The New Segmentation: Do You Have a 1950 s Strategy in a 2015 World?

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1 The New Segmentation: Do You Have a 1950 s Strategy in a 2015 World?

2 We ve Changed OLD NEW

3 1 in 3 is not White Source: 2010 U.S. Census

4 The Census Diversity Index Has Been Increasing Consistently The probability that two people chosen at random would be of a different race and ethnicity on a scale. The scale ranges from 0 (no diversity) to 100. Source: U.S.A Today, Minority births drive growth in U.S. diversity, 6/22/10

5 Massachusetts Diversity Index 41 In Massachusetts, the probability that two people selected at random will be of different races or ethnicities is 41%

6 Best Place to Get Your Local Data usatoday.com/news/census/index You can find the diversity index for every county and city, as well as: Population density Racial & ethnic composition

7 Screen Shot from the Website

8 Diversity Index by Locale

9 4 States &The District of Columbia have Minority Majority Populations Minorities account for more than 50% of the population in California, Hawaii, New Mexico, Texas and DC Source: New U.S. Census to Reveal Major Shift: No More Joe Consumer. AdAge, October 12, 2009.

10 Diversity is Our Future Across every major market in the U.S. the majority of the child population is nonwhite

11 Non-Hispanic Whites Whites share of the total U.S. population dropped over the last decade from 69% to 64% Whites are aging fast: median age is now 41 (up from 38.6 in the 2000 Census) Will be minority by 2041

12 Multiracial Americans Multiracial Americans now number 8.7 million 3% of the population 25% increase in last decade

13

14 Change in White Rural Population

15 Change in Rural Black Population

16 Change in Rural Hispanic Population

17 The Changing Suburban Snapshot

18 What s Happening Suburbs still tend to be majority White However, for the 1 st time, a majority of all racial and ethnic groups in large metro areas live outside the city

19 Other Suburbanites Vast majority of Baby Boomers Fastest-growing in the suburbs: People living alone Non-married couples / families

20 Family Structure is Changing, Too

21 Young People Postpone Marriage Married yr olds dropped from 55% in 2000 to 45% in 2010 Lowest level since 1862 In the 1960 s, more than 80% were married

22 Reasons Why Focusing on their personal goals Finishing school Establishing a career Don t feel economically ready Skeptical Look how that turned out for my parents Yet they re not willing to wait to have a kid, so they have one

23 Marriage is ideal, but parenthood is a priority

24 Family Composition Is Changing "The iconic American family -- married couple with children accounts for a mere 22% of households." Source: New U.S. Census to Reveal Major Shift: No More Joe Consumer. AdAge, October 12, 2009.

25 Family Becomes Redefined A generation that was raised by blended or merged families Grandfamilies No stigma in having a baby outside of marriage Just because my boyfriend and I aren t married doesn t mean we re not a family

26 Diversity Comes in Many Forms Gender Religion Political views Age/Generation Matures (seniors) Boomers Gen X Gen Y Gay/Lesbian Physical abilities Rural / Metro Military/Civilian

27 Diversity Comes in Many Forms Racial White, Black, Asian, Native American, Pacific Islander Ethnic/Linguistic Hispanic, Indian, etc. Nativity Foreign-born or U.S. born Lifestage New moms/dads, retirees, college students, empty-nesters Lifestyle/Affluence Working poor, middle class, wealthy Core values Environmentalists, vegetarians, home schoolers

28 Strategies for Marketing to People Not Like You

29 Strategy #1: Be Relevant Identify what people want, then give it to them Example: Target vs. K-Mart Relevance: Style on a budget Benefit: value with dignity

30 Strategy #2: Build Your Infrastructure Diversity efforts require examination of infrastructure Angelika theatre in Dallas:

31 Strategy #3: Know Thy Target Bad example: Wireless company: Cinco de Mayo themed ads in Miami Good example: San Francisco: Bank of America partnered with AT&T to tap into huge Asian population Open a new checking account, get AT&T prepaid calling card good for calls to Asia AT&T customers received free checking at BofA Goal: Actual: 1,500 new accounts 22,000 new accounts

32 Strategy #4: Recognize Different Needs Hispanic life insurance questions

33 Sometimes it s Not What, But How

34 #5: Tap into Values Locally owned business Green, environmentally friendly

35 Women s Values The truth can never hurt you No pressure ever Value expansive choices, seeing all options

36 Men s Values Want choices simplified The magic number is 3

37 Strategy #6: Be Respectful

38 Make Sure You Can Walk the Walk

39 #7: Pay Attention to Trends Social is everything

40 New Products Meet Demand for Connectivity

41 Trends, Not Fads.

42 Marketing Trends Contemporary imagery Families are not one size fits all

43 Strategy #8: Use Consumer Insights Women want testimonials/customer reviews online Women trust what other women say 92% of Millennials want buy from a company that supports a cause to

44 Strategy #9: Be Fearless

45 Strategy #10: Helping Beats Selling We don t need information. We need advice.

46 Relevance + Tapping into Values = Feeling the Love

47 My New Book Can Help!

48 #5 on the list of Bestselling Business Books of 2013

49

50 For more information about consumer trends, contact Kelly McDonald at or 2014 McDonald Marketing 3700 Quebec Street Suite Denver, CO , Fax All rights reserved. No part of this material may be reproduced In any form without permission by the author.

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