Family Life Cycles

Topics: Generation Y, Demographics, Marketing Pages: 26 (8700 words) Published: June 19, 2013
Table of contents
Family Life Cycle and Age Segmentation?2
Age Segmentation3
Generational Market Segmentation4
Defining the Generations9
Builders9
Baby boomers10
Generation X10
Generation Y11
Generation Z11
Are generational segments too generalised?11
Why do we buy?11
Marketing to each generation13
Baby Boomers20
Reference:22

Family Life Cycle and Age Segmentation?
“The demographic factors of gender, age and income often do not sufficiently explain why consumers buying behaviour varies. Frequently, consumption patterns among people the same age and gender differ because they are in different stages of the family life cycle. The family life cycle (FLC) is a series of stages determined by a combination of age, marital status and the present or absence of children, family life cycle a is a form of market segmentation based on the recognition that we pass through a series of quite distinct phases in our lives” Marketing: An Introduction By David Pickton, Rosalind Masterson

Family Life Cycle: 9 stages
* Bachelor stage (Single men and women living on their own-- spend on fashion, vacations, and recreation), * Newly married couples (spend on vacations, cars, and clothing) * Full Nest I (youngest child under 6 -- spend on baby food, toys; buy home and furniture) * Full Nest II (youngest child is older than 6 -- spending money on children) * Full Nest III (older children, -- major expense is college; may travel and replace furniture) * Empty Nest I (children have left home; family income at peak -- travel, cruises, vacation) * Empty Nest II (head of household has retired -- may move to warmer climate and purchase a condominium) * Solitary Survivor in Labor Force (travel, vacations, medical expenses) * The Retired Solitary Survivor (medical expenses)

http://academic.brooklyn.cuny.edu/economic/friedman/mmmarketsegmentation.htm

Age Segmentation
Consumer needs and wants change with age although they may still wish to consumer the same types of product. So Marketers design, package and promote products differently to meet the wants of different age groups. Good examples include the marketing of toothpaste (contrast the branding of toothpaste for children and adults) and toys (with many age-based segments). http://www.tutor2u.net/business/marketing/segmentation_bases_demographic.asp

For Example:
Newly married couples
* Young no children
* Better off financially than they will be in the near future * High income but likely to have high mortgage commitment * High level of purchase of homes durable goods
* Buy – cars, white good, furniture, holiday and life assurance. Empty nesters
* Older married couple – no children at home, head of family still in work * Income at highest level
* Expenses low
* Home ownership at peak
* Interested in travel, recreation, self education
* Satisfied with financial position and money saving
* Buy – Luxuries and home improvements
http://www.tutor2u.net/business/presentations/marketing/familylifecycle/default.html

Bachelor Stage
The bachelor stage of the life cycle comprises those who are not yet married but who no longer live at their parents' home. This stage of the life cycle is characterized by a lower level of financial care. People at this stage of the life cycle are more likely to participate in recreational activities. They tend to be a target for those marketing vacations and basic furniture.

Newly Marrieds
Those who marry go through a newly married life cycle stage before they have children. At this point, they are likely to be in better financial condition than later when children are in the picture. People in this stage of the family life cycle appeal to marketers of durable goods. They are likely to be interested in consumer durables such as cars and refrigerators. They are also more likely to spend money on vacations.

Full Nest
Marketers...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • What Is Product Life Cycle? Essay
  • product life cycle Essay
  • Product Life Cycle Essay
  • Product life cycle Essay
  • Product Life Cycle Essay
  • Apple Product Life Cycle Essay
  • Product Life Cycle Research Paper
  • Stages in the Product Life Cycle Essay

Become a StudyMode Member

Sign Up - It's Free