On the other hand, there are many companies and corporations that are not looking into the future. Corporations that aren’t expecting a definite change in market segments will go out of business. Three growing market segments will be discussed. Corporations must adjust their marketing strategies to attract these segments in order to become successful. The population of America is going to increase substantially from what it is now, similar to the increase after World War II when the soldiers returned home and created the Baby Boom.
People are reproducing at steady rates, living longer, and dieing at slower rate. This serves as proof that the population is moving at increased rate. It will be very difficult for so called niche markets to be ascertained with a single market strategy. There will be many market segments. The current niche markets will be the new mass markets of the future and new niche markets will form. Corporations will need many new strategies for the new market segments in order to become successful.
The new market segments will not only be segmented by nationality, but by nationality, spending urges and psychographic characteristics which will grow in leaps and bounds and vary. The number of senior citizens will double because life expectancy is increasing. Corporations will have to adapt to the new influx of elderly people, which will balance out the current domination of young people in the market. Many companies and corporations currently gear their marketing towards the younger group for larger profits.
This will change a bit as corporations shift and divide their market strategies to accompany and attract the new target group. Retirees will have a lot of purchasing power and will consume more. For example, the need for automated wheelchairs right now is not a large demand, but in the future these wheelchairs will be, since retirees are living longer and need to get around. There will be future changes to which race makes up the minority and the majority. The minorities, Hispanics, Asians, and African Americans will become the new majorities.
This presents a big problem for the companies that think they will only market towards the whites, the current majority. This also presents a big problem for those companies that will only market towards one ethnic group, since ethnic groups are emerging and growing. Mainstream will no longer be the norm, multicultural will be the norm. Some ethnicities and races will emerge while others fall short. Corporations must improve their marketing strategies to adapt to the new multicultural groups with strategies called “fusion strategies. In order to understand group or cultural identity, corporations will then have to rely on ethnographic research which will provide insights to their consumers’ culture. This includes long-term studies of many ethnic groups. In conclusion, the future consumer market is changing by size, age, and ethnicity. The future consumer market is increasing in size, since people are living longer, birth rates are up and dieing later in life. The age of the market is widening since the elderly are living longer, creating more generations. The race of the market is also diversifying and up-and-coming.
Minority and majority groups are switching places. Current niche markets will be the new mass markets. As the population increases so will the demand for resources and how it will affect the environment. Overall, corporations must change their marketing strategies to conform to all of these new changes. To get ahead and understand the new consumer market and culture, corporations must invest in in-depth market research techniques such as ethnographic research. Those corporations who do their research now will be prepared for the future and will know what to expect in the next 25 years and survive.