1. Subcultures

2. What is a Subculture? A distinct cultural group that exists as an identifiable segment within a larger, more complex society. A homogeneous segment within a heterogeneous national society.

3. Relationship Between Culture and Subculture Subcultural Traits of Hispanic Americans Subcultural Traits of Asian Americans Dominant Cultural Traits of U.S. Citizens

4. Major Subculture Categories

5. Nationality Primary subculture identified on the basis of nationality in the U.S. is the Hispanic subculture. Identifying Hispanics –Country of origin –Self-identification –Degree of identification

6. Hispanic Subculture 32 million people (2001) –64% of Mexican origin –10% of Puerto Rican origin –4% of Cuban origin –Remainder from Spain, Central American, or South America “Pan-Hispanic” middle class

7. Hispanic Market Prefer well-known or familiar brands Buy brands perceived to be prestigious Fashion-conscious Prefer to shop at smaller stores Deliberate buyers Buy brands advertised by their ethnic-group stores Likely to buy what their parents bought

8. Hispanic Market, continued Tend to be negative about marketing practices and government intervention in business Less than 1/3 have credit cards Only 30% have checking accounts Increasingly using coupons Very price-sensitive Prefer fresh to frozen or prepared items

9. Marketing to Hispanics Use Spanish-language media Personal, small stores Emphasize prestigiousness of products Offer coupons, sales Advertising should tie in to family

10. Race Major racial subcultures in U.S. are Caucasian, African-American, and Asian- Americans

11. African-American Subculture 34 million (2001) –Moving from inner cities to suburbs –Moving from Northern cities to the South Strong middle class

12. Characteristics of African- American Market Value-conscious Prefer popular or leading brands Unlikely to purchase private-label and generic products Brand loyal Use fewer coupons than Caucasians Read more advertising

13. Marketing to African-Americans Broad appeal ads for products that broadly appeal to all ethnic groups, including African-Americans Specialized appeals for products specifically developed for African- Americans Preferred mediums are radio, African- American magazines, African-American cable stations

14. Asian-American Subculture 10.9 million (2001) –Represent more than 29 different countries –Middle East to Taiwan Tendency to live near entry ports; overwhelmingly urban Median household income $40,600 (1995) –Wealthiest subgroup: Asian Indian

15. Asian American Market Very family oriented Very industrious Strive for excellence in education Strive to achieve higher class Typically employed in professional, managerial, or technical occupations Consumption decisions tend to be male- oriented Likely to patronize Asian shops Brand loyal

16. Marketing to Asian Americans Use Asian American models Use native languages Niche marketing Family-based messages Base message appeals on desire to achieve

17. Age Generation Y –Born between 1979 and 1994 –7-22 year olds –60 million –Echo boomers, Millenium Generation –Indifferent to many well-known brands –Savvy consumers –Internet kids

18. Generation X –Born between 1966-1976 –23-33 year olds –46 million –Enjoy life, have flexible lifestyles –Job satisfaction more important than salary –Purchase good brand names, but not necessarily designer labels –Low newspaper readership

19. Baby Boomers –Born between 1946-1964 –37-55 year olds –76 million (40% of adult population) –Trend-setters –Consumption-oriented –Segment boomers by age: younger and older –Affluent boomers--yuppies

20. Mature Adults –56-65 year olds –Represent 70% of nation’s wealth –Silent generation –Easy to market to--TV, newspapers, radio

21. Older Consumers –65+ age category –Growing segment –Diverse interests, opinions, and activities –Cognitive age vs. chronological age

22. Characteristics of Older Consumers Price/value conscious Deal-prone Like to shop Tuned in to mass media Read everything Use credit cards infrequently relative to other age groups

23. Marketing to Older Consumers Segment by attitudes or lifestyle issues Be careful not to embarrass older consumers about their age Show diversity of age cohort in visual ads Avoid stereotypes Allow for sensory deficits –Print size –High frequency sounds –More time for information processing Use print media

24. Sex Sex roles –Gender identity Working woman –Segmentation issues –Shopping patterns