Question

what is family lifecycle? why do marketers segment their markets by family lifecycle stages?

Answer 1

The family life cycle in the marketing sphere is known to be is a series of stages through which a family may pass over time.

Typical stages in family development include:

Stage 1) the periods of a single young adult

Stage 2) a newly married couple

Stage 3) a family with young children - Full Nest

Stage 4) Empty Nest

Stage 5) Solitary survivors

The family life cycle emphasizes the effects of marriage, divorce, births, and deaths on families, as well as changes in income, expenses, and assets.

The marketers segment their markets by family lifecycle stages because there are different demands that relate to different stages of the family life cycle. There is a need to marketize the products to people in different stages of the family life cycle using different strategies.

People in the first stage are more likely to participate in recreational activities. They tend to be a target for those marketing vacations and basic furniture.

People in the second stage are likely to be interested in consumer durables such as cars and refrigerators. They are also more likely to spend money on vacations.

The third stage people are prime targets for home sellers.

If the children do not stay with a parent as they grow adolescence, people are said to be in the empty nest stage.

They are likely to be in a strong financial position. They are prime targets for vacation deals and luxuries.

If they are old, they are prime targets for medical appliances and medical care products.

People who are solitary survivors and are prime targets for security and affection for the marketers.

This way, marketers could sell different products and keep the existing market intact.