Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e

5. Demographic
   Dimensions of Global
   Consumer Markets

Text © The McGraw−Hill

Companies, 2002

Demographic Dimensions of Global Consumer Markets 127

demographic trends. They often provide an early warning about new opportuni-

ties—or the need to adjust existing strategies.

Everybody “knows” that there is a vast and largely untapped market in China

and that many people in Somalia live in desperate poverty. It’s also clear that demo-

graphic dimensions vary within countries: Lots of retired people live in Florida,

many Californians speak Spanish, and the population in the Sun Belt states is grow-

ing fast. Generalities like these may be partly true—but “partly true” isn’t good

enough when it comes to making marketing strategy decisions.

Fortunately, much useful information is available on the demographic dimensions

of consumer markets around the world. Most of it is free because it has been col-

lected by government agencies. With valid data available, managers have no excuse

for basing their decisions on guesses. Look at the data in the next few chapters in

terms of selecting relevant market dimensions—and estimating the potential in dif-

ferent market segments. Also, check your own assumptions against this data. Now

is a good time to get your facts straight!

Markets consist of people with money to spend. So it makes sense to start with

a broad view of how population, income, and other key demographic dimensions

vary for different countries around the world. This will help you to see why so many

firms pursue opportunities in international markets. And our examples will illustrate

why companies can’t depend on half-truths in increasingly competitive international

markets.

Some marketing managers never consider opportunities outside of their own

country. That may make sense in some cases, but it may also lead to missed oppor-

tunities. For example, crowded cities in the U.S. may seem to offer great potential,

but the U.S. population makes up less than 5 percent of the total world popula-

tion—which is now over 6 billion.

Get the facts straight—

for good marketing

decisions

Information about demographic

characteristics of consumer

markets is readily available and

can help marketing managers

plan more successful strategies.

People with Money Make Markets

Marketers search for

growing markets