Serving the Christian Market Since 1968

14732 Middle Point Road Van Wert, Ohio 45891 - 419.238.4082

The Foster Letter —

Religious Market Update

The FOSTER Letter is a bi-weekly e-mail religious market intelligence report targeted to Christian market channel and ministry leaders.  Each issue reports on news, trends, events and research that will directly or indirectly impact your audiences and businesses in a convenient summary format  Better informed leaders make better choices!

Researched, Edited & Published by Gary D. Foster

Excerpts from the

March 25, 2010 edition of

The FOSTER Letter—Religious Market Update

March 25, 2010

Will Gen-Y Lead Recovery? A new Retail Forward and PricewaterhouseCoopers study says this recovery, unlike those in recent decades, will be shaped by the values of tech-loving Gen-Y, and to a lesser degree, affluent Gen-Xers. Boomers have lost the most in terms of retirement and savings and have very different spending parameters today. Gen-Y, and to a degree Gen-X, have disposable income in a way Boomers don’t today and they spend very differently. A “practical consumerism” has emerged where shoppers are habitually much more methodical in the ways they save, e.g., using coupons, mobile apps, comparison-shopping sites, and rewards programs. Among Gen-Y consumers aged 18-27, just 25% say the economy has significantly changed their shopping behavior; among Gen-X, it’s 36% and Boomers 37%. This puts marketers in uncharted territory. Without the Boomers leading, we don’t have history to rely upon, thus forcing us to look to Gen-Y and Gen-X, groups that are smaller and behave differently. (Marketing Daily 3/9/10) 

Reinvent Yourself and Your Business Recognize you’re doing something very new today. As Henry Ford pointed out, he was building a car, not a faster horse. Understand that you’re going to have to develop new products or services; it’s not the same stuff in a different package. I can help you think through this process. Contact 419-238-4082, Gary@garydfoster.com or www.garydfoster.com. (USA Today 2/26/10) 

Paring Costs Among small-business owners surveyed, 43% plan to pare business development spending (on such things as advertising, inventory and capital outlays) in the next 6 months. 21% expect to increase such spending. The rest expect it to remain at current levels. (Discover Small Business Watch) 

Teen Alcohol & Drug Use Up A study by The Partnership for a Drug-Free America finds that, after a 10-year decline, alcohol and marijuana use among teens is on the rise. 25% of teens reported smoking marijuana in the last month v. 19% in ’08. Use of alcohol among teens in grades 9-12 has risen to 39%, an 11% jump from ’08. (Pastor’s Weekly Briefing 3/5/10) 

Cohabitation before Marriage significantly increases relationship instability, finds a Univ. of Michigan study. The proportion of women in their late 30s who have ever cohabited has doubled in the last 15 years, from 30% to 61%, and about half of couples who cohabit marry within 3 years. However, children born to cohabiting vs. married parents have over 5 times the risk of experiencing their parents’ separation, showing an exponential increase in relationship failure for couples currently or ever cohabiting. The study concludes that couples who live together before they get married are less likely to stay married than those who don’t cohabit until engagement or marriage. (LifeSite News 3/4/10) 

Make It Their Own Gen-Y seeks out opportunities to personalize and customize their experiences. Enabling them to demonstrate their individuality in a meaningful way shares power with your consumer and will ultimately build trust in your brand. (Engage Gen-Y 3/5/10) 

Tipping Point The long-predicted tipping point has arrived, with total U.S. digital advertising and marketing revenues set to surpass print revenues in ’10, according to an Outsell study. U.S. advertisers and marketers plan to spend $368 billion in ’10, up 1.2% from about $364 billion in ’09. Within the ’10 figure, 32.5% ($119.6 billion) will go to digital, versus 30.3% ($111.5 billion) for print. Of note is that mobile ad revenues will fall 16% in ’10 vs. ’09. (Media Daily News 2/9/10) 

A Strong Social Media Presence is Essential A recent study found that 45% of Millennials believe online reviews give trustworthy information on what products or services to buy; the same was true for online communities. In both cases, they were far more trusted than a company's own Web site. In fact, Millennials are more likely to trust information from a blog they regularly read than an email from someone they know. To build trust, brands must learn how to engage and optimize these online conversations. (Engage Gen-Y 3/5/10) 

Where Do You Want to Be Tomorrow? You can’t navigate a ship by studying the wind and waves. Fix your gaze on your goal—a non-negotiable, fixed position that can never change. Let that be your lighthouse, your reference point, your North Star. Now point to your North Star so that I can see it, and I can help you chart the course. Contact 419-238-4082, Gary@garydfoster.com or www.garydfoster.com (Monday Morning Memo 3/1/10) 

Boomer Wealth Shriveled The median household wealth of Boomer households has shriveled, falling from $315,000 in ’04 to $160,000 in ’09 among 55- to-64-year-olds, and from $172,000 to $94,000 among 45- to-54-year-olds. (Marketing Daily 3/9/10) 

Online Campus Approximately 4.6 million college students are now enrolled in at least one online course, a 17% jump over ’09. In ’02, less than 10% of students were taking a course online. Now more than 25% of all college students take courses in the virtual environment. One of the concerns raised by the rapid increase of online courses is whether or not professors are receiving adequate training for teaching online. According to the Sloan Survey of Online Learning, far less than half of faculty and as few as 20% “accept the value and legitimacy” of online learning. (Inside Higher Ed 1/27/10)

Say It Straight In ’04, the Grammys scored a respectable 26.3 million viewers. In ’05, they fell to just 18.8 million, so this year’s 17 million should have come as no surprise. Anyone taking bets on next year’s audience? If you need advice about marketing in the new millennium, here’s all you really need to know: Say it straight…Say it real! I can help you decide how to do this best. Contact 419-238-4082, Gary@garydfoster.com or www.garydfoster.com. (Monday Morning Memo 2/20/06) 

Societal Trends According to trendwatching.com, in its recent list of Top 10 Consumer Trends for 2010 reported by Marketing Charts, several general societal trends closely match with Boomer trends. These include a need for companies to be transparent and honest about their efforts to conduct environmentally sustainable business practices and genuinely collaborate with their customers rather than try to dictate to them. In addition, consumers are increasingly using social networks as part of everyday life and respond well to products and services which have a charitable component. (Center for Media Research 3/8/10) 

Church Conflict Money, worship and leadership lead the way as the areas of congregational life most riled with conflict. Conflict about leadership is the most likely to produce serious negative consequences. Creating strong interpersonal bonds and purposefulness decrease the likelihood of conflict. (EdStetzer.com 3/13/10) 

Uptick in Evangelism 12% to 14% more Protestant congregations that reported high levels of evangelism or recruitment activities also reported worship attendance growth over the past 5 years than was the case for congregations with no or little evangelism or recruitment activities. Larger congregations (with 400 or more attendees) experienced higher growth spurts (more than 30% jump) compared to smaller churches.  (Faith Communities Today 2008 survey 3/13/10) 

Amazing Direct-Mail Marketing Stats 85% of consumers say they open, sort, process and read selected pieces from their mail everyday. 15% let it accumulate unopened for 2 or more days. 55% report ‘greater enjoyment’ from reading their regular mail vs. email, including the 18-39 age group. 75% are examining their mail more closely in recent months for coupons and special offers that save them money. Nearly 40% of consumers have tried a new business after receiving direct mail from that business, and 70% report renewing a relationship with a business as a result of receiving direct mail inviting them back. (The Newsletter Guru 9/3/09) 

America’s Divorce Problem. The Centers for Disease Control and Prevention reports 2,162,000 weddings took place in the U.S. in ’09, or 7.l per 1,000 of the nation’s total population.  However, the CDC also reports that 3.5 per 1,000 ended in divorce.  In other words, half of all marriages in ’09 ended in divorce.  (Centers for Disease Control and Prevention) 

Outside Resources More churches say they’re seeking outside resources to help with church finances, giving and generosity. The top resources identified by State of the Plate survey respondents: Dave Ramsey, 58%; Crown Financial Ministries, 54%; Denominational resources, 44%; Brian Kluth/Maximum Generosity, 43%; Church Law & Tax Report, 41%; Your Church magazine, 35%. (State of the Plate  3/10) 

eBook Publishing Impact 52% of U.S. publishers see eBooks as having only low or moderate importance to their growth, according to a recent Aptara Corp study of 300 U.S. book publishers. 53% print and distribute eBooks. 65% produce eBook versions of titles that are also offered in print, while 9% produce eBook versions instead of print. The 3 biggest challenges publishers face in bringing eBooks to market are (1) eReader format/compatibility options, (2) Distribution channel issues and (3) Digital rights management.. 22% of eBook publishers admit they do not personally read eBooks. (Aptara Corp Study 3/10) 

Global Culture Tsunami In 1970, there were 100,000 Muslims in the U.S. vs. 9 million today. At the current rate of growth, the U.S. Muslim population is predicted to grow to 50 million in just 30 years. Most European Union nations will see Muslim population majorities in less than 15 years. (Global Missions Video) 

For information on how to become a subscriber to the entire 3-4 page Foster Letter---Religious Market Update, E-mail us at: subscribe@garydfoster.com