power of purse
DESCRIPTION
TRANSCRIPT
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
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