2. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CSR 331-CB subculture/microcultures 1 Recording on some of the slides

3. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Apply the concept of subculture/microculture as it influences consumer behavior. 3

4. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3 The Hierarchical Nature of Culture and subculture/microculture

5. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4 Consumer preferences vary by region. In 1981, Garreau identified the nine nation approach to segmentation. One significant area in the U.S. is the “borderland” region, or the states that share a border with Mexico. Regional Consumers

6. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Regional Differences and Preferences Among U.S. Consumers

7. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6 Sex roles refer to the societal expectations for men and women among members of a cultural group. Marketers must be aware of sex-roles because they are linked to purchasing behavior. Marketing communications are carefully segmented towards males or females and their cognitive structuring. Sex-Roles and subculture/microculture ©SIMON RAWLES/ALAMY

8. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7 Age-Based subculture/microculture People of the same age tend to share similar values and consumer preferences. This is especially true if teens and seems to apply across nations leading to a world teen culture. ©TON KOENE/ALAMY

9. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Similarities and Differences among Teen Consumers

10. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9 Generation subculture/microculture Marketers pay close attention to generational effects in order to successfully promote products to each cohort. Cohort – a group of people who have lived the same major experiences, which end up shaping their core values. Greatest Generation Greatest Generation Baby Boomers Baby Boomers Millennials Generation X

11. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10 Religious subculture/microculture Religion affects consumer culture because religious beliefs, even for the non-devout, can effect all manner of daily life. Weekend Days Weekend Days Material Acquisitions Material Acquisitions Food and Beverage Consumption Budget Allocations Budget Allocations Clothing Choices Clothing Choices

12. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11 Religious Percentages in the World and Select Nations

13. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 Ethnic subculture/microculture Hispanic Culture African-American Culture Asian Culture

14. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13 Ethnic/Racial Groups in the U.S. based on U.S. Census Projections

15. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14 Income and Social Class subculture/microculture Terms to Know: Social Class Habitus Homogamy Social Stratification Status Symbols BOP Consumers

16. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15 Social Class in the U.S. Upper Class Lower Upper Class Upper Middle Class Upper Middle Class Lower Middle Class Lower Middle Class Upper Lower Class Upper Lower Class Lower Class Lower Class

17. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16 Consumer Influencers Street subculture/microcultures Sports MusicGoth GamingVirtual

18. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Realize that subculture/microculture is not a uniquely American phenomenon. 22

19. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18 subculture/microcultures Exist Globally Other countries and regions have many subculture/microcultures. These subculture/microcultures might be based on anything from language to fashion. Global marketing efforts must consider culture and subculture/microculture. ©PETER HORREE/ALAMY

20. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Perform a demographic analysis. 24

21. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Identify major cultural and demographic trends. 27

22. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21 Cultural and Demographic Trends Affecting CB Declining Birth Rates Declining Birth Rates Increasing Life Expectancy Increasing Life Expectancy Increasing Consumer Affluence + gap Increasing Consumer Affluence + gap Increasing Cultural Diversity Increasing Cultural Diversity The Power of Woman The Power of Women

23. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22 “Women are the majority market” —Fara Warner/ The Power of the Purse

24. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23

25. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24 1. Men and women are different. 2. Very different. 3. VERY, VERY DIFFERENT. 4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. 5. Women buy lotsa stuff. 6. WOMEN BUY A-L-L THE STUFF. 7. Women’s Market = Opportunity No. 1. 8. Men are (STILL) in charge. 9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. 10. Women’s Market = Opportunity No. 1.

26. “Forget China, India and the Internet : Economic Growth Is Driven by Women.” Source: Headline, Economist

27. “All signs point to a new era of women in charge — socially, economically and politically.” —Alex Beam, “Women Rule,” International Herald/Jan 15 “A Tradition Falls and Women Rise: A Changing Germany Seeks to Blend Family, Careers and Schooling” —p.1, International Herald /Jan 18

28. “Since 1970, women have held two out of three new jobs. According to The Economist, which compiled studies from a number of research firms, the arrival of this new workforce has done more to encourage global growth than increases in capital investment and improvements in productivity. ‘Over the last 10 years the increase in women [in the workplace] in developed countries has made more of a contribution to global growth than China has,’ concludes the British weekly.” Source: “Women Are Drivers of Global Growth,” Aude Zieseniss de Thuin, founder and president of the Women’s Forum for the Economy and Society (FT)

29. “The increased number of women in the working population compensates for the negative demographic effects of an ageing population and lower birth rates. The same trend is now also visible in emerging countries. South-east Asia’s economic success is due primarily to women, who hold two-thirds of the jobs in the export industry, the region’s most dynamic sector.” Source: “Women Are Drivers of Global Growth,” Aude Zieseniss de Thuin, founder and president of the Women’s Forum for the Economy and Society (FT)

30. “One thing is certain: women’s rise in power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. They are increasingly becoming directors, managers and entrepreneurs. …” Source: “Women Are Drivers of Global Growth,” Aude Zieseniss de Thuin, founder and president of the Women’s Forum for the Economy and Society (FT)

31. “This is just the beginning. The phenomenon will only grow as girls prove to be more successful than boys in the school system and enroll in higher numbers in universities. For a number of observers, we have already entered the age of “womenomics”, the economy as thought out and practised by women. Those Chinese who desire that their only child be male may soon realise that a daughter could be a better investment. Bosses know full well that a team of both men and women is more creative and efficient than one comprised of only men.” Source: “Women Are Drivers of Global Growth,” Aude Zieseniss de Thuin, founder and president of the Women’s Forum for the Economy and Society (FT)

32. This is just the beginning. The phenomenon will only grow as girls prove to be more successful than boys in the school system. For a number of observers, we have already entered the age of ‘womenomics,’ the economy as thought out and practiced by a woman.” —Aude Zieseniss de Thuin, Women’s Forum for the Economy and Society

33. “Since 1970, women have held two out of every three new jobs created.” “Since 1970, women have held two out of every three new jobs created.” —FT, 10.03.2006

34. “Women are the majority market” —Fara Warner/The Power of the Purse

35. *“Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $20 trillion in consumer spending, and that figure could climb as high as $28 trillion in the next five years. Their $13 trillion in total yearly earnings could reach $18 trillion in the same period. In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning strategy when it comes to women. Consider Dell’s …” —Michael Silverstein and Kate Sayre, “The Female Economy,” HBR, 09.09

36. “Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from women’s increased purchasing power; over the past decade the value of shares in Goldman’s basket has risen by 96%, against the Tokyo stockmarket’s rise of 13%.” of 13%.” —Economist, April 15

37. “The most significant variable in every sales situation is the gender of the buyer, and more importantly, how the salesperson communicates to the buyer’s gender.” “The most significant variable in every sales situation is the gender of the buyer, and more importantly, how the salesperson communicates to the buyer’s gender.” —Jeffery Tobias Halter, Selling to Men, Selling to Women

38. Cases! Cases! Cases! What companes are NOT poised to take advantage of women as majority consumer

39. Women don’t buy brands. They join them.” EVEolution “Women don’t buy brands. They join them.” EVEolution

40. “ Women speak and hear a language of connection and intimacy, and men speak and hear a language of status and independence. Men communicate to obtain information, establish their status, and show independence. Women communicate to create relationships, encourage interaction, and exchange feelings.” “ Women speak and hear a language of connection and intimacy, and men speak and hear a language of status and independence. Men communicate to obtain information, establish their status, and show independence. Women communicate to create relationships, encourage interaction, and exchange feelings.” —Judy Rosener, America’s Competitive Secret

41. 94% of loans to … women* *M icrolending; “Banker to the poor”; Grameen Bank; Muhammad Yunus; 2006 Nobel Peace Prize winner

42. “ CEMEX realized that women are the key drivers of savings in [Mexican] families. … They are entrepreneurial in nature, and they actively participate in the tanda system [neighborhood groups who pool money and save any that’s left over]. Regardless of whether they are homemakers or outside-the-home workers, they are responsible for any savings in the family. Patrimonio Hoy [Private Property Today, a CEMEX program to aid the poor in building homes] discovered that 70% of the women who saved were saving money in the tanda system to construct homes for their families. The men in the society consider their job done if they bring in their paycheck at the end of the day.” —C.K. Prahalad, from The Fortune at the Bottom of the Pyramid, on Lorenzo Zambrano and CEMEX, the Mexican company that’s the world’s #3 cement maker

43. Lesson: For projects involving children or health or education or community development or sustainable small-business community development or sustainable small-business growth (most projects), women are by far the most reliable growth (most projects), women are by far the most reliable and most central and most indirectly powerful local and most central and most indirectly powerful local players in even the most chauvinist settings—their players in even the most chauvinist settings—their characteristic process of “implementation by indirection” characteristic process of “implementation by indirection” means “life or death” to sustainable project success; means “life or death” to sustainable project success; moreover, the expanding concentric circles of women’s moreover, the expanding concentric circles of women’s traditional networking processes is by far the best way to traditional networking processes is by far the best way to “scale up”/expand a program. (Men should not even try “scale up”/expand a program. (Men should not even try to understand what is taking place. Among other things, to understand what is taking place. Among other things, this networking indirection-largely invisible process will this networking indirection-largely invisible process will seemingly “take forever” by most men’s “action now, seemingly “take forever” by most men’s “action now, skip steps” S.O.P.—and then, from out of the blue, skip steps” S.O.P.—and then, from out of the blue, following an eternity of rambling discussions-on-top-of- following an eternity of rambling discussions-on-top-of- rambling-discussions, you will wake up one fine morning rambling-discussions, you will wake up one fine morning and discover that the thing is done that everything has and discover that the thing is done that everything has fallen in place “overnight” and that ownership is nearly fallen in place “overnight” and that ownership is nearly universal. Concomitant imperative; most of your (as an universal. Concomitant imperative; most of your (as an outsider) staff should be women, alas, most likely not outsider) staff should be women, alas, most likely not visibly “in charge.” visibly “in charge.”

44. For projects involving children or health or education or community development or sustainable small-business growth (most projects), women are by far the most reliable and most central and most indirectly powerful local players even in the most chauvinist settings.