The Next 25 Years American Demographics

2025 Forecast In 20 years….. People over 65 years old People over 65 years old will dominatethe population White population majority will White population majority will come closer to being a minority More niche marketing campaign More niche marketing campaign opportunities – as ethnic groups opportunities – as ethnic groups grow in numbers

U.S. Population Projections 2000: 280 million people 2025: 350 million people 2000: 280 million people 2025: 350 million people Growth rates will mirror the Baby Boom era during the 1950s & 1960s after WWII Growth rates will mirror the Baby Boom era during the 1950s & 1960s after WWII 25% population increase 25% population increase Growth rates are rising due to people living longer, Growth rates are rising due to people living longer, birth rates holding steady and continued immigration birth rates holding steady and continued immigration

States’ Growth Rate

States’ Growth Rate con’t

Population Growth Marketing Analysis Every market segment will expand and it will be difficult to target groups with a single marketing strategy, as niche groups of today become the mass markets of tomorrow providing greater marketing opportunities

Niche Advertising Opportunities Euro RSCG Latino Euro RSCG Latino Mission: Innovate marketing to Latinos in the U.S. and Latin America by applying a contemporary understanding of the marketplace, a simplified approach, and the full resources of a global communications agency. Auto Industry Tailoring Ads to Minority Groups Toyota Ad "Tooth Art" Postcard The postcard featured an African American man with a large smile and a gold RAV4 emblem on his tooth. It was part of a "buzz" campaign using postcards distributed to hip urban nightspots and coffee houses Recognizing that the card might offend, Toyota pulled it from the marketplace prior to hearing of Rev. Jackson's concerns. The company has apologized publicly for the postcard and is taking steps to ensure that future marketing materials are appropriate for all audiences.

Auto Industry Tailoring Advertising for Minorities Detroit - Automakers increasingly are targeting the Black, Hispanic and Asian-American communities with tailored advertising, as the purchasing power of minorities grows. Whether they're selling a Toyota Camry or a Jaguar S-Type, companies are no longer taking a one-size-fits-all approach to marketing. Instead, they are creating ads that speak to specific groups and placing them in targeted media outlets. The increasing awareness of diversity sometimes trickles down into the way cars are designed, as automakers seek to fit the product to the consumer's lifestyle. "Just about every major auto company has begun to realize it makes perfect sense to have culturally specific advertising," said Randi Payton, chief executive of On Wheels, which publishes the magazines African Americans on Wheels and Latinos on Wheels. The share of such targeted marketing in overall marketing budgets has grown about 11% over the last five years, said Art Spinella, president of CNW Marketing Research in Bandon, Ore. Companies spend about 9.8% of their marketing budgets on blacks, 16.2% on Hispanics and 3% on Asians, he said.

Auto Industry Example con’t According to the 2000 census, 12.3% of the population identified itself as black, 12.5% Hispanic or Latino, and 3.6% Asian. Automakers say they try to create ads that target a group's values, rather than simply placing their general-population ads in black-oriented newspapers or translating TV spots for Spanish-language stations. "The overarching goal, which is true for all of our initiatives, is we're meeting customers on their terms," said Nathaniel Mason, a Ford spokesman. At Toyota, diversity marketing translates into more family oriented ads for both Asians and Hispanics, said James Lentz, the company's vice president for marketing in the United States. The company's Hispanic advertising is generally "much more emotional," he added. In the Chinese community, "the entire family is involved in the purchase decision," Lentz said. "So in the advertising, you'll see not only parents and children, but also grandparents." Advertising geared at Blacks tends to feature celebrities, Spinella said, citing a recent Jaguar print ad with singer Natalie Cole.

Population Growth The population growth will increase demand on natural resources causing them to be stretched out, possibly leading to shortages in land, water, power etc. Marketing Analysis Products and services will be analyzed on their environmental impact and marketing advertisements must take that into consideration | \/

Graying of America Largest growth will be seen in those 65 and older Largest growth will be seen in those 65 and older 2000: 35 million 12% pop 2025: 70 million 25% pop 2000: 35 million 12% pop 2025: 70 million 25% pop >100% increase in ages:

Graying of America Graying of America Marketing Analysis Shift from youth focused advertising to brands that attract older generations and ads tailored to adult preferences - Marketers have to create an ageless society, since people want to be defined by their activities rather than their age Example: Carnival Cruise Line TV ad Featured an older couple getting up from dinner to go dance along with the younger crowd - showing activities suitable for all age groups

Ethnic Groups Non-Hispanic Whites will still be the majority - barely Non-Hispanic Whites will still be the majority - barely decrease from 70% to 60% of the population by 2025 decrease from 70% to 60% of the population by 2025 Hispanic population nearly doubles Hispanic population nearly doubles 2000: 35 million 2025: 68 million 2000: 35 million 2025: 68 million 12% 19% 12% 19% Asian population will double Asian population will double 2000: 12 million 2025: 24 million 2000: 12 million 2025: 24 million 4% 7% 4% 7%

Percent of Total Population

Ethnic Groups Marketing Analysis Companies must develop multicultural marketing strategies to address the diversity of their consumers. Ethnographic research will help them understand the culture of the emerging ethnic groups and help in identifying how to market to each group’s particular identity. Bank of America defines "home" with families of color

Summary The next 20 years….. Will open up doors to marketing opportunities directed at the segmented markets resulting from the changing age and ethnicity demographics Will open up doors to marketing opportunities directed at the segmented markets resulting from the changing age and ethnicity demographics The growing population will increase group representation and create markets that were not considered large enough to be profitable before The growing population will increase group representation and create markets that were not considered large enough to be profitable before Marketing will need to be more multicultural, age sensitive and environmentally conscious Marketing will need to be more multicultural, age sensitive and environmentally conscious

Sources Alison Stein Wellner, “The Next 25 Years,” American Demographics, Alison Stein Wellner, “The Next 25 Years,” American Demographics, tml tml tml tml p p

Interesting Facts The United States has the highest growth rates of any industrialized country in the world. The United States has the highest growth rates of any industrialized country in the world. The U.S. population is growing by about 3.2 million people each year. The U.S. population is growing by about 3.2 million people each year. Using the Census Bureau's medium projections, U.S. population is expected to grow to 400 million by the year Eight states have population growth rates over 2.0%, which means their population will double in less than 35 years. Florida’s population has grown from 1.9 million in 1940 to 15 million today. That is over a 600% increase in just 50 years. Using the Census Bureau's medium projections, U.S. population is expected to grow to 400 million by the year Eight states have population growth rates over 2.0%, which means their population will double in less than 35 years. Florida’s population has grown from 1.9 million in 1940 to 15 million today. That is over a 600% increase in just 50 years. Along our ecologically fragile coasts, where nearly half the population lives, the U.S. is among the most densely populated countries in the world. The Northeast averages 767 people per square mile, while Haiti, for comparison, has 580. By 2010, when California’s population reaches 50 million, population densities in coastal California will reach 1,050 people per square mile. Along our ecologically fragile coasts, where nearly half the population lives, the U.S. is among the most densely populated countries in the world. The Northeast averages 767 people per square mile, while Haiti, for comparison, has 580. By 2010, when California’s population reaches 50 million, population densities in coastal California will reach 1,050 people per square mile. Since 1980, the U.S. has converted more than 10 million acres of forest to suburb -- an area twice as large as Yellowstone, Everglades, Shenandoah, and Yosemite National Parks combined. Since 1980, the U.S. has converted more than 10 million acres of forest to suburb -- an area twice as large as Yellowstone, Everglades, Shenandoah, and Yosemite National Parks combined.

Age Reference CurrentU.S. populationPercent change in Agewhen you were bornpopulation since you were born 10248,709,87313% 20226,542,19924% 30203,302,03138% 40179,323,79857% 50151,325,79886% 60132,164,569113% 70123,202,624128% 80106,021,537166% 9092,228,496205%