Marketing tactics for parents are different from those used for married couples with no children.
Family life cycle marketing is a method for separating the aspects of the family market at different stages of life. According to the Tutor 2U website, the family life cycle marketing model was created in the 1960s by Wells and Gruber. The marketing technique takes the size of a person's family into consideration, along with a potential customer's age and professional status.
Young and Single
The young and single demographic includes those who are unmarried and do not have any children, as well as same-sex couples, whether or not the couple has children, according to the Marketing Teacher website. This demographic is most interesting in buying fashionable clothing and vehicles. People in the young and single category will also buy basic kitchen appliances such as toasters or can openers, as well as basic furniture such as beds or couches, but there are unlikely to splurge on fancier items such as chaises or ottomans. These consumers make several purchases that will make them attractive to a potential mate as well, such as designer cologne, facials or hair salon services.
According to the Tutor 2U website, couples who are newly married with no children are in better financial shape than they will be once they have kids. However, these couples may have just entered into a mortgage commitment, which means they may cut their spending on vanity items. People in the newlywed category may purchase high-end furniture that will last for years, along with life insurance, as a precautionary tool to keep their potentially growing family financially safe.
Full Nest 1, 2 and 3
Families in the Full Nest 1 classification have more children in the home than adults. The kids in the house are all younger than 6, the parents rely primarily on credit for purchases and buy mainly household necessities. The Tutor 2U website asserts that people purchase home-related items the most during the Full Nest 1 stage. Full Nest 2 families have children 6 and older. The house is still dominated with children, but these individuals tend to have a little more control over their finances, as wives who took off work to raise children are likely returning to work around this time. Necessities, such as groceries and children's clothing, are still the main purchases in these homes. When a family reaches Full Nest 3 status, its children are older, and in many cases, the children in the family are also working or in college. A large portion of the family's money goes to fund the children's education, and parents are more likely to buy high-end furniture items and purchase vacation packages.
Empty Nest 1 and 2
Empty Nest 1 families have adult children who are no longer living at home. Home ownership is very common for this group. Those in the Empty Nest category are very likely to spend money on vacations and hobbies and have plenty of retirement money saved. Empty Nest 2 families have taken a reduction in income, as the breadwinner is retired. People in this category most likely spend significant money on medical care and prescriptions and will often assist their children and grandchildren financially.
What Most Life Insurance Agents Won't Tell You
Book (Wax Family Printing of Nashville)