Geographical Shifts in Population – Impact on Marketing

This is a period of great migratory movements between and within countries. Forward-looking companies and entrepreneurs are taking advantage of the growth in immigrant populations marketing their wares specifically to these new members of the population.

Within countries, population movement also occurs as people migrate from rural to urban areas, and then to suburban areas. Although the United States experienced a rural rebound in the 1990s as non-metropolitan countries attracted large numbers of urban refugees. The twenty-first century saw urban markets grow more rapidly again due to a higher birth rate, a lower death rate, and rapid growth from foreign immigration.

Location makes a difference in goods and service preferences. The movement to the Sunbelt states has lessened the demand for warm clothing and home heating equipment and increased the demand for air conditioning. Those who live in large cities such as Mumbai, Delhi, Kolkata and Bangalore account for most of the sales of expensive clothing, perfumes, luggage and works of art. These cities also support the Theatre, Classical Music & Dance and other forms of culture. Indians living in the suburbs lead more casual lives, do more outdoor living, and have greater neighbor interaction, higher incomes, and younger families. Suburbanites buy 2 wheelers, small cars, outdoor furniture, and may be some thing for gardening. There are also regional differences: People in South buy more Rice and Hair oil per capita than people in any other Indian city; people in North eat more Wheat flour foods; people from Mumbai use different items than of other cities.

Suburban growth and a disdain for commuting has helped those businesses that cater to the growing SOHO (small office – home office) segment. Now urban or rural individuals are working out of their homes with the help of electronic conveniences like computers, cell phones, fax machines, and personal organizes. Makers of RTA (ready to assemble) furniture might find a strong consumers base among all the cashed out former city residents setting up offices in small towns or telecommuting from there to larger companies..

There are now mix of fax machines, ultra fast color printers, and networks of computers equipped with popular software programs and high-speed internet connections available even in suburban areas and in some Rural areas as well.

Marketers also look at where consumers are gathering. Almost one in two people over the age of five (120 million) moved at least time between 1995 and 2000, according to a Census 2000 brief.

Let us take the case of even US. The most recent US census found that Naples, Florida, a city of 21,000 and surrounding Collier County have been acquiring young, single, college-educated residents at a faster clip than any other part of the United States. Once young people might have just visited their retired parents in Naples or helped them move there. Now, they may move in. Aside from being dawn by the balmy weather Naples has 333 days of sunshine a year and an average temperature of 75 degrees, they are tempted by employment.

There are jobs in companies catering to the needs of well-to-do seasonal residents and retirees as well as new technology ventures based in and around cities like Bangalore, Hyderabad, Indore, Gurgaon etc., that have won national, even international, clients and reputations. Entrepreneurs, many relatively young themselves, have been moving to Tier II cities and its environs to launch companies in telecommunication, computer software, marketing, and other fields.

In India both International and National organizations prefer to set up their base in smaller cities, where accommodation is cheaper, easily available and are also well connected by Railways and Roadways. Even the employees prefer to stay in smaller cities as their commuting time to work is much lesser as compared to larger cities. This is creating demand in Tier II cities and even Rural areas for consumer products and services and Marketers find it easy to have their outlets set up at such places.

Comments are closed.