BMI3C - Chapter 5 The Changing Consumer Market

The Consumer Market Consumer Market – all potential customers for goods and services sold for personal use

The Consumer Market Demographics: Age Gender Ethnic background Income Education Occupation

Population Statistics Canada tracks population data for Canada for: Size of the population Characteristics (like age)

Population What affects the size of a country’s population? Birth rate Life expectancy Immigration

1China [6]1,347,350,000December 31, %Official estimateChina 2India1,210,193,422March 1, %2011 censusIndia2011 census 3United States314,490,000October 1, %Official population clockUnited StatesOfficial population clock 4Indonesia237,641,326May 1, %2010 censusIndonesia2010 census 5Brazil193,946,886July 1, %Official estimateBrazilOfficial estimate 6Pakistan180,819,000October 1, %Official population clockPakistanOfficial population clock 7Nigeria166,629,000July 1, %UN estimateNigeria 8Bangladesh152,518,015July 16, %Official estimateBangladeshOfficial estimate 9Russia143,200,000August 1, %Official estimateRussiaOfficial estimate 10Japan127,520,000September 1, %Monthly official estimateJapanMonthly official estimate 11Mexico112,336,538June 12, %2010 censusMexico2010 census ……… 28Spain46,163,116July 1, %Monthly official estimateSpainMonthly official estimate 29Ukraine45,560,272August 1, %Monthly official estimateUkraineMonthly official estimate 30Tanzania43,188,000July 1, %Official estimateTanzaniaOfficial estimate 31Argentina40,117,096October 27, %2010 censusArgentina2010 census 32Kenya38,610,097August 24, %2009 censusKenya2009 census 33Poland38,538,447December 31, %Official estimatePolandOfficial estimate 34Algeria37,100,000January 1, %Official estimateAlgeriaOfficial estimate 35Canada34,934,400October 1, %Official population clockCanadaOfficial population clock 36Iraq33,330,000July 1, %Official estimateIraqOfficial estimate

Population Characteristics: Number of “households” Household - a social unit of one or more people who may or may not be related living in same place Size of households (# of people living in same household) Sizes of various age groups (eg. 18 – 29) Geographic distribution of the population (city vs. rural)

Households Family: 2 or more related people who live together Solve this: 1. The # of households is growing at 5% 2. The population is growing at 8% What can you tell me about this population? An increase in the number of households means an increase in sales opportunities for marketers.

Age Groups Young people used to dominate Canada and the U.S. This impacted how marketers advertised their products Average age of the population is increasing

Homework For each of the following: Define the term Describe the characteristics of each Name 3 products/services each group would be most interested in buying Baby boom Generation X Generation Y Generation Z

Geographic Distribution How many of you have moved? Once? Twice? Three times? U.S. population has been moving to southern and south-western states Many people are moving from the city to the suburbs What is causing these trends? Marketers must understand the size and characteristics of the potential market in a geographic area

Income Income – the money a person receives or earns 4 types of income: 1. National 2. Personal 3. Disposable 4. Discretionary

Income 1. National – measures the annual flow of goods and services in a country for 1 year Includes employee earnings and corporate profits

Income Personal 2. Personal – the amount of money that a person earns or receives before taxes are deducted

Income Disposable 3. Disposable – the amount of money that people have for spending and saving It’s what is left over after taxes

Income Discretionary 4. Discretionary – the amount of money that people have left to spend after they have paid for basic costs of living (food, shelter, clothing, transportation, medical expenses) This money is spent on “wants”

Income Marketers must answer 3 questions: 1. How much income do consumers have for spending? 2. Where is that income located geographically? 3. How is it distributed among the population?

Homework – 1. How much does a person making $7,000 per year pay in income taxes? 2. How much “after-tax” income is left for a person making $30,000 living in Ontario? 3. How much “after-tax” income is left for a person making $30,000 living in British Columbia? 4. How much does a person making $100,000 in Ontario pay in tax? 5. How much does a person making $1 million in Ontario pay in tax?