The demise of the traditional family. Married couples are a bare majority of U.S.
households.
one-third of households have children under 18 , and nearly one-
of households are people who live alone. However, married couples dom-
inate the affluent market as the vast majority of very high-income households are
maITied couples. The long-term trend of high growth in nontraditional types of
households and lack of growth among marriec; couples can only mear. further seg-
mentation of an already segmented marketplace.
A phenomenon that speaks to the change in the traditional
structure
is known as the "sandwich generation," These are a growing group of adults who
are
for
parents while raising their own children, According to a study
from the
ational Alliance for Caregiving and the Americari Association of Retired
there are more
9 million Americans in this situation, 40% of them
between 35
49. The
of belonging to the sandwich generation is taking
a toll countrywide.
of a sudden you're struggling with this huge balancing
act," says 3eth Willogen
author of Caregiving: The Spiritual Journey
of Love, Loss, and Renewal. "How do you fulfill all your roles') How do you
ance your maITiage, your children, your work-and elder care?"
The
increase in education. Most adults in the United States still have
not completed college (approximately 67%), but that number continues to
More and more people have attended some college or have an associate or tech-
nical degree. More
worKers mean more knowledgeable and sophisticated
consumers who expect more information about product attributes and benefits before
making a purchase.
Nonphysicaljobs keep growing. Jobs that don't require physical strength keep grow-
in number. Virtually all job growth during the next ten years will take place
among service providers. especially in health care and social services, Because
providing services
little investment compared with producing consumer
goods, we can expect continued high growth in small businesses, sole proprie-
torships, and other entrepreneurial activities, Also, the extremely high cost of
employee benefits suggests that the use of
workers and independent
contractors will
to grow, Marketing managers must assess whether
sumers who do not ilave corporate benefits
become more
because
they lack the safety
of company-provided pension plans and medical insur-
ance,
so, consumers may seek money-back guarantees or other product features
that reduce risk. Marketing managers must also see whether people who work for
themselves or for small firms are more fme-conscious,
5. Growingfaster than expected, About 272
people live in the United States.
This is an increase of 18 million since 1990, and most of the growth has resulted
from an unforeseen boom in births. The United States had about 2004 million births
between January 1990 and December 1994.
was more than in any five-year
period
the last five years of the legendary baby boom (1960 to 1964), and
6% more
in the late 1980s. The United States also
the
five-year immigration total (4.6 million) since the turn of the century, an
of 31 % over the previous five years. The annual influx of nearly 1
new
residents has led to
increasingly diverse consumer marketplace,
among young
6. The growth of minorities, Although white non-Hispanics have been the biggest
contributors to the U. S, population growth in the 1990s, Hispanics have been a
EXTERNAL FACTORS THAT AFFECT PLANNING
117
close second. The number of Hispanics in the United States increased from 22
million in 1990 to 35 million in 2000. That number is nearly twice as many new
residents as were added by African-Americans and Asians. If each minority seg-
ment keeps growing at current rates, Hispanics will outnumber African-
Americans in ttn years. This trend will be particularly important for marketing
communicators that target certain regions, because Hispanics and Asians are
geographically concentrated than African-Americans.
7. Baby boomers become middle-aged. More than half of Americans are aged 35 or
older,
the oldest baby boomers are now aged 55 . The largest ten-year age group,
people aged 4 1-50, has been growing as it absorbs the younger half of the baby-
boom generation. But the number of people in this segment reached a peak in 2000
and then started to decline. The fastest-growing age group is middle-aged people
aged 45-54-the age at
income and spending peak. Middle-aged people
are also the least
of all age groups
change their residence. This combi-
naiion of high growth, high income, and low mobility will provide considerable
lift to discretionary spending, particularly in the categories of home furnishings,
education, and insurance.
8. People are moving south. More than half (54%) of U.S. residents live in the ten largest states, and more than half of U.S. population
between 1990 and
999 occurred in
ten states. New York had the largest population of all
in 1950, but in the 1990s, fast-growing Texas pushed the barely growing New York
to number three. One reason for the explosive growth in the southern states is the
influx of people from other countries . More than half of the four million immi-
grants that located in the United States between 1990 and
995 moved to Cali-
fornia, Texas, or Florida.
9. The middle class gets hammered. According to the U.S. Census Bureau, the share of aggregate household income eamed by the middle 60% of households has shrunk
from 52 % in 1973 to 49% 25 years later. Meanwhile, the share of such income
earned by
top 20% (average income $98,600) increased from 44% to 48% . In
other words, the total purchasing power of the top 20% of U.S. households now
equals that of the middle 60%.7
Demographic Groupings
In addition to understanding general demographic trends, marketing
also recognize demographic
that may turn out to be market segments because
of their enormous size, similar socioeconomic characteristics, or shared values. We exam-
ine three examples of demographic groupings by age that have or will become dominant
market segments: baby boomers, Generation X , and the baby boomlet.
The
Boom
The baby boom occurred from 1946 through 1964. :Curing
19-year time frame. 76.4 million babies were born in the United States. Today, approxi-
mately 70 million of these baby boomers are still alive. They represent about one-fourth of
the total population. Because of their numbers and buying power, baby boomers have and
will continue to influence the marketing mix for the servIces and products businesses offer
and how these services and products are offered. For example, the majority of baby boomer
women work fuli-time and view their job as a career. This trend has implications for child-
care, fashion, automobiles, travel, and fast-food
Health concerns
also grow
as baby boomers age.
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