Consumer Motivation of Subcultures


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The driving force within individuals that impels them to action

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Consumer Motivation of Subcultures

  1. 1. Consumer Motivation of Subcultures Shaun DePorter Alex Kern Robert Sullivan Chris Mason Larry Masse
  2. 2. Motivation <ul><li>The driving force within individuals that impels them to action. </li></ul><ul><li>Caused by tension (unfulfilled needs) </li></ul><ul><li>Can be either conscious or unconscious </li></ul><ul><li>The course of action taken depends on one’s cognition and experience </li></ul><ul><li>From a marketers view motivation is the force that induces consumption </li></ul><ul><li>It is important to understand what motivates buyers so you can effectively reach them </li></ul>
  3. 3. Needs <ul><li>Innate </li></ul><ul><li>Physiological </li></ul><ul><li>Needs for food, water, air, clothing, shelter, and sex </li></ul><ul><li>Also referred to as biogenic and primary needs or motives </li></ul><ul><li>Acquired </li></ul><ul><li>Needs that we learn in response to our culture or environment. </li></ul><ul><li>Includes needs for self-esteem, prestige, affection, power, and learning </li></ul><ul><li>Also referred to as psychological or secondary needs or motives. </li></ul>
  4. 4. Dynamics Motivation <ul><li>Motivation is a highly dynamic construct that is constantly changing in reaction to life experiences. </li></ul><ul><li>Many needs are never fully satisfied </li></ul><ul><li>As needs become satisfied, new and higher-order needs emerge that cause tension and induce activity </li></ul><ul><li>People who achieve their goals set new and higher goals for themselves </li></ul>
  5. 5. Arousal of Motives <ul><li>Different environments and physiological conditions </li></ul><ul><li>determine the arousal of a particular set of needs </li></ul><ul><ul><li>Physiological arousal </li></ul></ul><ul><ul><li>Emotional Arousal </li></ul></ul><ul><ul><li>Cognitive arousal </li></ul></ul><ul><ul><li>Environmental arousal </li></ul></ul>
  6. 6. Defining “Hispanic” <ul><li>Spanish surname </li></ul><ul><li>Country of origin </li></ul><ul><li>Country of family ancestry </li></ul><ul><li>Spanish spoken at home </li></ul><ul><li>Self-identification </li></ul><ul><li>Degree of identification </li></ul>
  7. 7. Hispanic Subcultures <ul><li>Hispanic subculture growing in the United States </li></ul><ul><li>The number of Hispanics in the U.S. had grown 58% from 1990 to 2000 compared to the overall growth of 13.2% </li></ul><ul><li>Estimated purchasing power of $687 billion in 2004 predicted to grow to $992 billion by 2009 </li></ul><ul><li>Represent 13 percent of the total population </li></ul>
  8. 8. Traits of Hispanic Consumers <ul><li>Prefer well-known or familiar brands </li></ul><ul><li>Buy brands perceived to be more prestigious </li></ul><ul><li>Are fashion conscious </li></ul><ul><li>Historically prefer to shop at smaller personal stores </li></ul><ul><li>Buy brands advertised by their ethnic-group stores </li></ul><ul><li>Tend not to be impulse buyers </li></ul><ul><li>Increasingly clipping and using cents-off coupons </li></ul><ul><li>Likely to buy what their parents bought </li></ul><ul><li>Prefer fresh to frozen or prepared items </li></ul><ul><li>Tend to be negative about marketing practices and government intervention in business </li></ul>
  9. 9. Distinctions of Hispanics <ul><li>Hispanic subculture is younger than the rest of the population </li></ul><ul><li>- Median age of Hispanic population 26 years </li></ul><ul><li>- Median age of the rest of US population 35 years </li></ul><ul><li>Tend to have larger household sizes </li></ul><ul><li>- avg. Hispanic household size 3.5 </li></ul><ul><li>- avg. US household size 2.6 </li></ul><ul><li>Spend more time caring for their children </li></ul>
  10. 10. Hispanics in the U.S. <ul><li>Median income of Hispanic households rose 20 percent from $27,977 to $33,565 between 1996 and 2001 </li></ul><ul><li>Hispanics account for 13.7% of the total population </li></ul><ul><li>39.8% million Latinos live in the U.S., an increase of almost 13% since the 2000 Census </li></ul><ul><li>It is projected that the Hispanic population will increase by 188% by 2050 </li></ul>
  11. 11. Marketing to Hispanics <ul><li>Know your Market – You don’t have to be Hispanic to market to Hispanics </li></ul><ul><li>Be aware of cultural differences – There are major differences between Latino races such as Mexican and Puerto Rican </li></ul><ul><li>Be sincere – Hispanic’s strongly believe in selling from the heart </li></ul><ul><li>Follow up – Building a long term relationship is essential </li></ul>
  12. 12. Marketing Highlights Food and Beverages Sales of Hispanic food and beverages in the United States are growing rapidly, reaching $5.7 billion in 2006 and expected to reach $8.4 billion by 2011. In addition to the growing popularity of traditional Hispanic foods, there is a growing trend of Latino flavors being incorporated into mainstream food and beverage products to appeal to the general U.S. population.
  13. 13. African American Market Definitions <ul><li>African American/Black </li></ul><ul><li>People who have origins in, or are descendents from, any Black racial groups of the original people of Africa </li></ul><ul><li>Describes not just skin color but to an ethnicity constructed of geography, history and culture </li></ul><ul><li>When the term “Black” is used with members of this demographic it is often associated with intimacy and familiarity </li></ul><ul><li>When race is referenced publicly or formally by either African Americans or non-African Americans, many prefer the term “African America” </li></ul><ul><li>In media today, the term “African American” and “Black” are used interchangeably </li></ul>
  14. 14. Facts about the African Americans Market <ul><li>Currently, the African American population comprises 13% of the total U.S. population </li></ul><ul><li>The African American population is projected to increase 6.7% by 2012 </li></ul><ul><li>Buying power rose 166% in 17 years from $318 billion to $845 billion </li></ul><ul><li>2012 buying power expected to reach more then $1 trillion </li></ul><ul><li>40% of African Americans live in only 10 cities - Accounted for 61% of total Africa-American Buying power </li></ul>
  15. 15. African Americans Teen Market <ul><li>Consumers and Creators of Trends </li></ul><ul><li>African American Teens have major impact in mainstream culture </li></ul><ul><li>Spend an average of $96 monthly </li></ul><ul><li>Compared to non African American teens, African American Teens: </li></ul><ul><li>Spend more yearly on items such as apparel and technology </li></ul><ul><li>More influence on household purchases </li></ul><ul><li>More brand loyal to a variety of goods </li></ul>
  16. 16. African American Consumers <ul><li>More than 39 million </li></ul><ul><li>13% of the total population </li></ul><ul><li>US population grew 13 % between 1990-2000 </li></ul><ul><li>African American population grew by 21% </li></ul><ul><li>Their purchasing power is $723 billion and expected to grow to $965 billion by 2010 </li></ul>
  17. 17. Characteristics African American Consumers <ul><li>Prefer popular or leading brands </li></ul><ul><li>Brand loyal </li></ul><ul><li>Unlikely to purchase generic products </li></ul><ul><li>Two thirds of African Americans are willing to pay more to get the best </li></ul><ul><li>- Only 51% of whites are reported to feel this way </li></ul><ul><li>Go more often and spend more at the grocery store </li></ul><ul><li>Account for over 30% of the $4 billion hair care market </li></ul><ul><li>Spend and average of $1,427 each year on clothing for themselves </li></ul><ul><li>- $458 more than other US consumers </li></ul>
  18. 18. Researching the African American Audience <ul><li>Two Distinct Marketing Strategies </li></ul><ul><li>- General Mass Media </li></ul><ul><li>- Exclusive Advertisement to African Americans </li></ul><ul><li>For products of broad appeal the mass media strategy is used </li></ul><ul><li>For personal products exclusive advertising is used </li></ul>
  19. 19. Media Exposure <ul><li>African American households average 10 hours of TV a day </li></ul><ul><li>White households average 7.5 hours of TV a day </li></ul><ul><li>Children and adolescents use TV has a source of guidance </li></ul><ul><li>- Use it to learn about occupations and dating behavior </li></ul><ul><li>Research shows that place a great deal of trust in African American ethnocentric media such as black magazines, TV, news, etc. </li></ul><ul><li>1.7 billion spent annually on advertising on ads targeted to African Americans </li></ul>
  20. 20. Consumer Motivation of Subcultures Thank You Any Questions or Comments?