The Marketing Strategies of the Organizations - Term Paper Example

Running Head: Impact of Changing Demographics Impact of Changing Demographics [Institute’s The study intended to have a wide-ranging analysis about the impact of changing demographics on the marketing strategies of the organizations. The hypothesis commence with defining the demographics and marketing strategies to provide a base for further research. The major trends of demographics that are coming under change have also been an integral part of the study report. In addition, how these factors make an impact on to the marketers and advertisers have included in it. The major themes that include economical, technological and societal or cultural impact have come under study later in the report, with the declaration about the marketing role in such changes. However, the conclusion elucidates the information that has come under presentation in the thesis. Table of Contents Table of Contents 3 Introduction 4 The Major Trends of Changing Demographics 6 Aging Population 6 Rise of Working Women 7 Increased Ethnic Diversity 8 The Economic Impact of Changing Demographics 9 The Technological Impact on Changing Demographics 10 The Societal and Cultural Impact on Changing Demographics 11 Conclusion 12 References 14 Introduction As the world and its inhabitants have entered into the twenty first century, it is coming across numerous changes and revolutions with the advancement and innovations in various sectors. Globalization is one of the leading changes that have brought the world on one global platform. This has changed the working ways and thinking of the organizations throughout the world. Demographics are one of the variables that enlighten the organizations’ marketing department about who are the current and potential customers present in the market; where they are and what is the ratio of the customers that are probable to buy the product the marketer is selling. In other words, the marketers study the statistics of the populace with reference to size, density, location, age, gender, race, occupation, and several other socio-economic factors when they want to identify the demographic feature for a particular product or service (Griffin, 2010). However, according to the dictionary.com, demographics can come under reference as “The characteristics of human populations and population segments, especially when used to identify consumer markets” (Griffin, pp. 132, 2010). To put it briefly, demographics play a substantial role for the advertisers in order to identify the target market for their products and services. Marketing strategies on the other hand is the development of actions where the marketers select their target markets on their statistical variables, and create and maintain appropriate marketing mix accordingly (Hooley & Graham, 2008). Marketing strategy of any organization comes under formulation after the organization has defined the mission statement, goals and objectives and conducted the SWOT analysis of the product. The environmental analysis is also one of the imperative steps for development of marketing strategies. However, translating the product information, advertising message and most prominently the marketing strategies that the consumers can understand and respond provide the enterprise with a clear-cut benefit over the competitors (Hooley & Graham, 2008). Rapid, dramatic, and turbulent changes are some of the characteristics that govern the new epoch in which the organizations are standing. Additionally, this elevated rate of change has twisted and metamorphosed the ways of working in the diverse enterprises. In fact, transformation has become an integral part of the organizational culture and life beyond doubt. Several emerging and changing trends are creating a deep impact on to the working of the organizations. Out of these rising and shifting trends, demographics are one of the facets that have leaded the corporations to reconsider and mull over their marketing strategies another time. These changes not only present opportunities and threats to the organization, rather, it also consequence in malfunctioning if not administered in an appropriate manner (Day, 1999). Global population growth at a rampant pace, a changing age, ethnic and educational mix, new types of households and geographical shifts in population are few of the significant components of the trends of demographic environment. With the changing demographics in the modern world, globalization is demanding new strategies as the traditional market of products, services and programs are shrinking at an unprecedented rate (Day, 1999). Considering these situations, such query arises: what is the impact of changing demographics on the marketing strategies of the corporations? Following are the key themes in a comprehensive illustration that would explicate and acquaint the impact of changing demographics on the marketing strategies of the organizations. In addition, the major trends of demographic change would also come under elucidation that the globe has witnessed. The Major Trends of Changing Demographics The consumer behavior and the demographics that is one of the foundation stones of marketing strategies are in a phase of experiencing major trends. This demographic trend include the aging of population, escalating proportions of women working, increase in ethnic diversity and decline of the people belonging to middle class. According to the opinions and viewpoints of the experts, these transfers in the demographic trend would have a long-term impact on to the marketing functions and strategies of the organizations. Aging Population The recent statistical data provides with the piece of information that United States and several other developed nations are experiencing aging of the population on whole. The increase in the number of aging residents has witnessed mammoth growth in the few years that has reached a significant proportion of the total population of United States. Similarly, various countries of the western world have come under expectation to have a much higher proportion of the aged people in comparison to United States. This even leads to the fact that the proportion of younger people is even falling (Pinson, 2008). Despite the fact that globalization and technological boom are promoting the world towards merging on a worldwide basis, these varying demographic factors are creating a strong wall between the older and younger nations, and rich and poor consumers. Due to this aging of the population, companies now have to amend and revise the products, services and the marketing strategies in order to match with the needs and desires of the older market. This would also emerge new industries such as healthcare (Pinson, 2008). Another factor that has come under visualization is that older customers tend to have durable and reliable products instead of fashionable, which provides the companies with another complexity to develop such types of products. While quite in opposite, the young people tend to have trendy and fashionable items and services. The rising faction of aging population provides the marketer for a new and emerging mainstream market, rather than just being a niche market. Therefore, the enterprises are having the new opportunities to cater such market develop the marketing strategies as a result (Pinson, 2008). The extensive studies states that, the aging population or the grey market has not yet come under widespread and broad exploration by the global marketers. This is because the majority of the marketing strategies that include advertisements and promotional campaigns have targeted the young generation. Nonetheless, the aging population is one of the demographical elements of evolving markets that need to come under focus (Pinson, 2008). According to the view of some of the researchers, this aging population has no commitments on personal level coupled to high income or savings that they wish to spend on several things such as holidays, second homes, dining out and many more. This provides the enterprises and marketers with an opportunity not only to uncover the products and services that fascinate to this market but also to develop marketing strategies to attract them (Pinson, 2008). Rise of Working Women Women in the twenty first century have gained recognition and have not only become one of the valuable aspects in contributing to the household, but also an important part of the workforce. The records reveal the fact that noteworthy proportion of women has become working on full time basis. This variation in the trend is no longer making the traditional gender-oriented advertising approaches as effective means of approaching. Traditionally, the women paid more attention towards bargaining the products and less impulsive purchases. Now the trend is changing, women are now becoming more bothered shoppers where the prime focus is on the convenience and meal solutions (Assael, 2004). The rise of the women working has resulted in greater time pressures. This has provided the companies with new ideas and opportunities to promote more products and services that can provide the working professional women with new ways of relaxing and distressing that incorporate massages, spa vacations, yoga, outdoor activities, and several others of similar types (Assael, 2004). The augmented visibility of the women in workplace has lead to vague impression of gender dissimilarities successively like jewelry; personal care items and others have created a market growth for the male gender as well. One of the major impacts of the gender attribute of demographics has transformed the way of cooking and food. Furthermore, the kitchen in the modern world has increasingly become a place of communication in preference to the food center (Assael, 2004). Increased Ethnic Diversity From the records, it has come under surveillance that United States is driving towards ethnic pluralism and cultural diversity at a rampant pace. This trend has given rapid growth to the minorities group in United States. As consequence of such convergence and disproportion in growth of the ethnic population, numerous marketers have come under its vast and colossal influence. Although this change of cultural pluralism would make the companies, more diversified, nevertheless, their branch of marketing needs to work on formulation of new strategies from scratch (Perreault, 2006). The ethnic markets that have come under ignorance and disregard are now being the leading focus for the enterprises that have turned them into the leading markets. For instance, the Mexican sauce and salsas that did not had been much popular in the past are now taking the place of ketchup that traditionally came under consumption. In a quite similar way, the ethnic diversity has also shifted the way that product positioning came under practice previously. The product that is the focusing an individual in one culture, may be for an entire family in another culture (Perreault, 2006). The Economic Impact of Changing Demographics The demographical characteristics have played an immense role at all times on the economies of the world. According to some schools of thoughts demographic changes not only influences the marketing strategies of the organization, rather, it also have profound effects on all sectors of the economy. Experts and researchers often use the demographic data as a basis for analyzing the economic impacts. This is because the economic trends profoundly depend upon the changing of the financial behaviors of the people, with the passage of time as they step into each stage of life cycle. To put it succinctly, it can come under articulation that the world is currently in a phase of experiencing the demographic change that is equivalent to earthquake for business community (Tanaka, 2004). Several economic conditions are of prevalent interest to marketers on which the marketing strategies come under formation. These take account of the income of the target group, the spending nature of the customers, the interest rates on which the individual can borrow money. Furthermore, the economic conditions also include the cost of living or the financial necessities of livelihood in a certain geographic location, employment rates that is the portion of people working and the exchange rate or the value of currencies (Tanaka, 2004). The changing demographics of the customers are leading to materialization of new consumers, and hence this quality is making the customers less loyal and predictable. Therefore, in order to develop successful marketing strategies that are customer driven on global basis, “companies need to take the changing consumer demographics and expectations into thoughtfulness and concern” (Tanaka, 2004). Studies have demonstrated that the financial behavior during different stages of life of the people lying in the demographic groups is a crucial and prime factor that influences his or her buying behavior to great extent. Typically, the same pattern has come under vision about the people’s buying pattern as they opt to borrow at a young age, pay their debts in the middle age, and deplete the accumulated assets during retirement. This trend has come under observation from the last few centuries that alleviate the process of predicting future trends (Tanaka, 2004). The Technological Impact on Changing Demographics With the advancements that the world is experiencing, it gave emergence and rise to the facilitating technologies in the production and distribution of the organization. However, with the demographic shifts and rising trend of technological productions, the consumer behavior is coming under its vast effect, and thus leading the organizations to concentrate on their marketing strategies (Chaffey & Dave, 2008). The last couple of years have proved to be tremendous with respect to the technological expansion and modernization with the rapid evolution of technologies in product and service designs, manufacturing and distributions. These changing trends have changed the consumer buying behaviors and patterns to a high degree. For instance, the communication technologies that include computers, internet, and wireless communication devices left an indelible imprint on to the shopping and consumption behaviors of the customers. They in general opt to purchase the products from their computers, rather going to the shopping mall for purchasing (Chaffey & Dave, 2008). While looking at another case in point, the automobile industry of the United States, consumers have changed their way of shopping, as they tend to pursue the internet before paying a visit to the car dealer. This provides with evidence that adopting new technologies are increasingly mounting. This escorts the organizations to think over and develop new strategies that should be in accordance to the technology (Chaffey & Dave, 2008). Few of the researchers present with the idea that new and modern technologies provide the customer with instantaneous response just on one click due to which the preferences have come under transformation with reference to time and immediate satisfaction. The consumers if do not get instant response regarding their needs become highly dissatisfied and looks for other alternatives in this fast-paced globe of nowadays. Extensive researches demonstrate that the new emerging technologies have proved to be disruptive in a way that they are changing consumer behavior and marketing practices at a drastic pace that has not come under glimpse earlier (Chaffey & Dave, 2008). The Societal and Cultural Impact on Changing Demographics The society consists of diverse and different social groups who share similar values, beliefs that lead to similar buying patterns that include their customs, attitudes, likes and dislikes and various others within the same cultural group. Therefore, cultural groups can come under analysis on several levels. However, the key interest of the marketers is to examine the narrow level of the cultural groups where individuals share interests that are more specific. In addition, the marketers tend to view the individuals from the sub cultures for development of the marketing strategies in order to target, allure, and enchant those (Onkvisit & Shaw, 2008). According to the studies and researches, the broad cultures within the same society incline to shift values on gradual basis, while the sub-cultures adopt the new changes rapidly in comparison. Therefore, the marketers need to have a constant monitoring on this type of changing demographics. Although, it is less complicated to capitalize this sort of demographics through the new marketing strategies and tactics such as new products, new sales channels, added value and so forth, even though to cope up with such target audience involves more risk due to utter competition in the global marketplace (Onkvisit & Shaw, 2008). Conclusion The evidences recapitulated in this paper reflect that demographics are one of the vital and essential components of consideration while developing the marketing strategy of any product or service. Marketing researcher has always utilized the demographic information such as age, income, gender, social class and several other variables traditionally and extensively in order to formulate such marketing strategies that can provide them a competitor’s edge over others. It has come under observation that very restricted and narrow research have come under study with respect to the impact of demographic change on marketing strategies at a broader level. However, the contemporary world has ascended the need of demographic examination that is shifting at an eccentric pace that can lead the marketers and organization to focus on the development of new marketing strategies that would provide them with maximum benefit. After having a thorough analysis, it can come under expression that future consumers would be more demanding, time-driven, information concentrated, and highly individualistic. Furthermore, the consumer demands and expectations deeply imply the changing consumer demographics predominantly in life expectancy and increased wealth. Consequently, due to such behavioral patterns and shift in demographics, the marketers and advertisers need to bring a complete revolution regarding their marketing strategies with key emphasis on mass customization. References Assael, H. (2004). Consumer behavior: a strategic approach. Houghton Mifflin. Chaffey & Dave, C. (2008). Internet Marketing: Strategy, Implementation, and Practice, 3/E. Pearson Education India. Day, G.S. (1999). Market driven strategy: processes for creating value. Free Press. Griffin, D. (2010). Business with a Purpose: Starting, Building, Managing and Protecting Your New Business. Easy Brain Labs Inc. Hooley & Graham, H. (2008). Marketing Strategy and Competitive Positioning. Pearson Education India. Onkvisit, S. & Shaw, J.J. (2008). International marketing: strategy and theory. Taylor & Francis. Pinson, L. (2008). Anatomy of a business plan: the step-by-step guide to building your business and securing your companys future. Aka associates. Perreault, A. (2006). Basic Marketing 15E. Tata McGraw-Hill Education. Tanaka, G. Y. (2004). Digital deflation: the productivity revolution and how it will ignite the economy. McGraw-Hill Professional. Read More