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

Whoopies – 50+ market Ages – Still working Ages – 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 , 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 Currently 44 million “members” Both parents work - Latchkey kids who are: Self sufficient Have a high level of education Financially cautious

Baby Boomlet When the Baby Boomers started having children it created the Baby Boomlet. Years are 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 It grew at 7 times the rate of the general population and is expected to reach 31 million by the end of 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 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

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

Family Life Cycle Single Newly Married Full Nest Empty Nest Sole Survivor