Women traditionally control a majority of the finances in a household. A woman’s innate ability to hunt down the perfect bargain, make a little go further and still manage to save a few pennies has been passed from generation to generation. Now, reports show that women are taking their expertise with managing money to the next level, as they have become the most powerful market opportunity in the world.
According to Forbes Magazine, women control $20 trillion in annual consumer spending and within the next five years, that number is expected to rise to almost $30 trillion! Additionally, Fleishman-Hillard Inc. estimates that women could control two-thirds of the consumer wealth in the United States in the next 10-years. This is huge, especially when we think of the way women are being targeted in advertisements. 91 percent of women feel that advertisers do not understand them. The bottom line is that marketers aren’t targeting the customers making the majority of the purchases. Much of the issue stems from a disconnect between the purchases that women are making and the purchases that marketers and advertisers think they should be making.
Studies show that women make 85 percent of all consumer purchases; this includes items such as, clothing, food and jewelry. In addition, women make 68 percent of new car purchase decisions and 91 percent of new home purchases are attributed to women. This shows that women are purchasing items and products not traditionally assumed to be female purchases. Products and services can be for anyone, so it would be unwise for brands to assume anything about the gender of a buyer . According to Business Insider, women are actually more concerned with price and functionality over the appearance of a product. This means that those pink phones, tools and computers aren’t necessarily going to encourage a woman to buy.
The start of women moving up in the ranks in terms of spending power began with the Baby Boomers and it is important to include this demographic in advertising and marketing plans. Female Baby Boomers were the first generation to attend college in mass numbers and fought their way through glass ceilings, demanding higher pay. This group continued to evolve women’s roles in the workplace and have made a two-income household the new normal. In addition, women 50 plus have a combined net worth of $19 trillion and women 50-70 are the largest segment of female consumers and are the biggest spenders. Boomers also have greater net worth, more disposable income and stronger spending ability than young adults do.
Businesses are smart if they engage the female customer even when the item or service being advertised or marketed is a “male” focused product. Figuring out where to begin can be overwhelming because navigating the world of marketing can be difficult. However, there are options out there to help businesses effectively target those markets that can increase sales and make target customers more aware of the products and services your business offers that can benefit them. No matter what industry, mRelevance, LLC offers a variety of services that can increase visibility, lead generation and prove ROI.
For additional information on how mRelevance can help your business, contact us at www.MarketingRelevance.com or call 770-383-3360.