.

27. • For instance, banks in Islamic countries issue shares to
depositors and charge borrowers fee and commission to
maintain profitability without charging interest, since bank
interest is prohibited under Islamic law.
• Religion also affects work and social customs from the days
of the week on which people work to their dietary habits
and religious celebrations.
• Religion has a strong influence on work ethics.
• It is believed that in china, Korea , and japan, Confucian
ideology is responsible for lowering the costs of business,
helping in their economic success.

28. POPULATION SIZE
The size of the population is an important determinant of
demand for many products.
There are countries with less than a lakh of people on the one
hand and those with thousands of millions on the other hand.
Poor countries with small population are generally not
attractive for business.

29. Advanced countries, particularly with large population, are
generally attractive markets.
The major part of the international trade and foreign
investment naturally take place between these nations.
Because of the large potential of these markets, competition is
generally strong in them.

30. A rapidly increasing population indicates a growing demand for many
products.
High population growth rate also indicates an enormous increase in
labour supply.
Cheap labour and growing markets have encouraged many
multinational companies to invest in developing countries.

31. FAMILY SIZE
As the family size increases, so does the consumption of products.
In such a case, the family pack or the economy refill packs works very
well.
For large families, family income will be high,and thus, greater
consumption of products.

32. FAMILY LIFE CYCLE
STAGES OF FAMILY LIFE CYCLE
Young and Single
People at this stage tend to invest more in
fashionable clothing and vehicles.
Newly Married Couples:
The buying decisions focus on quality and
not quantity.

33. Families in full nest 1 and 2
The purchase of these people are dominated
by the children’s needs mostly.
People having 2 kids are likely to save money
and spend more in the future of their children.
Empty Nest Category: Spend money for their
children who are away from home or spend
money for their own vacations and hobbies and
focus on savings for the retirement period.
Solitary Survivor: Focus on savings and their
purchases are dominated by accomodation and
medication mostly.

34. THANK YOU 