Chapter 5

Marketers need to adapt to technology such as

cell phone data and internet usage

technology and time use

Leisure time accounts for less than 6 hours a day About 40 percent of American adults check work email on vacation Constant digital immersion can decrease a person's attention span.

key trends of US population

population growing slow birth rate-boom or bust graying of america generation x fewer in number generation y: techno savvy

Gross national income (GNI) + Income earned by foreigners who own resources in the nation =

gross domestic product (GDP)

Population density

how concentrated the population is in a particular area. increasing

marketing to african americans

47 percent are between 18 and 49 years old More firms are creating products for the African American market. Promotional dollars and media choices directed toward African Americans continue to increase.

3 main questions to ask when understanding potential markets

1. what are its relevant segmenting dimensions 2. how big is it 3. where is it

baby boomers

Born between 1946 and 1964 Population of 75 million Working longer to compensate for economic downturn, which affected retirement savings The market of services directed at seniors is one of the fastest growing business markets

generation x

Born between 1965 and 1978 Population of 40 million Independent, resilient, adaptable, cautious, and skeptical 71 percent have children under age 18 Home ownership is an important goal Avid buyers of the latest clothes, technology, and recreational products

generation Y

Born between 1979 and 1994 Surpassed population of baby boomers Two Stages: 1) Those born in 1994 fit closer to the Teen cohort. 2) Those born in 1979 have established careers and started families. Purchasing power of $200 billion annually

different types of spending

Consumers start with a total income they earn. After paying taxes, they are left with disposable income. After consumers pay for life's necessities - such as food and housing, they are left with discretionary income.

growing ethnic markets

Estimated purchasing power of ethnic markets in 2013: Hispanics: $1.5 trillion African Americans: $1.2 trillion Asian Americans: $775 billion The minority population of the United States in 2011 reached 110 million.

role of families and working women

Growth of dual-income families results in increased purchasing power Approximately 59 percent of work-age females are in the workforce Working wives bring in 45 percent of the total family earnings. The phenomenon of working women has probably had a greater effect on marketing than any other social change.

Issues related to development

Less-developed countries can be attractive markets for many products. What do Third World consumers really need? They may need low-cost products that satisfy basic human needs. There may be ethical dilemmas in dealing with these consumers. There may be literacy and marketing problems (Low literacy rates affect advertising, product labeling, marketing research, and other aspects of the marketing mix.)

much segmenting may be required

Marketers need to segment carefully, using good information from: World Bank; Central Intelligence Agency; U. S. Census Bureau.

uncontrollable variable in external environment: demography

People are the basis for any market Demographic characteristics relate to buyer behavior Demographic cohorts have their own needs, values, and consumption patterns.

teens

Population of about 25 million Spend approximately 72 hours per week tuned in electronically View shopping as a social sport 50 million teens around the world are on Facebook

Demographic dimensions of final consumer markets (US)

Population trends Income growth & distribution Spending patterns Ethnic dimensions

Demographic dimensions of final consumer markets (global)

Population trends Income growth & distribution Urbanization, literacy, & other differences Technology usage trends

tweens

Pre- and early adolescents, age 8 to 12 Population of 20 million Directly spend about $50 billion annually Parents spend $150 billion on tweens annually View TV ads as "just advertising"

marketing ot hispanic americans

The Hispanic population's diversity creates challenges for targeting this market. 12 million Hispanics aged 20-34 in the United States 94 percent of U.S. Hispanics have home Internet access. Highly responsive to new media: mobile marketing and social media marketing

Most American households do not fit the "traditional family" profile.

Today, Americans tend to get married later in life, delaying child bearing, and having fewer children. About 50 percent of marriages end in divorce, Over 80 percent of divorced persons marry again. Other variations in household composition--nonfamily households are increasing: Single adult households.

a large share of total US income goes to higher income groups

The top 20 percent of households receive almost 50 percent of the total income in the U. S. The lowest 20 percent of households receive only four percent of the total U. S. income

marketing to asian americans

Younger, better educated, and have highest average income of all groups Early adopters of latest digital gadgets. Cultural diversity within the Asian American market complicates promotional efforts.

Ethnic dimensions of the US market

buy differently avoid stereotypes high growth rate increasing median income

median family income has

increased the past sixty years there has been more variability in the recent years but an overall increase more middle and upper incomes

population is growing in US but

the growth rate has slowed considerably--to less than one percent per year in the last decade. In examining the growth of the population, marketers should look at growth from sources within the U. S. and growth from external sources

urbanization

the movement of people from rural areas into more industrialized urban areas increasing

marketers should

understand opportunities outside of ones own country current population proves a snapshot of market examine population trends