3.2 The Demographic and Economic Environments Flashcards
Definition of Demography.
Demography:
The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.
Why is the demographic environment of major interest to marketers?
The demographic environment is of major interest to marketers because it involves people, and people make up markets.
What is the single most important demographic trend in Canada?
The single most important demographic trend in Canada is the changing age structure of the population. Primarily because of falling birthrates and longer life expectancies, the Canadian population is rapidly getting older.
What are the four most recent generational demographics in Canada?
Baby boomers
Generation X
Millennials,
Generation Z
Definition of Baby Boomers
Baby boomers:
The 9.4 million people born during the years following World War II and lasting until 1965.
Notable characteristics of Baby Boomers
The youngest boomers are now in their 50s; the oldest are in their early 70s and well into retirement.
The baby boomers are the wealthiest generation in Canadian history.
Baby boomers account for over 25 percent of the Canadian population but still control the highest spending power of any age cohort
What do the boomers constitue a lucrative market for?
The boomers constitute a lucrative market for
Financial services,
New housing and home remodelling
New cars
Travel and entertainment
Eating out
Health and fitness products
Just about everything else.
Definition of Generation X
Generation X:
The 55 million people born between 1965 and 1980 in the “birth dearth” following the baby boom.
Characteristics of Gen X
Although they seek success, they are less materialistic than the other groups; they prize experience, not acquisition. For many of the Gen Xers who are parents and homeowners, family comes first—both children and their aging parents—and career second.
From a marketing standpoint, the Gen Xers are a more skeptical bunch
once they find a brand, they tend to be more loyal than other generational groups.
. Most are now fully connected and embrace the benefits of new technology.
They are the most educated generation to date, and they possess hefty annual purchasing power.
Definition of Millennials
Millennials (or Generation Y):
The 8.6 million children of the baby boomers born between 1981 and 1997.
Characteristics of Millennials
Their comfort with digital technology. They don’t just embrace technology; it’s a way of life.
- Frugal, practical, connected, mobile, and impatient.
Definition of Gen Z
Generation Z:
People born between 1998 and 2016 who make up the kid, tween, and teen markets.
Characteristics of Gen Z
- Utter fluency and comfort with digital technologies. Generation Z takes Wi-Fi, smartphones, tablets, internet-connected game consoles, and digital and social media for granted
More than half of all Generation Z tweens and teens do product research before buying a product or having their parents buy it for them.
What is an important Gen Z marketing concern?
An important Generation Z marketing concern involves children’s privacy and their vulnerability to marketing pitches.
Companies marketing to this group must do so responsibly or risk the wrath of parents and public-policy makers.
What may be more effective then defining people by their birth date?
Thus, marketers need to form more precise age-specific segments within each group.
More important, defining people by their birth date may be less effective than segmenting them by lifestyle, life stage, or the common values they seek in the products they buy.
