Chasing the Elusive Consumer By Bill Troy, Business Program Coordinator and Lecturer, the University of New Hampshire at Manchester • Who are we? – One of the colleges of UNH, providing a high quality education primarily to Merrimack Valley commuter students. – Approximately 800 Bachelor’s students – Focus on Liberal Arts and Professional education for careers in: • • • • • • Business Biology Computer Systems Psychology Communication Arts Teaching (M.A.T. program) – Internships required in many majors, great opportunities. – Small classes (less than 20) My Brief Biography • B.A. in Economics from the University of Massachusetts in Amherst – Magna Cum Laude and Commonwealth Scholar – Phi Beta Kappa • M.B.A. from Johnson School of Cornell University • Economist for U.S. Labor Department, B.L.S. • Varying roles at DIGITAL Equipment, including consulting and Director of brand advertising • Ericsson – Director of Marketing for the Broadband division • Currently: – U.N.H. –Business Program director, and Marketing lecturer, at the Manchester Campus – WPI – Adjunct Management Instructor in International Business Chasing the Elusive, Evolving Consumer • Today's consumer is more mobile, busier, and less connected to traditional media than ever. • We will provide a fast evolving, data driven, context for how vast the media changes within U.S. consumers have arisen, and methods that marketers are using in reaching consumers in this fragmenting landscape. My basic viewpoint • Marketing is changing SO rapidly that is hard to know “What” to DO , complicating ‘How’ and ‘Why’ • My goal is to inform you as to trends. • My mid-p.m. presentation will be more specific to Mt. Washington Valley. Quiz • What are some of the major changes occurring in marketing today? - Demographics Psychographics B2C purchasing Media Consumption Where are We Today? • Income gradients • Bifurcating consumer markets • “Where is the Middle Class”? – In a “Muddle” • Diminishing incomes • Low savings HH Formation Trends Changing Race/Ethnic Makeup Oldest States in the Country (nh.gov) http://www.nhes.nh.gov/elmi/products/documents/ec-0514.pdf Median Value of ALL assets, including Housing • AGE OF HOUSEHOLDER – Less than 35 years $6,676 – 35 to 44 years 35,000 – 45 to 54 years 84,542 – 55 to 64 years 143,964 – 65 years and over 170,516 65 to 69 years 194,226 – 70 to 74 years 181,078 – 75 and over 155,714 Assets by Educational Attainment • • • • • • No High School Diploma $9,800 High School Graduate Only $43,945 Some College, No Degree $49,082 Associate's Degree $56,512 Bachelor's Degree $147,148 Graduate or Professional Degree $240,750 Businesses need to be Upscale or DownScale • http://www.nytimes.com/2014/02/03/business/t he-middle-class-is-steadily-eroding-just-ask-thebusiness-world.html • The top 5 percent of earners accounted for almost 40% of personal consumption expenditures in 2012, up from 27 % in 1992. • Largely driven by this increase, consumption among the top 20 percent grew to more than 60 % over the same period. • Bottom percent? Went from 47 to 39%. Upscale Middle Downscale Olive Garden Varying Dollar Stores Sears/Kmart GE $800 appliances Businesses ‘Lost in the Middle’ Red Lobster Capital Grille Macy’s GE $2000 appliances Walmart/Target J.C. Penney “Casual Dining” - Fridays **** - Chilli’s - Applebees News Which are the Wealthiest States? Do celebrities matter? No so much.. Top 10 Metro Areas for Wealthy Millenials The Millenial Online World. Mobile Devices Become Primary Entertainment Source Internet Adoption Rates What influences people to buy? News Advertising from the restaurants, clothing stores and consumer electronics categories are the most trusted with diet products, financial services, pharmaceutical and cars the least trusted. Source: http://research.yougov.com/ Least Trusted ads by business type…. News • Soda sales collapse: More on ads…. Many Countries seeing online Purchase growing. “Bad Brands” Who do you trust? – “Almost no one…” Suspicion is growing…. There are only a few social media that matter overall… Who Uses Which Social Networking Platform? How long do people stay after clicking? Why is the Super Bowl Still so BIG? Younger and Whiter means More Mobile Banking Aging and Marketing Challenges Email is not dead, at all…. Compare vs. Web time of Day Other concerns? Privacy Younger Share More than ‘Elders’ Thanks for Listening Copy of Slides? Send Email to: Wtroy@unh.edu Phone: 603-641-4345 (office) • BACK UP Slides ‘Show rooming’ – in decline? Who is actively engaged in social media with TV?