Transcript Chapter 6 - Cole

Chapter 6
The Domestic Marketplace
Consumer Market
• All people who make purchases for
personal use.
– 270 million people in 1990
– 320 million people today
– 355 million people projected for the year 2025
Who are these people?
Consider the 3 most frequently used Demographic areas.
Age
• Whoopies (50 – 64; 65 –
74; 75+)
• Baby boomers
End of WWII 1963
• Generation X
Born after 1964
– 1979
• Generation Y
1980 – 2001
(Baby Boomlet)
275
310
Ethnic Background
• White
– 215 million
U.S. Population Breakdown
• African Americans
– 35 million
Asian
American
• Hispanics
– 42 million
• Asian Americans
– 12 million
• Other Races
– 12 million
Other
Hispanic
African
American
Caucasian
African Americans
• Approximately 35 million people
• $375 billion spent annually
• Successful marketing strategies:
– Use Nia Direct marketing database
• Provides info on householders making $31,000 +
• Used by: Proctor & Gamble, Kraft, Lipton, Lawry’s
Foods, Quaker Oats, to name a few
– Back up promotional activities with community
support
• Maybelline – Black History Month promotions
• Revlon – Supports the United Negro College Fund
Hispanic Americans
• Approximately 42 million people
• Fastest growing population segment
• ¾ of population origins of Mexico, Puerto Rico &
Cuba.
• Successful Marketing Strategies:
– Nestlé – Introduced Nido (milk drink) & Nestum (breakfast
cereal)
– Goya – Food distribution to Hispanic market
– T.V. Promotion: Many Hispanic TV channels to use.
Asian Americans
• Approximately 12 Million people
• Highest of any group’s median household
income level
• Proportionally highest percentage of college
graduates & professional jobs
• Successful Marketing Strategies:
– Advertise locally as many in this group tend to live in
certain Geographic locations
– Knowledge of 16 distinct classifications is helpful in
direct communications, since 2/3 of this group are
foreign born
Income
• Disposable Income vs Discretionary Income
Money left after taxes are
taken out
Money left after basic
living expenses subtracted
Used on Food, clothing &
shelter
Non-necessities and luxury
items
• Geographics (examples)
– Census Reports
– MSA’s (Metropolitan Statistical Areas)
• Info created, maintained and used by the Government to
distribute federal aid, like Medicare, welfare, urban
development, etc.
• Also used by marketers to target consumers for promotional
campaigns.
• Psychographics (examples)
– Psychographic trends tend to follow demographics:
• As a population ages, it changes its attitudes.
• The Family Cycle:
– Single; Newly Married; Full Nest; Empty Nest;
Sole Survivor
Industrial Market
• Also called business-to-business marketing
• Larger than the Consumer Market
• Derived Demand
– Based on the demand for consumer goods &
services.
Example: If more people buy auto’s, the demand for
the parts to build the car will go up.
What are some of these parts?
• Extractors – take from earth/sea; create raw goods
– Buy large equipment & supplies
• Construction – build buildings, bridges, etc.
– Buy large equipment & supplies
• Manufacturing – create goods
– Buy raw goods to process, supplies, equipment
• Wholesale/retail – Selling & distribution
– Buy processed goods & resell them
• Business & Professional Services – financial
planning, real estate, transportation, shipping,
communications, utilities, sanitation, data processing,
advertising, etc.
• Institutions & Nonprofits – private schools,
universities, hospitals & Red Cross, American Heart Assoc.,
Boy scouts, etc
• Local, State & Federal Governments –
Government agencies, public schools, etc.