Consumer Motivation of Subcultures Shaun DePorter Alex Kern Robert Sullivan Chris Mason Larry Masse

Motivation The driving force within individuals that impels them to action. Caused by tension (unfulfilled needs) Can be either conscious or unconscious The course of action taken depends on one’s cognition and experience From a marketers view motivation is the force that induces consumption It is important to understand what motivates buyers so you can effectively reach them

The driving force within individuals that impels them to action.

Caused by tension (unfulfilled needs)

Can be either conscious or unconscious

The course of action taken depends on one’s cognition and experience

From a marketers view motivation is the force that induces consumption

It is important to understand what motivates buyers so you can effectively reach them

Needs Innate Physiological Needs for food, water, air, clothing, shelter, and sex Also referred to as biogenic and primary needs or motives Acquired Needs that we learn in response to our culture or environment. Includes needs for self-esteem, prestige, affection, power, and learning Also referred to as psychological or secondary needs or motives.

Innate

Physiological

Needs for food, water, air, clothing, shelter, and sex

Also referred to as biogenic and primary needs or motives

Acquired

Needs that we learn in response to our culture or environment.

Includes needs for self-esteem, prestige, affection, power, and learning

Also referred to as psychological or secondary needs or motives.

Dynamics Motivation Motivation is a highly dynamic construct that is constantly changing in reaction to life experiences. Many needs are never fully satisfied As needs become satisfied, new and higher-order needs emerge that cause tension and induce activity People who achieve their goals set new and higher goals for themselves

Motivation is a highly dynamic construct that is constantly changing in reaction to life experiences.

Many needs are never fully satisfied

As needs become satisfied, new and higher-order needs emerge that cause tension and induce activity

People who achieve their goals set new and higher goals for themselves

Arousal of Motives Different environments and physiological conditions determine the arousal of a particular set of needs Physiological arousal Emotional Arousal Cognitive arousal Environmental arousal

Different environments and physiological conditions

determine the arousal of a particular set of needs

Physiological arousal

Emotional Arousal

Cognitive arousal

Environmental arousal

Defining “Hispanic” Spanish surname Country of origin Country of family ancestry Spanish spoken at home Self-identification Degree of identification

Spanish surname

Country of origin

Country of family ancestry

Spanish spoken at home

Self-identification

Degree of identification

Hispanic Subcultures Hispanic subculture growing in the United States The number of Hispanics in the U.S. had grown 58% from 1990 to 2000 compared to the overall growth of 13.2% Estimated purchasing power of $687 billion in 2004 predicted to grow to $992 billion by 2009 Represent 13 percent of the total population

Hispanic subculture growing in the United States

The number of Hispanics in the U.S. had grown 58% from 1990 to 2000 compared to the overall growth of 13.2%

Estimated purchasing power of $687 billion in 2004 predicted to grow to $992 billion by 2009

Represent 13 percent of the total population

Traits of Hispanic Consumers Prefer well-known or familiar brands Buy brands perceived to be more prestigious Are fashion conscious Historically prefer to shop at smaller personal stores Buy brands advertised by their ethnic-group stores Tend not to be impulse buyers Increasingly clipping and using cents-off coupons Likely to buy what their parents bought Prefer fresh to frozen or prepared items Tend to be negative about marketing practices and government intervention in business

Prefer well-known or familiar brands

Buy brands perceived to be more prestigious

Are fashion conscious

Historically prefer to shop at smaller personal stores

Buy brands advertised by their ethnic-group stores

Tend not to be impulse buyers

Increasingly clipping and using cents-off coupons

Likely to buy what their parents bought

Prefer fresh to frozen or prepared items

Tend to be negative about marketing practices and government intervention in business

Distinctions of Hispanics Hispanic subculture is younger than the rest of the population - Median age of Hispanic population 26 years - Median age of the rest of US population 35 years Tend to have larger household sizes - avg. Hispanic household size 3.5 - avg. US household size 2.6 Spend more time caring for their children

Hispanic subculture is younger than the rest of the population

- Median age of Hispanic population 26 years

- Median age of the rest of US population 35 years

Tend to have larger household sizes

- avg. Hispanic household size 3.5

- avg. US household size 2.6

Spend more time caring for their children

Hispanics in the U.S. Median income of Hispanic households rose 20 percent from $27,977 to $33,565 between 1996 and 2001 Hispanics account for 13.7% of the total population 39.8% million Latinos live in the U.S., an increase of almost 13% since the 2000 Census It is projected that the Hispanic population will increase by 188% by 2050

Median income of Hispanic households rose 20 percent from $27,977 to $33,565 between 1996 and 2001

Hispanics account for 13.7% of the total population

39.8% million Latinos live in the U.S., an increase of almost 13% since the 2000 Census

It is projected that the Hispanic population will increase by 188% by 2050

Marketing to Hispanics Know your Market – You don’t have to be Hispanic to market to Hispanics Be aware of cultural differences – There are major differences between Latino races such as Mexican and Puerto Rican Be sincere – Hispanic’s strongly believe in selling from the heart Follow up – Building a long term relationship is essential

Know your Market – You don’t have to be Hispanic to market to Hispanics

Be aware of cultural differences – There are major differences between Latino races such as Mexican and Puerto Rican

Be sincere – Hispanic’s strongly believe in selling from the heart

Follow up – Building a long term relationship is essential

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.

African American Market Definitions African American/Black People who have origins in, or are descendents from, any Black racial groups of the original people of Africa Describes not just skin color but to an ethnicity constructed of geography, history and culture When the term “Black” is used with members of this demographic it is often associated with intimacy and familiarity When race is referenced publicly or formally by either African Americans or non-African Americans, many prefer the term “African America” In media today, the term “African American” and “Black” are used interchangeably

African American/Black

People who have origins in, or are descendents from, any Black racial groups of the original people of Africa

Describes not just skin color but to an ethnicity constructed of geography, history and culture

When the term “Black” is used with members of this demographic it is often associated with intimacy and familiarity

When race is referenced publicly or formally by either African Americans or non-African Americans, many prefer the term “African America”

In media today, the term “African American” and “Black” are used interchangeably

Facts about the African Americans Market Currently, the African American population comprises 13% of the total U.S. population The African American population is projected to increase 6.7% by 2012 Buying power rose 166% in 17 years from $318 billion to $845 billion 2012 buying power expected to reach more then $1 trillion 40% of African Americans live in only 10 cities - Accounted for 61% of total Africa-American Buying power

Currently, the African American population comprises 13% of the total U.S. population

The African American population is projected to increase 6.7% by 2012

Buying power rose 166% in 17 years from $318 billion to $845 billion

2012 buying power expected to reach more then $1 trillion

40% of African Americans live in only 10 cities - Accounted for 61% of total Africa-American Buying power

African Americans Teen Market Consumers and Creators of Trends African American Teens have major impact in mainstream culture Spend an average of $96 monthly Compared to non African American teens, African American Teens: Spend more yearly on items such as apparel and technology More influence on household purchases More brand loyal to a variety of goods

Consumers and Creators of Trends

African American Teens have major impact in mainstream culture

Spend an average of $96 monthly

Compared to non African American teens, African American Teens:

Spend more yearly on items such as apparel and technology

More influence on household purchases

More brand loyal to a variety of goods

African American Consumers More than 39 million 13% of the total population US population grew 13 % between 1990-2000 African American population grew by 21% Their purchasing power is $723 billion and expected to grow to $965 billion by 2010

More than 39 million

13% of the total population

US population grew 13 % between 1990-2000

African American population grew by 21%

Their purchasing power is $723 billion and expected to grow to $965 billion by 2010

Characteristics African American Consumers Prefer popular or leading brands Brand loyal Unlikely to purchase generic products Two thirds of African Americans are willing to pay more to get the best - Only 51% of whites are reported to feel this way Go more often and spend more at the grocery store Account for over 30% of the $4 billion hair care market Spend and average of $1,427 each year on clothing for themselves - $458 more than other US consumers

Prefer popular or leading brands

Brand loyal

Unlikely to purchase generic products

Two thirds of African Americans are willing to pay more to get the best

- Only 51% of whites are reported to feel this way

Go more often and spend more at the grocery store

Account for over 30% of the $4 billion hair care market

Spend and average of $1,427 each year on clothing for themselves

- $458 more than other US consumers

Researching the African American Audience Two Distinct Marketing Strategies - General Mass Media - Exclusive Advertisement to African Americans For products of broad appeal the mass media strategy is used For personal products exclusive advertising is used

Two Distinct Marketing Strategies

- General Mass Media

- Exclusive Advertisement to African Americans

For products of broad appeal the mass media strategy is used

For personal products exclusive advertising is used

Media Exposure African American households average 10 hours of TV a day White households average 7.5 hours of TV a day Children and adolescents use TV has a source of guidance - Use it to learn about occupations and dating behavior Research shows that place a great deal of trust in African American ethnocentric media such as black magazines, TV, news, etc. 1.7 billion spent annually on advertising on ads targeted to African Americans

African American households average 10 hours of TV a day

White households average 7.5 hours of TV a day

Children and adolescents use TV has a source of guidance

- Use it to learn about occupations and dating behavior

Research shows that place a great deal of trust in African American ethnocentric media such as black magazines, TV, news, etc.

1.7 billion spent annually on advertising on ads targeted to African Americans

Consumer Motivation of Subcultures Thank You Any Questions or Comments?