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Lecture Basic Marketing: A global-managerial approach: Chapter 5 - William D. Perreault, E. Jerome McCarthy

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In this chapter, you will: Know about population and income trends in global markets and how they affect marketers, understand how population growth is shifting in different areas and for different age groups, know about the distribution of income in the United States,. | Chapter 5: Demographic Dimensions of Global Consumer Markets When you finish this chapter, you should 5-2 Chapter 5 Objectives 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. 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. Money Growth Concentration Literacy Relative Buying Power Rate of Growth Population Density Communication Concerns Focus: Focus: Focus: Focus : Identifying Potential Markets 5-3 Summary Overview Identifying important market dimensions involves verifying the existence of key market success factors. Demographic information -- facts about income, population levels, growth and concentration, and changing patterns of family structure -- help marketers make better decisions in locating and serving target markets. Important Market Dimensions Money. Markets consist of people with money to spend. This is more than a measure of income because the cost of living varies from location to location. Marketers must know how much money a market makes and how much of that income is available for the kinds of products the company offers. Growth. The current size of a potential market is important of course but whether a given market is growing and how fast is perhaps more important for long term planning. This is a key reason that more and more companies are considering global markets. In the US and most of the industrialized Western European countries, market growth is very slow. But in Eastern Europe, Asia, and Africa, most countries are experiencing rapid population growth. Some of these countries make excellent target markets. Concentration. How densely . | Chapter 5: Demographic Dimensions of Global Consumer Markets When you finish this chapter, you should 5-2 Chapter 5 Objectives 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. 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. Money Growth Concentration Literacy Relative Buying Power Rate of Growth Population Density Communication Concerns Focus: Focus: Focus: Focus : Identifying Potential Markets 5-3 Summary Overview Identifying important market dimensions involves verifying the existence of key market success factors. Demographic information -- facts about income, population levels,

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