The Importance of Knowing Your Trading Area

"The belief that populations change slowly in times past is pure myth. Or rather, static populations staying in one place for a long periods of time have been the exception to the rule. In the twentieth century it is sheer folly to disregard demographics. That basic assumption must be that populations are inherently unstable and subject to sudden sharp changes—and that they are the first environmental factor that a decision maker, whether a businessman or politician, analyzes and thinks through."—Peter F. Drucker

The above quote from Peter Drucker re-enforces the need for analyzing you local trading area. Do you know what demographic changes are occurring, or have occurred in the area in which you conduct business?

When you are developing a marketing plan, focus on what changes may occur. When changes do occur (and they will), it may signal the need for a new direction in your marketing efforts. It may also indicate the need to develop a new product / service mix.

Use demographics as an additional tool. It can help you to improve sales and your profitability.

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