1. Chapter 4 Demographics and Social Stratification

2. Can you guess which generation is the highest prescription drug use?
Mature market
Generation x
Generation y
Millenials
Can you guess what percent in each generation is on at least one prescription drug?

3. Demographics and Social Stratification
Population and Size
Occupation
Education
Income
Age

4. Understanding American Generations
A Generation or age cohort is a group of persons who have experienced a common social, political, historical, and economic environment.
Cohort analysis is the process of describing and explaining the attitudes, values and behaviors of an age group as well as predicting its future attitudes, values, and behaviors.

5. Understanding American Generations
Pre-Depression
Depression
Baby Boom
Generation X
Generation Y
Millennials
Mature Market

6. Understanding American Generations
How to Target the Mature Market
Gerontographics has identified the following four segments of the mature market:
- Healthy Indulgers (7 million, rapidly growing)
- Ailing Outgoers (18 million)
- Health Hermits (20 million)
- Frail Recluses (18 million)
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7. Understanding American Generations
Baby Boom Generation: A Closer Look
Compared to prior generations, Boomers are:
Higher income, higher education
More tech savvy
Defining retirement differently
Boomers also are:
Strong market for “anti-aging” products, travel, and financial services
Often alienated by overly “youth oriented” appeals in ads

8. Understanding American Generations
Generation Xers: A Closer Look
Beyond the stereotype:
Stereotype – Xers as disenfranchised youth
Reality 1– Xers are more highly educated than previous generations
Reality 2– Xer women are more highly educated than Xer men
Reality 3– Xers are getting married, having families and facing the time pressures associated with these events
Reality 4– Reaching Xers requires special attention to media, particularly online

9. Understanding American Generations
Generation Yers: A Closer Look
Interesting Facts About Gen Y:
Really Two Sub-Markets: Twenty-somethings and Teens
Expected to have the highest education of previous generations with incomes to follow
Very tech savvy with media options including Internet, cell phones, and video games
A strong market for edgy and affordable products

10. Social Stratification
Social Rank
Social Class system

11. Social Structure in the United States
Social Standing is Derived and Influences Behavior

12. American Social Classes
Upper-Upper Class
Lower Upper Class
Upper Middle Class
Middle Americans
Middle Class
Working Class
Lower Americans
Upper-Lower Class
Lower-Lower Class

13. The Measurement of Social Class
Two Basic Approaches:
Single item Index
Multi-item Index

14. Marketing Strategy Considerations
Should the marketer use an overall measure of social status or a demographic variable?
A product or brand may have different meanings for different social strata.
Different purchase motivations for the same product may exist between social strata.

15. Chapter 5 SubCultures

16. Consumer Behavior In The News…
If you worked in Wal-Mart’s meat department, how would you slice the meat for Hispanics versus the general population?
Thicker
Thinner
The Same
Source: L. Miller, “Cutting it Thin,” Supermarket News, November 7, 2005, p. 45.

17. The Nature of Subcultures
A subculture is a segment of a larger culture whose members share distinguishing values and patterns of behavior.
Identification with a Subculture Produces Unique Market Behaviors

18. Ethnic Subcultures African Americans Hispanics Asian Americans
Native Americans
Asian-Indian Americans
Arab Americans

19. Ethnic Subcultures
Ethnic subcultures are those subcultures whose members’ unique shared behaviors are based on a common racial, language, or nationality background.
Major Ethnic Subcultures in the US
*May be of any race.
Source: “Table 10 Resident Population,” Statistical Abstract of the United States (Washington DC: U.S. Bureau of Census, 2001), p.13.

20. African Americans Buying Power Consumer Groups Media Usage
Demographics
Buying Power
Consumer Groups
Media Usage
Marketing Mix

21. Hispanic Americans Generational First Generation Second Generation
A Closer Look at the Marketing Aspects of this Segment
Buying power
Consumer Groups
Generational
First Generation
Second Generation
Third (+) Generation
Acculturation
Marketing Mix

22. Asian Americans Buying Power Consumer Segments Marketing Mix
Demographics
Buying Power
Consumer Segments
Marketing Mix

23. Asian Americans
A Closer Look at the Marketing Aspects of this Segment

24. Native Americans Buying Power Consumer Groups Marketing Mix
Demographics
Buying Power
Consumer Groups
Marketing Mix
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25. Asian-Indian Americans
Demographics
Buying Power
Consumer Groups
Marketing Mix

26. Arab Americans Buying Power Consumer Groups Marketing Mix Demographics
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1 Population estimate by the Arab American Institute.

27. Religious Subcultures
America is basically a secular society. That is, the educational system, government, and political process are not controlled by a religious group, and most people’s daily behaviors are not guided by strict religious guidelines.
Religious subcultures Non-Christian
- Roman Catholic -Jewish
- Protestant -Muslim
- Born-Again Christian -Buddhist
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28. Regional Subcultures
Regional subcultures arise as a result of the following:
- climate conditions
- natural environment and resources
- characteristics of the various immigrant groups that have settled in each region
- significant social and political events.
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