M>Pact | Winter 2004
Monday, March 22nd, 2004 | Archive.
Defining your markets in today’s economy
Defining your market is not as straightforward as it once was. Life stages, lifestyles, gender and ethnicity influence consumer choice and purchasing decisions in today’s society, rather than the traditional notion of age-defined consumer groups. Today our society moves through a variety of life stages and life changing events – marriage, children, divorce, relocation, job change, care giving and retirement – which all drive choice, preferences and define needs. The growing influence of women on purchasing decisions, the ever-present mature market and emerging ethnic populations also create new challenges for marketers. Identifying your market through such filters identified as buying power markets, can help to reevaluate consumer needs, priorities and brand preferences
Spanning age and ethnic boundaries, women constitute the largest buying power market and comprise 45% of today’s workforce.
Women as a whole, influence over 80% of consumer dollars spent, although earning less than one-half of all household income. The percentage of working women over the next ten years is projected to increase 16% compared to
Women as a whole, influence over 80% of consumer dollars spent… the increase of their male counterparts by 8%. Women are spending money on themselves, their children, family and household needs as well as making major purchases decisions for homes, vehicles and computers in today’s market.
Age is only one factor when considering the mature market as a major consumer group and buying power market. Now more than ever, senior adults are more active, health conscious, live longer, travel, have more disposable income, and are involved in raising grandchildren and care giving for their parents. Age 50 is now considered the midpoint in life as life expectancy rates climb and the population over age 65 continues to grow. The over 65 set comprised 13% of the population in 1998 and is expected to grow to 20% by 2050.
Marketing decisions made within emerging ethnic populations today are more influenced by brand recognition, relevance, respect and relationships rather than the traditional five P’s of marketing – product, price, promotion, placement and profit. The presence of black, Hispanic and Asian Americans has grown from one in five Americans in 1980 to one in four today. As annual incomes continue to increase, ethnic markets define over $950 billion dollars in purchasing power.
Ethnic markets define over $950 billion dollars in purchasing power.
Savvy marketers must view the evolving buying power markets in flux. In other words, segmenting your target market in ways that have been less refined in the past. The needs and purchasing decisions of an active, working 55-year-old Hispanic divorced female will be dramatically different from those of a 65-year-old retired grandmother who is the primary caretaker of her young grandchild. As a result, advertisers and marketers must consider various consumer needs and impact purchasing decisions within emerging buying power markets of gender, life stages and ethnicity to shape product demand in today’s culture.
Excerpt from “Evolving Buying Power Markets” and “The New Cultural Mix: Life Stages, Lifestyles and Ethnic Backgrounds” by Susan Saurage-Altenloh
Copyright reminder
To help you start off the new year right, we’d like to remind you to update the copyright date to 2004 on your website. This is a good way to let your visitors know that the site content is current.
New & noteworthy clients
TIS Insurance Services, a nationally recognized leader in risk management services, has selected Morris Creative to help them with their web site redesign. The new site, an information center for TIS’s clients, will feature more user-friendly navigation and site architecture.
Rodefer Moss is a growing regional consulting firm with expertise in accounting and business technology. MCG is currently helping to update and standardize their corporate branding and materials.
Quote of the month
“The primary focus of your brand message must be on how special you are, not how cheap you are. The goal must be to sell the distinctive quality of the brand.”
– Kerry Light, Brand Strategist
