ABSTRACT
The structure and composition of the population – implications for segmentation
Cultural influences on stakeholder attitudes and buyer behavior
Key social trends and their significance for marketers
The significance of social influences such as lifestyle, class and reference groups
Challenges such as the changing role of women and ageism
– Exponential growth to over 6 billion in 2000
– Pace slowing by demographic transition to lower birth and death rates with economic development
– Ageing offset by AIDS and changed attitudes
– Dismal outcomes of Malthus avoided bar Africa
– Growth ¼ birth – death rate þ net migration – UK growth slowing to 60mþ – EU growth to 415m but birth rate now below
replacement level, i.e. 1.5 vs. necessary 2.1
– Ratio: dependants (non-working) to work population
– Rising sharply with lower births, retirement and rising longevity in mature economies
– Uncertainty and continuing poverty stimulates
– A means of support for rapidly ageing populations
– Remittances important to developing countries
– Third World loses its skilled and dynamic workers
– Trends in age, gender, marital status, ethnicity, region and occupation
} An increase in the average age of the population. ~
n Post-war baby boom generation approach retirement
n EU median age rising from 38 to 49 by 2050
n Better off, better educated and better informed
n Shift in centre of gravity of spending power to 0ver-55s
n Healthy and fit old versus the poor old segments
l Worsening dependency ratio
l Higher taxes, pension contributions, loan repayments for workers
l Labour and skill shortages
l Falling savings ratios as elderly spend
l Increase in empty nest and single households
l High discretionary income – no mortgage
l Cultural and political influence grows
l Favours travel, health-related, security, durable financial service and nostalgia products
l Incentives to keep working beyond retirement
l Responsibility for ageing relatives
l Later marriage but 40% divorce rates l 570,000 marry and 300,000 divorce p.a l 1 in 4 children raised by single parent
l Big rise in single households (elderly/young/ divorcees)
l Composite families from remarriage l Rich source of segmentation
l Drift from rural to urban/suburban living l Ribbon development l Retirement hot spots, e.g. South
l Black and Asian rose 40% 1991 on l Younger age profile ¼ differ in public/private
needs l Asian food market worth £2bnþ Occupation
l Core workforce shifts agriculture to manufacture to services to information
l Emphasis on consumer interface, i.e. customers, elderly, stakeholders
Decline of full-time employment
Rise in part-time employment
Longer hours
Rise in self-employment
Rise in contractual employment
Flexible work lives
Rise of knowledge workers
l Rise of flexible/customer-focused organizations
l 24-hour, 7-day week, 52-week year business
l Need flexible workforce for peaks and troughs
l Entry of women into workforce
l Changing culture for permanent workers
l Demand for a dedicated workforce
l Attractions of affluent lifestyle/house price rises
l Opportunities created by IT – teleworking
l Organizations prefer to outsource non-core to specialists or contract-in skills as required
l Employees prefer flexitime and staggered hours
l Move to flexible shifts and work years, working from home and phased withdrawal to retirement
l 50% produce, process, use, distribute information
n Strongly influenced by culture and religion
n Tend to work in different sectors, occupations and levels
n With household duties work harder but paid less
n Dominate in interpersonal service sectors – health
n Men dominate top positions in all sectors
n Account for nearly half the workforce
n An underutilized resource to relieve shortages
l Positive discrimination in career development
l Women-friendly recruitment
l Enable a flexible work/life balance
l Common pay and conditions
l Motivational training
l Financial support for child care
l Retraining after career breaks
l Aggregate demand for goods and services
l The size of different market segments
l The availability of labour
l The mix and composition of social services
l The scale of support infrastructure
l The tax burden of the dependent population
l The regional distribution of demand
Important demand condition in forecasting sales
Family life cycle to match product offerings to needs
Organizations must market themselves to target groups
Structural changes drive changing demand patterns
Marketers must respond to demographic consequences, e.g. flexible mortgages and pension plans, time-saving and convenient solutions for core workers
Above-average income in populated South East – magnet for luxury producers
Influences that affect society’s basic values, attitudes, perceptions and behavior.
