Definition: Age distribution is a quantitative description of how certain population group is divided according to how old they are. It is a method employed by researchers to classify a group of people by their age.
What Does Age Distribution Mean?
A demographic study normally includes the investigation of how old the people within the statistical sample actually are. From a marketing perspective, age distribution is essential to identify potential market segments that the business can target.
On the other hand, knowing how the population is divided in terms of age groups is highly valuable for governments to develop social programs that promote the welfare and development of each group. A population that has a high percentage of older individual will require a bigger number of assistance programs to support these individuals in their particular needs. Companies also pay special attention to age distribution since they have to pick the audience that will be targeted through its advertising campaign.
A company with a very general product that is not specifically targeted to a population segment will identify what is the larger population group or which one is the less engaged with the brand to develop marketing effort to gain a bigger portion of market share within that segment.
Example
Brewer Brothers is a company that produces alcoholic beverages and currently serves a big portion of the U.S.’s East Coast. The company targets a young audience from 18 to 25 years old with its beer brand “Freedom”.
Nevertheless, a recent market research report pointed the fact that there is a segment of the population, individuals from 35 to 45 years old that is not currently being served specifically by any brand. This segment is considerably large and it is great opportunity for the company to expand its product line. The company designed and launched a beer brand named “Experience” that is targeted to this particular age group.
