Describe Where You Presently Are in the Classical Family Life Cycle Model.
In 1960'due south, based on their research Wells and Gruber came up with a new concept of segmentation, called the family life cycles. Family life bicycle can be a function of the segmentation targeting and positioning triangle or even the consumer buying beliefs report as it concerns itself with the various phases and generations of people present within an individual family and how to target them with your marketing efforts.
Thus, in a joint family, at that place might be youngsters, parents , m parents, uncles and aunts, all in dissimilar phases of their life. By taking each of them as a target market or a target census, what tin be the marketing strategies that you can adopt, can be answered by Family life cycles.
The concept has grown in popularity in the terminal few decades considering of being applied in dissimilar kind of industries with successful results. Until now you might have heard near production life cycle or customer life cycle. However, the family life cycles is focusing on shopping styles, data use and determination making differences past a person in the unlike stages of his life.
As we grow older, we are moving steadily from ane stage to some other, moving from an initial buying beliefs focusing but on ourselves to a more mature and responsible one, by taking into consideration not only our needs but also the needs of our families. Past agreement in which stage a person is in the family life cycles, marketers can conceptualize their needs, and determine the products and services they tin can provide him.
Basically, the family life cycles model describes the stages through which consumers pass through their lives when they have families. There are unlike versions of the categorization of the stages just the most mutual are: available stage, new married couple, fully nest i, fully nest ii, empty nest, solitary survivor.
Stages in the Family life cycles
1) Bachelor phase in the family unit life cycles –
During the bachelor stage people are usually characterized past beingness interested mainly in appearances. Therefore, people at this stage tend to invest more in fashionable vesture and vehicles. Impulsive buying as well every bit premium buying is a common characteristic of the Available stage.
2) The newly married couples –
In the family life bike, the new married couples are considered to be in a better fiscal position in the initial stage due to the absence of children. It might be possible that both, the husband and married woman, are earning members. Thus, the buying decisions focus on quality and not quantity. A family person will always think about savings and insurances, and at the same time, they will invest in long term products like good furniture, new home, etc. One time married, they are less prone to impulsive decisions.
3) Families in full nest 1 and ii (and in some version also 3) –
This segment of the family life cycle consists of families already having children. The number of children may vary and hence they are categorised in Nest 1, Nest 2 etc. The purchases of these people are dominated by the children's needs generally. Thus, people having two kids are likely to save coin and spend more in the futurity of their children (this is near targeted past insurance companies and products like Boost and Complan).
In the empty nest category, children are going abroad from dwelling. This type of segment may be targeted for investing in their children who are away from dwelling or to start spending coin for their own vacations and hobbies and too focusing on savings for the retirement period.
iv) The concluding category in the family unit life cycles is the solitary survivor.
This tin can consist of either a widow/widower who are still working or who are retired. Their chief focus is on savings and their purchases are dominated by accommodation and medication more often than not.
What all these stages have in common are the criteria based on which they are formed involving age, marital status, career, disposable income and either presence or absence of children. Thus, based on all four blazon of segments, the typical census tin be made and targeting tin can be carried out accordingly.
Considered to exist a useful method for segmenting the market place, the model provides an understanding in customer behavior by looking into various stages of the family life resulting in different buying patterns. It takes into account changes in family structures and behavior accompanying progression from birth to expiry.
As companies become through unlike stages such every bit early entrance, growth, maturity and decline, consumers spending habits are also passing through unlike stages according to its development depending on the consumer's ability and willingness to swallow various items and undertake the financial burdens involved with their preferences. Thus, a youngster may exist more probable to purchase a product during its entry stage than a person in family nest 2.
Advantages of Family life cycles
The main two advantages of the family life cycle concept is
- Information technology provides a technique of anticipating the marketplace growth through market estimation, past forecasting the number of persons entering into each stage of a bicycle in one yr.
- It provides an overview of the variables which affect the entry of a family unit into the unlike stages of life.
Focusing on the demographic patterns and social trends of people, the family life bike concept describes the upshot of time on a family through the unlike stages of life focusing on their patterns of consumption and spending based on their income.
Product life cycles vs Family unit life cycles
The production life cycle deals mainly with the process that the product goes through in its life. Both, Product life cycle and Family life cycle are parts of Marketing strategy. Notwithstanding, Family life cycle concerns itself more with Segmentation, targeting and positioning whereas the Product life cycle is more continued with the Planning and tactical thinking for the product. Thus, though the core concept of Product and family life cycle is to study different phases of a product or a family unit, the end assay and its event are completely unlike.
Source: https://www.marketing91.com/family-life-cycle/
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