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Chapter 6
The Domestic Marketplace
Activity #1 In table groups…List all of the members
of your immediate family. Next, decide which MARKET these
people belong to… Children Teenagers Young Adults Middle Aged 65 and Older
Consumer vs. Industrial Markets
Consumer Markets – are all of the people who make purchases for personal use presently about 270 million.
Industrial Markets – are businesses and the government who purchase products to either make new products or sell them to consumers.
Demographic Variables
Age
Ethnic Background
Income
Age
Age Whoopies – 50+ market
Ages 50-64 – Still working Ages 65-74 – Young elderly, leisure
market extra income for travel and recreation
Ages 75 –Plus – mostly women, physical activity becomes difficult.
Baby Boomers After WWII the birth rate in the U.S soared.
76 million babies born between the years 1946-1964, these are the baby boomers.
By the year 2011, the boomers will be 65 years old.
For many years they were the largest part of the population.
Generation X After 1964 the birth rate declined and is
currently composed of people born between the years of 1965-1980.
Currently 44 million “members” Both parents work - Latchkey kids who are:
Self sufficientHave a high level of educationFinancially cautious
Baby Boomlet When the Baby Boomers started
having children it created the Baby Boomlet.
Years are 1980-1991. Oldest members are teenagers 1994 teens spent $89 billion Children’s influence on household
purchases is around $132 billion a year.
Ethnic Background
Diversity The U.S population is becoming more
diverse as a result of increased immigration.
The three largest ethnic markets in the United States at present are: African Americans Hispanics Asian-Americans
African Americans There are approximately 33 million in
the U.S. Spend $350 billion annually. How can we reach this market?????
Advertisements are backed with community support.
Average income is $31,000
Hispanics Approximately 26 million in 1994. It grew at 7 times the rate of the general
population and is expected to reach 31 million by the end of 2000.
Use Spanish Language television to reach this market.
70% of Hispanics are Roman Catholic. Families tend to be larger than the U.S.
average (3.4 people vs. 5.6 for U.S. families)
Asian Americans 7.9 million in 1992. The median household income of Asian
Americans was higher than that of any other ethnic group.
More college graduates. Concentrate in certain geographic areas. 16 different classifications of Asians
therefore communication becomes difficult. 23 are foreign born.
Income
Two Types of Income
Disposable Income – the money left over after taxes are taken out. Marketers who produce and distribute necessities are interested in this type of income.
Discretionary Income – money left after paying for basic living expenses. Marketers that sell luxury products are interested in changes in this income.
Activity
Look at the Graph on page 79 and discuss which types of stores cater to the: Affluent Middle Income Families Low income Families
Geographics
Geographics
Where people live is often studied in relation to age, ethnic background and income.
In general, the trend has been for people to move to the South, the West and the Southwest.
Psychographics
Psychographics
Family Life CycleSingle
Newly Married
Full NestEmpty Nest
Sole Survivor