CHANGING DEMOGRAPHICS AND MARKETING 1 Essay Example

  • Category:
    Marketing
  • Document type:
    Essay
  • Level:
    Undergraduate
  • Page:
    1
  • Words:
    370

Changing Demographics and Marketing

Changing Demographics and Marketing

As a result of plummeting birth rates and increasing average life expectancy, the global population is aging. This trend in demographics presents a number of implications for economy and the market for goods and services. As the population ages, the needs and demands of the populace are bound to change and reflect the change in demographics. Changing demographics also have consequences in terms of the purchasing power of the populace. The older population has worked for longer and therefore has saved more over the course of their work. The retiring workers also have pensions and therefore have access to more money than younger generations. These changes necessitate a change in marketing strategies in order to cater for an aging population[ CITATION Rch16 l 1033 ].

It is therefore imperative that businesses adapt to the change in age demographics so as to thrive. Marketers have to consider the products and services that are driven to high demand due the aging population. They also have to make their products and marketing approach to appeal to an older audience without making the intended targets feel old. Opportunities for adequately meeting the needs of aging consumers, including online shopping, electronic carts and home delivery, have to be taken advantage of to effectively exploit this niche.

Identifying the industries that are set to see increasing demand due to the aging population is very important for new investors and also investors looking to branch out. Of major interest is businesses oriented towards leisure such as travel, vacationing, and film as the older population has more time and enough money to spend on leisure[ CITATION Joh16 l 1033 ]. Another flourishing industry is fitness including gyms, yoga, Pilates, Tai Chi among others. The older population also have an interest in buying property so the real estate business is set to benefit[ CITATION Rch16 l 1033 ]. The finance industry will also benefit as the aging population need of their savings and pensions.

References

Authers, J. (2016, October 25). Demographics and markets: The effects of ageing. Retrieved from Financial Times: https://www.ft.com/content/df61dc42-99fa-11e6-8f9b-70e3cabccfae

Eisenberg, R. (2016, may 9). How To Make Money From The Global Aging Megatrend. Retrieved from Forbes: https://www.forbes.com/sites/nextavenue/2016/05/09/how-to-make-money-from-the-global-aging-megatrend/#2da1c68b5a41