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

128 Chapter 5

Although a country’s current population is important, it provides only a snap-

shot of the market. The population trend is also important.

Thirty years ago, global population growth was over 2 percent per year. Now it’s

down to just 1.3 percent. Exhibit 5-1 shows where long-term world population

growth will come from. Notice the expected growth of countries in the Middle and

Far East. India (with a population of over 1 billion) and China (with a population

of almost 1.3 billion) are getting even larger. You can see why so many firms from

all over the world want to reach consumers in these countries now that trade bar-

riers are relaxing. Although many of the countries in South America and Africa

have much smaller populations, they too are growing at a rapid rate.^2

Exhibit 5-1 shows that over the long term population growth is expected in most

countries. But how rapidly? And will output increase faster than population? These

are important questions for marketers. The answers affect how rapidly a country

moves to higher stages of development—and becomes a new market for different

kinds of products.

Population, income, and other demographic dimensions help to answer these

questions. Exhibit 5-2 on pp. 132–133 summarizes current data for representative

countries from different regions around the world. Note that population growth

varies dramatically from country to country. In general, less-developed countries

experience the fastest rate of growth. The populations of Pakistan, Nicaragua, Nige-

ria, and Saudi Arabia are expected to double in 25 years or less. It will take about

five times as long for the population of the U.S. to double. Population growth is

even slower in Canada, Japan, and the European countries.^3

The population in some countries is spread over a very large area. Population

density is important to marketers. If the population is very spread out, as it is in

many of the African countries, it is difficult and expensive for marketers to adjust

time and place discrepancies between producers and consumers. This is especially a

problem in countries without efficient highway and rail systems. Similarly, a widely

Population is becoming
more concentrated

Marketers who are interested in the rapidly growing teen market often find that teens have many common interests,
values, and needs—whether they are shopping online or in-store.