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 139

The U.S. birthrate—the number of babies born per 1,000 people—fluctuated

greatly in the last 50 years. Exhibit 5-5 shows a clear pattern. A post–World War

II baby boom began as returning soldiers started families, and it lasted about 15 years

into the early 1960s. In the 1970s the situation changed to a “baby bust” as more

women stayed in the workforce and couples waited longer to have children. When

you see the dip in the birthrate—and think about the declining market for baby

products—you can understand why Johnson & Johnson promotes its baby shampoo

to adults who want a gentle product. You can also understand why Johnson & John-

son looks for opportunities in Asia and Latin America where the birthrate is higher.

The U.S. birthrate hit a low in 1976 and then rose again—but only slightly.

From 1980 to 1990 the birthrate was between 15 and 17. It is starting to drop again

now, and this trend should continue—with an estimated birthrate of about 14.1

around the year 2005. These shifts are easy to explain. As the baby boom genera-

tion entered its child-bearing years, there were more women to have babies.

However, as the boomers aged this baby “boomlet” passed and turned to what some

have called a “baby bust.” In addition, American couples are having fewer children.

There may be more demand for small apartments, in-home entertainment, travel,

and smaller food packages.

With fewer children, parents can spend more money on each child. For exam-

ple, expensive bikes, video game consoles, MP3 players, and designer clothes for

children have all sold well in recent years because parents can indulge one or two

children more easily than a houseful.^10

Because our population is growing slowly, the average age is rising. In 1970, the

average age of the population was 28—but by the year 2000 the average age jumped

to about 36.

Stated another way, the percentage of the population in different age groups is

changing. Exhibit 5-6 shows the number of people in different age groups in 1990

and 2000—and how the size of these groups will look in 2010. Note the big

increases in the 45–64 age group from 1990 to 2000 and also 2000 to 2010.

Birthrate—boom or

bust?

Birthrate

26

25

24

23

22

21

20

19

18

17

16

15

14

13

1935

18.7

19.4

20.4

24.1

25.0

23.7

19.4

18.4

14.6

16.0

15.8

16.6

14.8

14.2 14.1

1940 1945 1950 1955 1960 1965 1970

Year

1975 1980 1985 1990 1995 2000 2005

Exhibit 5-5

Changes in the U.S.

Birthrate, 1935– 2005

The graying of America