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					The Next 25 Years
 American Demographics
                 2025 Forecast
In 20 years…..
   People over 65 years old
    will dominate the population
   White population majority will

    come closer to being a minority
   More niche marketing campaign

    opportunities – as ethnic groups
    grow in numbers
        U.S. Population Projections
    2000: 280 million people         2025: 350 million people
    Growth rates will mirror the Baby Boom era during the
        1950s & 1960s after WWII
    25% population increase
    Growth rates are rising due to people living longer,
        birth rates holding steady and continued immigration
States’ Growth Rate
States’ Growth Rate con’t
          Population Growth
Marketing Analysis

 Every market segment will expand and it will be
 difficult to target groups with a single marketing
 strategy, as niche groups of today become the
 mass markets of tomorrow providing greater
 marketing opportunities
 Niche Advertising Opportunities
Euro RSCG Latino
 Mission: Innovate marketing to Latinos in the U.S. and Latin America by
             applying a contemporary understanding of the marketplace, a simplified
             approach, and the full resources of a global communications agency.
Auto Industry Tailoring Ads to Minority Groups
Toyota Ad
                               "Tooth Art" Postcard
                               •   The postcard featured an African American man with a large
                                   smile and a gold RAV4 emblem on his tooth.
                               •   It was part of a "buzz" campaign using postcards distributed to
                                   hip urban nightspots and coffee houses
                               •   Recognizing that the card might offend, Toyota pulled it from
                                   the marketplace prior to hearing of Rev. Jackson's concerns.
                               •   The company has apologized publicly for the postcard and is
                                   taking steps to ensure that future marketing materials are
                                   appropriate for all audiences.
Auto Industry Tailoring Advertising for Minorities
 Detroit - Automakers increasingly are targeting the Black, Hispanic
    and Asian-American communities with tailored advertising, as
    the purchasing power of minorities grows.
 Whether they're selling a Toyota Camry or a Jaguar S-Type,
    companies are no longer taking a one-size-fits-all approach to
    marketing. Instead, they are creating ads that speak to specific
    groups and placing them in targeted media outlets. The
    increasing awareness of diversity sometimes trickles down into
    the way cars are designed, as automakers seek to fit the product
    to the consumer's lifestyle.
 "Just about every major auto company has begun to realize it makes
    perfect sense to have culturally specific advertising," said Randi
    Payton, chief executive of On Wheels, which publishes the
    magazines African Americans on Wheels and Latinos on Wheels.
 The share of such targeted marketing in overall marketing budgets
    has grown about 11% over the last five years, said Art Spinella,
    president of CNW Marketing Research in Bandon, Ore.
    Companies spend about 9.8% of their marketing budgets on
    blacks, 16.2% on Hispanics and 3% on Asians, he said.
     Auto Industry Example con’t
According to the 2000 census, 12.3% of the population identified itself as
   black, 12.5% Hispanic or Latino, and 3.6% Asian.
Automakers say they try to create ads that target a group's values, rather
   than simply placing their general-population ads in black-oriented
   newspapers or translating TV spots for Spanish-language stations.
"The overarching goal, which is true for all of our initiatives, is we're
   meeting customers on their terms," said Nathaniel Mason, a Ford
At Toyota, diversity marketing translates into more family oriented ads for
   both Asians and Hispanics, said James Lentz, the company's vice
   president for marketing in the United States. The company's Hispanic
   advertising is generally "much more emotional," he added.
In the Chinese community, "the entire family is involved in the purchase
   decision," Lentz said. "So in the advertising, you'll see not only parents
   and children, but also grandparents."
Advertising geared at Blacks tends to feature celebrities, Spinella said,
   citing a recent Jaguar print ad with singer Natalie Cole.
                Population Growth
The population growth will increase
demand on natural resources causing
them to be stretched out, possibly
leading to shortages in land, water,                |
power etc.                                         \/

Marketing Analysis
Products and services will be analyzed on
their environmental impact and marketing
advertisements must take that into consideration
           Graying of America
Largest growth will be seen in those 65 and older
 2000: 35 million 12% pop 2025: 70 million 25% pop

                            >100% increase in ages:
                            • 65-69
                            • 70-74
                            • 85+
                 Graying of America
Marketing Analysis
Shift from youth focused advertising to brands that attract older
   generations and ads tailored to adult preferences
- Marketers have to create an ageless society, since people want to
   be defined by their activities rather than their age

  Example: Carnival Cruise Line TV ad
      Featured an older couple getting up from dinner to go dance along with
      the younger crowd - showing activities suitable for all age groups
                        Ethnic Groups
   Non-Hispanic Whites will still be the majority -
    decrease from 70% to 60% of the population by 2025

   Hispanic population nearly doubles
     2000: 35 million    2025: 68 million
              12%                19%
   Asian population will double
     2000: 12 million    2025: 24 million
              4%                  7%
Percent of Total Population
              Ethnic Groups
Marketing Analysis
 Companies must develop multicultural
 marketing strategies to address the diversity of
 their consumers. Ethnographic research will
 help them understand the culture of the
 emerging ethnic groups and help in identifying
 how to market to each group’s particular

                 Bank of America defines "home"
                 with families of color
The next 20 years…..
 Will open up doors to marketing opportunities directed
  at the segmented markets resulting from the changing
  age and ethnicity demographics
 The growing population will increase group
  representation and create markets that were not
  considered large enough to be profitable before
 Marketing will need to be more multicultural, age
  sensitive and environmentally conscious
   Alison Stein Wellner, “The Next 25 Years,” American
    Demographics, 2003.
                     Interesting Facts
   The United States has the highest growth rates of any industrialized country
    in the world.

   The U.S. population is growing by about 3.2 million people each year.

   Using the Census Bureau's medium projections, U.S. population is expected
    to grow to 400 million by the year 2050. Eight states have population growth
    rates over 2.0%, which means their population will double in less than 35
    years. Florida’s population has grown from 1.9 million in 1940 to 15 million
    today. That is over a 600% increase in just 50 years.

   Along our ecologically fragile coasts, where nearly half the population lives,
    the U.S. is among the most densely populated countries in the world. The
    Northeast averages 767 people per square mile, while Haiti, for comparison,
    has 580. By 2010, when California’s population reaches 50 million, population
    densities in coastal California will reach 1,050 people per square mile.

   Since 1980, the U.S. has converted more than 10 million acres of forest to
    suburb -- an area twice as large as Yellowstone, Everglades, Shenandoah, and
    Yosemite National Parks combined.
          Age Reference
Current     U.S. population    Percent change in

 Age      when you were born   population since
                                you were born
  10         248,709,873             13%
  20         226,542,199             24%
  30         203,302,031             38%
  40         179,323,798             57%
  50         151,325,798             86%
  60         132,164,569             113%
  70         123,202,624            128%
  80         106,021,537            166%
  90          92,228,496            205%

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