Transcript subcultures.ppt
CONSUMERS AND SUBCULTURES
What are some demographics
Age
education
occupation
social class
Ethnic group
gender
family size and composition
distribution of population
So What Are demographics?
Objective
Quantifiable
Characteristics of a population
Important variables for market segmentation Different segments have different consumption patterns
What does money mean to you?
Our ideas about money affect our consumption behaviour
the meaning of money
Security
Comfort
being able to help one's children,
freedom
pleasure
success or failure
social acceptability
love
happiness Money means different things to different segments
What does the demand for goods and services depend on?
the ability to buy
the willingness to buy
To Spend or Not to Spend 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
The underlying data are taken from the consumer confidence survey .
The Conference Board's Consumer Confidence Survey
a monthly report based on a representative sample of 5,000 U.S. households across the country.
measures the level of confidence individual households have in the performance of the economy.
Households are asked five questions (1) a rating of business conditions in the household’s area, (2) a rating of business conditions in six months, (3) job availability in the area, (4) job availability in six months, and (5) family income in six months.
An index is constructed for each response and then a composite index is fashioned based on the responses.
Industries that rely on the Survey for forecasting include manufacturers, retailers, banks, and government agencies
Base year 1985=100
The Consumer Confidence Index fell to 92.8 in October 2004, down 3.9 points from 96.7 in Sept.. This is the third consecutive decrease for the index, which is at its lowest level in 7 months. What are the implications for Marketers of automobiles?
Consumption growth displays a positive relation to the willingness to buy.
The index of willingness to buy is a clear predictor for the future development of consumer spending
.
Confidence and willingness to buy varies by market segment and is usually higher among younger than older consumers
And among higher income consumers than lower,
college graduates over high school graduates
whites or other ethnic groups
men or women
Willingness to buy is also affected by product and method of purchase Willingness to buy by telephone
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?
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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
Classes in Canada
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Upper Class
Upper-upper class
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About 1%, “old money” Lower-upper
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2-4%, nouveau riche, .com millionaires.
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Sir Kenneth Thompson Canada’s richest man (16.4 billion 2001)
Classes in Canada: Middle Class
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40 – 50% of population Considerable racial and ethnic diversity
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Upper-middle: upper managerial or professional fields ($100k +)
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middle-middle class. ($50 $100,000)
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Lower-middle: middle management, white-collar and highly skilled blue-collar. (< $50,000)
Classes in Canada: Working Class
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1/3 of the population.
Lower incomes than middle-class.
No accumulated wealth.
Less personal satisfaction in jobs.
Classes in Canada: Lower Class
• 20% of population • Social assistance and working poor • Revolving door of poverty • Seasonal, part-time workers, minimum wage earners.
The Importance of Class What sort of things does social class affect
Lifestyles and Interests Tastes Language Self Image Values Political orientation Access to such resources as education, health care, housing and consumer goods.
How long you will live & how healthy you will be I.e. Consumption behaviour who spends how much and on what
Dress: white collar vs. blue collar
Form of recreation: upper-class people are expected to play golf rather than shoot pool down at the pool hall - but they can do it at home.
Residential location: upper-class people do not ordinarily live in slums
Material Possessions: Kind of car: Rolex watch, how many bathrooms a house has
How Much Money Will Be Spent How Money Will Be Spent Vuitton Credit Card Holder $96.00
Celine Boogie Bag $990
Where it will be spent
How Do the Lower and Upper Classes Differ in Their Consumption Tastes?
Lower classes generally focus on more immediate and more utilitarian needs Upper classes are often likely to approach consumption from a more aesthetic perspective
Ads targeted to particular social classes
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.
Product choices and development
Product design and packaging
Distribution
Price
Advertising and other marketing communications
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?
motivation for the purchase and display of products is not to enjoy them but rather to let others know that we can afford them
Anonymity exacerbates the need for uniqueness. If most people are unknown in public, status cannot be conveyed by reputation
The Sony VGN-A190 Vaio laptop computer
“Take a look at this status symbol”
“Wow you're going to attract attention opening this in public…”
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17" Widescreen LCD display, 512MB SDRAM expandable to 2GB, 400MHz FSB, 80GB Hard Drive, 4x DVD Writer - up to DVD-R $2400 US
Status Symbols
Examples
Parody Display
When consumers deliberately mock a trend by carefully selecting products and consumption patterns that are not the current fashion or style.
Paper Denim Retro Torn Jeans $140.00
Fraudulent Symbolism When too many others use or possess a status symbol such that it loses much of its former power
SUBCULTURES
What is a Subculture?
A distinct cultural group that exists as an identifiable segment within a larger, more complex society/culture How do you distinguish one group from another?
beliefs
Values Customs
Lifestyles and interests norms
Language Insignias
Consumption patterns Every consumer belongs to many subcultures
What are some Types of Subcultures in Canada
Ethnic
Age
Religious
Regional Which region has the highest bubble gum sales?
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
Why has Ethnic marketing become increasingly important to marketers who wish to maintain or increase market share?
Ethnic groups in Canada are growing more than 7 times faster than the general population
Advertising Canada estimated that in 2001 African and Asian populations in Canada represented in excess of $300 billion in purchasing power.
Ethnicity plays an important role in how brands are perceived and purchase decisions made
What makes Ethnic Subcultures Different?
Immigration in Canada
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
Population reporting at least one Ethnic Origin other than British, French or Canadian, 1986, 1991 and 1996 Censuses 37% 42% 44% 1986 Census 63% 58% 1991 Census Legend British, French or Canadian Origins Other Ethnic Origins 1996 Census 56%
Who are they and where are they?
Percentage of Visible Minority Population by All Age Groups, for Canada, Provinces, Territories and selected Census Metropolitan Areas, 1996 Census 35% 31% 32% 30% 25% 20% 15% 16% 18% 10% 10% 6% 7% 5% 3% 3% 3% 3% 1% 1% 1% 0% Ne wfoun Ne dland w Brun sw ick war d Isl Prince th west and Terr itori es Saska tch Yu ew kon an Terr itory Nova Scotia Manito ba Alberta Ont ar io olu mb ia Brit ish C 8% 8% 8% 9% 10% 11% 12% 12% 14% 16% 11% VictoriaLo ndon Ha milton Kitchen er Wi nds or Wi nnipeg Ottawa - Hu ll MONTR EA Ed L mo nton Ca lgary Vancouver To ro nto Ca nad a
Visible Minority Population for Provinces and Territories 1996 Census Shown in Absolute Numbers 1,800,000 1,682,045 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 3,815 1,520 31,320 7,995 433,985 77,355 26,945 269,280 660,545 1,000 1,670 Saskatchewan
Visible Minority Population in selected Census Metropolitan, 1996 Census Shown in Absolute Numbers 1,400,000 1,338,095 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 2,370 22,320 2,555 9,815 401,425 115,460 48,910 73,310 10,35511,250 564,600 22,915
Percentage of the Visible Minority Population Aged 0 to 24, for Canada, Provinces, Territories and selected Census Metropolitan Areas, 1996 Census 40% 37% 37% 35% 30% 25% 20% 19% 21% 10% 11% 11% 12% 13% 14% 15% 16% 16% 18% 15% 11% 10% 8% 8% 5% 4% 5% 2% 3% 1% 1% 1% 0% Ne wf oundla Ne w nd Brun swick Prince Edw ar d Island est Territories wan Terr itory Nova Scotia Manito ba AlbertaOnt ar io lumbia Brit ish Co 13% Victoria mi lton Lo ndon KitchenerWi nds or Wi nnipeg Ed mo nton MONTR EA L Ca lgary Vancouver To ro nto CANADA
Asian Canadians
Asian Canadians are the Fastest Growing Minority Group in Canada
Small, Diverse, Growing
Above Average Income
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($2000/yr more)
Native Language Print Media
Education Oriented .
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College Graduation Rate is Twice That of Whites
tend to be more brand and price conscious
Tend to be early adapters of new technology
Reaching the Asian Canadian Consumer
Problems Encountered by Canadian Marketers
Translating Advertising Messages Into Asian Media
Overlooked Complex Differences Among Asian Subcultures
Lack of Media Available to Reach Asian Canadians
Been Insensitive to Cultural Practices A British ad for Tennent’s beer marketed to the East Asian community
Marketing Implications of Subculture
1. Minority ethnic groups represent a significant opportunity for brands 2. What language does your key ethnic demographic prefer that you use in communications with them? 3. What media do they read, listen to or watch? 4. Does the product or service support their culture requirements?
5. 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 6. One must take into account, religious dictates, gender roles, values, spending patterns, and symbols
Summary of 2003 UK Study on Ethnic Marketing
A strong status-orientation and conspicuous consumption combine to make brands disproportionately more important compared with the mainstream.
Many major purchases are subject to strong family-based decision making.
Some advertising fails to connect
Advertising is perceived rationally and consciously as performing a functional selling role.
There is demand for culturally-relevant marketing - more focused targeting, sympathetic to the culture
Local newspapers/radio are consumed as part of strong community orientation.
Non-literal communications are least likely to connect, particularly with Asians How many Asians would get the joke?
What is this ad saying?
Who gets it?
Who doesn’t
“Yes, Yes, Yes A totally organic experience”
To appeal to overseas Chinese, certain branches of TD Waterhouse keep fish tanks (A symbol of prosperity), stocked with 8 Goldfish (an auspicious number)
The company also honors requests to avoid the number 4 in accounts (it sounds like the word “death” in Mandarin and Cantonese)
Of utmost importance is to involve members of the ethnic group in marketing efforts aimed at that group – and not just review material for gaffs
Telco Example
Ethnic groups spend more on telecom than the general population.
Ethnic groups are the fastest growing segment of the population
In 2002, ethnic consumers spent nearly $50 billion on telecom services.
An Insight survey of ethnic consumers overwhelmingly identified “customer service” as their number one criterion for selecting a Telco.
Chinese consumer's tend to regard wireless devices as personal security systems.
Asians are known to be early adapters of new technology
Asians are also known to have above average income.
Assuming you are the marketing manager for Bell Mobility, how would you market to this group?
Bell Mobility targets Canada's population of Chinese through advertising in Chinese in Chinese dailies,
And by a dedicated dealer network with customer service reps fluent in Mandarin and Cantonese.
targeted advertising speaks to Chinese consumer's tendency to regard wireless devises as personal security systems.
Using minority ethnic characters is a double-edged sword • Use of minority ethnic actors tends to polarize the community between those who see the individual representation as positive and those that see it as tokenistic or stereotypical. • Viewers evaluate the ads not only on the basis of personal relevance but also on the basis of "what does this say about us?" to the rest of society.
Minority ethnic communities are as internally diverse as they are distinct from mainstream culture.
• Generation, age, language, location and country of origin are significant variables that determine the extent to which minority ethnic audiences move outside of purely traditional culture.