Family

Fahim akhtar

FamilyA group consisting of parents and children living together in a household.All the descendants of a common ancestor.

Attributes of family

Different age group Diverse educational level Professional difference Different habits and behavior Varied likings Life style difference Opinion not alike

Types of Households / Families

Household Influences for Marketing Strategy

Stage of theHouseholdLife Cycle

Structureof Household

Unit

HouseholdDecision

Processes

HouseholdPurchase andConsumption

Behavior

MarketingStrategy

Why is it Important for Marketers to know about Families and Households?

1. Impart lifestyle and consumption values to their members

2. Influential in consumption decisions

3. Make several joint purchase decisions

4. Prime target market for goods and services

What is the Family Lifecycle (FLC)

Family Life-cycle bachelor newly married, no

kids young couple, kids <

6 young couple, kids

>6 older married w/

dep. empty nesters,

working retired widower - working,

not working

financial situation Product categories

considered interests primary decision

maker Free time

Changes Over Life-Cycle

The family life cycle concept attempts to explain consumer behaviour patterns of individuals as they age, marry, have children and retire

At each stage members have new needs for goods and services, i.e consumption patterns change

Life cycle stage determines which product categories are bought but not how much is spent on each category

As interests change so too does the ability to reach them.

Purchasing decision process changes

Basic strategy is how to keep customers through the FLC

Why is it of value to understand the family life cycle?

Choose your vacation

Young singles the most action motivated greater emphasis on outdoor experiences

Older marrieds the least motivated by action. did not regard outdoor activities as

important

Young single travelers had the most ego motivation

young marrieds with children were highly motivated to escape had most interest in rest and relaxation.

Family Life cycle and TravelTravel locations differ significantly across the family life stages

Older unmarrieds, young marrieds, and young singles thought cultural attractions were important.

For the older married and older unmarried segments, weather was very important in vacation destination selection.

attractions such as theme parks were important for divorced travelers with children and young married travelers with children.

Number of people (children and adults) in the family

The ages of the family members

Number of employed adults

What are the Critical Consumption factors?

Living Concepts

Living Concepts

Stages of the family life cycle

Bachelor Stage. (Young single people not living at home): Few financial burdens Fashion/opinion leader led Recreation orientated Experiment with personal financial management men and women differ in consumer behaviour

Women more housing-related items and furniture Men more on restaurants and motor cycles / cars

Newly married couples (Young, no children) (DINKS) Better off financially than they will be in the near future, High levels of purchase of homes and consumer durable goods, Establish patterns of personal financial management and control; Buy: cars, fringes, cookers, life assurance, durable furniture,

holidays

Full nest I. (Youngest child under six): Home purchasing at peak Liquid assets/saving low Dissatisfied with financial position and amount of money saved Reliance on credit finance, credit cards, overdrafts etc., Child dominated household

Buy necessities - washers, dryers, baby food and clothes, health foods vitamins, toys, books etc.;

Full nest II. (Youngest child six or over): Financial position better, Some wives return to work, Child dominated household, Buy necessities - foods, cleaning material, clothes, bicycles,

sports gear, music lessons, pianos, junk foods, holidays etc.;

Full nest III. (Older married couples with dependent children.: Financial position still better More wives work School and examination dominated household Some children get first jobs; other in further/higher education Expenditure to support children's further/higher education, Buy:

Empty nest I. (Older married couples, no children living withthem, head of family still in labor force): Home ownership at peak, More satisfied with financial position and money saved, Interested in travel, recreation, self-education, Make financial gifts and contributions, Children gain qualifications and move to Stage 1. Buy luxuries, home improvements e.g. fitted kitchens etc.;

Empty nest II. (Older married couples, no children living athome, head of family retired): Significant cut in income Keep home, Concern with level of savings and pension Assist childrenBuy: medical appliances or medical care, products which aid health,

sleep and digestion, hobbies and pastimes,

Solitary survivor I. (In labour force): Income still adequate but likely to sell family home and purchase

smaller accommodation, Worries about security and dependence; Concern with level of savings and pension,Buy: hobbies and pastimes,

Solitary survivor II. (Retired): Significant cut in income, Additional medical requirements, Special need for attention, affection and security, May Seek sheltered accommodation, Possible dependence on 'others for personal financial,

management and control.Buy:

Household Decision Making

Household decision making is also different from individual decision making

Family role structure orientation influences household decision making

Households vary in consumption habits depending on stage where they are in family life cycle

Nature of good or service to be purchased and consumed influences household decision making

Consensual Decision Making

Group Agrees on the Desired Purchase

Differing Only in Terms of How It Will Be Achieved.

Types of Purchase Decisions Made by Families

Household Decision Making

AccommodativeGroup Members Have Different Preferences and Can’t Agree on a Purchase That Will Satisfy Everyone

Husband-Wife Decision Making

Influence may depend on the good or service to be purchased, role structure orientation, stage of the decision making process

four categories: husband-dominated; wife-dominated autonomous or unilateral; joint decision

Who makes the Decisions?

The Apparel Manufacturer Haggar Placed Menswear Ads in About a Dozen Women’s Magazines After Its Research Found That

Women Exert Influence Over Men’s Clothing Choices

DecisionRoles

Initiator

InformationGatherer

Gatekeeper

Influencer

DecisionMaker

Buyer

Preparer

User

Maintainer

Disposer

Marketing Strategy Implications Marketing communication: advertising message, media used,

person targeted, product positioning Households can be targeted by advertising by lifestyle . Product development: products, e.g. minivans and cars built

specifically for families; vacations; services, e.g. insurance, hotel Pricing decisions: e.g. discounts for bulk purchases Distribution: changes in family lifestyle means changes in

distribution, e.g. longer retail hours Public policy regulations re marketing to children

If a car is being purchased by a family for a teenager to drive to school, how will this influence: The type of product Method of financing Price Appropriate promotion message The media

As opposed to the family purchasing a car that the adult head of the household will use to commute to work?

Internet, e-mail and other technology Since kids are often the more technologically

savvy members of the family Web sites

Marketing to the FamilyWhen marketing to the family children must be a consideration. How would you reach families with your marketing message?

Magazines Children’s magazines are good avenues for

reaching the youth and mom markets. Also family-oriented magazines aimed more at

parents. Eg. Family Circle, Sesame Street Parents (5.4 million readers) Family Fun, Child, Parents, or Parenting magazine.

Organizations family-friendly organizations are good places

in which to focus marketing efforts aimed at the family eg. Religious institutions Schools: primary, secondary, public and

private; their affiliated clubs and organizations, Kids’ groups - Scouts, 4-H, etc. YMCA, YWCA and other athletic clubs

For many households, a car purchase is a family event. It can be a pleasant one or a story that is retold with embarrassment and horror. If you were the owner of a car dealership how would you make the purchase of a car a pleasant family event.