In chapter 3 we introduce the concept of different generations (for example, baby boomers, and Generation X, Generation Y – also called Millennials). This online article, “ From GenX to Baby Boomers, What Every Generation Loves to Buy ” (Bloomberg Businessweek, October 19, 2016) and the video below describe some of the buying patterns typical of each of these market segments – and some other segments based on income and family life cycle stage. Note that the birth years for Millennials and Generation X in this article differs slightly from what is in your textbook. The video and article describe buying behavior typical of five market segments. Three of these segments [Continue Reading …]
One of the changes going on in organizational buying is the next generation of organizational buyers. Many of these new buyers are Millennials who are much more comfortable with technology, the Internet, and social media. In the textbook and in this “What’s Now?” series, we have often identified characteristics of the Millennial consumer. This article, “ 8 Keys to Selling to the Millennial B2B Buyer ” provides insights about how this new generation or organizational buyers might behave. Chapter six’s opening case scenario describes Metokote’s B2B relationship with its customer, John Deere. Considering what you learned in this article and chapter 6, suggest three ways that Metokote might operate [Continue Reading …]
An HBR Blog Network post titled “ Does the 18-to-49 Demographic Matter Anymore? ” (September 4, 2012) essentially asks this question. They use a fictional case scenario to make their point. I encourage you to read the case and the comments below — you can learn a lot from the comments. What do you think? Why do marketers use demographics for segmentation? Are demographics useful? What about this situation, what other dimensions might be useful for segmentation? Why?
Sorry for the relatively light posting frequency over the last month. Between taking some time off and working on the latest revisions to my text books, I have neglected the blog a bit. I will get more posts up in the next couple of weeks to offer some current material to add to your classes this fall. An important concept in marketing is the index. An index is a measure of the relative purchases of a particular group. So if men age 18-34 purchase twice as much fast food as the average American, then this group would index at 200. [Continue Reading …]
Millenials (or Gen Y) refers to those born between 1978 and 1994 (that is the definition we use in our text books). Right now this group is 18-34 years old and fits right at the heart of many marketers’ target markets. Unfortunately, for a variety of reasons — both economic and cultural — these consumers are not spending in the same way as earlier generations. In “ Young Consumers Pinch Their Pennies ” (Bloomberg Businessweek, March 22, 2012), you can read a wide range of statistics from a recent Pew Research Center survey. Among the findings, 46% of 18-24s would choose Internet access over owning [Continue Reading …]
How times have changed. This article starts with the results of a 1957 survey of Americans that showed 80% believed that people who preferred the single life were “sick,” “immoral,” or “neurotic.” In 1960, 13.1% of U.S. households were “one-person” — today that number has more than doubled to 27.6%. In some big cities, the number is over 40%. You can read more about this trend and its implications for realtors, cruise ship operators, and home improvement retailer Lowe’s in “ Solo nation: American consumers stay single ” (CNN Money/Fortune, January 25, 2012) or in sociology professor Eric Klinenberg is new book, Going Solo: The Extraordinary Rise and Surprising Appeal of Living Alone . What other brands [Continue Reading …]
This article in the New York Times describes how some stores are adapting their marketing mix to better meet the needs of budget shoppers. See “ Stores Scramble to Accommodate Budget Shopper s” (September 21, 2010). What other creative marketing mix ideas can you think of for this target market? Think about each of the four Ps. Also, be creative — share some bold ideas that may not be practical. Breakthroughs come from radical thinking!
This article “ The iPad Leads Apple to the Elderly ” (describes how the ease of use of the iPad appeals to the elderly. The examples are mostly from Japan — where a fast growing elderly population make it a prime target market. The examples here work when talking about opportunities (chapter 2 in our books), demographic trends or market segmentation. What else could Apple do to make the iPad more appealing to this target market? Think about all 4 Ps.