CONSUMERS AND

SUBCULTURES
 What are some demographics
 Age
 gender composition
 family size and composition
 distribution of population
 education
 occupation
 social class
 Ethnic group
 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 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
CONSUMER SPENDING AND ECONOMIC ACTIVITY
What does the demand for goods and services depend on?

 the ability to buy

 the willingness to buy

 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.
 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.
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
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
 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’)
 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
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

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
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
consumer’s self concept
What makes Ethnic Subcultures
Different?
 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.
Population reporting at least one Ethnic Origin other than British,
French or Canadian, 1986, 1991 and 1996 Censuses

37%
42%

63% 58%
1986 Census 1991 Census
44%
Legend
British, French or Canadian Origins
Other Ethnic Origins

56%
1996 Census
Percentage of Visible Minority Population by All Age
Groups, for Canada, Provinces, Territories and selected
Census Metropolitan Areas, 1996 Census
35%

32%
31%

30%

25%

20%
18%

16% 16%

15% 14%

12% 12%
11% 11%
10% 10%
10% 9%
8% 8% 8%
7%
6%

5%
3% 3% 3% 3%

1% 1% 1%

0%
 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
660,545

600,000
433,985
400,000
269,280

200,000
77,355
3,815 1,520 31,320 7,995 26,945 1,000 1,670
0
 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

564,600
600,000

401,425
400,000

200,000 115,460 127,555

115,430
73,310
48,910
2,370 22,320 2,555 9,815 10,35511,250 22,915
0
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%

21%

20% 19%
18%

16% 16%
15%
15% 14%
13% 13%
12%
11% 11% 11%
10%
10%
8% 8%

5%
5% 4%
3%
2%
1% 1% 1%

0%
Asian
Asian
Canadians
Canadians
Asian Canadians are the Fastest Growing
Minority Group in Canada

Average Household
Income is $2,000 College Graduation
Greater Than Whites, Rate is Twice That of
and tend to be more Whites.
brand and price
conscious
 Small,
Diverse,
Growing

Native Characteristics Above

Language of Asian Average
Print Income
Media Subcultures

Education
Oriented
 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 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?
Reaching
Reaching the
the Asian
Asian Canadian
Canadian Consumer
Consumer

Translating Advertising Overlooked Complex

Messages Into Asian Differences Among
Media Asian Subcultures

Problems
Encountered
by Canadian
Marketers
Lack of Media Available Been Insensitive to
to Reach Asian Cultural Practices
Americans