Our diverse population makes the ‘average American’ increasingly harder to define. Witnessing this shift, marketers have turned away from mass marketing in favor of niche marketing, which consists of a tailored approach to smaller, more targeted markets and attitudinal groups. For those who market home products, we must understand the desires of our audiences and determine how media segmentation can be used to address different groups.
“Non-Traditional” Households are Taking a Leading Position
The growth of “non-traditional” households requires an appreciation for attitudinal market segmentation that addresses each group’s unique preferences and buying patterns.
Single-sex households and Gayborhoods
- Single-sex relationships, gay communities or gayborhoods, and families with single-sex parents comprise a group with great influence in urban renewal.
- This group’s buying power is expected to hit $2 trillion by the year 2012.
- When reaching out to gay consumers, focus on their enhanced affluence and interest in style, brands, luxury and travel.
- Speak to their individual identity, which is oftentimes ignored by mainstream media and marketing.
Mounting Hispanic Population
- The Hispanic population includes 46 million people with more than $700 billion in spending power.
- Industry insiders say U.S. builders are addressing this niche with home designs that recognize Hispanics’ inclination to house multi-generational families living under one roof. Recent trends in Hispanic home building include greater numbers of smaller bedrooms, convertible garages, generous parking space and easy indoor-outdoor access.
- Savvy home industry marketers can capitalize on this trend by having a clear understanding of the audience and ensuring messages are culturally relevant.
(See the link below for our white paper on marketing home products to Hispanic Americans.)
Ruppies . . . Shattering Post-Retirement Stereotypes
- Ruppies, or “retired urban professionals” are 40 million strong, with an estimated $2 trillion in annual spending power.
- Ruppies seek high-density, bustling communities in large cities that make them feel young.
- There is emphasis on accessibility and a continued importance on increased informal space in the home including open space layouts and flexible floor plans.
- Consider media segmentation beyond traditional media outlets. Recent studies reveal that Ruppies are attracted to social media and networking sites.
- Generation X and Generation Y represent the fastest growing homebuyer segment in the country.
- Renovations are popular among younger generations who see an opportunity to personalize their homes and make a statement.
- When marketing to young professionals, know that they are price-conscious, skeptical and sophisticated in their purchasing decisions.
- Use the Internet and online marketing tactics to target young professionals.