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 affordto have more children, they are not going to. Jim is scheduled for avasectomy next month. "We already have one child," Michelleexplains. "We just dont want any more. One is enough. Kids areexpensive, and they take up so much time. We want our life back."Michelle is not alone. Canadian women are now having fewerchildren than ever before, according to a new Statistics Canadastudy, released in July. The latest figures mean that for the first timein 100 years, Canadas population growth rate has fallen below theUnited States. At least three factors explain the decline, includingincreased abortions and birth control, more women in the workforcewho are starting their families later in life, and high taxation.
Marketing Implications of Demographic TrendsYou 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 ACTIVITYWhat 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 financialposition of their own household and the economy as awholeand to what extent they think it is a good time to buylarge expensive items such as a TV or a computer.Demand for necessities remains stable over timeA component of consumer confidence that gives anapproximate indication of the development ofconsumption growth in the subsequent months,especially with respect to durable goods.The underlying data are taken from the consumerconfidence survey.
The Conference Boards Consumer Confidence Survey based on a representative sample of 5,000 U.S. households acrossthe country.Consumer assessment of current economic conditions. Coversthings 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 11.5points 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 isusually higher among younger than older consumers
And among higherincome consumersthan lower,college collegegraduates over highschool graduates whites or otherethnic groups men or women
Willingness to buy by telephone
Social Class What is Social Class?relatively permanent strata in a society that are distinct subculturesWhat 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 – possessions
Social Classes in CanadaA. 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 jobsD. The lower class. (20% of population) (either supported by welfare, or are ‘working poor’)
The Importance of ClassWhat 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 inTheir 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 ImplicationsYour 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 DisplayWhen consumers deliberately mock a trend by carefully selecting products and consumption patterns that are not the current fashion or style.Paper Denim Retro TornJeans $140.00
Fraudulent SymbolismWhen 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 ?
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 AgeGroups, for Canada, Provinces, Territories and selectedCensus 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% d tia bec ba rta tario ria on ilton ener r g ll AL ton gary er to a l an ick land ies wa n ito ry co ito be bia to nd so ipe Hu RE uv oron ad nd unsw d Is tor tche Terr aS e Qu Man Al On olum Vic Lo am itch ind inn a- NT dmo n Ca l co T Ca n fou Br ar rri a ov C H K W W taw MO E Van w w Te sk on N h OtNe New e Ed st Sa Yuk itis c we Br ri n rth P No
Visible Minority Population for Provinces and Territories 1996 Census Shown in Absolute Numbers1,800,000 1,682,0451,600,0001,400,0001,200,0001,000,000 800,000 660,545 600,000 433,985 400,000 269,280 200,000 77,355 British Columbia Yukon Territory New Brunswick Northwest Terr. 31,320 26,945 Newfoundland Saskatchewan 3,815 1,520 7,995 1,000 1,670 Nova Scotia Manitoba Ontario 0 Quebec Alberta P.E.I.
Visible Minority Population in selected Census Metropolitan, 1996 Census Shown in Absolute Numbers1,400,000 1,338,0951,200,0001,000,000 800,000 564,600 600,000 401,425 400,000 200,000 115,460 127,555 115,430 73,310 48,910 2,370 22,320 2,555 9,815 10,35511,250 22,915 Ottawa - Hull Edmonton Saskatoon St. Johns Vancouver Saint John 0 Hamilton Winnipeg Montréal Toronto Calgary Victoria Québec Regina Halifax
Percentage of the Visible Minority Population Aged 0 to 24, forCanada, Provinces, Territories and selected Census MetropolitanAreas, 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% ia l L an d ck land ies n ry ot ec ba rta tario bi a ia on n er or eg ul to n EA lgar y ve r nt o DA dl wi r wa rito Sc eb ito be or ilt do en ds ip -H on ou NA un ns rd I s to he r Qu Man Al On olu m ict m on itch in nn w a TR Ca To ro o ru rri tc Te va C V Ha L W W i ta dm ON nc CA wf B w a t Te sk a n No sh K Ot E M VaNe New e Ed es Sa ko iti Yu Br in c rt hw Pr No
AsianAsianCanadiansCanadians Asian Canadians are the Fastest Growing Minority Group in Canada Average Household Income is $2,000 College GraduationGreater Than Whites, Rate is Twice That ofand tend to be more Whites. brand and price conscious
Small, Diverse, Growing Native Characteristics AboveLanguage 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 the Asian Canadian ConsumerReaching the Asian Canadian 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