Why are international managers interested in age distribution studies?
What will be an ideal response?
Answers may vary, but might including the following: Because few products are purchased by everyone, marketers must identify the segments of the population more apt to buy their goods. For some firms, age is a salient determinant of market size, but the distribution of age groups within populations varies widely. Generally, because of their higher birth rates, developing countries have younger populations than do industrial countries. The population of developing countries is more than three-quarters of the world's total population. Figure 7.5 shows that of the 10 nations predicted to have the largest populations by the year 2050, only one is a high-income country (the United States). What does this mean for business managers? For developed nations, it brings increased demand for products bought by and for children, a smaller market for furniture and clothing, but an increased demand for medical care and related products, tourism, and financial services as the population ages. Firms confronting a decreasing demand for their products will have to look for sales increases in the developing economies, where the age distribution is reversed.
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