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

Much depends on their income, of course. But this is a high-income period for many

workers—especially white-collar workers.^23

Finally, marketers should not neglect the senior citizens—people over 65. The

number of people over 65 is increasing rapidly because of modern medicine,

improved sanitary conditions, and better nutrition. This group now makes up almost

13 percent of the population.

Our senior citizens are more prosperous than ever before. Their income is lower

than in their peak earning years, but most do have money to spend. They don’t just

squeak by on Social Security. Such prosperity is a dramatic change. In 1960, about

a third of all senior citizens had incomes below the poverty level. Now, only about

10 percent are considered “poor”—lower than the 11.8 percent figure for all adults.

Older people also have very different needs. Many firms already cater to senior

citizens—and more will be serving this market. For example, some companies devel-

oped housing and “life care” centers designed to appeal to older people. Casio makes

a calculator with large, easy-to-read numbers. Publix Super Markets, a big Florida

chain, trains employees to cater to older customers. Checkout clerks, for example,

give older customers two light bags instead of one heavier one. Some travel agents

find that senior citizens are an eager market for expensive tours and cruises. Other

companies offer diet supplements and drug products—often in special easy-to-open

packages. And senior citizen discounts at drugstores are more than just a courtesy—

the elderly make up the biggest market for medicines.

Keep in mind, however, that older people are not all the same. With a group this

large, generalities and stereotypes can be dangerous. Different senior citizen target

markets have different needs—and require different marketing strategies.^24

America may be called the melting pot, but ethnic groups deserve special atten-

tion when analyzing markets. One basic reason is that people from different ethnic

groups may be influenced by very different cultural variables. They may have quite

different needs and their own ways of thinking. Moreover, Americans are beginning

to recognize the value of multicultural diversity. The U.S. is becoming a multicul-

tural market. As a result, rather than disappearing in a melting pot, some important

cultural and ethnic dimensions are being preserved and highlighted. This creates

both opportunities and challenges for marketers.

Some important ethnic differences are obvious. For example, more than 1 out of

10 families in the U.S. speaks a language other than English at home. Some areas

have a much higher rate. In Miami and San Antonio, for example, about one out

of three families speaks Spanish. This obviously affects promotion planning. Simi-

larly, brand preferences vary for some ethnic groups. For example, cosmetic

companies offer products tailored to different skin tones. But, ethnic groups don’t

just differ in the color of their skin. Differences in attitudes, experiences, and val-

ues, as well as where they shop and what advertising appeals they attend to, come

together to shape differences in buying behavior.

Senior citizens are a

big market

Demographic Dimensions of Global Consumer Markets 149

Do ethnic groups buy

differently?

Ethnic Dimensions of the U.S. Market

Internet

Internet Exercise Visit the website for Ethnic Grocer (www.ethnicgrocer.com),

select “Shop by Country,” and then “Mexico.” Are any of the carbonated bev-

erages listed for Mexico likely to become popular in the U.S.? Why or why not?