power of purse

The Power of The Purse

Marti BarlettaAuthor, Marketing to

Women CEO, The TrendSight Group

Chicago 847/446-5861

Seton Hill University“Building a World-Class Business” ConferenceApril 1, 2008

©2008 Marti Barletta & The TrendSight

Group

The Power Story

Perception: The “Poor” Story• Women earn less than men

• Don’t make “big-ticket” decisions

• Uncomfortable with financial matters

Reality: The “Power” Story• Women spend more than men - a lot more

• Market power is growing exponentially

Women Rule!

• Market Place– Consumer - 80% of buying decisions– Corporate - 58% of Purchasing agents– Small Business

• 41% of Small Businesses (51% WBO)• 70% of start-ups

• Work Place– Employees - 46% of U.S. work force– Managers - 51% of managers &

professionals

Primary Breadwinners

• Bring in half - or more - of household income in 55% of US HH (WSJ, Nov 1997)

• 1 out of 4 USHH is headed by single female (US Bureau of the Census)

Women Earn More

Wives Earn More Than Husbands – 31% of all married women– 60% of women with MBAs– 70% of women earning

more than $100,000 (Business Week Online 2003; Washington Post 2000)

Higher Education Higher Earnings

•College degrees 57%– Masters degrees 58%

U.S. Dept of Education, 2002

•College grads earn twice as much as high-school grads

Peter Francese, Amer. Demographics, 1/2/06

Higher Paying Occupations

Professionally speaking…

• 46% of Medical degrees • 51% of Business degrees • 52% of Law School degrees

(Risk Management and Insurance Review 2005, Newsweek 2003)

Command Significant Assets

• Control 51.3% of U.S. personal wealth (Federal Reserve Board

2000)

• 47% of individuals with assets >$500M (WSJ 1997)

Investing

• 50% of stock market investors

(Private Banker International 2003)

• Have a special account my husband can’t touchMarried 28%

Married - 6-figure net worth 37%(MONEY/Oppenheimer Funds study 5/13/05)

•

Women Buy Almost Everything

“HH Chief Purchasing Officer” – 80% of HH buying - Even in historically male domains

• 50% of stock market investments (Allianz 2006)

• 55% of Consumer Electronics (Consumer Electronics Assn 2004)

• 60% of Home Improvement buyers;

80% of HI decisions (Lowe’s 2003)

• 52%+ of new vehicle sales; influence 85+% of all auto sales

(Road and Travel 2004)

Sources: “Ad Age’s Guide to Kids and Media,” Ad Age, 3/29/04, “The Missed Market,” American Demographics, 11/01, “Race, Ethnicity and the Way We Shop,” American Demographics, 2/03 from the Selig Center for Economic Growth at the University of Georgia* Calculated based on Consumer Expenditure Survey data and US Census numbers. Source:www.census.gov American Factfinder QT P1, www.bls.gov/cex/home.htm** Calculated based on. $7.68 trillion annual US consumer buying power X 80% of all consumer purchases. Sources: Selig Center for Economic Growth at the University of Georgia, “The Female Voice,” Time, 4/15/04

The Biggest Spenders – By Far

PrimeTime Women™

• Age 50-70• In the prime of their lives• Prime target opportunity

Adults 50+Enormous Financial Power

• In 2000, 37% of U.S. adult population– Control 50% of discretionary

spending (Ken Dychtwald, Age Power)

– Own 79% of U.S. financial assets (AARP)

• By 2026, 50+ will be 49% of U.S. pop (U.S. Census Bureau projection)

Adults 50+ Numbers Soaring

2006-2016, pop. of Adults 18+ will grow by 23 million

• 22.1 million (96%) will be 50+

• Only 4% (856K) will be 18-49

Source: Boomer Project Newsletter, March 2006

Aging Population: More Female

49 49 50 5154

64

44

0

10

20

30

40

50

60

70

Conception Birth Youth (0-19) Young Family

(20-34)

Est'd Family

(35-54)

PrimeTime

(55-74)

Old (75+)

PercentFemale

Yesterday’s “Little Old Ladies” are Tomorrow’s Ms.

Moneybags•Inherit from parents• Inherit from husbands

‐ Average age of widowhood in U.S = 67‐ Outlive husbands by 15-18 years

You’re psyched about the future. You’re full of new ideas. You’re looking to start a business. You’re the one on the right.

PrimeTime Women

Healthiest, wealthiest, most educated, most active generation of women in history

Women Executives

• 47% of U.S. workforce• 51 % - the majority - of

professional and managerial positions – “Professional” includes

majority of accountants, economists, pharmacists, realtors

(US Bureau of the Census)

Women Business Owners

• Own 41% of U.S. companies (50%+ ownership)

(CWBR, 2006)

• Account for 2 out of 3 new start-ups for past decade.

(Center for Women’s Business Research 2004)

• 1 in 7 U.S. employees works for a Woman Business Owner

The Way I See It…

Recession?

The success & stability of the U.S. economy depends on Women’s willingness to spend

The Power of WomenOne and All

1) As consumers Your patriotic duty Shop!

2) As businesswomen Your opportunity Market to

women

Why “Market to Women?”

(Are Women Really That

Different?)

Yes, Actually.

Gender Culture

Different …

• Language and customs• Roles in society• Assumptions about what’s “normal”• Ways of making a decision

Marketing to Women

Huge Opportunity – Wide open– Product/Service Offerings

• Only 7.9% of all new products specifically tailored to women (2005)

Datamonitor’s Productscan Online; http://www.directorscentre.co.uk/article-targeting-women.php

– Communications• Fully 91% of women say “advertisers

don’t understand them”   Women’s Insight research study, Dec. 2006

http://www.businessleader.com/Index.aspx?page=ui.article&PID=5,

Marketing to Women

1. Product/Service Design2. Time/Life Factors3. “On The Way” marketing4. People Power 5. We, not Me6. Longer List

1. Product/Service Offerings

Design with women in mind• Architects• Product designers

Architects – Kitchen Work Center

This? Or This?

Architects – Shower Functionality

This? Or This?

Architects – Hotels & Stadiums

Always This!

Design for Women

Palm Peeler

OXO Universal Design

Design for WomenBrand Differentiation

Design for WomenRetail Environment

Kids In Tow • Supervised play area• Strollers• Special parking• Food and Drinks• Bathrooms!

2. Time/Life FactorsWomen are Not Busy . . .

…..women are Time-Starved

Save Her Time

Want to win a woman’s heart?

Save her time

Not just Customer Service Customer

Services

Customer Services

…Shopping Assistant

Talbots Saves Time at the

Holidays“We’ll Do It All”Talbots Customer Service

“We’re here to make your holidays easier. Come in, relax, and leave the work to us. No matter how long your holiday list, we’ll find it, we’ll wrap it, we’ll do it all.”

The Ultimate Custome

r Service:

House Calls

Customer Services

Customer ServicesHardware Retailers

“Seasonal” services• Winter – After every 3+ inch

snowfall, deliver 3 cannisters of SafeStep

• Spring – Once a month, drop off new potted plant or flowers for porch

3. “On the Way”

Men “prioritize” …Women “maximize”

“On the Way” vs. “In the Way”

• The drug store• The Post Office• Stirring the soup

“On the Way…” Merchandising

Photo retailers•Extra prints•Frames•Memory books •Batteries•Camera Cases

“Would you like fries with that?”

“On the Way…”Professional Services

Cross-sell/Up-sell– “We can set up both accounts at

once…”– “While we’re here, why don’t we

also take care of that other matter”

4. People Power

People are the most important and interesting element of any situation.

•Babies•Stereoscopes•Magazine covers

Men – “Things & Theorems”

•People are important, maybe - but hardly ever all that interesting.

•Mark & Nancy•Also interested in “things and theorems”

•Cars, computers, etc.•Principles and concepts

People!

Windows – Price Focus

Windows – People Focus

People Power Yellow Pages Ads

Other home category: electricians

•People Power

•Prospect focus

•Trust, Courtesy, Professionalism

5. Core Unit: “We” not “Me”

Individual Group

“Life insurance isn’t for the people who die.

It’s for the people who live.”

“We” not “Me”

• Men: Competition

•“One-Up” (brag)

• Women: Commonality

• “That’s me!” moments

Connecting with Each Other

How Guys Connect “Can You Top This?”

“That’s Me” MomentsWal-Mart

6. Longer List

Men – Prioritize – “The important things”

A Longer List

Women – Maximize–The important things and the extras–Will go the extra mile to get it “just right”

Longer List“He Dropped the Ball”

When you meet the expectations of women, you generally exceed

the expectations of men.

“Women’s Marketing” Expands the Appeal for Men

• What do women want?• Want all the same things as men

…and then some

– Nokia “Ocean Blue”

Decision Criteria

The Deciding Factor

Deciding Factor

Westin Hotels Heavenly Bed

Details = Differentiators Corporate Halo

Going GreenTimberland

Sustainability Report Card

Susan G. KomenReciprocal: Sponsors Promote

SGK

Sutter Home for Hope• $1 from each bottle of white

zinfandel • Ads ran in women’s media in

October• Made a huge difference at

shelf• Plan to run again this year

Corporate HaloKimpton/Dress for Success

Deciding Factor

Consumer Communications• Don’t waste space on headline

commodity features• Don’t clutter the scene with myriad

generic details• Highlight small advantages vs. your

competition

“The Perfect Answer”

“A Good Solution”– Don’t “over-think” – Punch list of key criteria– Solve the problem

“The Perfect Answer”– Explore all options – Weigh all trade-offs – Ferret out best possible solution

Decision Process“Black Slacks”

Desired Outcome:

“A Good Solution”

How Men Buy

Decision Process“Black Slacks”

Desired Outcome:

“The Perfect Answer”

How Women Shop

Duty-Bound…

She shops… No longer just a household duty…. Patriotic duty!

You market to women…Grow your business by

serving her better – Win-win!

The Power of Women … … One and All!

The Power of The Purse

Marti BarlettaAuthor, Marketing to

Women CEO, The TrendSight Group

Chicago 847/446-5861

Seton Hill University“Building a World-Class Business” ConferenceApril 1, 2008

©2008 Marti Barletta & The TrendSight

Group