Demographics differ from psychographics in that demographics are objective and can be easily measured or defined (i.e. age, income, mobility, educational level, etc.). However, demographics are not static and the changes can have a significant impact for marketers. What are some of the changing demographics that you've seen in the last 20 years and what have been the implications for marketers? Looking forward, what are some of the changes that you see taking place in U.S. demographics over the next 20 years and how will these changes impact the marketplace? Do you see any opportunities for new products or services based on the changing demographics?
Interesting question! Let's take a closer look. One approach is to look at information from various sources, which you can draw on for your final copy. This is the approach this response takes. I also attached a supporting article.
1. What are some of the changing demographics that you've seen in the last 20 years and what have been the implications for marketers?
(a) Diversity increases
The country has become more diverse. For example, one important demographic change is the shift and increase in foreign-born population in United States from 1980 -2000. Marketers need to consider immigration trends in their marketing strategy e.g., customer preference, pricing, etc. (see chart of shift in demographics, such as Hispanic/Latino and China, with China in the top three in 2000 (as compared to not being listed in 1980) (see chart at URL: http://www.infoplease.com/ipa/A0201399.html). These rends are expected to continue. marketing strategies need to target these markets to determine the needs and preferences.
(b) Aging population
Age is another factor - as more and more of the baby-boomers reach retirement. Marketing strategy needs to consider the needs and preferences of the retired and the income status as well.
(c) Wage gap increasing
Income status, with the middle class disappearing is another important demographic factor as more people are living in a lower socioeconomic bracket over the last twenty years. This impacts marketing through the income gap, between rich and poor, with more people in the lower income bracket.
(d) Health status and needs are changing over time
Health status is another demographic, with a focus on loosing weight and eating healthy (obesity on the rise), which clearly impacts marketing decisions based on customer needs. The US is without doubt the most dynamic and advanced country in the healthy eating and drinking market. The question is, how can you profit from the diet food and drink trends in the US? One report says this:
"The US Diet Market Outlook to 2008: Future profit opportunities for low carb and other fast growth diets is a new management report revealing unique analysis of consumption pattern changes among dieters, benchmarked executive opinions on core consumer drivers for diet ...
Future changes in U.S. demographics over the next 20 years are discussed. It then discusses how these changes might impact the marketplace and potential opportunities for new products or services based on the changing demographics.