The article by Greg Spencer American Demographics (2004) states the trendiest changes in modern American demographics and points out the major shortcomings of the processes.
Thus, it is widely accepted that the population is growing in the USA. It is also known that it has become more diverse recently. The matter is that the immigration processes allows a huge quantity of other nationalities penetrate and mix with the white/English population. Hence, the great percentage from the whole residents is Hispanics or Asian minorities. In addition, The African Americans will probably remain the same.
The real crisis of the marketing in future may cause the growing need for the places from leaving for the coming people. The housing has become really dense in recent years. The growing population can lead to the national crisis in the sphere of industry, as well as in society. Immigrants are considered to be the immense driver of the economy (Spencer).
In addition there is a tendency for baby booming in the USA. “The fact that the Baby Boomers are going to turn 65 and start commanding an enormous share of the nation’s resources is going to catch people by surprise” (Spencer). Indeed, the people are not prepared for such an increase. Regarding the issue the new opportunities should be provided like new job places for health and care, for instance. Baby boomers have always produced a dramatic impact on the social and cultural aspects of the country. The tendency, however, remains and has to be dealt with.
I believe that the above said trends in the next 25 years of the USA demographics will certainly influence other marketing issues. Mainly they will touch on the marketing strategies in the national economy. The changes can be either negative or positive, whatever.
First of all the national market will have to broaden and globalize. The issues of globalizations now are preserved in many aspects of both national and the global marketing strategies. In future under the influence of the current transformations in society it will be harder to support national economy. The exhaustion of the natural resources may lead to the marketing collapse.
For the future companies “the power of communities of the consumers, for example, united in affinity for a bound by geography, brand, or engaged in similar lifestyles. Basically the growth of such consumer network-building systems is the first seismic shift in the loyalty landscape of the companies” (Hobbs & Stoops). Moreover, information is considered to be power. The companies will have to enhance core brand value proposition through personalization and customer experience management. Besides, the power will be focused in the hands of mega market corporations that will rule all the aspects of social life and dictate their marketing laws. “In the global marketplace, three major areas of convergence are giving rise to a second generation of multimerchant loyalty coalitions: corporate convergence, in which mega-corporations continue to gobble one another up, with the corresponding size of their customer bases growing more astounding every day” (Hobbs & Stoops).
One example of another company that has demonstrated the use of one of these trends in their current product offering and marketing strategy is Pain Away ltd., pharmaceutical company. For instance, they made use of the baby boom issue for the increasing the profits. The matter is that manufactured and sold its premier launch product Pain Away, a topical pain remedy using FDA-approved homeopathic ingredients developed for the simple purpose of relieving pain. The medicine was used in different purposes: starting with only a handful of customers, including some professionals, chiropractors, physical therapists. In the end the preparation was promoted by the doctors for killing pain and helping during childbirth in difficult confinement. Thus, the use of baby booming issue was made.
The other additional demographic trend that I believe might also impact companies’ future marketing strategies is population size and also geographic distribution throughout the state.
Thus, according to statistics, “the U.S. population more than tripled from 76 million citizens in 1900 to 281 million residents in 2000. The growth of the 32.7 million residents in the early 1990s represented the strongest numerical increase of any decade in U.S. history” (Hobbs & Stoops). More than that, evidences prove: “the U.S. population increasingly grew metropolitan dwellers each decade, from 28 percent in 1910 to 80 percent in 2000. Rather than central cities, suburbs accounted for the most of the metropolitan growing. By the period of 2000, half of the USA population lived particular in suburban areas” (Hobbs & Stoops).
In addition, as the statistics runs: “the dwellers of the West grew much faster than the population in any other 3 regions of the state in every decade of the 20th century” (Hobbs & Stoops), “the Northeast had, however, the highest percentage of its population living in city areas throughout the century and was the densely populated district.
Besides, “the gender composition in the United States shifted from the majority male population to a female majority in population. “The sex ratio (males per 100 females) declined every decade from 1910 to 1980, and then increased in the 1980s and the 1990s” (Hobbs & Stoops). Among the regions, the West had sex ratio the highest and the lowest sex ratio belonged to Northeast for the entire century. “Only seven states, all in the West, still had a larger male than female population at the end of the century” (Hobbs & Stoops). Indeed, the situation that is currently observed can really influence the economic and social wellbeing of the country. These tendencies are sure to bring some changes into the marketing strategies in future, as well as the above mentioned issues.
Hobbs, F. & Stoops, N. (2002). Demographic Trends in the 20th Century, U.S. Census Bureau, Census 2000 Special Reports, Series CENSR-4.
Spenser, G. (2004). American demography. the Bureau of the Census.