Factors Affecting Baby Boomers

Submitted By payamtaghvai
Words: 1140
Pages: 5

Today marketers face an increased challenge in analysing the marketing environment as more and more external forces are shaping and changing the buying and spending habits of consumers. Some variables, we are unable to control, such as distribution of income in a country or a law that a government has passed, therefore the best approach is analyzing and understanding these shifts, and then adapting marketing strategies based on the data found. Other external forces we can controlled, for instance, our company can stay on top of the newest technology or create a marketing strategy that is environmentally friendly and sustainable. The macroenvironement consists of large societal forces that affect the microenvironment. These forces include the demographic, economic, natural, technological, political and cultural environments.
Demographic Environment First and foremost the changing demographic or the study of human population in terms of size, density, location, age, gender, race and occupation is something we must pay close attention to, when marketing our wallets. Our primary target will be the Baby Boomers. “A sharp decline in stock prices and home values has eaten into their nest eggs and retirement prospects.” Therefore, numerous Baby Boomers are now spending more carefully and planning to work longer. Similarly, they are living longer and embracing luxury and technology as their kids move out. “Today’s Boomers think young no matter how old they are…rather than viewing themselves as phasing out, they see themselves as entering new life phases.” Moreover, the Baby Boomers are still the wealthiest generation in Canadian history. “Today’s Baby Boomers account for about one-third of Canada’s population and control over 50 percent of the country’s wealth. We see this as an opportunity to attract a larger part of our demographic segment of the target population. This broader demographic focus, targeting higher level income winners, should have an optimistic result on our sales.
Economic Environment
The economic environment includes those factors that affect consumer purchasing power and spending power. In recent years, North American consumers spent freely, fuelled by income growth, a boom in the stock market, rapid increases in housing values, and other economic good fortune. However, the free spending and high expectations of those days were dashed by the recent worldwide economic crisis. Consequently, consumers are more careful shoppers. We will capitalize on this, by applying value marketing, where we will offer the consumer greater value for their dollar. Income distribution is also something very important to be aware of. We notice that the distribution of income has created a ‘two tiered market’ where there are those that are affluent and less affluent. We would like to target high income consumers who have been less affected by the economy, hence avoiding any loss in sales, in case of another economic crash.

Political & Social Environment
The political environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. Numerous organizations have petitioned against the use of RFID, such as Consumers Against Supermarket Privacy Invasion and Numbering (CASPIAN), the American Civil Liberties Union (ACLU), the Electronic Frontier Foundation (EFF), and the Electronic Privacy Information Center (EPIC). “The RFID has the potential to jeopardize consumer privacy, reduce or eliminate purchasing power anonymity, and threaten civil liberties.” While there are numerous beneficial uses of RFID, some attributes of the technology could be deployed in ways that threaten privacy and civil liberties. For example, hidden readers, where tags can be read from distance, not restricted to line of sight, by readers than can be incorporated invisibly into nearly any environment where human beings or items congregate. Also, if personal identity…