Research Topics:

Demographic Analysis | Site Selection Analysis

Industry/Market Focus:

Retailing

Content Type:

Glossary

Density Definition

A measure that is computed by dividing the total population of a geographic unit by its land area measured in square miles or square kilometers.

Density measures the concentration of potential customers within a specific geographical area. In marketing research, It helps to identify how many potential customers are present in a location. For example, knowing density trends can offer insights into local market dynamics and opportunities. This information can be used by marketing professionals and businesses for deciding strategies and resource allocation. For instance, density data can determine ideal locations for retail stores. Density is calculated by dividing the total population of a geographic unit by its land area measure, either in square miles or square kilometers.

Who relies on density?

For starters, businesses use density data to find locations to open new locations, launch advertising campaigns or introduce products in a particular area. In addition, real estate developers can rely on density information to assess market viability. What’s more, government agencies and urban planners use density data to plan for infrastructure.

Why should I care about density?

Understanding density data and insights can provide marketing professionals and businesses with evidence to make strategic decisions based on the concentration of potential customers. In addition, the data can help determine optimal locations for stores.