Demographic Characteristics – Age, Income, Family (individuals and Households) Demographics
are objectives characteristics (Age is age, Income is income) that are not
product specific. One’s age and income
can affect purchases.
Demographic Fragmentation of the American Market
·
Mass
Marketing Era (Pre 1970)
·
Market
Segmentation Era (Post 1970)
·
Micromarketing
Era (Post 1990)
Age
factor – Targeting youth and targeting
aged population.
Income – Single wage earner to double
wage earner.
Increase
immigration from
Asia & Latin America.
Micromarketing – is an extension of market
segmentation. It is the result of technological developments that make it
easier for marketers to reach these fragments.
1. Interactive technologies such as
Internet and interactive TV make it possible for advertisers to target
individual consumers with messages.
2. Data bases have been established
through credit card usage or car registration that can identify the
individual’s demographic characteristic.
3. Geo demographic analysis allows
marketers to identify the demographic characteristics of area code and zip
codes etc.
Demographic Trends in the American Marketplace
Population
Growth – Increasing steadily since the
country was formed.
Three factors determining the
population growth in America – Birth rate; Lifespan; & Immigration.
1. Birth rate – increase by 50% from 1940 top
its highest point in 1957 and then decrease to historical low in 2000. Several
reasons;
·
Baby
boomers childbearing age is dying out.
·
Birth
rates among teenagers are declining.
·
More
employed woman are having children later in life therefore having fewer
children.
2. Life Expectancy – Due to medical improvement, life
expectancy has increased in recent years. Also people are more health conscious
and living healthier lifestyle.
3. Immigration – Significant increase of
immigrants from English speaking countries from Europe, Asia and South America.
Changing Age Composition
Three age group the focus of
marketing strategies
1. Baby Boomers – Born between 1946 –
1964 representing about 76 million consumers.
2. Generation X – Born between 1965 –
1976 representing about 47 million consumers.
3. Generation Y – Born between 1977 –
1994 representing about 67 million consumers.
4. Children born after 1994
representing 56 million consumers.
With such information marketers can
be able to project future age distributions.
Changing Household Composition
Household becoming smaller unit.
Decline in traditional family units.
Increase divorce.
Regional Differences
Geo demographic
Analysis – Differences in consumers tastes
& purchases can cut across regions and be identified by specific localities.
Global Geo demographic
Analysis – Recent attentions given to
global Geo demographic categorize by regional similarities.
Socioeconomic Trends
·
Occupational
status – Increasing proportion of working women.
·
Income
– Household income increases therefore purchasing power has also increase.
·
Education
– More people are being educated therefore contribute to employment & more
income.
Social Class Influence
Social Class
– One’s ranking in society based on power and prestige, is defined primarily by
demographic characteristics namely; Occupation, Income and Education.
Status
Symbol – Indicated by our possession
(clothes you wear, house you live in, car you drive etc).
Social
Mobility – Refers to movement of an
individual or household up the social ladder.
Social Class Categories In the USA
Social
Standing Hierarchy in the USA (Henry Assael, 2005)
Upper American (0.3%) – Inherited
wealth & Professional and Corporate leadership.
Middle American (32%) – White &
Blue collar workers.
Lower American (7%) – Working poor
class & some on welfare
Source:
Henry Assael (2005) Consumer Bahaviour A Strategic Approach (Biztantra)
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