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Exhibit 5.5: Generational Cohorts

Generational

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cohort Gen α Gen Z Gen Y Gen X

Baby

Boomers

Range of birth years 2010–

2025

1997–

2009

1981–

1996

1965–

1980

1946–

1964

Age in 2020 0–10 11–23 24–39 40–55 56–74

Millennials and the Rise of the ‘Experience Economy’

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Income

Purchasing power is tied

to income.

Marketing opportunities

exist across the broad

range of income

distribution. SC Johnson targets the bottom of the

income pyramid by selling pest control

products in Ghana.

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Education

Education is related to income, which determines

spending power.

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Gender

Male/female roles have

been shifting.

Marketing has changed

to reflect these shifts.

• Firms may need to be

careful about gender

neutrality in

positioning their

products.

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Ethnicity

Approximately 80% of

all population growth in

the next 20 years is

expected to come from

minority communities

By 2030 the Hispanic

population in the U.S. is

expected to reach more

than 72 million.

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Social Trends

Sustainability

Health and Wellness

Efficient Utilization and Distribution of Food

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Sustainability

UN Sustainable

Development Goals

focus on social issues

for basic needs.

Certifications from

various agencies may

be important.

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Health and Wellness

Child and adult obesity

New markets focused

on healthy living

Mobile apps that

support health and

wellness

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Efficient Utilization and Distribution of Food

Diet-related Products

Reducing Hunger

Reducing Food Waste

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Technological Advances

Technology impacts every aspect of marketing:

• New products and services.

• New forms of communication.

• New retail channels.

Growing importance of mobile devices

New cutting-edge technology:

• Artificial Intelligence.

• Robotics.

• Internet of Things (IoT).

• Privacy Concerns.

Pepper the robot is used in restaurants, hotels, and coffee shops.

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Economic Situation

Affects the way consumers buy products and services and

spend money.

Monitor the economic situation in home country and abroad.

Major factors to monitor:

• Inflation.

• Foreign currency fluctuations.

• Interest rates.

Customers formed in line to bank counter

Consumer Confidence Index

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Political/Legal Environment1

Comprises political parties,

government organizations,

and legislation and laws.

Firms must understand and

comply with

legislation regarding:

• Fair competition.

• Consumer protection.

• Industry-specific regulation.

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Exhibit 5.6: Consumer Protection Legislation (1 of 2)

Year Law Description 1906 Federal Food and Drug Act Created the Food and Drug Administration (FDA);

prohibited the manufacture or sale of adulterated or

fraudulently labeled food and drug products.

1914 Federal Trade Commission Act Established the Federal Trade Commission (FTC) to

regulate unfair competitive practices and practices that

deceive or are unfair to consumers.

1966 Fair Packaging and Labeling Act Regulates packaging and labeling of consumer goods;

requires manufacturers to state the contents of the

package, who made it, and the amounts contained

within.

1966 Child Protection Act Prohibits the sale of harmful toys and components to

children; sets the standard for child- resistant

packaging.

1967 Federal Cigarette Labeling

and Advertising Act

Requires cigarette packages to display this warning:

“Warning: The Surgeon General Has Determined That

Cigarette Smoking Is Dangerous to Your Health.”

1972 Consumer Product Safety Act Created the Consumer Product Safety Commission

(CPSC), which has the authority to regulate safety

standards for consumer products.

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Exhibit 5.6: Consumer Protection Legislation (2 of 2)

Year Law Description 1990 Children’s Television Act Limits the number of commercials shown during

children’s programming.

1990 Nutrition Labeling and Education

Act

Requires food manufacturers to display nutritional

contents on product labels.

1995 Telemarketing Sales Rule Regulates fraudulent activities conducted over the

telephone. Violators are subject to fines and actions

enforced by the FTC.

2003 Controlling the Assault of Non-

Solicited Pornography and

Marketing Act of 2003 (CAN-

SPAM Act)

Prohibits misleading commercial e-mail, particularly

misleading “subject” and “from” lines.

2003 Amendment to the

Telemarketing Sales Rule

Establishes a National Do Not Call Registry, requiring

telemarketers to abstain from calling consumers who

opt to be placed on the list.

2003 Do Not Spam Law Created to reduce spam or unwarranted e-mails.

2010 Financial Reform Law Created the Consumer Financial Protection Bureau,

whose aim is to enforce appropriate consumer-oriented

regulations on a number of financial firms such as banks,

mortgage businesses, and payday and student lenders.

It also set up the Financial Services Oversight Council to

act as an early warning system.

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Responding to the Environment

Implement strategies

that respond to multiple

environmental forces.

Marketers that succeed

are the ones that

respond quickly,

accurately, and

sensitively to

consumers.

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PROGRESS CHECK (2 of 2)

1. What are the six key macroeconomic factors?

2. Differentiate between country culture and

regional culture.

3. What are some important social trends shaping

consumer values and shopping behavior?

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