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Marketing Demographics by Age

Marketing Demographics by Age

Companies seeking long-term business growth can find it by emphasizing the earning power of young workers, near-retirees, and women.

We all want to be treated equally and fairly during the buying and service process, regardless of our age. Let’s examine how you, as a service provider, can give exceptional service by understanding the needs and values of each age group.

Marketing to The Veterans

Marketing to The Veterans These people were born before 1943. Their beliefs and values include: Everyone should adhere and conform to the same rules, regulations, and policies. Those who are older or in positions of authority automatically deserve respect. Patience is an important virtue. The bigger the better. Personal pleasure is secondary to job responsibilities and tasks.

To win them over as a lifetime customers, make them feel special by remembering their name. Honor them by calling them Mr. or Mrs. or Sir and Ma’am. Thank them for their patronage with a personal note. Add a personal touch, and show genuine interest in them as a person.

Marketing to The Boomers

Marketing to The Boomers These people were born between 1943 and 1960. Their beliefs include: If it’s not working, either fix it or move on and find something better. They value personal growth, health, and wellness. They are optimistic. They believe they are the star and deserve center stage.

To keep them as lifetime customers, provide service that treats them as individuals, not just clients. Be personable. They value personal relationships that grow with time. Be solution oriented. If you can’t fix something, be honest; and then offer alternatives. Boomers value their time and want solutions now. Don’t tell Boomers what they can do.

Marketing to Generation X

Marketing to Generation X Baby Busters or 20-somethings were born between 1960 and 1980. They have a need to be self-reliant. They value family and friends. They tend to be informal and look for fun in every situation. They treat everyone as an equal regardless of “rank” but tend to be skeptical. They have respect for knowledge and technology.

If you want them to do business with your company, show interest in their family and friends, and admire their children if they are tagging along, or their pictures are prominently displayed on their desk. Treat them as equals. Approach situations in a relaxed and informal manner. Let them ask questions and seek information. Show that you have nothing to hide. Use technology to demonstrate your product and services.

Marketing to The Nexters

Marketing to The Nexters Generation Y or the Internet Generation were born between 1980 and 2000. They tend to be optimistic, street smart and very computer and technology literate. Achievement oriented, they are also strong believers in civic duty. They learn flexibility early since many come from divorced families.

If you want these customers to do business with your company, appeal to their strengths. These young people like to spend money, and they are more likely to purchase your product if your business donates to non-profit organizations. Also, appeal to their technical shrewdness. If it makes life more convenient, easier or is the latest in technology, they will probably want it.

Conclusion: For successful marketing by age-demographics, consider each age group and customize your service

Service providers can give exceptional service by understanding the needs and values of each age group. I give these guidelines to assist you in providing the best possible customer care, but nothing will ever surpass kind and equal treatment to each and every customer you serve.

Learn to present information in a different manner to appeal to core values, which are different for each generation.

Posted in Business and Strategy Management and Leadership

Creating a Positive Global Community

Creating a Positive Global Community

To create a positive global community, we need to meet three key challenges:

  1. Reaching out to humanity and avoiding isolationism. In the global community, it is easier to reach out and easier to become isolated. Superficial communication with everyone can lead to meaningful impact on no one. We need to be inspired and educated in the value of trying to benefit the world, not just ourselves. As the opportunities for huge individual achievement and wealth form, we need to better recognize people who make the transition from success to significance. Community heroes need to be celebrated based upon their skills in giving—not their skills in taking.
  2. Celebrating diversity and avoiding conformity. Our ability to adapt to changing situations is largely a function of our diversity. Language leads us to view the world in different ways and to have different approaches to making decisions and solving problems. We need to encourage diversity in language, culture, and lifestyle to ensure our own survival. Powerful countries must not try to make other countries become like them. Residents of the global community need to celebrate the fact that “different” may be synonymous with “fascinating,” “enhancing,” and even “necessary.”

Building long-term value and avoiding short-term stimulation. Residents of the global community have almost unlimited access to sources of pleasurable, short-term stimulation. Television, movies, interactive games, virtual-reality experiences, chat rooms, and other options are available at a low cost. Yet few of these activities produce any long-term value. We need to inspire and educate people about the value of “investing” for the future. Long-term value is the result of vision, creativity, innovation, and hard work. We now have access to tools with the potential to dramatically increase our productivity, but we also have access to countless pleasurable distractions that lead nowhere.

Challenges and Opportunities for the Global Community

Challenges and Opportunities for the Global Community

The global community has the potential to become a nightmare:

  • A world of conformity: with billions of people wearing the same baseball caps, baggy shirts, jeans, and shoes, speaking the same language, and laughing at the same jokes.
  • A world of short-term stimulation: with countless hours spent on mindless social media, television, video games, and a virtual reality that begins to eliminate the real human experience.
  • A world of isolation: with lives spent in front of a screen, striving for personal excitement and gain with little thought for others and even less effort devoted to helping future generations.

The global community has the potential to be a dream come true:

  • A world of diversity: with billions of people being able to communicate, trade, share cultural experiences, and appreciate each other, with access to a range of products, services, religions, cultures, philosophies, and languages.
  • A world building long-term value: with countless people working together to advance our cultures, building on what has been learned in a manner that is positive, efficient, and productive.
  • A world reaching out to humanity: with people helping each other in ways that could never have been imagined, celebrating each other’s success, and helping less fortunate members of the community become more productive.

Will the global community of the future become a nightmare or a dream come true? No doubt it will be some of both. The increase in global communication, trade, technology, and culture will continue. By inspiring people and educating them in the values of celebrating diversity, building long-term value, and reaching out to humanity, we can build a global community that is more like a dream come true.

Posted in Business and Strategy Global Business

World Economic Forum 2015: 10 Global Challenges and Expert Views

World Economic Forum: Annual Meeting 2015

From climate change to gender parity, the World Economic Forum 2015 held in Davos, Switzerland, identified ten significant global challenges that require collaboration across different sectors to solve.

These ten can be summed up as: ignorance, greed, religions, regionalism, rituals, poverty, education, health, leadership, and gender.

Here are expert opinions on the ten global challenges.

  1. Agriculture and food security: How to help smallholder farmers feed the world. “To sustain a population of 9 billion people by 2050, we’ll need to produce 60% more food. We can only do this if small farms flourish,” writes Gerda Verburg, Chair of the Committee on World Food Security.
  2. Economic growth and social inclusion: Why 2015 is a make-or-break year for the economy. “The global recovery remains weak and uneven. Accepting stagnation is not an option,” writes Christine Lagarde, Managing Director of the International Monetary Fund.
  3. Employment, skills and human capital: Three forces shaping the university of the future. “Technology is changing the nature of higher education—but not its underlying value,” writes Drew Faust, President of Harvard.
  4. Environment and resource security: “From all corners I heard increased commitment to action on climate change.” The UN’s Christiana Figueres draws four conclusions from Davos.
  5. Future of the global financial system: Why we need institutions to solve the world’s problems. “Monetary policy alone cannot provide stability and avert crises,” writes Professor Klaus Schwab, Executive Chairman of the World Economic Forum.
  6. Future of the internet: There are two types of companies. Those who have been hacked, and those who don’t yet know they have been hacked. “The internet of everything has changed security forever,” writes John Chambers, CEO of Cisco.
  7. Gender parity: Empowering girls in the worst countries for gender equality. “Invest in a woman and she will invest in her community,” writes Lebogang Keolebogile Maruapula, a Global Shaper.
  8. Global crime and anti-corruption: Want to end poverty? Start with corruption. “Graft has thwarted four out of the eight Millennium Development Goals. We cannot allow it to blight our future,” writes Cobus de Swardt, Managing Director of Transparency International.
  9. Infrastructure, long-term investing and development: Are we too slow to innovate in infrastructure? “Our industry finds change too difficult. We should be experimenting with 3D-printed homes and super materials,” writes James Stewart, KPMG’s Chairman of Global Infrastructure.
  10. International trade and investment: How will China’s next steps affect Brazil? “The Asian giant’s economic rebalancing will play out in the market for steel and soybeans,” the economist Ilan Goldfajn.
Posted in Global Business

China’s Relexed One-Child Policy: Baby Boom in China?

China's Relexed One-Child Policy: Baby Boom in China?

China’s implemented a much-criticized state-mandated family planning policy in 1979 to control the swelling population of a then-poor nation. The stipulated that every couple may have just one child. Ethnic minorities were allowed to have two children. Couples in rural areas were allowed have a second child if their first child was a girl.

Over three decades, the one-child policy worked too well and has produced a gender imbalance and a shrinking work force. Sex ratio in China is now 117 males for every 100 females. The policy has also resulted in an elderly population that rivals Japan’s in percentages and costs for caring for the elderly.

Under the latest change to the policy, urban couples will also be allowed to have two children, if at least one spouse is an only child. This change is estimated to produce ten million additional babies over the next five years.

'China, Inc.: How the Rise of the Next Superpower Challenges America and the World' by Ted Fishman (ISBN 0743257359) The trend of more babies, however, doesn’t look enduring. Most forecasts only account for an increase in births over the next five years. After that, as China gets richer, birth rates are likely to continue dwindling.

Wealthier countries simply have fewer kids. This trend has been corroborated with similar demographic developments in Hong Kong, Singapore, Thailand, and Malaysia. Consider South Korea, where fertility rates continued its four-decade downward trend after the government abolished the family planning program in 1996.

The United Nations estimates China’s population aged 64 and under will fall dramatically over the next 20 years because of lower birth rates.

Some estimate that there’s even an actual upside if China’s birth rate continues falling. Ted Fishman, author of ‘China, Inc.: How the Rise of the Next Superpower Challenges America and the World’, estimates that China will, nonetheless, remains competitive: “you get more and more resources pushed into children and education, and productivity will go up enormously as a result”

Posted in Global Business

The Economic Impact of Aging Japan

The Economic Impact of Aging Japan

The saving rates in Japan will fall dramatically by 2024 and make Japan’s financial wealth decline. There are two direct reasons for this fall: one is that by 2024, more than a third of Japan’s population will be over the age of 65, which will lead the retired household to outnumber households in their prime saving years. Another reason is that the younger generation is saving far less than older generations have, and this truth will amplify the effects of a decline in the number of savers.

This trend will decrease the accumulation of wealth and erode Japanese living standards. What’s more, since Japan has played an important role in financing the massive US current-account deficit, as Japanese funding dries up, this damage may extend to other countries and bring negative impact for economic system of America. For example, if other rapidly industrializing countries could not step up to fill the gap in savings as Japan’s savings rate declines, the United States will probably be forced to trim its trade deficit and this could have enormous repercussion for the global economy.

There are only two ways to mitigate the coming demographic pressure in a meaningful way: increasing household savings and boosting the returns earned on them.

  • Increasing savings: Given the significant increase in average life spans during the past 50 years, rising the retirement age is a way to extent the period when households are most prone to save. In addition, encouraging younger Japanese households to save more is also a helpful step to increase household savings.
  • Raise the rates of return: The most effective change for Japan would be to raise the rates of return on its financial assets. To do so, Japan will have to raise productivity throughout the economy and increase the efficiency of the financial system in allocating capital.

On one hand, basic structural reform, such as elimination of market regulations that would increase competition and spark innovation, tax policies protecting inefficient companies, and ease zoning and land regulations that reduce large companies’ expanding and creating jobs to protect start-ups to do business, could increase the economic-wide productivity.

On the other hand, increasing the financial system’s efficiency ensures the savings are channeled to the most productive investments and improves legal protection for investors and creditors. The diversification of Japan’s household financial assets is also an important means of increasing the efficiency of capital allocation.

Posted in Global Business

Yale’s Steven Novella on Skepticism of Anthropomorphic Global Warming (AGW)

Anthropomorphic Global Warming

Steve Novella, clinical neurologist at Yale University School of Medicine, writes:

On many issues, however, there is a nuanced opinion somewhere in between the two extremes. I have no reason to doubt the scientific consensus on AGW, but we have to remember the current consensus is that AGW is 95% probable, meaning (if accurate) that one in 20 such statements will turn out to be wrong. Also, it is reasonable to question the efficacy of individual proposed solutions to AGW. I am still solidly in the “AGW is probably real and if we are going to do something about it we better start acting now,” camp, but I also don’t think we should white wash over current uncertainties in order to present a clean and united front. Science is messy and we have to deal with it.

Posted in Global Business

Global Long-Term Trends Shaping the Corporate Landscape

Global Long-Term Trends Shaping the Corporate Landscape

Macro-economic Trends Shaping the Corporate Landscape

  1. Shift of economic activity between and within regions
  2. Growing number of consumers in emerging economies / changing consumer tastes
  3. Development of technologies that empower consumers and communities
  4. An aging population in developed economies
  5. Geopolitical instability
  6. Increasing needs in the public sector

Social and Environmental Trends Shaping the Corporate Landscape

  1. Competition for talent will intensify and become more global
  2. Increasing constraints on supply or use of natural resources
  3. Role and behavior of business will come under increasing scrutiny

Organizational, Business, and Economic Trends Shaping the Corporate Landscape

  1. A faster pace of technological innovation
  2. Increasing availability of knowledge/ability to exploit it
  3. Adoption of increasingly scientific, data-driven management techniques
  4. Shifting industry structures / emerging forms of organization
  5. Organizations will become larger and more complex
Posted in Global Business Management and Leadership

The Impending Raise the Cost of Chinese Goods

Cost of Chinese Goods

There has been a greater focus and global attention on the future viability of China as a low-cost manufacturing center. Over the years, China has been at the forefront of containing global inflation. Increase in wages in China will set in motion a ripple effect across the world and bring about price rises across the spectrum of economic consumption. Apart from labor cost and economies of scale, Chinese manufacturers received extensive export subsidies from the Chinese government up until 2007.

Rising wages and the appreciation of the Yuan have diminished China’s exports in the past few years. Some Chinese firms manufacturing goods for foreign customers doubled worker wages in response to growing disquiet about wages and welfare. Last year, many local governments raised minimum wages to avert growing worker unrest.

Several empirical studies have suggested that the relative contribution of the manufacturing sector to a country’s economy tends to max out when it reaches 20 to 35 percent of the country’s Gross Domestic Product (GDP). Today, China’s manufacturing sector accounts for approximately 40 percent of its GDP.

Three powerful economic forces fuel the increase in Chinese wages:

  1. The prices of food and housing are increasing briskly. Contributing to Inflation is China’s insistence on maintaining the Chinese Yuan pegged to U.S. Dollar. This renounces China’s power to establish detached monetary policy. Macroeconomic principles hold that, given China’s rapid economic growth, tight monetary policy characterized primarily by high interest rates is necessary for an expanding economy. High interest rates moderate economic growth, and in turn repress inflation. Inflation is an expected outcome of loose money in an expanding economy.
  2. The Chinese government is inclined to encourage spending and thus spur the domestic economy by <3 paying more to Chinese workers. Rising wages, the Chinese government hopes, may perhaps ameliorate the effects of a reduced demand for Chinese products by strengthening domestic demand.
  3. China is now facing a labor shortage. There is competition among employers for capable workers. By providing more desirable wages, the Chinese also hope to draw fresh pools of workers from among new Chinese who live inland and have traditional livelihoods.

Combine these with the prospect (long-held promise, by the way) of China allowing its currency to appreciate against other currencies. If the Chinese Yuan were to trade more freely and/or appreciate, then Chinese goods would turn out to be more costly for importers. Then, the importing countries would buy fewer Chinese goods (and more domestically made goods) and exported goods would be become relatively cheaper for Chinese so they too would buy goods that are increasingly made in other countries.

All told, demographic trends, the prospect of a consumption-driven economy and unrest in the work force will dissuade American businesses from outsourcing manufacturing to China. And businesses that have, for years, used China as the “world’s factory” will either have to relocate to even-lower cost manufacturing bases in South East Asia, Eastern Europe, or scout out appealing geographies in Africa. Regardless, American consumers should anticipate an increase in the price of products made in China.

Posted in Global Business

America’s Unsustainable Current-Account Deficit

In the coming decade, global trade and industry will experience periods of regulatory uncertainty and significant policy changes to help national economies weather economic uncertainties and stock market volatility. In the United States, economic volatility is unlikely to undermine global trade because American companies have adopted a more conservative risk profile during the recent economic meltdown. This vision for strategic reformation is simply not enough if it is not complemented with the venture and the endeavor to uncover insights elsewhere that could ultimately prove useful.

Currency Squeeze By the end of the next year, it is estimated that the trade surplus of the United States in the service sector could top $430 billion, even as net foreign income could expand to $435 billion a year. The United States will live through unrelenting growth in its current-account deficit. Historically, countries that benefitted from better profits on its foreign assets thus resulting in considerably smaller than previously current-account deficits. fnb America’s current account depends on its import purchases and export transfers to trade partners around the world. Therefore, current account consists of funds it receives for the delivery of goods exported from the United States, funds from service offerings, funds that can be substituted with transfer of funds outside the country by immigrants and foreign-tax payments, interests on loans from other countries, and profits from subsidiaries located overseas.

One other consequence is that the large deficit may bring about a loss of confidence in the growth prospects of the American economy. When overseas investors shy away from purchasing American assets, the dollar will fall because more dollars should be available than demand.

The global executive’s point of view is that characteristically managerial solution to challenges caused by America’s current-account deficit will consist of an intuitive process to reduce the hyperabundant content by deciphering the essential and relevant information into a set of controllable variables. The balance between exports and imports will persist in the immediate term. Businesses should be prepared for such penalties and opportunities.

Posted in Global Business

Global Poverty: The Rich Get Richer and the Poor Get Poorer

The Rich Get Richer and the Poor Get Poorer

In spite of data that imply that wealth is flowing uphill at an alarming rate, this wealth has left the middle class stuck with stagnating incomes while the new super-rich ascended to their opulent lifestyles.

Globalization, as a powerful force of economic life on the planet, has magnified the chasm between the rich and the poor. The wealth generated by globalization has not spilled over and trickled down to boost up the wealth of the underprivileged. The inequalities between the well heeled and the disadvantaged has grown. Africa still contributes to less than two per cent of the world’s exports and imports.

Data is inconclusive on whether the spread of wealth between the rich and the poor and the resulting inequality has increased or decreased during this last economic recession. The historical precedents are not promising either. The sufferings of the poor and the downwardly mobile class matter more than the tiny deprivations of the rich. Poverty and the tight squeeze on the middle class are a big part of what got us into this mess in the first place.

Productivity growth, while promising economic growth, concentrates jobs where skills are the greatest and costs are the lowest, driving masses of people into joblessness.

Capitalism, for all its virtues of dynamism, has failed to come up with a solution to critical problems such as global poverty. Consider the proposition that everyone might be better off if opportunities were spread more equally. Rather than organizing to slow things down, the rich are preoccupied with the increasing complexity of managing to keep up with the pace of globalization.

To be poor is to be confronted with a deprivation of opportunity. There is not enough opportunity for everyone on the planet to eat, to drink safe water, to work, to have medical treatment when sick, to have basic sanitation, to feel safe — there just isn’t enough opportunity for everybody to be financially secure.

Defeating global poverty remains one of the most frightening challenges facing the international community today. Income- and consumption-based strategies fall short of helping the world’s poor climb out of poverty over the long term in the developing world and even in the United States. However, asset-based approaches to development, such as small loans or insurance, can promote public policies that lead to increases in the capital assets of the poor.

Second, the world should take the initiative to target poverty-alleviation projects in countries that have a good chance of success, where the government is welcoming, the local business community eager for well-footed partners for creating economic opportunities, and where public funds or low-cost financing can be obtained for the project’s early stages.

The fierce debates over economic globalization have focused recently on global poverty and income inequality. Academics, journalists, and multilateral organizations of all stripes have weighed in on this matter, and a compromise seems to have formed around the proposal that poverty and inequality are on the rise.

From clean water to disease control to global climate change, a new breed of business people are designing sustainable solutions to promote international development and reduce global poverty. Many international development initiatives have been applying business discipline to improve livelihoods in many different nations. These nations tackled their development problems through a combination of strategic direction by their governments, a gradual expansion and opening of their economies to world trade, heavy investments in health and education (as universal as resources would allow), and social contracts between different sectors of society that were strong enough to keep these processes moving forward. The role of worldwide assistance was simply to support these self-directed efforts by helping to fill temporary gaps in resources and protect them from the destabilizing effects of international economic and other shocks.

The key to poverty reduction, as the examples from many Asian countries clearly demonstrate, is business, especially small- and medium-sized domestic companies. They provide the jobs, the income, and the motivation for individuals to become educated and move up in the world. For local business to flourish, however, it often needs access to world markets, technology, credit, and managerial know-how. This is the reality of globalization. In addition, multi-national companies provide that access.

Posted in Global Business