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Saturday, 22 September 2018

Marketing Implications of the Family life Cycle

Family life cycles analysis is an important strategic tools for marketing because it enables them to segment families into meaningful target market.  The family life cycle is a composite variable created by systematically combining such commonly used demographic variables as marital status,size of family,age of family members (usually oldest or youngest child),and employment status of the head of house hold. Age of the parents and the relative amount of disposable income are usually interfered from the stage in the family life cycle.

Family life cycle is a major determinant of consumer behaviour and this can be a useful basis for segmenting consumer markets. A young couple with two children (the full nest stage) has needs that are quite different from the needs of a couple in their mid fifties whose children no longer live at home (the empty nest stage). A single parent family (divorced ,widowed or never married) with dependent children faces social and economical problems quiet different from those of a two parent family. Young married couple with no children,typically devote large share of their income to clothing, autos and recreation when children starts arriving, expenditure patterns shift as many young families rent and furnish a home. Families with teenagers find large of their budget going for food,clothing and educational needs.