Lecture Basic Marketing: A global-managerial approach: Chapter 5 - William D. Perreault, E. Jerome McCarthy
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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.
52
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
53
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
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54
Regional
Regional Differences
Differences
Birthrate
Birthrate
Aging
Aging Population
Population
Changing
Changing Household
Household
Composition
Composition
Shifts
Shifts to
to Suburban
Suburban
Areas
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 55
55
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 57
56
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 58
57
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
58
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
Middle-aged
married w/out
children
Young
Young
Middle-aged Middle-aged
Older
Young
Older
married married with married with married w/out
unsingle*
married*
x-child.*
children*
children* dep. children*
married*
Young
Middle-aged Middle-aged
divorced with divorced withdivorced w/out
children
children
dep. children
Usual flow
Recycled flow
*Traditional family flow
Exhibit 59
59
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Ethnic Dimensions of the US Market
56
Buying
Buying
Behavior
Behavior
Median
Median
Income
Income
Growth
Growth
Growth
Growth
Rate
Rate
Accurate
Accurate
Target
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)
511
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
