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Chapter 5

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.

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Chapter 5

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  1. Chapter 5 Demographic Dimensions of Global Consumer Markets www.mhhe.com/fourps

  2. Marketing Strategy Planning and Demographic Dimensions of Final Consumers (Exhibit 5-1)

  3. Marketing Strategy Planning and Demographic Dimensions of Final Consumers (Exhibit 5-1) Final Consumers Organizational Consumers CH 6: Buying Behavior of Final Consumers CH 7: Buying Behavior of Business & Organizational Customers CH 5: Demographic Dimensions of Final Consumer Markets

  4. Marketing Strategy Planning and Demographic Dimensions of Final Consumers (Exhibit 5-1) Final Consumers • Global Consumer Markets • Population trends • Income growth & distribution • Urbanization, literacy, & other • differences CH 5: Demographic Dimensions of Final Consumer Markets • U.S. Consumer Market • Population trends • Income growth & distribution • Spending patterns • Ethnic dimensions

  5. Understanding Potential Markets 3 Main Questions What are its relevant segmenting dimensions? How big is it? Where is it?

  6. Marketers Search for Growing Markets Other Countries Current Population Population Trends

  7. Increasing Density Increasing Urbanization Other Population Trends

  8. No Money, No Market! Gross National Income (GNI) Gross Domestic Product (GDP) + = Income earned by foreigners in the nation GNI / Country’s Population Size = Per Capita Income

  9. Literacy and marketing problems What do third world consumers really need? Much segmenting may be required Issues Related to Development

  10. Where Does Your State Stand? (Exhibit 5-3)

  11. Growth Trends Young and Old Key Trends Population Growing, but… Birthrate – Boom or Bust? Graying of America

  12. Appealing to the “Matures”

  13. Trends in US Households and Families Married Couple without children High Divorce Rate “Traditional” Family Single Adult Households Unmarried Living Together

  14. Rural toUrban Urban toSuburban US Population Mobility PopulationMobility

  15. Changing US Income Patterns (Exhibit 5-6)

  16. Income Dimensions of the US Market (Exhibit 5-7)

  17. Taxes Necessities Different Types of Spending Total Income Discretionary Income Disposable Income

  18. 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?

  19. Tony • Disposable Income = $30,000 - $7,000 = $23,000 • Discretionary Income = $30,000 - $7,000 - $16,800 = $6,200

  20. 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?

  21. 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.

  22. A Luxury Item

  23. The Family Life Cycle (Exhibit 5-8)

  24. Family Life Cycle Implications Acceptance of New Ideas Reallocation for teenagers Key Issues Senior Citizens Empty Nesters

  25. Ethnic Dimensions of the US Market Buy Differently Increasing Median Income Avoid Stereotypes High Growth Rate

  26. You should now be able to: • Know about population and income trends in global markets — and how they affect marketers. • Understand how U.S. population growth is shifting in different areas and for different age groups. • Know about the distribution of income in the United States. • Know how consumer spending is related to family life cycle and other demographic dimensions. • Know why ethnic markets are important —and why they are increasingly the focus of multicultural marketing strategies.

  27. Key Terms • Gross Domestic Product (GDP) • Birthrate • Metropolitan Statistical Area (MSA) • Real Income • Disposable Income • Discretionary Income • Empty Nesters • Senior Citizens

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