There are many reasons why the American population is changing. Over the years the number of family members per household has decreased. The cost of living has risen, and the cost to maintain a household has risen; therefore Americans are becoming more aware of their household budgets. The roles within families are also changing. Increasingly, both men and women want to first establish themselves in the labor market before founding a family (OECD, 2011). In the past, households tended to be more traditional. Women were expected to stay at home and become homemakers, while men were able to enter the work force. During that time it was more traditional for a man to be the main bread winner. Due to changes in society as well as the need for a secondary income, women and men are now the norm within the workforce. As we progress as a society, America is becoming more diverse. Companies must become more sensitive to this diversity not only within the workplace, but also when it comes to their marketing techniques.
Households are not made up of a variety of people who encompass different genders, race, and possibly sexual orientations. Households are becoming more non-traditional than traditional. In order to truly reach the masses, marketing managers must find creative ways to market products with an “all-inclusive” feel. Marketing managers collect marketing intelligence in a variety of different ways, such as by reading books, newspapers, and trade publications; talking to customers, suppliers, and distributors; monitoring social media on the Internet; and meeting with other company managers (Kotler & Keller, 2012). By doing so, they are able to populate strategies that will allow them to accurately reach target markets. The population has displayed a decline in many ways. Many feel this is due to the fact that marriage rates are down, and divorce rates are high and families are choosing to wait to have children due to the need to work or simply choosing not to have children at all.
A rapidly declining population could create a society that doesn’t have the work force to support the elderly and, overall, is less concerned with the nation’s long-term future (Kotkin, 2010). In addition, with retirement options not exactly panning out as expected, the elderly workers are not leaving the work force as soon as expected, which then affects the younger workers seeking to enter the work force. With the number of people entering the job market, and the number of those who are not leaving the job market, the cycle seems to be stuck in a continuous loop. Household patterns have not only changed due to the changes in what was considered a traditional home, household patterns have changed due to technology. Families have changed the way they do business, pay bills, and interact daily simply because of the internet. The internet has changed the way we live. Social media has taken over our lives in more ways than one and companies have to adapt quickly.
The massive effect that the Internet has had on business has directly affected the way companies hire as well. Companies are seeking applicants who have knowledge of new technology, the internet, and social media, and unfortunately this excludes a large portion of the elderly population. For this reason, many companies are seemingly hiring baby boomers; however these baby boomers simply hold the technological know-how that companies are seeking. One of the main changes in household patterns has been spending habits. Due to the many changes that have occurred within the American household, and the changes that have occurred within society, Americans have been challenged with changing their budgeting habits. The prices of goods are continuing to increase, while many households are either operating on one income, or unable to bring in enough income to live within their means. For this reason, many households are forced to live below their means. Companies are now faced with providing reasonably priced items, in a highly technological society. It is extremely important that companies are able to determine their target markets and market the correct products to the correct markets.
For example: The CEO of a Fortune 500 company may be able to invest in a $1500 computer, while a young student on a work-study income may only be able to afford a $499 computer. For most goods, there is a positive relationship between a consumer’s income and the amount of the good that one is willing and able to buy (Experimental Economics Center, 2006). Within my current organization we experience change at a rapid pace. In that the establishment I currently work within is a technology based organization, we are constantly taking additional training to stay up to date with the changes. Fortunately my organization’s target market is extremely large. As a secondary educational institution we do not only target high school graduates, but we also market to non-traditional students. In order to successfully reach our target markets, forecasts are established.
All forecasts are built on one of three information bases: what people say, what people do, or what people have done (Kotler & Keller, 2012). As the demographics continue to change, it will continue to benefit my organization to undergo forecasts in order to continue to reach the correct markets. Targeted marketing is very important regarding my organization because many people feel college must be pursued right after high school. With the correct marketing, our organization can reeducate the public and inform them of the many non-traditionals that now attend college or enter post-secondary programs. According to Kotler & Keller, they must market products that correspond to society’s core and secondary values and address the needs of different subcultures within a society (2012). By marketing in this manner, the organization can continue to successfully identify the correct target audience.
Experimental Economics Center. (2006). Factors affecting demand. Retrieved from http://www.econport.org/content/handbook/Demand/Factors.html
Kotkin, J. (2010, August). The changing demographics of america. The Smithsonian, Retrieved from http://www.smithsonianmag.com/40th-anniversary/the-changing-demographics-of-america-538284/
Kotler, P., & Keller, K. (2012). Marketing management . (14 ed.). New Jersey : Prentice Hall. Retrieved from https://digitalbookshelf.argosy.edu/
OECD. (2011). Families are changing. Doing Better for Families, Retrieved from http://www.oecd.org/els/soc/47701118.pdf