ch03 Demographic Envr 5Sept06 n52 w4Latino

Demographic Forces Influence Consumer Demand: 

Demographic Forces Influence Consumer Demand Needs Consumer Wants Product Price Promotion Distr. Personnel Production Finance Economics Political Legal Technology Social Forces Monopoly . . . . . . Pure Competition Demographics Natural Resources Acctg

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Negative (-) Positive (+) See census.usatoday.com or www.census.gov The study of the size, composition, and distribution of population in relation to social factors such as geographic boundaries. DEMOGRAPHY * Population Trends * Age trends * Family& Household Trends * Education Trends

Population TrendsWorld Population Growth: 

Population Trends World Population Growth Billions of people 1820 1 billion 1930 2 billion

Population Time Bomb: 

Population Time Bomb 4.4% of world pop. – 3.8% 299 mil (2005)

Demographics: 

Population Age 25-29 Demographics Source: U.S. Bureau of the Census, International Database Thought Leadership and the Future of the MBA World Globalization & MBA Competition

Demographics: 

Demographics Source: U.S. Bureau of the Census, International Database Population Age 25-29 Thought Leadership and the Future of the MBA Northern America Western Europe

Demographics: 

Demographics Source: U.S. Bureau of the Census, International Database Population Age 25-29 Thought Leadership and the Future of the MBA Asia

Thought Leadership and the Future of the MBA: 

Source: Doti, J.L. & Tuggle, F. D. (July/August, 2005) Impact of the Economy Thought Leadership and the Future of the MBA

State Rank by Population Size : 

State Rank by Population Size (000) 2005 2000_2005 #1 California 36,132 + 6.7 #2 Texas 22,860 + 9.6 #3 New York 19,254 + 1.5 #4 Florida 17,750 + 11.5 #6 Pennsylvania 12,429 + 1.2 #50 Wyoming 509 + 3.1 www.census.gov/compendia/ (19July06)

State Rank by Population Growth Rate: 

State Rank by Population Growth Rate Growth % (000) 2005 2000-2005 #1 Nevada 2,415 + 20.8 #2 Arizona 5,939 + 15.8 #3 Florida 17,790 + 11.3 #4 Georgia 9,073 + 10.8 #5 Utah 2,470 + 10.6 USA Avg 296,410 + 5.3% (www.census.gov/compendia/statab/files/statepop.html 19july06 Pop. Density: Congestion

State Rank by Population Growth Rate: 

(000) Growth % 2005 2000-2005 #46 Pennsylvania 12,281 + 1.2 #47 Ohio 11,464 + 1.0 #48 Massachusetts 6,399 + .8 #49 W.Virginia 1,817 + .5 #50 N. Dakota 630 - .9 U.S. Total 296,410 + 5.3% (www.census.gov/compendia/statab/files/statepop.html 19july06 State Rank by Population Growth Rate

Population & County Growth : 

Population & County Growth (000) Growth % 2005 2000-2005 Pennsylvania 12,429 + 1.2% Columbia 64.9 + 1.2 Luzerne 312.8 - 2.0 Lackawanna 209.5 - 1.8 Monroe 163.2 +17.7 Schuylkill 147.4 - 1.9 Lancaster 490.5 + 4.2 (www.census.gov/compendia/statab/files/statepop.html 19july06

URBANIZATION, (an Ecological Threat): 

URBANIZATION, (an Ecological Threat) Mega cities 2000 #1 Tokyo 28 mil. #2 Sao Paulo 22.6 #3 Bombay 18.1 #5 Shanghai 17.4 #6 New York 16.6 76% of Americans live in 284 Metro areas (1995) Nov. 2000: G. Bush won 78% of USA counties equal to 81% of USA acreage s

Revolving Doors: Metro AreasMigration Gains & Losses : 

Revolving Doors: Metro Areas Migration Gains & Losses (000) 2000 1990-2000 # 1 Las Vegas, NV 1,563 + 83% # 2 Naples, Fl 251 + 65 # 3 Yuma, AZ 160 + 49 # 3 Utica-Rome,NY 299 - 5.3% # 2 Grand Forks,ND 97 - 5.5 # 1 Steubenville,Oh 132 - 7.4% Mobility: 1 in 5 persons move each year (NE to S/SW) Monstermoving.com

Far From Home: 

Far From Home Zaslow, Jeffrey. “Moving On.” WSJ, D1, July 3, 2002.

AgeTrends: 

Age Trends

Life Expectancy (at birth) 1900 -2050: 

Life Expectancy (at birth) 1900 -2050 Median age: 30 31 36 42 Source: Social Security 1998 Getting Older

Living Longer: 

Living Longer Oster, Christopher. “Congrats! Insurers Extend Your Lifespan.” WSJ, June 24, 2003 Women are less susceptible to disease. Health care 15%GDP

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LIFE EXPECTANCY Brazil Japan U.S Germany MALES 62 76 72 45 73 FEMALES 67 82 79 48 80 (1994 estimates) Mozam-- bique

Population Distribution by Age Segments for 2004: 

Population Distribution by Age Segments for 2004 Age Group: Under 5 5-17 18-24 25-44 45-64 65+ 6.8% 18.1% 9.0% 29.6% 24.1% 12.4% Population estimate (000). Percent of population in this age group 19yrs 19yrs 6 yrs Highest income size

U.S. Age Groups: 

U.S. Age Groups Millions

Demographics: Age Segments in the U.S.: 

Demographics: Age Segments in the U.S. Age cohorts – people of similar age, experience similar..

Boomers, Xers and Yers: 

Boomers, Xers and Yers Baby Baby Echo Boomers Busters Boomers Gen X Gen Y Musicians Beatles, Elvis, Nirvana, REM, N*SYNC, Britney Spears, Beach Boys Prince, U2 Matchbox 20, Kid Rock TV Channels 3 60 Hundreds TV Idols Frakie Avalon Farah Fawcett Jennifer Love Hewitt Annette Funichello Shaun Cassidy Leonardo DiCaprio Childhood TV Leave it to Beaver Dukes of Hazzard Saved by the Bell Popular TV Shows Taxi, M*A*S*H 90210, Friends Felicity, Dawson’s Creek Concerns Nuclear War Environment Human Rights

Generation Gap in the Information Age: 

Generation Gap in the Information Age Those who say... Under 30 Age 50 or over Change brings exciting opportunities They want to be their own boss They own a computer They’ve used E-mail They have Internet access Social Security will not be available to them Medicare will not pay any of their health expenses Technology brings more confusion and complications than it does exciting opportunities It is difficult to use computers 78% 72% 85% 15% 52% 54% 23% 18% 58% 58% 46% 40% 28% 21% 14% 6% 38% 53% (circa 2002+/-)

Population by Ethnic Segments: 

Population by Ethnic Segments 1990 1999 2010 Population (mil) 249.9 273.1 298.0 Median Age 32.8 yrs 35.5 yrs 38.0 yrs White 75.6% 71.9% 67.7% 34.8 38.1 Black 11.8% 12.1% 12.6% 28.1 30.3 Hispanic 9.0% 11.5% 13.5% 25.4 26.5 Asian 2.8% 3.8% other 6.2% 29.7 yrs 32.0 yrs

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Total 67.7% 12.6% 13.5% 6.2% White Black Hispanic Other Ages 0 -17 21% 31% 33% 29% 18-34 21% 25% 27% 26% 35-54 29% 26% 25% 28% 55+ 29% 18% 15% 17% 100% 100% 100% 100% PROJECTED POPULATION = 300,431,000 Source: U.S. Bureau of the Census, Statistical Abstract of U.S. 94 Projected U.S. Population for 2010 by Age and Race Multicultural population

Family(Two or more people living together related by blood or marriage) & Household Trends: 

Family (Two or more people living together related by blood or marriage) & Household Trends JUST MARRIED

The Changing U.S. Household: 

The Changing U.S. Household 105.5 million U.S. households in 2000 .... - Families (69%) – Non Families (31%) - Average family size 3.18 (hshld 2.6) - Father, mother & 2 children -10.5% - Single-parent -13% - One person hshlds –(10%, 1950) – (25%, 2000) - Female Householder, No spouse –12.2% - Female Householder, Children under 18 – 7.2% -

The Changing U.S. Household: 

Penna. USA Households (2000) 4.7 mil 105.5 mil Persons per hshld(00) 2.5 2.6 Median hshld inc (03) 42,952 43,318 Foreign Born persons 4.1% 11.1% Bachelor’s Deg+(25+) 22.4% 24.4% Hispanic origin (2004) 3.8% 14.1% Black persons (2004) 10.5% 12.8% Asian persons (2004) 2.2% 4.2% The Changing U.S. Household www.fedstats.gfov/gf/states (19july06)

Projected Households: 

Projected Households 2000 2020 Change ALL Households 105 mil 129 mil 22% Families 70.6% 68.1% 3.2% Married couples 55.4% 52.1% Single fathers 1.4% 1.4% Single mothers 6.8% 6.6% Non-Families* 29.4% 31.9% + 8% *singles, 2 person hshld

New Homeowners, One Sweet Pad: 

New Homeowners, One Sweet Pad Leung, Shirley. “New Kids on the Block.” WSJ, B1, July 18, 2003.

The Family Budget, Where does it go?: 

The Family Budget, Where does it go? www.bls.gov/cex/csxann03.pdf , data as of Dec2003, accessed 17July05

Family Food Budgets*: 

Family Food Budgets* Hispanics $3,370 Whites $2,803 Blacks $2,307 *Food consumed at home WSJ: 6 Nov. 99, B1 1995: Bus. Labor Stat.

Social Trends & Family Values Marriage -- Divorce: 

Social Trends & Family Values Marriage -- Divorce Median Age Marriage* Divorce** Males 27 38 Females 25 35 Average Wedding Cost***: $16,195 (Midwest) $29,454 New York City **See: www.theknot.com *USA Today,5Jan04$5,A1 *** Smart Money Mag. 1998

Social Trend Two Parent Couples With Children As a Percentage of All Households: 

Social Trend Two Parent Couples With Children As a Percentage of All Households Source: Census Bureau

Social Trends: 

Social Trends Marital Status (H&W Households) Then…and…now 1950 1990 2000 2010 79% 56% 55% 52% Working Women (% of women 16+ in labor Force) 1950 1990 2000 2010 34% 57% 63% ? Income-independence

Bringing Home the Bacon: 

Bringing Home the Bacon Shellenbarger, Sue. “As Moms Earn More, More Dads Stay Home: How to Make the Switch Work.” WSJ, D1, Feb. 20, 2003. Social Trends House husbands

DIFFERING REACTIONS TO FEMALE ROLE PORTRAYALS IN ADVERTISING: 

DIFFERING REACTIONS TO FEMALE ROLE PORTRAYALS IN ADVERTISING Social Trends

Products Usage by Women: 

Where are women under represented as consumers? Adult golfers 22% Video game players 21% Computer game players 15% Internet surfers 10% Products Usage by Women Social Trends American Demographics, 4/1996) % Female consumers: Adult (aged 18 and over) 52% Civilian labor force 46% Tire buyers 51% Principal buyer of automobiles 45%

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Children Having Children Birth rates per 1,000 15-19 yr. old girls *Vermont figure is an estimate Source: U.S. Department of Health and Human Services; Vermont Department of Health Social Trends 54.4

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Social Trends Increase 300% Decrease21%

GIVE KIDS A CHANCE!: 

GIVE KIDS A CHANCE! 1940 1950 1960 1970 1980 1990 2012 5% 10 15 20 25 30 35 40 45 50 Percentage of Out-Of-Wedlock Births To Total Social Trends

EducationTrends: 

Education Trends

THE COLLEGE PREMIUMThe additional wages, in percentages, that a college graduate one to five years out of school received over a high-school diploma holder one to five years out of school:: 

THE COLLEGE PREMIUM The additional wages, in percentages, that a college graduate one to five years out of school received over a high-school diploma holder one to five years out of school: ‘70 ‘76 ‘82 ‘88 ‘94

Women with a Bachelor’s Degree: 

White ….. $37,800 Asian ….. $43,700 Black ….. $41,100 Women held 50% of all management & professional occupations in 2004. Women (72%) are more likely to enroll in college than men (61%) (Bur of Labor Statistics, News Bulletin, Women in the Labor Force: A Databook, 13 May 2005) Women with a Bachelor’s Degree Average Income Regardless of race or gender, the average college graduate earned over $51,000 compared to $28,000 for someone with a High School degree. (WSJ, 28March2005, A9)

Private Prep Schools use aggressive tactics to attract students …: 

Private Prep Schools use aggressive tactics to attract students … Enrollment of 500,000 students nationwide - up 20 % in last 10 years with Median Tuition at $13,345 for day school & $24,350 for boarding school Prep Graduates also receive numerous rejections...to prestigious colleges WSJ,23Jan01 Harvard Applicants (1991-6,244) (2000-8,061) Foreign born students rise

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Hispanics by Origin 2002 Applied Marketing

Fun Facts: 

Fun Facts 2002 – more than one in eight people in the US are of Hispanic origin 50% of Hispanics lived in California and Texas (2000) 42% of New Mexico’s total population was Hispanic, the highest portion of any state Kroger Co., the nation’s #1 grocery chain, spent $1.8 million last year to convert the store in Houston to Supermercado because the population is 58% Latino

Fun Facts : 

Fun Facts 97% of Los Angeles residents were Latino(2000) 2.2 million Hispanics lived in NYC in 2000 The largest amount of any city in the nation Puerto Ricans compromise 37% of the city’s Hispanic population Mexicans working in the U.S. sent home about 13 billion last year, more than total foreign direct investment. One out of ten small businesses will be Hispanic owned by 2007 (estimate 2 million businesses).

How much will Hispanics change America, and how much will America change them?: 

How much will Hispanics change America, and how much will America change them? With 400,000 new Latino immigrants a year( the highest flow in the U.S. history) experts see three broad possibilities for Hispanics’ role in American life. 1-Melting in- following traditional role of other immigrant groups by gradually molding into American lifestyle. 2- Acculturation- Most Latinos speak both languages, retain most of own culture and ties to home even as they adjust to U.S. lifestyles. 3- Mexifornia- Many remain in Spanish speaking enclaves and set the cultural and political agenda in soon-to-be majority-Hispanic states like California and Texas.

Latinos & the Job Market: 

Many Hispanics are in low wage service jobs that offer minimal opportunity for advancement. -This is because many immigrants stay confined in areas inhabited by people with common ethnicity, which prevents them from fully assimilating to U.S. society. Latinos & the Job Market Websites for further information The Pew Hispanic Center www.pewhispanic.org The Census Bureau – www.census.gov New Democrats Online - www.ndol.org

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And This explains America’s fascination with…