Target Marketing
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Target Marketing Dividing the total market into different segments based on customer characteristics and developing products to meet the needs of those specific segments
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Target Marketing. Dividing the total market into different segments based on customer characteristics and developing products to meet the needs of those specific segments. Consumer Market. All people who make purchases for personal use. Current Population:. Population Clocks - PowerPoint PPT Presentation
Transcript of Target Marketing
Target Marketing
Dividing the total market into different segments based on customer characteristics and developing products to meet the needs of those specific segments
All people who make purchases for personal use
Current Population:
Estimated Population Year 2030:
364 MILLION
Population ClocksU.S. 308,603,348World 6,761,430,70214:44 UTC Feb 2, 2010
http://www.census.gov/main/www/popclock.html
Where is the Growth?West – 19.7% (Nevada – 66.3%!)South – 17.3%Midwest – 7.9% (Illinois – 8.6%)Northeast – 5.5%
Largest American increase:
1990 – 2000 with a 13.2% increase!
One birth every................................................ 7 secondsOne death every............................................. 12 secondsOne international migrant (net) every............ 37 secondsNet gain of one person every......................... 14 seconds
Demographics
Geographics
Psychographics
Statistics to describe population – measurable observable aspects
Where people liveGeodemography – “Birds of a feather flock together!”
How people liveAIO / VALShttp://www.sric-bi.com/VALS/presurvey.shtml
Expectations of the class –
Dazzle me with your knowledge of
Demographics,
Geographics
Psychographics
AGEGeneration: when you were born
Cohort: when you came of age**
**much more important because it defines the group: music, politics, war, culture
High Schoolers – What defines you?
AGEWhoopies
35 million – 12% increase since 1990
The MATURE consumer
“Well-heeled older persons”
65 + Market
AGEThey are at home enjoying leisure time, continued good health and are MOBILE!What do we sell to them?
• Easy-open packages• Larger print• Cosmetics• Vacations!
Do Not Treat Them as OLD!
How do we sell to them?
Music
Sayings
Stars
Culture
AGEWhoopiesAges 65-74
“Young Elderly”
Financially secure
Active & Healthy
Targets for leisure market
AGE1990 – 4% In 2000, 5574
celebrated 65th 2000 – 12.4% birthday DAILYCompanies prepared them for retirement!Travel Market: cruises, elderhostels, tripsEducation: computers, hobbies, students!Took care of themselves
Retirement communities
NOT nursing homes
AGEWhoopies
Ages 75 +
Primarily WomenPoor HealthLess Mobility (Disability?)
Targets for nursing homes and services for the elderly (health)
AGEMen are dying off
Less active, rely on others
30% not in institution live aloneThis Whoopie Market is a group of Haves and Have Nots
Retirement, Medical Expenses, FIXED INCOME
What do we sell them?
Easy open Small servings Cosmetics
Medical Equipment Comfortable clothing, shoes
12% increase since 1990
Will double by 2030
AGEBaby Boomers
Born 1946-19641997 -- 78 million27.5% of populationSpend $2.1 trillion annuallyHolds 75% of U.S. financial assetsBy 2029 those 65+ will control over 40% of U.S. disposable income!
AGEDon’t trust anyone over 30!
Used to being the focus
Now at Peak Income
Getting older, but NOT getting old!
TV – Nip/Tuck, HousewivesMagazines – Health, Prevention, Cooking Light, Parenting
Use their music, attitudes, stars, culture when promoting
By 2011 – decline rapidly as a result of deaths
Hottest New Car Segment?Boomer women in their 50s – REWARD CAR!
The mid-sized sporty
Up 277% since 2000
Don’t forget the manwagonPower, suspension, race car seats
andfits the stroller!
AGEGeneration X
Born 1965-1976
“Baby Bust Generation”
birth dearth45 Million
AGEGeneration X
Latchkey GenerationFelt effects of 1990 RecessionHigh levels of education (47% higher ed)
Fashionable, Irreverent, Conservative
AGERepresent $1.4 trillion in annual purchasing power
By 2010 – overtake boomers as primary market for almost every product category
AGEHow to sell to Generation XBetter educated, downwardly mobileMore family time, less contentmentIt’s all about valueThe “soccer mom” is historyDads do more at home
AGEGeneration Y
The Millenials
Born 1977 - 1994
Baby Boomers having Babies76 Million
Parents at peak earning potentialDiverse population
“Luxuries” are now “Needs”
AGESpending up to $159 billion
Influence another $30 billion in family spending!
Tech Savvy = Impatient, Now-Oriented
How do we sell to Gen Y?
AGEChildren
Born 1995 to present
Despite economic downturn, parents do not want to let their children “suffer”
AGE36 Million kids age 3 – 11
Have $18 billion in disposable income!
Influence additional $115 billion
Strong Influencers• Food• Entertainment• Cars• Vacations• clothes
Increasing Diversity
More “salad bowl” than “melting pot”
Increasing Diversity
White – 67%Hispanic – 14.4%African American – 13.4%Asian American – 4%American Indian, Eskimo, Aleut – 1%12% were born in another country
Increasing Diversity
Underserved Market!60 Million in U.S.$220 billion in annual spending power
Increase as Baby Boomers ageAnd impact of war
INCOMEDisposable Income
Gross Pay – Taxes = Net Pay
Rent, Utilities, Transportation
Food, Clothing, School Supplies
Medicine, Personal Care
Marketers of Necessities
INCOME
Net pay – basic expensesTravel, Entertainment, Upgrades
Discretionary Income
INCOMEVALUE MARKETING
Wild spending of the 1990s has been dashed by the recession of 2000
Distribution is still skewedTop 1% of U.S. families control 33% of wealthBottom 90% control 30% of wealth
INCOMEUpper Class – luxury goods, not impacted by recent economy
Middle Class – careful with spending but not doing without
Working Class – stick with basics, hard to save
Under Class – count pennies to make even basic purchases
