The U.S. Middle Class: Losing Some of Its Luster Globally

22 Apr

The income of the U.S. middle class is still among the world leaders — but the lead is narrowing.

According to, David Leonhardt and Kevin Quealy, reporting for the New York Times:

“The American middle class, long the most affluent in the world, has lost that distinction. While the wealthiest Americans are outpacing many of their global peers, a New York Times analysis shows that across the lower- and middle-income tiers, citizens of other advanced countries have received considerably larger raises over the last three decades. After-tax middle-class incomes in Canada — substantially behind in 2000 — now appear to be higher than in the United States. The poor in much of Europe earn more than poor Americans.”

“Although economic growth in the United States continues to be as strong as in many other countries, or stronger, a small percentage of American households is fully benefiting from it. Median income in Canada pulled into a tie with median United States income in 2010 and has most likely surpassed it since then. Median incomes in Western European countries still trail those in the United States, but the gap in several — including Britain, the Netherlands, and Sweden — is much smaller than it was a decade ago.”

Click the chart to read more.
 
Global Middle Class

Source: New York Times/Luxembourg Income Study analysis

 

Why Many Shoppers Like Small Firms

21 Apr

Although this is the era of huge retailers, many shoppers still like patronizing small companies — even though large firms account for most retail sales revenues.

As reported by eMarketer:

“U.S. consumers are choosing small businesses because of the personalized experiences they provide compared with larger businesses. According to April 2014 data from AYTM Market Research, personal service was the No. 2 reason US internet users preferred small businesses vs. large companies, cited by 52.7%. This trailed supporting the local economy (56.2%), but it led all other options by at least 23 percentage points. Lower prices did not play a huge role in choosing small businesses. In fact, 61.2% of respondents said they would pay higher prices to support small businesses.”

How much do YOU patronize small firms? Why?

US consumers are choosing small businesses because of the personalized experiences they provide compared with larger businesses. According to April 2014 data from AYTM Market Research, personal service was the No. 2 reason US internet users preferred small businesses vs. large companies, cited by 52.7%. This trailed supporting the local economy (56.2%), but it led all other options by at least 23 percentage points. Lower prices did not play a huge role in choosing small businesses. In fact, 61.2% of respondents said they would pay higher prices to support small businesses.
Read more at http://www.emarketer.com/Article/Consumers-Favor-Small-Businesses-of-Their-Customer-Focus/1010771#EboWWPlBKfOoduRI.99
US consumers are choosing small businesses because of the personalized experiences they provide compared with larger businesses. According to April 2014 data from AYTM Market Research, personal service was the No. 2 reason US internet users preferred small businesses vs. large companies, cited by 52.7%. This trailed supporting the local economy (56.2%), but it led all other options by at least 23 percentage points. Lower prices did not play a huge role in choosing small businesses. In fact, 61.2% of respondents said they would pay higher prices to support small businesses.
Read more at http://www.emarketer.com/Article/Consumers-Favor-Small-Businesses-of-Their-Customer-Focus/1010771#EboWWPlBKfOoduRI.99
US consumers are choosing small businesses because of the personalized experiences they provide compared with larger businesses. According to April 2014 data from AYTM Market Research, personal service was the No. 2 reason US internet users preferred small businesses vs. large companies, cited by 52.7%. This trailed supporting the local economy (56.2%), but it led all other options by at least 23 percentage points. Lower prices did not play a huge role in choosing small businesses. In fact, 61.2% of respondents said they would pay higher prices to support small businesses.
Read more at http://www.emarketer.com/Article/Consumers-Favor-Small-Businesses-of-Their-Customer-Focus/1010771#EboWWPlBKfOoduRI.99
US consumers are choosing small businesses because of the personalized experiences they provide compared with larger businesses. According to April 2014 data from AYTM Market Research, personal service was the No. 2 reason US internet users preferred small businesses vs. large companies, cited by 52.7%. This trailed supporting the local economy (56.2%), but it led all other options by at least 23 percentage points. Lower prices did not play a huge role in choosing small businesses. In fact, 61.2% of respondents said they would pay higher prices to support small businesses.
Read more at http://www.emarketer.com/Article/Consumers-Favor-Small-Businesses-of-Their-Customer-Focus/1010771#EboWWPlBKfOoduRI.99
US consumers are choosing small businesses because of the personalized experiences they provide compared with larger businesses. According to April 2014 data from AYTM Market Research, personal service was the No. 2 reason US internet users preferred small businesses vs. large companies, cited by 52.7%. This trailed supporting the local economy (56.2%), but it led all other options by at least 23 percentage points. Lower prices did not play a huge role in choosing small businesses. In fact, 61.2% of respondents said they would pay higher prices to support small businesses.
Read more at http://www.emarketer.com/Article/Consumers-Favor-Small-Businesses-of-Their-Customer-Focus/1010771#EboWWPlBKfOoduRI.99

 Click the chart to learn more.
 

 

L’Oréal Ups Its Product Mix in China

20 Apr

L’Oréal is a leading global beauty-care company: “For more than a century, L’Oréal has devoted itself solely to one business: beauty. It is a business rich in meaning, as it enables all individuals to express their personalities, gain self-confidence, and open up to others. L’Oréal has set itself the mission of offering all women and men worldwide the best of cosmetics innovation in terms of quality, efficacy, and safety. It pursues this goal by meeting the infinite diversity of beauty needs and desires all over the world.” The firm’s annual sales are nearly $30 billion worldwide.

Among L’Oréal’s leading brands are L’Oréal Paris, Lancôme Paris, Giorgio Armani Beauty, Yves Saint Laurent Beauty, Ralph Lauren Fragrances, Maybelline, Cacherel, and Garnier. According to the firm’s 2013 annual report, these are its top cosmetics markets as forecast for the year 2025.

Loreal global

 

With the rapid growth of the Chinese market, L’Oréal is greatly ramping up its efforts there. For example, Laurie Burkitt reports for the Wall Street Journal that:

“As part of its shifting China strategy, L’Oréal recently closed on its €636 million deal ($882.9 million) to acquire Magic Holdings International Ltd., the Chinese owner of the MG brand of beauty products. MG sells 167 different kinds of paper-peel and mud masks across China, ranging from chamomile allergy-relieving to red wine complex whitening. L’Oréal will first look to expand MG masks in the brand’s home market, where the French company is refocusing after pulling its mass-market Garnier beauty-products brand amid intense competition.”

“‘If you are a beauty company, you need to have a Chinese skin care brand,’ said Alexis Perakis-Valat, executive vice-president of L’Oréal’s Asia Pacific region, in an interview. ‘Skincare is to China what makeup is to the U.S.’”

Click the image to read more.


 

What Motivates Car Buyers Around the World?

18 Apr

There are many different reasons why consumers buy specific car types and models — even in the United States. But, how different are purchase motivations around the world?

To answer this question, Nielsen recently conducted a large-scale online survey in 60 countries:

“’Linking global automotive demand with consumer sentiments and media habits is vital to developing marketing strategies that connect the right consumers with the right automotive brands,’ said Pat Gardiner, president of Nielsen Automotive. ‘The Asia-Pacific and Latin American regions, as expected, represent large areas of growth opportunity for the industry, but capturing this opportunity hinges on marketers successfully identifying, understanding’ and effectively connecting with the needs and desires of these buyers.’”

“One key to unlocking the demand drivers is discerning what role a car plays in the consumer’s life. Is it for utility — simply a mode of transportation to get you from one place to another? Is it to express status — a symbol of the success you’ve achieved in life? Or is it more purely emotional — you just love to drive? While each of these sentiments may play a role in the car-buying decision process, connecting with the emotions that pull at the heartstrings draws consumers more powerfully along the path to purchase.”

Click the image to read more.

 


 

The Impact of Corporate Culture on Branding

16 Apr

A clear , desirable, and distinctive product/brand positioning message is essential for companies to be successful in today’s competitive marketplace.

What is sometimes under-appreciated is how crucial the corporate culture is in establishing and maintaining the correct product/brand position in consumers’ minds.

Take a look at this infographic for an innovate perspective on this from masters-in-marketing.org. Click the infographic for a lot more background information.
 
Corporate Culture
Source: Masters-in-Marketing.org
 

Best U.S. Schools for Business Majors by Earnings: Zarb Is in the Top Twenty

15 Apr

Evans on Marketing:

Zarb Means Business!

 

Originally posted on Zarb Means Business:

Great news for Hofstra University graduates overall and for Zarb School grads in particular!

According to the2013-2014 PayScale College Salary Report, Hofstra graduates ranked 69th out of 1,017 colleges and universities. 

For Zarb School graduates, the news in this report was especially good. Zarb School graduates ranked in a tie for 19th for mid-career pay; and Zarb was listed among the “Best Schools for Business Majors.”

View original

Highest-Paid Marketing Executives

14 Apr

As we’ve noted before, marketing can be a great career field. There are millions of diverse and interesting marketing jobs in the United States alone. And marketers are often paid well, too.

According to Forbes, the total annual compensation for each of the top fifteen chief marketing officers (CMOs) in the United States was at least $3.3 million in 2013. Kathryn Dill reports that:

“Chief executive officers may be the face of an organization, but it’s often chief marketing officers who are responsible for the branding and identity by which consumers readily identify a company. So how are c-suite-level creative forces being compensated? To get a sense of what top tier marketing executives earn, Forbes worked with executive compensation firm Equilar. The 15 names appearing on the list have the highest salaries of executives with the word ‘marketing’ in their job title at all publicly traded companies in the U.S.”

“Topping the list this year is David B. Fischer, Vice-President of Business and Marketing Partnerships at one of the country’s most recognizable brands, Facebook. An alum of Google and the U.S. Treasury Department, Fischer joined Facebook in 2010 and is credited with building the social networking giant’s robust advertising platform.  In 2013, Fischer earned a whopping $8,009,343.”

Click the image to access a Forbes’ slideshow and to read more.

 

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