Socioeconomic Dimensions

A complete definition of market potential must also include detailed information about the population's physical attributes as measured by the socioeconomic dimensions. They are such as:

1. Total Population
Total population, the most general indicator of potential market size, in the first characteristic of the population that analytsts examine. Population sizes vary immenensely, from more than a billion inhabitants in China and India to 2,756 for Svalbard and the uninhabitted Bassas da India. The fact that many developed nations have fewer than 10 million inhabitants makes it apparent that population sizealone is a poor indicator of economic strength and market potential. Only for a few low priced products, such as soft drinks, cigarettes, and soap, might population size alone provide a basis for estimating consumption.

2. Age Distribution
Because few products are purchased by everyone, marketers must identify the segments of the population that are more apt to buy their goods. For some firms, age is a salient determinant of market size, but the distribution of age groups within populations varies widely. Generally, because of higher birth rates, developing countries have more youthful populations than do industrial countries.

3. Concern in Developed Nations.
the decrease in famili size is welcomed by some countries in Africa and the Middle East, where vertility rates are as high as seven shildren per woman. But declining birthrates are causing concern in industrialized nations.

4. Population destiny and Distribution
population destiny is a measure of the number of inhabitants per area unit (inhabitants per square mile), While the population distribution means a measure of how the inhabitants are distributed over a nation's area.