Marketers all across the globe are heavily dependent on demographics in order to direct their strategies. Recent demographic changes worldwide are one of the major reason, companies need to adapt different strategies to respond quickly to survive the increasing competition in continuously changing and diversifying market.
There is a need to anticipate and understand future customers since the end-users or consumers of almost every firm are shifting in number, makeup, and the location at a very high rate. Based on this, it is now observed that there is no such thing as the stability of consumers for consumer goods manufacturers.
People have become more demanding, flexible and varied. For instance, in the wood products manufacturing industry, the traditional lumber products manufacturers have to produce a number of products that were not known 20 years back. The demographic changes have a significant impact on the organization and strategic marketers.
The implications include a strong and extensive need for understating cultural diversity (customs, religious beliefs, and practices). A population that is growing in age as well as size indicates a need for providing more products for a longer period. An increase in the aging population will have a significant impact on businesses all around the world, specifically in the healthcare sector.
This proposes a significant opportunity for the healthcare industry, since people over the age of 60 accounts up to 40% of the totals healthcare costs. There will a rising trend of healthcare services due to increasing demand for the ageing population. Moreover, the fast-moving consumer goods industry, consumer technology, and the automobile industry have an enormous amount of opportunities to develop products that can appeal he an older generation of consumers.
An increased number of startup companies have started shifting their focus from millennials to the aging baby boomers in order to target a demographic group having an economic activity of around 7.6 trillion dollars.