INSIGHTS IN ACTION: THE FGI BLOG
2010 Census Trends and Implications for Your Marketing Research
While many may quibble about the methods and politics behind the decennial census, it still remains one of the best tools we have for understanding how the consumer landscape is changing and predicting future trends. So, what will the next census say about the great people of these United States? A recent white paper from Ad Age gives us a glimpse of some very important trends. I’ve added some corresponding marketing research questions for your consideration…
1) Go West (or South) Young Man: Jobs (and therefore, people) are quickly migrating South and West: Lower taxes and fewer unions continue to encourage economic growth in the South and West. Conversely, regulations in many northern states, such as New York, are less favorable for businesses. Compounding the problem (or the opportunity for the South and West) is the fact that entire families, not just the younger workers, are moving. MR questions: How does this shift effect the consumption of your products and services? Should you test new concepts that will play better in the South and West? Should you refine the allocation of your media spend and/or the messaging behind your marketing?
2) Multi-Cultural Nation: While white non-Hispanics still comprise two thirds of the US’s 300 million people, it is the slowest growing segment at only 2%. The Hispanic population has grown over 40% since 2000 which makes it the largest minority group in the US at 50 million people (or 16%). MR questions: Do you really understand Hispanic consumer preferences as they relate to your products and services? Really? Many people give it lip service but fail to really invest in understanding this population. Do your customer satisfaction and awareness and usage studies delve deeply into Hispanic preferences?
3) Women on the Move: In a 2009 report, the Census Bureau revealed that more women had graduated college than men for the first time in US history. While the deep recession in male-dominated industries like construction and manufacturing has contributed to this shift, the increased role of women in the economic engine is a trend that’s likely to continue (see a related blog post here about women and their increased earning and purchasing power). MR questions: Are you looking at women through an outdated lens? Does your research fully understand the unique preferences of the all-powerful female consumer?
4) Power to Pops: It is forecasted that there will be 70 million grandparents by 2010. That’s a massive increase when you consider there were just 47 million in 1990. In effect, the number of grandparents in the US grew five times faster than the overall population. More importantly, grandparents are living with their children, helping with unmarried mothers (their daughters), and making spending decisions for the household. The bottom line is this: American consumers who are 50+ years old now “control the vast majority of assets and show the most economic growth.” As a result, marketing research and advertising budgets should shift accordingly, from the current allocation of 10% on that demographic to as much as 40%. MR questions: How well do you market to the grandparent demographic? Does your marketing research properly account for the grandparent demographic? How can you improve your questionnaire design, sampling and analytics in order to better understand this critical segment of the US population?
5) Christmas Spending Cheer: The Ad Age report forecasts “a small but encouraging spike in consumer spending” for this Christmas season. Furthermore it predicts, as do many other economists, that the recession in real estate will end in the spring (and construction in the summer). States likely to see the earliest turnaround include Texas and Florida, owing mainly to their relatively young populations and healthy industries. MR questions: How can you tweak your pricing and messaging to gain the most from this modest spike, without compromising the equity of your brand? Is there pent up demand for your products and services that poised to release once the psychological savings thresholds are achieved? If so, what are those thresholds and how can you ready your offerings and messaging to take full advantage of a resurgent US consumer?
David Wilson
CEO
FGI Research
November 18th, 2009 at 5:03 pm
Interesting stuff, David. We’ve seen such big changes in the landscape of our country in the last 10 years, and it absolutely affects how we conduct research.
June 17th, 2010 at 3:41 pm
I must say I am even more amazed with on-line marketing due to observing the way the the next generations interact with the outside world with their technology. My 13 year old son just showed me a portal they had created to keep track of popular topics for their . They were interested in knowing the best way to setup online advertising on the system to generate income. I am so poud.