PROFITABILITY OF CHILDREN’S MARKET
SAVICA DIMITRIESKA
ALEKSANDRA STANKOVSKA
Abstract
The main purpose of this paper is to point out and verify the profitability of children’s market. 30-40 years ago, children were not considered as an important market and they were treated as savers and future consumers. Today, they are perceived as consumers and spenders and are actively engaged in the marketplace as buyers, users and recipients of consumer goods. Nowadays, children are viewed as a viable market by many manufacturers and retailers. Namely, two recent trends have increased manufacturer and retailer’s interest in child market. First, both the discrecionary income of children and their growing power to influence parents purchases and second growing media space (television, Internet, mobile phones, computers, video games, etc) that through advertisments and promotions attract younger population. In order to understand children as consumers, one has to recognize the impact of the marketplace in children’s everyday lives and to consider the ways in which they experience the commercialized world. Many marketing experts discuss the negative effects and consequences that marketing activities have on children, as eating disorders and childhood obesity, tremendous behavior changes, family stress, violence and delinquency, alcoholism, increased materialism among children. Nevertheless, companies have recognized the role of children as consumers and acknowledged their contribution to family decision making. Some experts claim that companies play on children’s dreams and vulnerabilities. Companies are interested in making high profits by selling their products and services to a broad, extended public, including children. They will do their outmost to make profits, even though they can damage the health and dreams of children. This paper describes the exposure of children and teenagers to marketing programs, benefits for companies, disadvantages arising from it and the role of children as consumers, providing recommendations for their protection. Finally, it describes the impact of marketing activities to Macedonian children and their involvement as consumers to the marketplace.
Keywords
consumers, marketing messages, children, advertisements, negative marketing aspects, family decision making, children’s market
JEL Codes: M30, M31, M37
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http://www.gapminder.org/news/world-peak-number-of-children-is-now/ (seen on 04.08.2016)
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