Chapter Five
DEMOGRAPHIC DIMENSIONS OF GLOBAL CONSUMER MARKETS
TARGET MARKETERS FOCUS ON THE CUSTOMER
Need to ask three important questions:
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What are the relevant segmenting dimensions? |
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How large is the segment? |
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Where is the segment? |
Demographic dimensions: Involve size, location, and characteristics of target markets.
PEOPLE WITH $$ MAKE MARKETS
US population is less than 5% of the world population
US population is becoming more concentrated as people move to industrial/urban areas
There is no market when there is no income
GNP is best measure -- see Exhibit 5-2, page 126
What do third world countries need? Healthy diets, etc. See page 135
POPULATION TRENDS IN THE US CONSUMER MARKET
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See exhibit 5-3, page 134 |
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Our population is growing at less than 1%/yr. |
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Birth rate is declining |
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Average age is rising. See exhibit 5-6 |
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Household composition is changing: 50% of all marriages end in divorce. |
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Nonfamily households are increasing. 25% are single parent households |
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17% of Americans move each year |
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MSA==area of 50,000+ |
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CMSA==area of 1,000,000+ |
INCOME DIMENSIONS OF THE US MARKET
Median family income is $51,407
Top 20% of families receive 48% of income
Top 5% of families receive 21% of income!
CONSUMER SPENDING PATTERNS ARE RELATED TO INCOME
Disposable income: What is left after taxes
Discretionary income: What is left of disposable income after paying for
necessities
Spending varies over family life cycle (Exhibit 5-9)
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For example, singles and young couples try new products and are price conscious. |
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Teens spend $ |
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Empty nesters: Finally, you have money to spend when the kids leave. The question is, are you healthy enough to enjoy the benefits? |
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Senior citizen make up 13% of the market and it is growing |
See Exhibit 5-9, page 142 to see a visual of the impact of family life cycle on spending habits.
ETHNIC DIMENSIONS OF THE US MARKET
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More than 10% of US families speak language other than English |
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Median age is lower and birthrate is higher |
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By 2050, whites will become the minority consumer group |
Next Steps: Please review the PowerPoint Overview slides (1-9) for this chapter. Then proceed to the Lecture Notes for Chapter Six.
