Exhibit 5.5: Generational Cohorts
Generational
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.
NNehring/iStock/Getty Images 16
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Education
Education is related to income, which determines
spending power.
Monkey Business Images/Shutterstock 17
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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.
Gorodenkoff/Shutterstock 18
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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.
Image Source/Getty Images 19
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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.
pixelliebe/Shutterstock 21
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Health and Wellness
Child and adult obesity
New markets focused
on healthy living
Mobile apps that
support health and
wellness
Shutterstock/Rawpixel.com 22
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Efficient Utilization and Distribution of Food
Diet-related Products
Reducing Hunger
Reducing Food Waste
Steve Cukrov / Alamy 23
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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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© McGraw Hill LLC
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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© McGraw Hill LLC
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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