Changes in demographic and economic environment affect marketing decisions

Demography is the study of the characteristics of human populations. Today's demographic environment shows a changing age structure, shifting family profiles, geographic population shifts, a better educated and more white-collar population, and increasing diversity. The economic environment consists of factors that affect buying power and patterns.
The economic environment is characterized by more consumer concern for value in shifting consumer spending patterns. Today's squeezed consumers are seeking greater value -- just the right combination of good quality and service at a fair price. The distribution of income also is shifting. The rich have grown richer, the middle class has shrunk, and the poor have remained for, leading to a two-tiered market. Many companies now tailor their marketing offers to two different markets-- the affluent and the less affluent.