Page 156 - Foundations of Marketing

Target Markets: Segmentation and Evaluation | Chapter 5 123

Age is a common variable for segmentation purposes. A trip to the shopping mall high-
lights the fact that many retailers, including Zara, Aeropostale, and American Eagle Outfitters,
target teens and young adults. If considering segmenting by age, marketers need to be aware
of age distribution, how that distribution is changing, and how it will affect the demand for
different types of products. The proportion of consumers under the age of 55 is expected to
continue to decrease over time as Baby Boomers (born between 1946 and 1964) age. In 1970,
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the average age of a U.S. citizen was 27.9 . It is currently 37.3 . Because of the increasing
average age of Americans, many marketers are searching for ways to market their products
toward older adults. As Figure 5.4 shows, Americans in different age groups have different
product needs because of their different lifestyles and health situations. Citizens 65 and older,
for instance, spend the most on health care, while those between 35 and 64 spend the most on
housing and food.
Gender is another demographic variable that is commonly used to segment markets for
many products, including clothing, soft drinks, nonprescription medications, magazines, some
food items, and personal care products. For example, after years of being pressured to create
marketing strategies that are not targeted by gender, U.S. toymakers are again moving toward
segmenting toys by gender. Marketers made this decision based on sales data and customer
responses to marketing mixes, but also looked to cognitive science research that indicates how
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boys and girls do indeed have different preferences.

Figure 5.4 Spending Levels by Age Groups for Selected Product Categories

Food

Housing

Apparel and Services

Transporation

Health Care
Under 35
35 to 64
Entertainment 65 and over

0 10 20 30 40 50 60
Percentage of total spending

Source: Consumer Expenditure Survey, U.S. Department of Labor, Bureau of Labor Statistics, www.bls.gov/cex/#tables
(accessed January 19, 2013).

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