Looking at your target area and your consumer profile Demographics Looking at your target area and your consumer profile

Demographics The study of obvious characteristics that categorize people Can include: Age Gender Family life cycle Income level Ethnicity and culture Each characteristic is then split up into variables or ranges

Age Can be split into 7 different ranges 0-9: Pre-customers 10-15: Allowance customers 16-19: Youth Market 20-25: Post-secondary Market 25-40: Family Formation (nesters) 40-55: Establishment 55+: Mature Market

Gender Gender roles have drastically changed in the past 50 years In the past, most products were marketed towards men to reflect the culture of the day (men make the decisions, women stay home and look after the family) Now, most products are marketed towards both males and females as most purchase decisions are shared

Family Life Cycle A consumers family life cycle determines many of their wants, needs, and purchasing patterns Although a company can sell their products to various groups, they will tailor their marketing towards each group Example – Cruise Line Honeymoon for newly married Exciting adventure for singles Family holiday for couples with families Dream vacation for retired couple

Income Level Group consumers according to how much money they earn The affluent group is willing to buy items that middle income groups can not afford Kia vs. Mercedes Businesses use the following indicators to determine the income of specific groups of consumers: Postal Codes Employment Number of children Education Property ownership

Ethnicity and Culture Businesses that do not understand the culture of their consumers risk offending them This is especially relevant for companies looking to export to another country Colour has different meanings in different countries In China, white mourns death while red is worn by brides on their wedding day

Psychographics A system for measuring consumers’ beliefs, opinions, and interests Similar to demographics but instead of obvious categories, it profile consumers based on their religious beliefs, tastes in music, lifestyle, attitudes towards health, personality traits, and other psychological factors For example, people who exercise are more likely to buy healthy, low fat foods They are much harder to collect and measure, but no less important to a consumer profile

Geographics There are 3 main categories that marketers look at: Urban Lives within the boundaries of a city, apartments or houses with small yards, spends $ on cultural events, restaurants, parking, and public transportation, various levels of income Suburban Typically needs at least 1 car, spends $ on garden, BBQ’s, household furnishings, almost always a commuter, high income Rural Usually own a truck or all wheel drive vehicle, have large pieces of land, riding mowers, larger gardens, lower/medium Marketers are also interested in ethnic concentrations in order to target specific products to specific cultures

Assignment for Venture Plan Using the Stats Can website, you are to compare your target area with your consumer profile to determine whether it is a good fit. http://www12.statcan.ca/census-recensement/2006/dp- pd/prof/92-591/index.cfm?Lang=E