target marketing dividing the total market into different segments based on customer characteristics...

Target Marketing

Dividing the total market into different segments based on customer characteristics and developing products to meet the needs of those specific segments

All people who make purchases for personal use

Current Population:

Estimated Population Year 2030:

364 MILLION

Population ClocksU.S. 308,603,348World 6,761,430,70214:44 UTC Feb 2, 2010

http://www.census.gov/main/www/popclock.html

Where is the Growth?West – 19.7% (Nevada – 66.3%!)South – 17.3%

Midwest – 7.9% (Illinois – 8.6%)Northeast – 5.5%

Largest American increase:

1990 – 2000 with a 13.2% increase!

One birth every................................................ 7 secondsOne death every............................................. 12 secondsOne international migrant (net) every............ 37 secondsNet gain of one person every......................... 14 seconds

Demographics

Geographics

Psychographics

Statistics to describe population – measurable observable aspects

Where people liveGeodemography – “Birds of a feather flock together!”

How people liveAIO / VALShttp://www.sric-bi.com/VALS/presurvey.shtml

Expectations of the class –

Dazzle me with your knowledge of

Demographics,

Geographics

Psychographics

AGEGeneration: when you were born

Cohort: when you came of age**

**much more important because it defines the group: music, politics, war, culture

High Schoolers – What defines you?

AGEWhoopies

35 million – 12% increase since 1990

The MATURE consumer

“Well-heeled older persons”

65 + Market

AGEThey are at home enjoying leisure time, continued good health and are MOBILE!What do we sell to them?

• Easy-open packages

• Larger print

• Cosmetics

• Vacations!

Do Not Treat Them as OLD!

How do we sell to them?

Music

Sayings

Stars

Culture

AGEWhoopiesAges 65-74

“Young Elderly”

Financially secure

Active & Healthy

Targets for leisure market

AGE1990 – 4% In 2000, 5574

celebrated 65th 2000 – 12.4% birthday DAILYCompanies prepared them for retirement!

Travel Market: cruises, elderhostels, trips

Education: computers, hobbies, students!

Took care of themselves

Retirement communities

NOT nursing homes

AGEWhoopies

Ages 75 +

Primarily Women

Poor Health

Less Mobility (Disability?)

Targets for nursing homes and services for the elderly (health)

AGEMen are dying off

Less active, rely on others

30% not in institution live alone

This Whoopie Market is a group of Haves and Have Nots

Retirement, Medical Expenses, FIXED INCOME

What do we sell them?

Easy open Small servings Cosmetics

Medical Equipment Comfortable clothing, shoes

12% increase since 1990

Will double by 2030

AGEBaby Boomers

Born 1946-1964

1997 -- 78 million

27.5% of population

Spend $2.1 trillion annually

Holds 75% of U.S. financial assets

By 2029 those 65+ will control over 40% of U.S. disposable income!

AGEDon’t trust anyone over 30!

Used to being the focus

Now at Peak Income

Getting older, but NOT getting old!

TV – Nip/Tuck, Housewives

Magazines – Health, Prevention, Cooking Light, Parenting

Use their music, attitudes, stars, culture when promoting

By 2011 – decline rapidly as a result of deaths

Hottest New Car Segment?Boomer women in their 50s – REWARD CAR!

The mid-sized sporty

Up 277% since 2000

Don’t forget the manwagonPower, suspension, race car seats

andfits the stroller!

AGEGeneration X

Born 1965-1976

“Baby Bust Generation”

birth dearth

45 Million

AGEGeneration X

Latchkey Generation

Felt effects of 1990 Recession

High levels of education (47% higher ed)

Fashionable, Irreverent, Conservative

AGERepresent $1.4 trillion in annual purchasing power

By 2010 – overtake boomers as primary market for almost every product category

AGEHow to sell to Generation X

Better educated, downwardly mobile

More family time, less contentment

It’s all about value

The “soccer mom” is history

Dads do more at home

AGEGeneration Y

The Millenials

Born 1977 - 1994

Baby Boomers having Babies

76 Million

Parents at peak earning potential

Diverse population

“Luxuries” are now “Needs”

AGESpending up to $159 billion

Influence another $30 billion in family spending!

Tech Savvy = Impatient, Now-Oriented

How do we sell to Gen Y?

AGEChildren

Born 1995 to present

Despite economic downturn, parents do not want to let their children “suffer”

AGE36 Million kids age 3 – 11

Have $18 billion in disposable income!

Influence additional $115 billion

Strong Influencers• Food• Entertainment• Cars• Vacations• clothes

Increasing Diversity

More “salad bowl” than “melting pot”

Increasing Diversity

White – 67%Hispanic – 14.4%African American – 13.4%Asian American – 4%American Indian, Eskimo, Aleut – 1%12% were born in another country

Increasing Diversity

Underserved Market!60 Million in U.S.$220 billion in annual spending power

Increase as Baby Boomers ageAnd impact of war

INCOME

Disposable Income

Gross Pay – Taxes = Net Pay

Rent, Utilities, Transportation

Food, Clothing, School Supplies

Medicine, Personal Care

Marketers of Necessities

INCOME

Net pay – basic expenses

Travel, Entertainment, Upgrades

Discretionary Income

INCOMEVALUE MARKETING

Wild spending of the 1990s has been dashed by the recession of 2000

Distribution is still skewed

Top 1% of U.S. families control 33% of wealthBottom 90% control 30% of wealth

INCOMEUpper Class – luxury goods, not impacted by recent economy

Middle Class – careful with spending but not doing without

Working Class – stick with basics, hard to save

Under Class – count pennies to make even basic purchases