Question

How is the demographic profile in the United States changing? How will these changes in demographics impact firms and their marketing decisions?

Answer 1

As we know the demographic area deals with age, population, gender, income level etc like factors. In US there has been been significant changes in its population and age factor. The population of US is reaching more than 400 million people and there has been increasing population who is ageing . this means that US population is getting older.The portion of the population that is currently at least 65 years old—13 percent—is expected to reach about 20 percent by 2050.Between 2000 and 2050, census data suggest, the U.S. 15-to-64 age group is expected to grow 42 percent.

Marketers rely on demographics to determine the direction of their strategies. Understanding the ethnic, financial, and lifestyle aspects of the current and future population is how marketers develop their messages, so any shifts in these demographics can have an enormous effect on their efforts.

the percentage of US adults in middle-income households dropped to 50%. This was a striking shift after more than 40 years of the middle class being the economic majority in the U.S. In addition, there’s a much wider financial gap between middle-class and upper-income Americans today. Research shows that 49% of US households are in upper-income brackets and possess seven times the wealth of middle-income households.

For example- Firm is finding that the Population of ageing people are increasing then they need to find different medium for marketing and promotion according to that. They need to use Magazines, newspaper and TV commercials for old people.Like TV commercial on Life and health insurance, Ad on magazine about hospital providing low cost healthcare etc.

on the other hand, if Firm and its marketer wants to target young audience like Millennials then they have to use social media, Mobile marketing like initiatives to influence demand and purchase decision of these target audience.for example- On FB, Amazon is promoting its next sale on designer clothes and shoes.

in context of income level, Firm target upper income class with different marketing tactic like Audi Car are targeted for high income class people while Companies like Hyundai target middle income class people.