Transcript Basic Marketing, 17e

Chapter 5
Demographic Dimensions of
Global Consumer Markets
For use only with
Perreault/Cannon/
McCarthy texts, © 2009
McGraw-Hill
Companies, Inc.
McGraw-Hill/Irwin
www.mhhe.com/fourps
Marketing Strategy Planning and Demographic
Dimensions of Final Consumers (Exhibit 5-1)
Marketing Strategy Planning and Demographic
Dimensions of Final Consumers (Exhibit 5-1)
Final
Consumers
CH 5: Demographic
Dimensions of Final
Consumer Markets
Organizational
Consumers
CH 6: Buying
Behavior of
Final Consumers
CH 7: Buying Behavior
of Business &
Organizational Customers
Marketing Strategy Planning and Demographic
Dimensions of Final Consumers (Exhibit 5-1)
Final
Consumers
CH 5: Demographic
Dimensions of Final
Consumer Markets
Global Consumer Markets
•Population trends
•Income growth & distribution
•Urbanization, literacy, & other
differences
U.S. Consumer Market
•Population trends
•Income growth & distribution
•Spending patterns
•Ethnic dimensions
Understanding Potential Markets
3 Main
Questions
What are its
relevant
segmenting
dimensions?
How big is it?
Where is it?
Marketers Search for Growing Markets
Other Countries
Current Population
Population Trends
Other Population Trends
Increasing Density
Increasing Urbanization
No Money, No Market!
Gross National Income
(GNI)
+
Income earned by
foreigners in the nation
=
Gross
Domestic
Product
(GDP)
GNI / Country’s Population Size = Per Capita Income
Issues Related to Development
Literacy and
marketing
problems
What do
third world
consumers
really need?
Much segmenting
may be required
Where Does Your State Stand? (Exhibit 5-3)
Growth Trends Young and Old
Key Trends
Population
Growing, but…
Birthrate – Boom
or Bust?
Graying of
America
Appealing to
the “Matures”
Trends in US Households and Families
Married Couple
without
children
High Divorce
Rate
“Traditional”
Family
Single Adult
Households
Unmarried
Living
Together
US Population Mobility
Population
Mobility
Rural to
Urban
Urban to
Suburban
Changing US Income Patterns (Exhibit 5-6)
Income Dimensions of the US Market (Exhibit 5-7)
Different Types of Spending
Total
Income
Taxes
Discretionary
Income
Disposable
Income
Necessities
Tony – The Alabama Grad
•
•
•
•
•
Tony’s income is $30,000 annually
Taxes are $7,000
Rent & Car Payments are $16,800
What is Tony’s disposable income?
What is Tony’s discretionary income?
Tony
• Disposable Income = $30,000 - $7,000 =
$23,000
• Discretionary Income = $30,000 - $7,000 $16,800 = $6,200
Sue – an Auburn Graduate
•
•
•
•
•
•
Income is $45,000 annually
Taxes are $9,000
Rent & car payments = $20,000
What is Sue’s disposable income?
Discretionary income?
Would Sue say “yes” to a marriage proposal
from Tony?
Sue Answer
• Disposable income = $45,000 - $9,000 =
$36,000
• Discretionary Income = $45,000 - $9,000 $20,000 = $16,000
• Marry Tony? – Clearly not. Tony is a low
discretionary income “loser boy” bama fan.
A Luxury Item
The Family Life Cycle
(Exhibit 5-8)
Family Life Cycle Implications
Acceptance of
New Ideas
Reallocation
for teenagers
Key Issues
Senior Citizens
Empty Nesters
Ethnic Dimensions of the US Market
Buy
Differently
Increasing
Median
Income
Avoid
Stereotypes
High Growth
Rate
You should now be able to:
1.
2.
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.
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.
Key Terms
• Gross Domestic Product
(GDP)
• Birthrate
• Metropolitan Statistical Area
(MSA)
• Real Income
• Disposable Income
• Discretionary Income
• Empty Nesters
• Senior Citizens