BMGT451 Demographics and Segmentation Notes Demographics o Age o Gender o Race and ethnicity o Family life cycle o Occupation o Education o Income Census anymore US Age Distribution o Census used to be long short different people got different versions o American community survey is why you don t need the long survey o Baby boom 45 55 years old now o Echo effect 15 25 when the baby boomers have kids they are mostly populating that area Age Specific Needs and Wants o Usage index o Average level is 100 below and above is less more o Follow the patterns may change over time o Not just teens in the US it s all over the world o More activities different kinds of consumption o Interesting to look at all the age cohorts o Cohorts people who move through life as a group carry their habits tendencies with them Generational Cohorts o Pre depression always save everything leftover food etc o Depression purchasing material possessions souvenirs o Woodstock flower children civil rights equal opportunity o Zoomers watergate era people were coming of age cant trust the government o Baby bust first to grow up without incomes as parents did graduated from college and there were tough economic times o Echo boom Idealistic baby boomers passed on values of activism to children diversity fight for causes o Millennials Not old enough yet to shape the future Gender o Clothing and shoes o Cosmetics and skin care products o Toys food cigarettes magazines Traditional Family Life Cycle o Bachelorhood young singles o Honeymooners married no children o Parenthood o Empty nesters post parenthood o Dissolution one spouse dies Socioeconomic Status o Occupation income and education are highly correlated Education occupation income Education spouse s education o Consumption shopping patterns o Hobbies o Media preferences o People usually marry within the same education level Household Income Distribution o Median is skewed because top 1 is much different than the bottom 10 Segmentation o Allocate resources more effectively o Design more effective marketing programs o Identify new product opportunities and new market opportunities o Variables Demographic Age gender marital status family size income occupation education Geographic Region size of city population density climate Geodemographic Neighborhoods zip codes census tracts Major cruise line used geodemographic segmentation to identify and target prospects o Best prospects were neighbors of past passengers o Conversion index for collateral fulfillment Culture subculture religion race nationality social Subcultures may be distinguished by o Religion o Nationality e g Chinese Americans Cuban Americans o Common interests e g hip hop Sociocultural class Culture Social class Psychographic Lifestyle and personality characteristics e g activities interests and opinions Demographic and geographic data alone may not identify segments Lifestyle and personality characteristics o Activities Interests and Opinions AIO o Values and Lifestyles VALS Behavioral Usage rate sensitivity to marketing tactics brand and store loyalty benefits sought Behavioral Segmentation o Usage rate o Usage situation o Brand and store loyalty o Sensitivity to marketing tactics o Benefits sought by consumers