Marketing Communications

130 CHAPTER 4 TARGET GROUPS

Consumer markets can also be segmented on the basis of household life-cycle criteria. Th is

concept has its origin in sociology in the decade of the 1930s and has been applied in market

research since the 1950s. It is founded on the fact that family changes (for instance, marriage,

birth and emancipation of children, break-up of the marriage, etc.) aff ect both income and

expenditure of households.^40 Consequently, each stage will imply diff erent needs and there-

fore consumers can be segmented in this manner. Life-cycle segmentation and marketing is

extremely popular in the fi nancial sector where CRM soft ware tools (customer relationship

marketing; see Chapter 13 ) allow marketers to track changes in the life cycles of clients as input

for a targeted marketing campaign.^41 Studies revealed that the importance attributed to fi nancial

choice criteria and fi nancial services varies as consumers pass through the life-cycle stages.^42

Th e conceptual framework of household life-cycle stages has been modernised a few

times, the most recent consensus being found on the model of Gilly and Enis since it excluded

only 0.5% of households.^43 Figure 4.1 illustrates this model.

Figure 4.1 A model household life cycles

Source : Gilly, M. and Enis, B. (1982), ‘Recycling the Family Life Cycle: A Proposal for Redefinition’, in Mitchell, A. (ed.), Advances

in Consumer Research , 9, Association for Consumer Research, Ann Arbor, MI, 271–6.

In 1941, General Mills was the first to introduce an oat-based ready-to-eat breakfast cereal, Cheerios. Since then,

several fruit and chocolate varieties have supplemented the original. General Mills is also known for its long history

of philanthropy, with its foundation having given more than $420 million to non-profit organisations since its found-

ing. In November 2009, Cheerios ran a campaign on Facebook designed to strengthen its relationship with its key

demographic of mothers with young kids, the generation Y mums. Facebook was seen as the best platform to start

a conversation with this target group. The campaign wanted to encourage more people to connect to the Cheerios

Facebook page. Completely in line with the General Mills’ philanthropic tradition, Cheerios promised to donate a

BUSINESS INSIGHT

Cheerios targeting young mums

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