Disney Demographics

In order to have a successful industry there are many important factors that need to be considered. For any business or organization it is important that we prioritize which factors are necessary and will allow us to reach success. Some important factors listed in Chapter 2 includes economical, technological, political, legal, cultural, and ecological factors.
Economic Environment, “consists of external factors in a business' market and the broader economy that can influence a business.” (Jeff Calareso; 2013) Managers in the marketing industry have to pay close attention to these external factors since it can affect the consumer’s “purchasing power and spending patterns.” (pg. 29) Although industries have no control over what occurs in the
economy, it still can directly or indirectly affect their business. Some of these non-controllable factors include interest rates, taxes, recession, inflation etc. An example of how an external factor can affect an industry is the following; an interest rate is an amount a lender charges a company or individual to borrow money, allowing these businesses to rely on the lender loans they need. This can affect a business because when interest rates are raised it makes it more expensive for consumers to take out loans, therefore decreasing the amount consumers are able to spend. Another example that relates to the economic environment is inflation. Inflation is the rate which prices rise in the economy. If this occurs, then it most likely means that businesses will forcefully have to raise prices on their services or products in order to maintain incoming profit. Altogether economic environment plays a main role in determining whether a business can be successful or unsuccessful.
The next factor discussed in Chapter 2 is The Technological Environment. The “technological environment, refers to the development and diffusion of new technologies.”(pg. 30) Since new technologies have been created new services and products are possible outcomes. Proving that “Technology has the potential to radically alter industries and stimulate the development of new markets.” (pg. 30) The use of technology also allows a business to work more effectively. By having new technologies advancing it can effect an industries entertainment, communication, and work. One example how technological environment affects the industry I choose Amusement Parks; is by having all this high tech computers and machines, it helps advancement on how roller coaster and rides are built and how they can be more complex than the ones built many years ago.
Another factor that affect an industry is Political and Legal Environments. Political environment can be defined as the “Government actions which affects the operations of a company or business. These actions may be on local, regional, national or international level.” (Business Dictionary; 2013) Legal Environment is Body of rules and regulations, and orders and statutes, concerned with the maintenance and protection of the natural environment of a country. It provides basis for measuring and apportioning liability in cases of environmental crime and the failure to comply with its provisions. (Business Dictionary; 2013). In order to avoid any problems that could affect your industry it is important that you pay close attention to the governments regulations and rules in order to have an idea what issues might occur. “Legal issues have grown to be an increasingly critical area needed to be effective in any type of enterprise. Not only do legal problems increasingly affect businesses, but legal consul has grown to be an exceptionally expensive burden” (pg.31). Therefore this statement explains that by not following what government says and laws that are established, your industry can be penalized and charged an excessive amount of money, for example fraud.
Cultural Environment is also a factor that can affect industries. The cultural environment is “made up of forces that affect society’s basic values, perceptions, preferences, and behaviors.” (pg. 34) When establishing an industry it is necessary to remember the following because it can cause your industry to succeed or fail. In the United States these values include equality, youthfulness, efficiency, religious/ moral orientation, materialism, and social interaction etc. In different parts of the world these factors affect industries in different ways. Like the example in the book stating that in the United States needs to target different subcultures as to a country like Japan where they all share a similar cultural background. When talking about amusement parks it is important to keep in mind that tourists from all over the world come to visit therefore marketing should focus not on just one culture. Amusement Parks often hire bilingual employees in order to try and make interaction with people who do not speak the native language in United States easier. “Marketers may have to develop strategies to each particular group to be effective.” (pg.34)
The last topic discussed is The Global Ecosystem, which “refers to as a natural resources systems and ecologies of the planet.” Natural resources are needed in business however human activity has affected the natural environment. Since business are accountable for affecting many of the environmental systems they should help solve this problem. One suggestion is “green marketing” which is trying to get consumers to preserve the physical and natural environment. If industries abuse natural resources and do not address this issue it can affect them because prices can rise. Like the book states businesses are heavy users of natural resources and this can also be considered another factor that can affect an industry.
There are four different categories or types of factors that are commonly used to describe segments in consumers. These four segments are geographic, demographic, psychographic, and behavioral segmentation. (pg. 54) Geographic segmentation focuses on the regional variables such location, type of neighborhood, climate etc. Demographic segmentation focuses on characteristics of individuals within a population that include factors like gender, age, income, occupation, family class, and ethnicity. Psychographic segmentation involves the examination of individual’s lifestyles, values, attitudes, and personality. Lastly behavioral segmentation is based on product usage rates, brand loyalty, and benefits.
The Geographical segment for Disney World is only in one location. Disney is located in the state of sunshine called Florida. Disney World is opened all year around in a warm climate area and its location is in a disclosed area separate from the surrounding neighborhoods. The only other similar amusement park related to Disney World, is Disney Land. This theme park is located also in a warm area and it is located in California. These are the only two amusement parks that are located in the United States. Location is very important because since they are both located in warm areas it allows them to make a profit all year around by not having to close down during certain months. Its location targets the families who are from Florida to come visit because it is close by and especially attracts tourists who come down to visit.
The Demographics of a Disney World/Land customer are tourists and families who live on an average income and are all ages.
Disney has many different attractions for the whole family allowing everyone to enjoy something different. Children under the ages of 14 must be companied by an adult, which helps target family customers. Although many people might believe that paying for just one of Disney’s attractions for one day can be pricey compared to other parks, Disney offers many special deals that any family with an average income can afford. Families from all kinds of ethnicity come to this park and gender does not matter or come into play. The psychographics of this industry include families who live a normal lifestyle and are ready to have a good time. Most ads on TV for not just Disney World/Land but for every amusement parks it targets families from all kinds who have a great attitude about being at the park and are enjoying themselves. Disney is very family oriented and that is the kind of people they try to target in order to gain customers. Most people you see walk around are just your average everyday families, couples, and every so often a celebrity that decides to visit the theme park as well. Another important factor that Disney focuses on is its brand loyalty. Brand loyalty falls under the behavioral segment. Disney’s famous brand is “The Happiest Place on Earth,” this helps their market because it is persuading you to think that the happiest is their amusement
park and no other place in the world.
Another very popular amusement park is Six Flags Great Adventure. Unlike Disney World/Land, Six Flags many locations across the U.S. The Geographic’s include states like New Jersey, New York, Illinois, Maryland, Texas etc. However since these locations are not all in warm climate areas and suffer brutal winters with snowstorms, this forces their market to not be opened all year round, causing them to lose profit during these seasons they are closed. For instance in the months of May-October, Six Flags in New Jersey have something they call high-season. High season refers to these seasons that make the most profit. Since May-September is nice hot/warm weather everyone tries to enjoy it during that climate. During the month of October, everyone goes for their famous Halloween theme event called Fright Fest. In Six Flags industry location is something that can affect the success or their amusements parks since majority cannot be kept open during the cold seasons.
The Demographics for Six Flags is not that different compared to the industry of Disney. The targeted costumers for this amusement park is family-oriented as well. However many of the events attract teenagers and when visiting the park more teenage groups are spotted compared to families. Children under the age of 13 are not permitted to buy tickets online. This means that only those above the age of 14 are allowed making it easier for teenagers to get access to this theme park compared to little children. Six flags tries to target customers between the age of 14-45 as to families with children the age. The psychographic segment relating this park is not as affective to the other segments. Behavioral segmentation relating to Six Flags is how much they get out of enjoying this theme park. Since Six Flags is less expensive than Disney, when consumers buy a season pass, they get the benefit of enjoying this park several times. In the month of October instead of paying almost $70 every time you want to go to fright fest, you can pay a higher price for a season pass but are not limited to the amount of times you can go. This is very beneficial to costumers because they get more enjoyment out of the amusement park. Besides “The More Flags, The More Fun,” making us feel like their brand is trying to tell us the fun never ends.
For third amusement park Hershey Park, their park relates to an actual product we consume.
Hershey Park is located in Pennsylvania and that is its only location. During the months of June-August when it is summer in PA, this amusement park is opened almost every single day of the week. However since it gets cold during the months of September-December the parks operation hours are only on the weekends. The type of costumer’s target I believe could also fall under families, however a lot of customers say that children under the age of 9 do not have many attractions focused on them. Although Hershey Park has a zoo and waterpark most rides consider a very tall height limit, permitting younger kids to ride on the big roller coasters. This park also is trying to attract consumers who enjoy eating their brand of chocolate candy. Unlike Six Flags, Hershey Park is based on the candy their brand sells and those who enjoy the chocolate are usually the ones who are attract to go there. For example if Hershey is someone’s favorite candy, they would enjoy this park a lot more than to someone who is allergic to chocolate or doesn’t enjoy the candy as much. Even though there is something for everyone to enjoy these factors can affect the industries
targets.