Global Demographic Trends and Marketing Strategy

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Global Demographic Trends and Marketing Strategy

• AGE
• 1. In economically developed countries, "baby
  booms" are "graying" and "echo booms" are
  emerging.
• 2. In developing countries, youth segments are
  large, but total population is "graying," too ...
• 3. ...because birth rates are generally dropping
  and life expectancy is generally increasing
  everywhere most rapidly in developing countries.
• INCOME
• 4. Income is generally increasing everywhere a
  large "middle class" is emerging in developing
  countries, but setbacks are frequent.
• 5. Both convergence and divergence (or
  polarization) are frequently seen between and
  within countries.
• EDUCATION
• 6. Literacy rates are increasing in developing
  countries most rapidly in younger age cohorts.
• 7. Education levels are generally increasing
  most rapidly for the young divergence is a
  problem.
• 8. Computer literacy is generally increasing
  most rapidly for the young the "digital divide"
  is increasing.
• DIVERSITY
• 9. Gender differences are diminishing in most
  developed and developing countries.
• 10. Ethnic diversity is increasing in most
  developed and developing countries.

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Global Demographic Trends and Marketing Strategy

• Age cohorts shape marketing strategy because they
  carry enduring consumer characteristics into each
  phase of life.

AGE 1. In economically developed countries, "baby
booms" are "graying" and "echo booms" are
emerging. 2. In developing countries, youth
segments are large, but total population is
"graying," too ... 3. ...because birth rates are
generally dropping and life expectancy is
generally increasing everywhere most rapidly in
developing countries.
3
Age cohorts are determined by the population
growth and life expectancy
Increase in millions
Population in billions
10 6 2
1000 600 200
POPULATION CHANGE (bars 10 year window)
WORLD POPULATION (line)
1750 1800 1850
1900 1950 2000
2050 SOURCE United Nations and U.S. Bureau of
the Census, International data Base
4
The "Graying" of the Baby Boom

• In 2000,
• MATURES ages 55 and older, 58.7 million, per
  capita income 8,000 (female/male 53)
• BOOMERS ages 36-54, 77.4 million, per capita
  income 29,000 (female/male 57)
• GEN-X ages 24-35, 44.9 million, per capita
  income 23,000 (female/male 65)
• GEN-Y (echo boomers) ages 6-23, 71 million

Matures
Boomers
Generation X
Matures
Boomers
Generation X
Generation Y
Source US Census Bureau
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The "American Dream"

• ALL GROUPS freedom of choice, happiness, owning
  your own home, comfortable retirement
• MATURES happy marriage, having children
• BOOMERS living in a decent, secure community
  where everyone shares my values "cocooning" --
  spending money on the home environment
• GEN-X pursuing my dreams, college education,
  being a winner and becoming wealthy
  "experiencing" -- spending money on out-of-home
  activities
• GEN-Y not well-understood yet they are the
  most "electronic" and have shown responsiveness
  to new brands and unusual media, including
  email-driven word-of-mouth less concern with
  success, more social awareness

Source Yankelovich Report on Generational
Marketing Rocking the Ages, Smith Clurman, 1997
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US Age/Income/Education SegmentsPersonal
Computers
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US Age/Income/Education SegmentsConsumer
Internet Shopping
eBoomers are 18 of the population, but 76 of
consumer e-commerce in the U.S.
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Baby Booms in the U. S., U.K., Russia, Germany,
Canada, and Australia
1997
1997
Russia
2025
2025
1997
1997
1997
Australia
Germany
Canada
2025
2025
2025
9
Population Trends in Japan and China
10
Population Trends in Brazil
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Population Trends in Mexico and India
12
Population Trends in Indonesia and Argentina
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Global Demographic Trends Implications for
Marketing Strategy
AGE 1. In economically developed countries, "baby
booms" are "graying" and "echo booms" are
emerging. 2. In developing countries, youth
segments are large, but total population is
"graying," too ... 3. ...because birth rates are
generally dropping and life expectancy is
generally increasing everywhere most rapidly in
developing countries.

• Which behaviors will each age cohort keep
  lifelong, which will they adopt from their
  seniors, and which will they adopt from their
  juniors?
• - key benefits sought?
• - media preferences?
• - attitudes toward spending, borrowing,
  saving?
• Will "global" age cohorts become prominent? If
  so, what are the implications for developing
  global products and global brands?