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CONSUMERS AND SUBCULTURES
Age gender composition family size and composition distribution of population education occupation social class Ethnic group
What are some demographics
So What Are demographics?
Objective quantifiable Characteristics of a population
Important variables for market segmentation
What are some Recent Demographic Trends in Canada
• Change in age distribution• Increased urbanization; though there have been some
moves to non-urban areas• Change in the structure of the family• Increased participation by women in the workforce• Women more focused on careers• Couples having fewer children• Increased incomes and greater consumer confidence• Increased educational opportunities
EVEN though Calgary accountant "Michelle" (not her real name) and her husband, "Jim," an elementary school teacher, could afford to have more children, they are not going to. Jim is scheduled for a vasectomy next month. "We already have one child," Michelle explains. "We just don't want any more. One is enough. Kids are expensive, and they take up so much time. We want our life back."
Michelle is not alone. Canadian women are now having fewer children than ever before, according to a new Statistics Canada study, released in July. The latest figures mean that for the first time in 100 years, Canada's population growth rate has fallen below the United States. At least three factors explain the decline, including increased abortions and birth control, more women in the workforce who are starting their families later in life, and high taxation.
Marketing Implications of Demographic Trends
You are the marketing manager of a telecommunications company that manufactures cell phones.
Until recently you have targeted businessmen for these phones. How would you use the information that more women are entering the workforce in Canada to refocus your marketing strategy?
What Problems might there be with Relying on Demographics
Information may be old Data on various demographics may be unavailable Summary data may be too broad and hide opportunities
in niches Psychological or social factors that affect people’s
buying patterns are not considered Demographics do not provide the reasons that people
make certain purchases Consumers with similar demographics may differ in
purchase behavior
CONSUMER SPENDING AND ECONOMIC ACTIVITY
What does the demand for goods and services depend on?
the ability to buy
the willingness to buy
a measure of consumers’ opinions on the financial position of their own household and the economy as a whole
and to what extent they think it is a good time to buy large expensive items such as a TV or a computer. Demand for necessities remains stable over time
A component of consumer confidence that gives an approximate indication of the development of consumption growth in the subsequent months, especially with respect to durable goods.
The underlying data are taken from the consumer confidence survey.
What is Consumers’ willingness to buy?
The Conference Board's Consumer Confidence Survey based on a representative sample of 5,000 U.S. households across the country.
Consumer assessment of current economic conditions. Covers things such as
•Employment•Spending intentions over the next six months•Feelings about business conditions over the next six months
The Conference Board’s Consumer Confidence Index fell 11.5 points in October, 2001 from 97.0 in September to 85.5 (1985=100). February 2002 stood at 94.1.
Consumer confidence as measured in ABC News weekly Poll
Confidence and willingness to buy varies by market segment and is usually higher among younger than older consumers
And among higher income consumers than lower,
college college graduates over high school graduates whites or other ethnic groups men or women
Willingness to buy by telephone
Social ClassWhat is Social Class?
relatively permanent strata in a society that are distinct subcultures
– Occupation– Education attained– Behavioral standards – taste culture– Source of Income– Level of Income; wealth– Dwelling area– Power– Religious Affiliation; Associations– lifestyles, buying patterns, motivations and values– possessions
What are the typical factors that differentiate the social classes?
Social Classes in CanadaA. The upper class.
– 1. The upper-upper class. (1%; ‘old money)– 2. The lower-upper class. (2-4%)
B. The middle class (40-50% considerable racial & ethnic diversity)– 1. The upper-middle class. ($100k +)– 2. The middle-middle class. ($50-$100,000, upper managerial or professional fields)– 3. lower-middle: under $50,000, less prestigious white collar, or highly
skilled blue collar jobs.
C. The working class. (1/3 of population) (lower incomes than middle class, no accumulated wealth less personal satisfaction in jobs
D. The lower class. (20% of population) (either supported by welfare, or are ‘working poor’)
tastes Lifestyles access to such resources as education, health care,
housing and consumer goods. Self Image Values Political orientation Consumption behaviour I.e. who spends how
much and on what
The Importance of ClassWhat sort of things does social class affect
How Do the Lower and Upper Classes Differ in Their Consumption Behaviour?
Lower classes generally focus on more immediate and more utilitarian needs
Upper classes are often likely to
approach consumption from a more aesthetic perspective
Marketing ImplicationsYour company XYZ corp. manufactures inexpensive furniture
and has targeted the less well off. In an effort to upgrade your image the company has decided to target higher-class consumers. What will the marketing implications be on the following.
Market research Product choices and development Product design and packaging Distribution Price Advertising and other marketing communications
Status SymbolsWhat are They?
Conspicuously consumed goods which are used to provide evidence of wealth
Why do some people feel the need for status symbols
The need to display status through purchase and use of products is at least partially derived from the anonymous nature of much of our social interaction
If most people are unknown in public, status cannot be conveyed by reputation
Anonymity exacerbates the need for uniqueness
Status SymbolsExamples
Parody Display
Paper Denim Retro Torn Jeans $140.00
When consumers deliberately mock a trend by carefully selecting products and consumption patterns that are not the current fashion or style.
Fraudulent Symbolism
When too many others use or possess a status symbol such that it loses much of its former power
Your company has just introduced a digital camera. It has been decided that a key element of the marketing strategy will be to position it as a status symbol. What will be some of the highlights of the marketing campaign?
SUBCULTURES
What is a Subculture?
A distinct cultural group that exists as an identifiable segment within a larger, more complex society/culture
How do you distinguish one group from another?
Members of a subculture possess beliefs, values, customs that distinguish them from other groups in the wider culture
Subcultures create their own worlds that are complete with their own norms, language, and product insignias
Every consumer belongs to many subcultures
What are some Types of Subcultures in Canada
EthnicRacialAgeRegional Religious
What is an Ethnic Subculture? Possess common cultural and or genetic ties which are
identified both by its members and by others as a distinguishable category.
Ethnic identity is a significant component of a consumer’s self concept
Immigration in CanadaImpact of immigration – Canada has one of the
world’s most liberal immigration policies and is considered a multicultural or pluralistic society (as opposed to melting pot)
New immigrants tend to cluster together geographically which makes them easy to reach.
Concentrated in major Canadian citiesBring with them customs, traditions, values, etc. New immigrants are likely to be Asian and are
best marketed to in their native language.
Population reporting at least one Ethnic Origin other than British, French or Canadian, 1986, 1991 and 1996 Censuses
63%
37%
1986 Census58%
42%
1991 Census
56%
44%
1996 Census
LegendBritish, French or Canadian OriginsOther Ethnic Origins
Percentage of Visible Minority Population by All Age Groups, for Canada, Provinces, Territories and selected Census Metropolitan Areas, 1996 Census
0%
5%
10%
15%
20%
25%
30%
35%
1% 1% 1%
3% 3% 3% 3%
6%7%
10%
16%
18%
8% 8% 8%9%
10%11%
12% 12%
14%
16%
31%32%
11%
Visible Minority Population for Provinces and Territories 1996 Census
3,815 1,520 31,320 7,995
433,985
1,682,045
77,35526,945
269,280
660,545
1,000 1,6700
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Shown in Absolute Numbers
Visible Minority Population in selected Census Metropolitan, 1996 Census
2,370 22,320 2,555 9,815
401,425
115,460
1,338,095
48,91073,31010,35511,250
127,555115,430
564,600
22,915
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Shown in Absolute Numbers
Percentage of the Visible Minority Population Aged 0 to 24, for Canada, Provinces, Territories and selected Census Metropolitan Areas, 1996 Census
0%
5%
10%
15%
20%
25%
30%
35%
40%
1% 1% 1%2%
3%4%
5%
8% 8%
11%
19%
21%
10%11% 11%
12%13%
14%15%
16% 16%
18%
37% 37%
13%
Asian Canadians
Asian Canadians are the Fastest Growing Minority Group in Canada
College Graduation Rate is Twice That of
Whites.
Average Household Income is $2,000
Greater Than Whites, and tend to be more
brand and price conscious
Characteristicsof Asian
Subcultures
Small,Diverse,Growing
EducationOriented
NativeLanguage
PrintMedia
AboveAverageIncome
Marketing Implications of Subculturebasis for market segmentationMarketers need to be aware of different needs
for products, different patterns of usage, preference for certain brands
Advertising-media habits may be different; different media to reach different subcultural groups
Distribution-geographic concentration of many ethnic subcultures means that marketers can reach them more easily; also in some cases certain groups prefer to shop in certain stores.
Marketing Implications of SubcultureYour company manufactures, markets and sells
kitchen utensilsAware that Canada’s population increase now
results primarily from immigration rather than by natural means and that most of these immigrants are from Asia your company realizes that there is a vast untapped market for its products and decides to go after it.
How will this affect your company’s Marketing mix?
What difficulties might you encounter?
Reaching the Asian Canadian Consumer
Overlooked Complex Differences Among
Asian Subcultures
Translating AdvertisingMessages Into Asian
Media
Lack of Media Availableto Reach Asian
Americans
Been Insensitive to Cultural Practices
Problems Encountered by Canadian
Marketers
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