1. Copyright Atomic Dog Publishing, 2002 Chapter 13 Subcultural (Co-cultural) Influences

2. Copyright Atomic Dog Publishing, 2002 Chapter Spotlights Subculture and Society Subcultures based on nationality and ethnicity Subcultures based on age Subcultures based on geographic region Subcultures based on religion

3. Copyright Atomic Dog Publishing, 2002 Subculture and Society Subculture is any cultural patterning that preserves important features of the dominant society but provides for values, norms, and behaviors of its own. Foundations for subcultural variation: Nationality Ethnicity Age Geographic region Religion Who belongs to what subculture – Three factors Generalizations, self-perceptions, feelings about identification with a subculture

4. Copyright Atomic Dog Publishing, 2002 Subcultures Based on Nationality and Ethnicity Nationality and ethnic subcultures develop in order to serve their members in three ways: To provide a source of psychological group identification To offer a patterned network of groups and institutions supportive of the subculture To serve as a frame of reference through which to evaluate the dominant culture.

5. Copyright Atomic Dog Publishing, 2002 African-American Subculture See Exhibit 13.1 Younger with very high numbers living in cities 1999 earnings: $491 billion 1999 purchases: $207 billion (ninth largest economy in the world) Approximately 28% of families had an annual income of $50,000 or more in 1999 The group is very diverse

6. Copyright Atomic Dog Publishing, 2002 Marketing to African Americans African American consumers expect respect within the marketplace and must feel a sense of acceptance. When they seek subculture-specific products they use media targeted to the subculture. Use of black models in advertising is important to them.

7. Copyright Atomic Dog Publishing, 2002 Hispanic-American Subculture 2000 purchasing power: $340 billion Median income is about two thirds of the average in the U.S. In 2000, 9.6 % percent of Hispanic families had incomes of more than $50,000

8. Copyright Atomic Dog Publishing, 2002 Hispanics (continued) They think of themselves as Hispanic or Latino first and as Americans second. 90% indicate that the Spanish language is the most important feature of their culture Two-thirds of Hispanics prefer to speak Spanish at home 20% of Hispanics do not speak English at all

9. Copyright Atomic Dog Publishing, 2002 Marketing to Hispanic Americans They are a diverse group, bound together by a common language and cultural heritage. (66% Mexican, 14.5% C/S American, 9% P.R., 4% Cuban) Tend to marry within subculture (M>F); having children is most important event in family; dominant values: traditional, conservative, respect for elders, commitment to family, male dominance They are very brand loyal. 90% use Spanish language media for product information. They have positive attitudes toward advertising.

10. Copyright Atomic Dog Publishing, 2002 Asian- and Pacific Island- American Subculture It consists of 29 distinct groups Their nationalities range from Chinese (32%), Filipino (19%), Japanese (12%), Asian Indian and Pakistani (11%), Korean (11%), Vietnamese (8%) and Pacific Island (5%) to 20 others The group earned $350 billion in 2000 with the median income per household at approximately $36,100 They tend to be conservative and family oriented.

11. Copyright Atomic Dog Publishing, 2002 Asian- and Pacific Island- Americans (continued) They are cost conscious and very brand loyal They shop mostly within their communities Language barrier may be a challenge for marketers The most effective advertising to Chinese- Americans reflects traditional family values

12. Copyright Atomic Dog Publishing, 2002 Subculture Based on Age Preteens They influence purchases in approx. 60 product categories They select the stores in which they spend they own money By appealing to preteens, marketers build brand loyalty at an early stage The medium of choice for them is television

13. Copyright Atomic Dog Publishing, 2002 Teens They make up 6% of the population, but growth will be flat until 2010. One view is that they have segmented themselves into seven groups based on psychographics. The groups are named: 1) jarheads (athletes), 2) nerds or geeks (computer wizards), 3) prepsters or bushies (conservatives), 4) surfer dudes (casual dressers/attitudes, 5) heavy metal rockers/punks 6) study gerkins, and 7) bohos (poetry and black dress)

14. Copyright Atomic Dog Publishing, 2002 Teens (continued) Teens are preoccupied with their appearance They are open to new ideas and new products Teens are avid television viewers

15. Copyright Atomic Dog Publishing, 2002 Young Adults – Generation X Those born between 1965 and 1977 (40 million people) They are distrustful of marketing They look for a balance between work and leisure Gen X-ers are close to their parents and may return to live at home

16. Copyright Atomic Dog Publishing, 2002 Gen X (Continued) They are not drawn to traditional forms of advertising (see it as “hyping”) Gen X-ers express their need to stay in control by purchasing communications equipment such as beepers, fax machines, e-mail, and mobile phones. They prefer products based on their practicality

17. Copyright Atomic Dog Publishing, 2002 Baby Boomers Those born between 1946 and 1964 (78 million) Total income is over $1 trillion, increasing at a rate of 10% per year (versus 5% for the rest of the population) They have a high level of education They have more discretionary income than other groups and they buy more and save less. Boomers are health conscious.

18. Copyright Atomic Dog Publishing, 2002 Baby Boomers (continued) They are becoming less materialistic in outlook and their product and service selections reflect their concern for the environment and quality of life. They use credit cards extensively and the higher income groups buy expensive exercise equipment and other personal/luxury goods. Boomers keep up with fashions The marketing of nostalgia works well with them (especially older baby boomers)

19. Copyright Atomic Dog Publishing, 2002 Seniors There were approx. 35 million people over 65 in 2000 – it is the fastest growing segment of the population. Households are small and their need for new purchases is limited They enjoy convenience in the marketplace and appreciate their leisure time.

20. Copyright Atomic Dog Publishing, 2002 Seniors (continued) They spend more on themselves They perceive themselves as younger than their years (e.g. 65 year olds perceive themselves as age 50). Although brand loyal, they tend to try new products or brands if given good reasons to do so. The senior market can further be segmented on the basis of age, activity level, health, and mobility (65-74 and 75+ groups; active/healthy vs. poor health or disabled)

21. Copyright Atomic Dog Publishing, 2002 Subcultures Based on Geographic Region Regional subcultures do exist and vary in size. Regional differences have been tied to nationality, ethnic background, or religion of the original settlers in the region The two coasts: California versus New York; Great Lakes as “third coast” (Midwest) Climate, altitude, and terrain have an impact on the needs of people for products and services.

22. Copyright Atomic Dog Publishing, 2002 Subcultures Based on Religion Beliefs are a major influence on marketplace behavior. Generalizing based on religion must be done carefully. Religious calendars influence product selection.

23. Copyright Atomic Dog Publishing, 2002 Religion-based Subcultures (continued) Geographic concentrations of religious sects are also important to marketers Members of some religious groups may only patronize the businesses of other members. Media choice depends upon sensitivity to lifestyle and behavior patterns.