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Summary Overview In order to implement the marketing concept, marketers must make the customer the focus of their marketing activity, and so they need to develop a thorough understanding of customers. This presentation deals with ways in which marketers can use demographic data to describe customers. Key Issues A marketer needs to ask three critical questions about any consumer market: What dimensions are relevant in segmenting the market ?: demographic; psychographic; behavioral, and others. How big is the market ?: Is it large enough to be profitable, or expected to grow? Where is the market ? Location has a great impact on the degree to which a market is operational. Discussion Question: Can you think of some ways in which the location of the customer would affect an organization’s strategy for Place? How about Promotion? Marketers must get their facts straight by using sound data gathering and analysis to answer the key questions. This slide relates to material on pp. 126-127. Indicates place where slide “builds” to include the corresponding point.
Summary Overview In a market, people exchange something of value to them--such as their money--to get a product or service that they value. So, it makes sense for marketers to analyze demographic data in a search for market opportunities. Many population statistics can provide clues about the attractiveness of a market. Key Issues Marketers should understand opportunities outside of one’s own country . The U. S. population makes up less than 5 percent of the population in the whole world! Discussion Question: Can you think of any products or services that originated in one country and were successfully exported to other countries? Current population statistics tell marketers the sizes of countries as they are right now. Marketers should also examine population trends , so that they can project growth rates into the future. Discussion Question: What countries are you aware of that are growing rapidly? This slide relates to material on pp. 127-129. Indicates place where slide “builds” to include the corresponding point.
Summary Overview Beyond population growth, marketers must examine the patterns of population density and population movement. Key Issues The population is becoming more concentrated. Population density : how concentrated the population is in a particular area. Discussion Question: What parts of the marketing mix would be most affected by population density? Urbanization : the movement of people from rural areas into more industrialized urban areas. Advanced technologies, such as satellite TV and the Internet, accelerate this trend. Discussion Question: Cable News Network (CNN) broadcasts via satellite worldwide from its headquarters in Atlanta, Georgia. What are some of the implications of this worldwide communication for marketers? This slide relates to material on pp. 128-129. Indicates place where slide “builds” to include the corresponding point.
Summary Overview In order to have a market, consumers must have money. Two popular measures of national income are: Key Issues Gross national product (GNP): the total value of goods and services produced by a country’s economy in an year, and Gross domestic product (GDP ): which includes GNP for a nation plus income earned by foreigners who own resources in that nation. GNP is “home grown.” GDP includes income from foreign sources. Marketers should examine GDP, GNP and other measures in order to get a complete picture of income. GNP and GDP do not indicate how much money is in the hands of individuals in a country. Income per-capita : dividing GNP by the nation’s population size is a measure of individual income. There might be considerable potential, and less competition, in areas where per capita income is low. Discussion Question: Can you think of any products or services that might be attractive to consumers in countries with low per capita income rates? This slide relates to material on pp. 129-134. Indicates place where slide “builds” to include the corresponding point.
Summary Overview Marketers need to be particularly attentive to the level of development in a nation as well as to national and individual income. Key Issues Less-developed countries can be attractive markets for many products. What do third world consumers really need ? They may need low-cost products that satisfy basic human needs. There may be ethical dilemmas in dealing with these consumers. Discussion Question: Cigarette marketers have found many less-developed countries to be attractive markets because of high population growth and fewer restrictions on cigarette promotion. What ethical issues do cigarette marketers face when they consider intensifying their marketing efforts in these countries? There may be literacy and marketing problems . Literacy : the ability of people to read. Low literacy rates affect advertising, product labeling, marketing research, and other aspects of the marketing mix. Much segmenting may be required . Marketers need to segment carefully, using good information from: World Bank; Central Intelligence Agency; U. S. Census Bureau. This slide relates to material on pp. 135-136. Indicates place where slide “builds” to include the corresponding point.
Summary Overview Household and family compositions have changed significantly over time. The “traditional family”--composed of a mother, father, and at least two young children--is not the only concern for marketers. There are many other variations in households and family composition. Key Issues Most American households do not fit the “traditional family” profile. Today, Americans tend to get married later in life. About 50 percent of marriages end in divorce, Over 80 percent of divorced persons marry again. Other variations in household composition-- nonfamily households are increasing : unmarried people living with each other; single adult households. Discussion Question: What marketing opportunities are there in meeting the needs of consumers in nontraditional households or families? The wide range and fast growth of household and family types means that marketers must pay attention to them in order to meet their unique needs. This slide relates to material on pp. 141-142. Indicates place where slide “builds” to include the corresponding point.
Summary Overview The “ teen cycle” is starting again as the number of teenagers began increasing in 1995 and will continue to increase until about 2010. Key Issues Teenagers will bring: increased buying power; a unique teen culture; needs that will differ dramatically from the “Baby Boomers.” Marketers will need to track the emerging trends in this teenage market. Discussion Question: What products or services are likely to have increases in demand among the consumers in the expanding teenage market? This slide relates to material on pp. 140-141. Indicates place where slide “builds” to include the corresponding point.