Demographic Dimensions of Global Consumer Markets
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1 When we finish this lecture you should CHAPTER FIVE Demographic Dimensions of Global Consumer Markets For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Know about the distribution of income in the United States. 4. Know how consumer spending is related to family life cycle and other demographic dimensions. 5. Know why ethnic markets are important and why they are increasingly the focus of multicultural marketing strategies. Marketing Strategy Planning and Demographic Dimensions of Final (Exhibit 5-1) 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. Marketing Strategy Planning and Demographic Dimensions of Final (Exhibit 5-1) Final CH 5: Demographic Dimensions of Final Consumer Markets Marketing Strategy Planning and Demographic Dimensions of Final (Exhibit 5-1) Organizational CH 6: Buying Behavior of Final CH 7: Buying Behavior of Firms & Other Organizations Target Marketers Focus on the Consumer 3 Main Questions Final CH 5: Demographic Dimensions of Final Consumer Markets Global Consumer Markets Population trends growth & distribution Urbanization, literacy, & other differences U.S. Consumer Market Population trends growth & distribution Spending patterns Ethnic dimensions What are its relevant segmenting dimensions? Handout 5-1 How big is it? Where is it?
2 People with Money Make Markets Worldwide Population Growth (Exhibit 5-2) Search for Growing Markets Other Countries Current Population Population Trends Other Population Trends 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? Increasing Density A.How big the market is. B.The market s relevant segmenting dimensions. C.The products or services the customers currently use. D.Where the market is. Increasing Urbanization No Money, No Market! Issues Related to Development Gross National (GNI) earned by foreigners in the nation Gross Domestic Product (GDP) GNI / Country s Population Size = Per Capita What do third world consumers really need? Much segmenting may be required Literacy and marketing problems Handout 5-2
3 Where Does Your State Stand? (Exhibit 5-4) Population Change (in %) By State (Exhibit 5-5) Growth Trends Young and Old Appealing to the Matures Key Trends Population Growing, but Birthrate Boom or Bust? Graying of America Not Just for the Younger Generation Trends in US Households and Families Married Couple without children High Divorce Rate Traditional Family 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Single Adult Households Unmarried Living Together Handout 5-3
4 US Population Mobility Checking your knowledge Population Mobility Of the 13% of Americans that move every year, which category captures the majority (almost 60%) of those moves? A.Out of the U.S. B.From one region to another C.Within the same state D.Within the same county E.Within the same neighborhood Rural to Urban Urban to Suburban Changing US Patterns (Exhibit 5-8) Appealing to Higher Dimensions of the US Market (Exhibit 5-9) Different Types of Spending Total Taxes Disposable Disposable Necessities Discretionary Handout 5-4
5 A Luxury Item The Family Life Cycle (Exhibit 5-10) Family Life Cycle Implications Family Life Cycle Acceptance of new ideas Reallocation for teenagers Key Issues Senior citizens Empty nesters 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Interactive Exercise: Family Life Cycle Checking your knowledge Which group likely spends the most money on durable goods? A.Young single. B.Young married without children. C.Young married with children. D.Middle-aged married with children E.Older married without children 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Handout 5-5
6 Ethnic Dimensions of the US Market Appealing to Minority Buy Differently Increasing Median Avoid Stereotypes High Growth Rate You now Key Terms 1. Know about population and income trends in global markets and how they affect marketers. 2. Understand how U.S. population growth is shifting in different areas and for different age groups. 3. Know about the distribution of income in the United States. 4. Know how consumer spending is related to family life cycle and other demographic dimensions. 5. Know why ethnic markets are important and why they are increasingly the focus of multicultural marketing strategies. Gross Domestic Product (GDP) Birthrate Metropolitan Statistical Area (MSA) Real Disposable Discretionary Empty Nesters Senior Citizens Handout 5-6
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