Youth marketers: start targeting kids at age 7
A survey of professionals who work in youth-related fields shows that they feel it is appropriate to begin marketing to children at age 7, on average. This is more than two years before they feel most young people can view advertising critically (age 9.1), or when they feel most young people can effectively separate fantasy from reality in media and advertising (age 9.3). Youth marketers feel it is appropriate to target marketing to children almost five years before they feel that most young people can make intelligent choices as consumers (age 11.7).
These are some of the findings of the Harris Interactive/Kid Power Poll of Youth Marketers conducted online by Harris Interactive, Rochester, N.Y., in February 2004 among 878 individuals working in youth-related fields. Survey participants were professionals working in a range of youth-related fields, including: youth marketing, market research, advertising/public relations, media, education and non-profit organizations. The poll covered a number of topics regarding commercialism and youth, marketing in schools, youth obesity, and sexual and violent content in media. “This poll shows that youth marketers are pressured by a sense of urgency to reach kids early so that brands will be familiar to them when they do reach an age where they make or influence purchase decisions,” says John Geraci, vice president of youth research at Harris Interactive. “Data also show that those working in youth fields are comfortable and supportive of their organization’s practices. They welcome the challenge and responsibility that comes with serving the needs of young consumers and their parents.”
Study findings indicate that: 91 percent of respondents feel that today’s youth are more powerful consumers than young people were 10 to 15 years ago; 91 percent agree that young people are marketed to in ways that they don’t even notice; 61 percent agree that advertising to children begins at too young an age.
“The poll results show that youth marketers have a great deal of respect for the power and influence of children,” says Candi Schwartz, managing director of the Kid Power Exchange. “In fact, we found that youth marketers tend to define today’s young generation as a consumer group.”
Additional findings from the study include: 91 percent feel that their organization treats young people with respect; 90 percent feel their organization treats parents with respect; 78 percent feel that their organization plays a positive role in the lives of children; 74 percent feel that the positive impact their organization has on children far outweighs any negatives. A summary of the results of this poll is available at www.harrisinteractive.com/news/newsletters_k12.asp.
Buffalo loves its coupons
Almost half of adults in Buffalo, N.Y., and Providence, R.I., use grocery coupons at least once per week, according to a study by New York-based Scarborough Research. The third city in the ranking of Scarborough’s 75 markets is Milwaukee, with 45 percent. The Scarborough analysis also finds that over half (56 percent) of consumers tend to obtain coupons through the Sunday newspaper. Regular mail (38 percent), in-store coupons (36 percent), and preferred/valued customer cards (24 percent) are all top ways consumers usually obtain coupons in their household.
Nationally, 30 percent of consumers use grocery coupons on a weekly basis. Among Scarborough’s markets, Fresno, Calif., (16 percent) and Albuquerque, N.M., (16 percent) have the lowest incidence of weekly grocery coupon use. Additionally, almost one-quarter (24 percent) of consumers use grocery coupons two to three times each month. “Grocery coupons are an incentive almost one-third of consumers use weekly. Retail outlets and product brands alike can use this tool to build ongoing relationships with customers that will in the end create even greater brand loyalty,” says Alisa Joseph, vice president of advertiser marketing services, Scarborough Research. To view a chart showing all 75 markets visit www.scarborough.com/press.php.
Target and Costco rated most fun to shop
As more consumers than ever before are crossing trade channels when deciding where to shop for items ranging from household cleaning supplies to pet food, factors like everyday low pricing and good customer service matter more than special deals and promotions, selection and convenient location, according to a study of consumers nationwide conducted by Meyers Research Center, New York.
The online poll of more than 400 consumers asked shoppers to rate factors most important to them in choosing locations to purchase a wide variety of products. Factors ranged from pricing to customer service and convenient store locations, the influence of special promotions, offering quality brands and being among the first to offer new products.
The study, conducted in August 2004, sought to explore consumer frequency by retail format; how consumers choose format based on shopping occasion and consumer ratings of formats across key attributes such as pricing, fast checkout, shopability, convenience, good deals, etc.
“Shoppers overall told us that everyday low pricing, good customer service, products that are in-stock and stores that are well-organized and easy to shop are their favorites,” says Jeff Friedlaender, vice president of Meyers Research Center. “Those factors outweigh such considerations as special promotions, and being first on the block to offer new products.”
Consumers rated dollar stores, today’s fastest-growing retail format, as the best place to find everyday low pricing and convenience stores as the worst place for good pricing. But in some cases, a good deal on price has its own price to pay: good customer service. Dollar stores were rated the worst for customer service, while supermarkets and office supply stores gained high marks.
Dollar stores also scored low on the remaining of the top five factors that drive consumers to a particular channel: in-stock products and stores being easy to shop. Supermarkets were rated highest on both those attributes.
Price never drops out of the equation of top factors, regardless of consumer need state when shopping, whether it be stocking up for the household, one or two desperately needed items or wanted/rewarded items.
Sixty-nine percent of consumers surveyed said there was a specific retailer they “could not live without.” Among those consumers who expressed an opinion, Wal-Mart led the pack as the number one retailer they could not live without (31 percent), followed by club store Costco (17 percent) and Target (13 percent). Warehouse club BJ’s (11 percent) and supermarkets Kroger and Albertson’s tied for the fifth spot (9 percent). Trailing the pack of 14 retailers cited by consumers was mass merchant Kmart and drug store Rite Aid, each with 2 percent.
Consumers interviewed cited Wal-Mart’s wide variety, low pricing and the convenience of multiple categories at one location as factors in their number one ranking. Consumers who selected Target and Costco as their favorites said the stores were fun to shop - from in-store food samples at Costco to good organization and a sense of fashion at Target. For more information visit www.meyersresearch.com.
Study reveals seniors’ car-buying clout
They hold a household net worth of $19 trillion, nearly twice the U.S. average. Their population totals 76.8 million, one-third of the entire U.S. population. They are the wealthiest Americans. They spent more than $400 billion in 2003. They buy 56 percent of all new cars and spend more per capita on travel and leisure than any other age group. They spend $7 billion online each year and are the fastest-growing user segment on the Internet. They are active grandparents, aunts, uncles, singles and parents. They are mature Americans, age 50 and older.
A survey of 32,498 senior community newspaper readers across the country revealed the top 10 senior shopping priorities included automobiles, gifts for grandkids, travel and insurance. Each category delivers a multi-billion-dollar annual market.
SPMG (Senior Publishers Media Group) audited and conducted a readership survey of its top 80 community newspapers nationwide, gaining insight into demographics, spending patterns, issues and interests for mature audiences. The SPMG newspaper network has a combined readership of over 5.8 million.
One-fifth of all seniors surveyed planned to buy automobiles in the next year.
According to Newsweek’s New Car Buyers Report, younger persons bought most new cars priced under $10,000 (only 17 percent of mature adults bought these low-cost models). More than half of 55+ mature adults (53 percent) bought cars priced between $10,000 and $14,999 and 30 percent bought cars priced over $15,000. Seventy-six percent of mature adults bought American made automobiles.
The average luxury-car buyer is age 60. Mature adults age 50 and older buy 56 percent of all new cars and most purchases are made for cash. They buy cars that are more expensive than younger Americans. The average age for new Corvette buyers, for example, is the early 50s.
The SPMG senior audience skewed younger. One-fourth of the readership is younger than 55, almost double the 75+ audience; one third is 55-64 and another 29 percent are 65 or older.
The Baby Boomer generation is coming of age - each year, another four million Americans reach age 50. Combined with increased longevity, trends show the 50+ market growing beyond 106 million by 2015, or 45 percent of the U.S. adult population.
The SPMG readership study was conducted by Certification Verification Council (CVC). Survey results were cross-checked and included in-depth interviews of 32,498 regular readers of the audited publications. The CVC audit confirmed circulation and studied demographics of the top 80 SPMG senior publications. With a circulation of 2,836,877 and an average of 2.05 readers per copy, the total readership of these papers was 5,815,598 seniors. For more information visit www.spmg.com.
African-American tweens are market-savvy and ready to spend
Tweens, defined as young people ages 9 to 14 years old, are market-savvy and influential consumers who demand attention. There were 4.1 million African-American tweens in 2002, a 16 percent increase from 1997, and they represent 16.5 percent of all U.S. tweens. Black tweens are primarily urban dwellers who come from non-traditional households. They are brand-conscious trendsetters who have several billion dollars of discretionary income from allowances, monetary gifts and jobs to spend on various goods and services. Furthermore, black tweens exert considerable influence on the $723 billion African-American market since they frequently have input on household buying decisions, using “pester power” and their knowledge of the latest technologies and trends. In addition, African-American tweens have significant influence on the total $40 billion U.S. tween market as the trends adopted by them are often considered cool and, therefore, are emulated by other races. Marketers who appropriately target this group will realize significant opportunities with the powerful African-American market as well as with the tween segment, according to a multi-source study by Chicago research firm The Hunter-Miller Group.
Demographically, African-American tweens were 4.1 million strong in 2002, representing 16.5 percent of the 25.2 million U.S. tweens and 11.3 percent of the total black population, per the U.S. Census Bureau; 50.3 percent were male and 49.7 percent were female. Their population has grown at more than twice the rate of white tweens (16 percent versus 7.4 percent) from 1997 to 2002.
They are more likely to be urban dwellers as 51.6 percent lived in central cities in 2002 compared to 23.1 percent of white tweens, according to the Census Bureau; 35.9 percent lived in suburban areas compared to 57.2 percent of white peers. Only 12.6 percent lived in nonmetropolitan areas versus 19.7 percent of white tweens.
They are more likely to reside in single-parent households (52 percent) compared to white tweens (23 percent) and the households are usually headed by their mothers (47.4 percent), per the Census Bureau; 38.9 percent lived with both parents in 2002 compared to 73.0 percent of white tweens.
Nine percent (compared to 3 percent of whites) lived with neither parent and usually resided with grandparents (54.5 percent) or some other relative (29.5 percent).
Most (98 percent, comparable to whites) are enrolled in school and recognize the importance of education as it has been a means for African-American advancement.
Nearly half (48 percent) of younger black tweens (9-11 years old) receive a regular allowance, according to Children’s Market Services. Many have odd jobs, with babysitting and yard work being the most common; 43.3 percent of 14-year-olds and 36.2 percent of 12-year-olds held some job, per a Bureau of Labor Statistics study.
Psychographically, African-American tweens are interested in fashion, music, electronics and other items which put them on the cutting edge. They often inform their households about the “latest and greatest” technologies and trends, then use “pester power” to influence product and service purchases, such as for vehicles, cellular telephones, electronics, groceries and vacations.
They are more likely to shop for themselves and want the best so they are brand conscious as it helps with purchasing decisions and serves as a badge of coolness or status. They are aware of advertisers’ efforts, and are more likely to be responsive if an ad is in their “language” and appeals to their aspirations, including to be older than they really are and to stand out from the crowd.
They serve as the cool and hip models for peers as their fashions (baggy jeans, baseball caps and oversized shirts), hair styles (cornrows/braids), musical tastes (rap/hip-hop) and other preferences have been adopted by tweens of other races. For example, black rapper Nelly was voted favorite male singer at the Nickelodeon Kids Choice Awards 2004 and it’s asserted that cornrows/braids will gain the same popularity that the ponytail once enjoyed.
Black tweens are knowledgeable about and avid users of TV, radio, computers, video games and other electronics. They watch more TV compared to white tweens: seven hours and 37 minutes of prime-time TV (8-11 p.m. daily) per week versus five hours and 26 minutes per week respectively, according to RealVision. There is 90 percent+ radio penetration among black tweens; older tweens (12-14-year-olds) tune in 16-19 hours per week and rhythmic contemporary hits (which includes R&B, rap/hip-hop and dance/club music) is the most popular format. Over 80 percent have access to a computer, including 44.6 percent who have access to a computer at home, and they are increasingly going online to send/read e-mail, to download or listen to music, and for information. For more information visit www.huntermillergroup.com.
Parents buy more office products
A study by Baltimore marketing firm Vertis reveals that parents are more likely to buy office supply products compared to other adults. According to the study, Customer Focus 2004: Office Supply, 74 percent of total adults with children spent up to $500 on office products, not including computer and office furniture, within the last 12 months, compared to 58 percent of adults with no children. “The purchase of office supply products is greater among adults with children, specifically those with children between 6 and 17 years old, due to their constant need to buy school supplies,” says Thérèse Mulvey, vice president, marketing research, at Vertis. “Marketers and advertisers should pay close attention to the price point these consumers are looking for, as well as the media that drives their purchase decision because both factors are critical in capturing this audience.”
For example, according to the study, 35 percent of adults with children turn to ad inserts first to help them with their purchasing decisions, 19 percent use the Internet, and 8 percent turn to the television.
Of the total adults surveyed, 53 percent of Baby Boomer (1946-1964) women with two or more children spent between $101-$500 in office products excluding computer and office furniture, compared to 32 percent of total adults.
According to the study, 17 percent of younger Baby Boomer (1956-1964) adults with children 12 to 17 years old spent $501 or more in office products, compared to 10 percent of total adults surveyed.
Forty percent of older Baby Boomers (1946-1955) with children 12-17 years old said they plan on purchasing office technology, such as printers or scanners, within the next 12 months, compared to 22 percent of total adults.
Of the married adults surveyed who have children, 33 percent said ad inserts most influence their buying decision, compared to 20 percent of adults in the same category who said television influences their decision. Fifty-one percent of ad insert readers with a household income of $75,000+ who have children said they use ad inserts or circulars to decide where to shop for office supplies, compared to 34 percent of total adults. Furthermore, 52 percent of ad insert readers who spent $501+ on office supplies use advertising inserts or circulars to decide where to shop.
Of the total adults surveyed who spent $501 or more on office supplies, 41 percent have a household income of $75,000+, while 19 percent have a household income of less than $30,000. Sixty-two percent of the adults who spent between $1-$100 on office supplies do not have any children under the age of 18 in the home compared to 38 percent who have children. Fifty-four percent of the adults who spent $501+ on office supplies have children in the home compared to 46 percent of adults who have no children.
Of the total adults who spent $501+ on office supplies, 57 percent are men and 43 percent are women. In contrast, of those who spent between $1-$100 on office supplies, 57 percent were women and 43 percent were men. For more information visit www.vertisinc.com.