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Chapter 5

Chapter 5. Demographic Dimensions of Global Consumer Markets. www.mhhe.com/fourps. At the end of this presentation, you should be able to:. Know about population and income trends in global markets — and how they affect marketers.

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Chapter 5

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  1. Chapter 5 Demographic Dimensions of Global Consumer Markets www.mhhe.com/fourps

  2. At the end of this presentation, you should be able to: • Know about population and income trends in global markets — and how they affect marketers. • Understand how U.S. population growth is shifting in different areas and for different age groups. • Know about the distribution of income in the United States. • Know how consumer spending is related to family life cycle and other demographic dimensions. • Know why ethnic markets are important —and why they are increasingly the focus of multicultural marketing strategies.

  3. Marketing Strategy Planning and Demographic Dimensions of Final Consumers (Exhibit 5-1)

  4. Marketing Strategy Planning and Demographic Dimensions of Final Consumers (Exhibit 5-1) Final Consumers Organizational Consumers CH 6: Buying Behavior of Final Consumers CH 7: Buying Behavior of Business & Organizational Customers CH 5: Demographic Dimensions of Final Consumer Markets

  5. Marketing Strategy Planning and Demographic Dimensions of Final Consumers (Exhibit 5-1) Final Consumers • Global Consumer Markets • Population trends • Income growth & distribution • Urbanization, literacy, & other • differences CH 5: Demographic Dimensions of Final Consumer Markets • U.S. Consumer Market • Population trends • Income growth & distribution • Spending patterns • Ethnic dimensions

  6. Understanding Potential Markets 3 Main Questions What are its relevant segmenting dimensions? How big is it? Where is it?

  7. Checking Your Knowledge • When deciding whether or not to target a potential group of • customers, which of the following is NOT one of the three • important questions you need to be able to answer? • How big is the market? • What are the market’s relevant segmenting dimensions? • What products or services do the customers currently use? • Where is the market?

  8. Marketers Search for Growing Markets Other Countries Current Population Population Trends

  9. Increasing Density Increasing Urbanization Other Population Trends

  10. No Money, No Market! Gross National Income (GNI) Gross Domestic Product (GDP) + = Income earned by foreigners in the nation GNI / Country’s Population Size = Per Capita Income

  11. Literacy and marketing problems What do third world consumers really need? Much segmenting may be required Issues Related to Development

  12. Where Does Your State Stand? (Exhibit 5-3)

  13. Growth Trends Young and Old Key Trends Population Growing, but… Birthrate – Boom or Bust? Graying of America

  14. Appealing to the “Matures”

  15. Trends in US Households and Families Married Couple without children High Divorce Rate “Traditional” Family Single Adult Households Unmarried Living Together

  16. Rural toUrban Urban toSuburban US Population Mobility PopulationMobility

  17. Checking Your Knowledge • Of the 13% of Americans that move every year, which • category captures the majority (almost 70%) of those • moves? • Out of the U.S. • From one region to another • Within the same state • Within the same county • Within the same neighborhood

  18. Changing US Income Patterns (Exhibit 5-6)

  19. Income Dimensions of the US Market (Exhibit 5-7)

  20. Taxes Necessities Different Types of Spending Total Income Discretionary Income Disposable Income

  21. A Luxury Item

  22. The Family Life Cycle (Exhibit 5-8)

  23. Family Life Cycle Implications Acceptance of New Ideas Reallocation for teenagers Key Issues Senior Citizens Empty Nesters

  24. Checking Your Knowledge • Which group likely spends the most money on durable • goods? • Young single. • Young married without children. • Young married with children. • Middle-aged married with children • Older married without children

  25. Ethnic Dimensions of the US Market Buy Differently Increasing Median Income Avoid Stereotypes High Growth Rate

  26. Appealing to Ethnic Markets

  27. You should now be able to: • Know about population and income trends in global markets — and how they affect marketers. • Understand how U.S. population growth is shifting in different areas and for different age groups. • Know about the distribution of income in the United States. • Know how consumer spending is related to family life cycle and other demographic dimensions. • Know why ethnic markets are important —and why they are increasingly the focus of multicultural marketing strategies.

  28. Key Terms • Gross Domestic Product (GDP) • Birthrate • Metropolitan Statistical Area (MSA) • Real Income • Disposable Income • Discretionary Income • Empty Nesters • Senior Citizens

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