1. CONSUMERS AND SUBCULTURES

2. What are some demographics
Age
gender composition
family size and composition
distribution of population
education
occupation
social class
Ethnic group

3. So What Are demographics?
Objective
quantifiable
Characteristics
of a population
Important variables for market segmentation

4. What are some Recent Demographic Trends in Canada
Change in age distribution
Increased urbanization; though there have been some moves to non-urban areas
Change in the structure of the family
Increased participation by women in the workforce
Women more focused on careers
Couples having fewer children
Increased incomes and greater consumer confidence
Increased educational opportunities

5. EVEN though Calgary accountant "Michelle" (not her real name) and her husband, "Jim," an elementary school teacher, could afford to have more children, they are not going to. Jim is scheduled for a vasectomy next month. "We already have one child," Michelle explains. "We just don't want any more. One is enough. Kids are expensive, and they take up so much time. We want our life back."
Michelle is not alone. Canadian women are now having fewer children than ever before, according to a new Statistics Canada study, released in July. The latest figures mean that for the first time in 100 years, Canada's population growth rate has fallen below the United States. At least three factors explain the decline, including increased abortions and birth control, more women in the workforce who are starting their families later in life, and high taxation.

6. Marketing Implications of Demographic Trends
You are the marketing manager of a telecommunications company that manufactures cell phones.
Until recently you have targeted businessmen for these phones. How would you use the information that more women are entering the workforce in Canada to refocus your marketing strategy?

7. What Problems might there be with Relying on Demographics
Information may be old
Data on various demographics may be unavailable
Summary data may be too broad and hide opportunities in niches
Psychological or social factors that affect people’s buying patterns are not considered
Demographics do not provide the reasons that people make certain purchases
Consumers with similar demographics may differ in purchase behavior

8. the willingness to buy CONSUMER SPENDING AND ECONOMIC ACTIVITY
What does the demand for goods and services depend on?
the ability to buy
the willingness to buy

9. What is Consumers’ willingness to buy?
a measure of consumers’ opinions on the financial position of their own household and the economy as a whole
and to what extent they think it is a good time to buy large expensive items such as a TV or a computer. Demand for necessities remains stable over time
A component of consumer confidence that gives an approximate indication of the development of consumption growth in the subsequent months, especially with respect to durable goods.
The underlying data are taken from the consumer confidence survey.

10. The Conference Board's Consumer Confidence Survey
based on a representative sample of 5,000 U.S. households across the country.
Consumer assessment of current economic conditions. Covers things such as
Employment
Spending intentions over the next six months
Feelings about business conditions over the next six months
The Conference Board’s Consumer Confidence Index fell 11.5 points in October, 2001 from 97.0 in September to 85.5 (1985=100). February 2002 stood at 94.1.

11. Consumer confidence as measured in ABC News weekly Poll

13. Confidence and willingness to buy varies by market segment and is usually higher among younger than older consumers

14. And among higher income consumers than lower,
college college graduates over high school graduates
whites or other ethnic groups
men or women

15. Willingness to buy by telephone

17. Social Class What is Social Class?
relatively permanent strata in a society that are distinct subcultures
What are the typical factors that differentiate the social classes?
Occupation
Education attained
Behavioral standards – taste culture
Source of Income
Level of Income; wealth
Dwelling area
Power
Religious Affiliation; Associations
lifestyles, buying patterns, motivations and values
possessions

18. Social Classes in Canada
A. The upper class.
1. The upper-upper class. (1%; ‘old money)
2. The lower-upper class. (2-4%)
B. The middle class (40-50% considerable racial & ethnic diversity)
1. The upper-middle class. ($100k +)
2. The middle-middle class. ($50-$100,000, upper managerial or professional fields)
3. lower-middle: under $50,000, less prestigious white collar, or highly skilled blue collar jobs.
C. The working class. (1/3 of population) (lower incomes than middle class, no accumulated wealth less personal satisfaction in jobs
D. The lower class. (20% of population) (either supported by welfare, or are ‘working poor’)

19. The Importance of Class What sort of things does social class affect
tastes
Lifestyles
access to such resources as education, health care, housing and consumer goods.
Self Image
Values
Political orientation
Consumption behaviour I.e. who spends how much and on what

20. How Do the Lower and Upper Classes Differ in Their Consumption Behaviour?
Lower classes generally focus on more immediate and more utilitarian needs
Upper classes
are often likely to approach consumption from a more aesthetic perspective

21. Marketing Implications
Your company XYZ corp. manufactures inexpensive furniture and has targeted the less well off. In an effort to upgrade your image the company has decided to target higher-class consumers. What will the marketing implications be on the following.
Market research
Product choices and development
Product design and packaging
Distribution
Price
Advertising and other marketing communications

22. Status Symbols What are They?
Conspicuously consumed goods which are used to provide evidence of wealth
Why do some people feel the need for status symbols
The need to display status through purchase and use of products is at least partially derived from the anonymous nature of much of our social interaction
If most people are unknown in public, status cannot be conveyed by reputation
Anonymity exacerbates the need for uniqueness

23. Status Symbols Examples

24. Paper Denim Retro Torn Jeans $140.00
When consumers deliberately mock a trend by carefully selecting products and consumption patterns that are not the current fashion or style.
Parody Display

25. When too many others use or possess a status symbol such that it loses much of its former power
Fraudulent Symbolism

27. Your company has just introduced a digital camera
Your company has just introduced a digital camera. It has been decided that a key element of the marketing strategy will be to position it as a status symbol. What will be some of the highlights of the marketing campaign?

28. SUBCULTURES

29. What is a Subculture?
A distinct cultural group that exists as an identifiable segment within a larger, more complex society/culture

30. How do you distinguish one group from another?
Members of a subculture possess beliefs, values, customs that distinguish them from other groups in the wider culture
Subcultures create their own worlds that are complete with their own norms, language, and product insignias
Every consumer belongs to many subcultures

31. What are some Types of Subcultures in Canada
Ethnic
Racial
Age
Regional
Religious

32. What is an Ethnic Subculture?
Possess common cultural and or genetic ties which are identified both by its members and by others as a distinguishable category.
Ethnic identity is a significant component of a consumer’s self concept

33. What makes Ethnic Subcultures Different?

34. Immigration in Canada
Impact of immigration – Canada has one of the world’s most liberal immigration policies and is considered a multicultural or pluralistic society (as opposed to melting pot)
New immigrants tend to cluster together geographically which makes them easy to reach.
Concentrated in major Canadian cities
Bring with them customs, traditions, values, etc.
New immigrants are likely to be Asian and are best marketed to in their native language.

35. Population reporting at least one Ethnic Origin other than British, French or Canadian, 1986, 1991 and 1996 Censuses

38. Percentage of Visible Minority Population by All Age Groups, for Canada, Provinces, Territories and selected Census Metropolitan Areas, Census

39. Visible Minority Population for Provinces and Territories 1996 Census

40. Visible Minority Population in selected Census Metropolitan, 1996 Census

41. Percentage of the Visible Minority Population Aged 0 to 24, for Canada, Provinces, Territories and selected Census Metropolitan Areas, Census

42. Asian Canadians
Asian Canadians are the Fastest Growing Minority Group in Canada
Average Household Income is $2,000 Greater Than Whites, and tend to be more brand and price conscious
College Graduation Rate is Twice That of Whites.

43. Characteristics of Asian Subcultures
Small,
Diverse,
Growing
Characteristics
of Asian
Subcultures
Native
Language
Print
Media
Above
Average
Income
Education
Oriented 4 4

44. Marketing Implications of Subculture
basis for market segmentation
Marketers need to be aware of different needs for products, different patterns of usage, preference for certain brands
Advertising-media habits may be different; different media to reach different subcultural groups
Distribution-geographic concentration of many ethnic subcultures means that marketers can reach them more easily; also in some cases certain groups prefer to shop in certain stores.

45. Marketing Implications of Subculture
Your company manufactures, markets and sells kitchen utensils
Aware that Canada’s population increase now results primarily from immigration rather than by natural means and that most of these immigrants are from Asia your company realizes that there is a vast untapped market for its products and decides to go after it.
How will this affect your company’s Marketing mix?
What difficulties might you encounter?

46. Reaching the Asian Canadian Consumer
Overlooked Complex
Differences Among
Asian Subcultures
Translating Advertising
Messages Into Asian
Media
Problems Encountered by Canadian Marketers
Been Insensitive to
Cultural Practices
Lack of Media Available
to Reach Asian
Americans