How the Changing Age Structure of the Population afects marketing with explanati

Author Topic: How the Changing Age Structure of the Population afects marketing with explanati  (Read 357 times)

Offline Shah Alam Kabir Pramanik

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Changing Age Structure of the Population: Marketers must analyze the demographic dimensions carefully. Age is the pivotal dimension of demographic environment. Markets should be analyzed on the basis of age level. A product may not satisfy the needs of all customers. For different age groups different products may be required.
Example: Suppose in a country a large number of people are getting older, and birth rate is slow down. What will happen? The demand of geriatric (health care products for old) products will be increased. That means it will create opportunities for the pharmaceutical industry & health care products industry.
Example: In the 1970s and 1980s, Cadillac (American Luxury) had some of the most loyal customers in the industry. Cadillac’s share of the luxury car market reached a whopping 51 percent in 1976. Based on market share and sales, the brand’s future looked rosy. Cadillac customers were getting older (average age 60). Many Cadillac buyers were on their last car. Compare this with BMW. It’s more youthful and vigorous image didn’t win BMW the early market share war. The result: In the years that followed, BMW’s market share and profits soared while Cadillac’s fortunes eroded badly. Recognizing this, in recent years, Cadillac has attempted to make the Caddy cool again by targeting a younger generation of consumers with new high-performance models and more vibrant advertising. The average consumer aspiring to own a Cadillac is now about 36 years old. (So age of target market is an important factor)