chapter 5
DESCRIPTION
Chapter 5. Demographic Dimensions of Global Consumer Markets. 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. - PowerPoint PPT PresentationTRANSCRIPT
For use only with Perreault/Cannon/ McCarthy texts, © 2009 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin
Chapter 5
Demographic Dimensions of Global Consumer Markets
www.mhhe.com/fourps
Marketing Strategy Planning and Demographic Dimensions of Final Consumers (Exhibit 5-1)
FinalConsumers
OrganizationalConsumers
CH 5: DemographicDimensions of FinalConsumer Markets
Marketing Strategy Planning and Demographic Dimensions of Final Consumers (Exhibit 5-1)
CH 7: Buying Behavior of Business & Organizational Customers
CH 6: Buying Behavior of Final Consumers
FinalConsumers
CH 5: DemographicDimensions of FinalConsumer Markets
Marketing Strategy Planning and Demographic Dimensions of Final Consumers (Exhibit 5-1)
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
What are its relevant
segmenting dimensions?
What are its relevant
segmenting dimensions?
How big is it?How big is it? Where is it?Where is it?
3 MainQuestions
3 MainQuestions
Understanding Potential Markets
Other CountriesOther Countries
Current PopulationCurrent Population
Population TrendsPopulation Trends
Marketers Search for Growing Markets
Increasing Density
Increasing Urbanization
Other Population Trends
Gross National Income(GNI)
Gross National Income(GNI)
GrossDomestic Product(GDP)
GrossDomestic Product(GDP)Income earned by
foreigners in the nation
Income earned by foreigners in the nation
GNI / Country’s Population Size = Per Capita Income
No Money, No Market!
+ =
Literacy and marketing problems
What do third world consumers
really need?
Much segmenting Much segmenting may be requiredmay be required
Issues Related to Development
Where Does Your State Stand? (Exhibit 5-3)
Population Growing, but…
Population Growing, but…
Birthrate – Boom or Bust?
Birthrate – Boom or Bust?
Graying of America
Graying of America
Growth Trends Young and Old
Key TrendsKey Trends
Appealing to the “Matures”
Married Couple without children
Married Couple without children
“Traditional” Family
“Traditional” Family
Single Adult Households
Single Adult Households
High Divorce Rate
High Divorce Rate
Unmarried Living
Together
Unmarried Living
Together
Trends in US Households and Families
PopulationMobility
PopulationMobility
Urban toSuburban
Rural toUrban
US Population Mobility
Changing US Income Patterns (Exhibit 5-6)
Income Dimensions of the US Market (Exhibit 5-7)
TotalIncome
TotalIncome
TaxesTaxes
DisposableIncome
DisposableIncome
NecessitiesNecessities
Different Types of Spending
DiscretionaryIncome
DiscretionaryIncome
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
Key IssuesKey Issues
Reallocation for teenagersReallocation for teenagers
Empty NestersEmpty NestersSenior CitizensSenior Citizens
Acceptance of New Ideas
Acceptance of New Ideas
Buy Differently
Buy Differently
Increasing Median Income
Increasing Median Income
High Growth Rate
High Growth Rate
Avoid Stereotypes
Avoid Stereotypes
Ethnic Dimensions of the US Market
You should now be able to:
1. Know about population and income trends in global markets — and how they affect marketers.
2. 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.
• Gross Domestic Product (GDP)
• Birthrate
• Metropolitan Statistical Area (MSA)
• Real Income
• Disposable Income
• Discretionary Income
• Empty Nesters
• Senior Citizens
Key Terms