Page 305 - Introduction to Business

CHAPTER 8 Marketing Basics 279

These seven states had a combined population of 129.1 million. In other words,
almost half, 45 percent, of our population is found in only a handful of our states.
The cities in the United States with over 1 million population include
New York 8.0 million
Los Angeles 3.8 million
Chicago 2.9 million
Houston 2.0 million
Philadelphia 1.5 million
Phoenix 1.4 million
San Diego 1.3 million
Dallas 1.2 million
San Antonio 1.1 million
Census tracts divide cities into smaller units. Mar- EXHIBIT 8.1
keters find the smaller units helpful because they often
Distribution of the U.S. Population by Age, 2002
contain individuals and families with similar characteris-
tics, making it easier for marketers to reach specific mar-
Age Percentage of U.S. Population
ket segments.
Exhibit 8.1 shows the distribution of the U.S. popula- Under 5 years 6.8
tion by age. This is an important distinction for marketers 5 to 9 years 7.3
because different age groups have different product and 10 to 14 years 7.3
service needs and desires. For example, persons over 65 15 to 19 years 7.2
are heavy purchasers of prescription drugs and travel, 20 to 24 years 6.7
whereas school-aged children need clothes and school 25 to 34 years 14.2
supplies. Exhibit 8.1 reveals that the three most populous 35 to 44 years 16.0
groups are 25 to 34, 35 to 44, and 45 to 54 years of age. 45 to 54 years 13.4
Like most western European countries and Japan, the 55 to 59 years 4.8
population in the United States is, on average, getting 60 to 64 years 3.8
older, meaning that the market for people over 65 is 65 to 74 years 6.5
becoming more important. 75 to 84 years 4.4
In 2000, 82 percent of the U.S. population was white, 85 years and over 1.5
13 percent was African American, 4 percent was Asian or Total 100.00
Pacific Islander, 1 percent was Native American or
Source: Statistical Abstract of the United States, 2003.
Eskimo, and 12 percent was Hispanic. In 2000, 48.9 per-
cent of the U.S. population was male, compared to 51.1
percent female. Recently, some marketers have begun aggressive efforts to target
the gay and lesbian subsets of the male and female markets.
Income is another factor marketers examine, because people and households
need money to acquire goods and services. Marketers of luxury goods, like Jaguars
and Armani suits, are especially interested in how many high-income people there
are in a given market. Income per capita in the United States was $34,100 in 2000;
21.3 percent of U.S. households earned $20,000 to $34,999 a year, 17.5 percent
made $35,000 to $49,999, and 35.3 percent brought in $50,000 or more. 6
Marketers often look beyond these demographic factors when they study the
consumer market. They also look at psychological and sociological determinants of psychological factors Learning,
consumer behavior. Exhibit 8.2 (on p. 280) shows these factors.The inner ring shows perception, motives, attitudes, and
self-concept that affect what, why, and
the psychological factors, while the outer ring contains the sociological factors.
how consumers purchase goods and
services
Psychological Factors. Psychological factors affect what, why, and how indi-
viduals purchase. Much of human behavior is learned. Learning occurs by acquir- learning Acquiring information,
preferences, and habits that determine
ing information, then developing preferences and habits. Learning is usually what, why, and how consumers
achieved by providing rewards. Marketing strategies, especially those related to purchase goods and services

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