CONSUMERS AND

SUBCULTURES
Age
gender composition
family size and composition
distribution of population
education
occupation
social class
Ethnic group

What are some demographics
So What Are demographics?
Objective
quantifiable
Characteristics
of a population




Important variables for market segmentation

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




the 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.
What is Consumers willingness to buy?
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 Boards 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.
Consumer confidence as measured in ABC News weekly Poll
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 college
graduates over high
school graduates
whites or other
ethnic groups
men or women
Willingness to buy by telephone
Social Class
What is Social Class?
relatively permanent strata in a society that are distinct
subcultures

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
What are the typical factors that differentiate the social classes?
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)
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
The Importance of Class
What sort of things does social class affect
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
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
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
Status Symbols
Examples
Parody Display
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.

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

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?
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?
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
What are some Types of Subcultures
in Canada
Ethnic
Racial
Age
Regional
Religious
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
consumers self concept
What makes Ethnic Subcultures
Different?
Immigration in Canada
Impact of immigration Canada has one of the
worlds 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.
Population reporting at least one Ethnic Origin other than British,
French or Canadian, 1986, 1991 and 1996 Censuses
63%
37%
1986 Census
58%
42%
1991 Census
56%
44%
1996 Census
Legend
British, French or Canadian Origins
Other Ethnic Origins
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1996 Census
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Asian Canadians
Asian Canadians are the Fastest Growing
Minority Group in Canada
College Graduation
Rate is Twice That of
Whites.

Average Household
Income is $2,000
Greater Than Whites,
and tend to be more
brand and price
conscious
Characteristics
of Asian
Subcultures
Small,
Diverse,
Growing
Education
Oriented
Native
Language
Print
Media
Above
Average
Income
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.

Marketing Implications of Subculture
Your company manufactures, markets and sells
kitchen utensils
Aware that Canadas 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 companys Marketing
mix?
What difficulties might you encounter?

Reaching the Asian Canadian Consumer
Overlooked Complex
Differences Among
Asian Subcultures


Translating Advertising
Messages Into Asian
Media




Lack of Media Available
to Reach Asian
Americans




Been Insensitive to
Cultural Practices
Problems
Encountered
by Canadian
Marketers