Advertising and Sales Promotion Unit 2, Lesson 3 Advertising and Demographics Copyright © Texas Education Agency, All Rights Reserved.

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Terms Demographics – Statistics that describe a population in terms of personal characteristics such as age, gender, income, or marital status. Disposable Income – The money a consumer has left after taking out taxes. Discretionary Income – The money left after paying the basic living necessities such as food, shelter, and clothing. Geographics – Refers to segmentation of the market based on where people live. Psychographics – Involves grouping people with similar lifestyles, as well as shared attitude, values, and opinions. Copyright © Texas Education Agency, All Rights Reserved. 3

Demographics and Age: What are the three generations? 1. Baby Boomer 2. Generation X 3. Generation Y Copyright © Texas Education Agency, All Rights Reserved. 4

Baby Boomer 76 Million babies born in the U.S. between Largest target market for products As their age goes up, their income and spending power goes up Conservative in nature Prime targets for all types of products Copyright © Texas Education Agency, All Rights Reserved. 5

Generation X Babies born between Followed the Baby Boomer generation Dual-career households On the go people Busy moms and dads Bombarded with media from an early age Skeptical consumers who are not easily impressed Copyright © Texas Education Agency, All Rights Reserved. 6

Generation Y Babies born from 1985 to present More racially and ethnically diverse Major spending power Expect instant gratification Media and technology driven generation Copyright © Texas Education Agency, All Rights Reserved. 7

Independent Practice Assignment Generation Print Ad Find Find five ads in print magazines targeted toward the baby boomer generation and explain. Find five ads in print magazines targeted toward generation X and explain. Find five ads in print magazines targeted toward generation Y and explain. Cut out ads and glue onto plain paper. Write explanation on back describing how they are marketed. Consider attitudes, values, technology, etc. Copyright © Texas Education Agency, All Rights Reserved. 8