Transcript Basic Marketing, 13th edition

Chapter 5:
Demographic
Dimensions of
Global Consumer
Markets
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Chapter 5 Objectives
When you finish this chapter, you should
1. Know about population and
income trends in global
markets—and how they affect
marketers.
2. Understand how population
growth is shifting in different
areas and for different age
groups.
3. Know about the distribution
of income in the United
States.
5-2
4. Know how consumer
spending is related to family
life cycle and other
demographic dimensions.
5. Know why ethnic markets are
important—and why
increasingly they are the
focus of multicultural
marketing strategies.
6. Understand the important new
terms.
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Identifying Potential Markets
Money
Growth
Concentration
Literacy
5-3
Focus:
Relative Buying Power
Focus:
Rate of Growth
Focus:
Population Density
Focus :
Communication Concerns
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
US Population Trends
Regional Differences
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5-4
Birthrate
Aging Population
Changing Household
Composition
Shifts to Suburban
Areas
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Changes in U.S. Birthrate, 1935-2005
25.0
Birthrate
26
After a peak between 1950
and 1955, U.S. Birthrates
declined steadily until
1975. Following a brief
rise in rates finishing
about 1990, rates have
again begun to fall.
19.4
19
18.7
16.6
13
1935
14.6
1970
14.0
2005
Exhibit 5-5
5-5
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Median Family Income, 1960-1996
Median income
$44K
Long term income trends are
important to marketing
managers because strategy
planning must take into
account realistic growth
potential. A narrow focus on
a high growth period that
extends a temporary rate too
far into the future can ruin
chances for long term success
$34K
$26K
1960
1980
1996
Exhibit 5-7
5-6
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Income Distribution
Percent of Total Income
50
40
46.8%
30
20
23.1%
15.8%
10
10.0%
4.2%
$0
19,680
Lowest 20%
Income Group
34,315
51,086
Middle 20%
Income Group
75,316
Top 20%
Income Group
Percent of Total Income Going to Different Income Groups in 1996
Exhibit 5-8
5-7
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Consumer Spending Patterns
Disposable
Income
Key
Terms and
Issues
Discretionary
Income
Expenditure
Data
Family
Life Cycle
5-8
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Family Life Cycle
Middle-aged
divorced w/out
children
Young
divorced
w/out
children
Young
single*
Young
married
x-child.*
Middle-aged
married w/out
children
Young
married with
children*
Middle-aged
married with
children*
Middle-aged
married w/out
dep. children*
Young
divorced with
children
Middle-aged
divorced with
children
Middle-aged
divorced w/out
dep. children
Usual flow
Recycled flow
Older
married*
Older
unmarried*
*Traditional family flow
Exhibit 5-9
5-9
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Ethnic Dimensions of the US Market
5-6
Buying
Behavior
Median
Income
Growth
Growth
Rate
Accurate
Target
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Key Terms
Gross National
Product (GNP)
Birthrate
Metropolitan Statistical
Area (MSA)
5-11
Disposable Income
Discretionary Income
Empty Nesters
Senior Citizens
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill