what demographic changes are creating new market needs?
TRANSCRIPT
What demographic changes are creating new market needs?
Objectives• Examine demographic changes in the
context of macroeconomic change• Explore the impact of demographic
changes on your success as an entrepreneur
Exploring macroeconomic change• Macroeconomics deals with the
performance of a large economy and its vast number of influencing factors– How are the needs and wants of your target
audience influenced by the world around them?
• Examine changing demographics and psychographics, as well changes in technology, society, politics, and regulations
MacroeconomicChange
DemographicPsychographicTechnicalSocietalPoliticalRegulatory
Entrepreneurial Motivation
Entrepreneurial Behavior
Industry
Condition
IndustryStatus
Opportunity Identification
ValueCurve
Competition
The Opportunity Analysis CanvasTM
Entrepreneurial Mindset
Defining demographics
“characteristics of the population”
• Provides insights into where opportunities exist within the market and how to develop appropriate business and marketing strategies to target customers
Demographic changes in the U.S.• An aging population, increasing ethnic
diversity, and a society challenged by obesity
• Each trend offers new opportunities for products and services to serve these customers
• Sample solutions are assisted living centers for the elderly, foreign language radio, and weight control apps
Common questions for entrepreneurs• Purchasing power. What is the disposable income within the
community?• Residences. Are homes rented or owned?• Means of transportation. Do prospective customers in the area
own vehicles, ride buses or bicycles, and so on?• Age ranges. Does the community consist primarily of young
people still approaching their prime earning years, young professionals, empty nesters or retirees?
• Family status. Are there lots of families in the area or mostly singles?
• Leisure activities. What type of hobbies and recreational activities do people in the community participate in?
Sample resources• American FactFinder: Provides access to a wealth of population, housing, economic and
geographic data from the U.S. Census Bureau.• State and County Quick Facts: Provides frequently requested Census Bureau information at
the national, state, county and city levels.• Current Population Statistics: Shares information gathered in a monthly survey of about
50,000 households conducted by the Bureau of the Census for the Bureau of Labor Statistics.• Labor Demographics: Makes data that has been collected by BLS available for specific
demographic categories including sex, age, race and ethnic origin.• Social Security Fact Sheets for Demographic Groups: Offers fact sheets for all demographic
groups including women and young people.• U.S. Census Bureau Quick Facts: Gives access to facts about people, business and geography
Summary• Understanding demographics provides
insights into: – where opportunities exist within the market; and – how to develop appropriate business and
marketing strategies to target customers.
• Examining demographic changes are valuable to anticipating evolving needs and new wants that entrepreneurs can serve