Most large companies conduct demographic research in order to determine how to market their product or service and best capture the target audience. It is valuable to know the current customer and where the potential customer may come from in the future. Demographic trends are also important, since the size of different demographic groups changes over time as a result of economic, cultural and political circumstances. This information helps the company decide how much capital to allocate to production and advertising. For example, the aging . population has certain needs that companies want to anticipate. Each market segment can be analyzed for its consumer spending patterns. Older demographic groups spend more on health care products and pharmaceuticals, and the method of communicating with this customer differs from that of their younger counterpart.