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  1. 1. Chapter 13 Subcultural (Co-cultural) Influences Copyright Atomic Dog Publishing, 2002
  2. 2. Chapter Spotlights Subculture and Society Subcultures based on nationality and ethnicity Subcultures based on age Subcultures based on geographic region Subcultures based on religion Copyright Atomic Dog Publishing, 2002
  3. 3. Subculture and Society Subculture is any cultural patterning that preserves important features of the dominant society but provides for values, norms, and behaviors of its own. Foundations for subcultural variation:  Nationality  Ethnicity  Age  Geographic region  Religion Who belongs to what subculture – Three factors  Generalizations, self-perceptions, feelings about identification with a subculture Copyright Atomic Dog Publishing, 2002
  4. 4. Subcultures Based onNationality and Ethnicity Nationality and ethnic subcultures develop in order to serve their members in three ways:  To provide a source of psychological group identification  To offer a patterned network of groups and institutions supportive of the subculture  To serve as a frame of reference through which to evaluate the dominant culture. Copyright Atomic Dog Publishing, 2002
  5. 5. African-American Subculture See Exhibit 13.1 Younger with very high numbers living in cities 1999 earnings: $491 billion 1999 purchases: $207 billion (ninth largest economy in the world) Approximately 28% of families had an annual income of $50,000 or more in 1999 The group is very diverse Copyright Atomic Dog Publishing, 2002
  6. 6. Marketing to AfricanAmericans African American consumers expect respect within the marketplace and must feel a sense of acceptance. When they seek subculture-specific products they use media targeted to the subculture. Use of black models in advertising is important to them. Copyright Atomic Dog Publishing, 2002
  7. 7. Hispanic-American Subculture 2000 purchasing power: $340 billion Median income is about two thirds of the average in the U.S. In 2000, 9.6 % percent of Hispanic families had incomes of more than $50,000 Copyright Atomic Dog Publishing, 2002
  8. 8. Hispanics (continued) They think of themselves as Hispanic or Latino first and as Americans second. 90% indicate that the Spanish language is the most important feature of their culture  Two-thirds of Hispanics prefer to speak Spanish at home  20% of Hispanics do not speak English at all Copyright Atomic Dog Publishing, 2002
  9. 9. Marketing to HispanicAmericans They are a diverse group, bound together by a common language and cultural heritage. (66% Mexican, 14.5% C/S American, 9% P.R., 4% Cuban) Tend to marry within subculture (M>F); having children is most important event in family; dominant values: traditional, conservative, respect for elders, commitment to family, male dominance They are very brand loyal. 90% use Spanish language media for product information. They have positive attitudes toward advertising. Copyright Atomic Dog Publishing, 2002
  10. 10. Asian- and Pacific Island-American Subculture It consists of 29 distinct groups Their nationalities range from Chinese (32%), Filipino (19%), Japanese (12%), Asian Indian and Pakistani (11%), Korean (11%), Vietnamese (8%) and Pacific Island (5%) to 20 others The group earned $350 billion in 2000 with the median income per household at approximately $36,100 They tend to be conservative and family oriented. Copyright Atomic Dog Publishing, 2002
  11. 11. Asian- and Pacific Island-Americans (continued) They are cost conscious and very brand loyal They shop mostly within their communities Language barrier may be a challenge for marketers The most effective advertising to Chinese- Americans reflects traditional family values Copyright Atomic Dog Publishing, 2002
  12. 12. Subculture Based on Age Preteens  They influence purchases in approx. 60 product categories  They select the stores in which they spend they own money  By appealing to preteens, marketers build brand loyalty at an early stage  The medium of choice for them is television Copyright Atomic Dog Publishing, 2002
  13. 13. Teens They make up 6% of the population, but growth will be flat until 2010. One view is that they have segmented themselves into seven groups based on psychographics. The groups are named: 1) jarheads (athletes), 2) nerds or geeks (computer wizards), 3) prepsters or bushies (conservatives), 4) surfer dudes (casual dressers/attitudes, 5) heavy metal rockers/punks 6) study gerkins, and 7) bohos (poetry and black dress) Copyright Atomic Dog Publishing, 2002
  14. 14. Teens (continued) Teens are preoccupied with their appearance They are open to new ideas and new products Teens are avid television viewers Copyright Atomic Dog Publishing, 2002
  15. 15. Young Adults – Generation X Those born between 1965 and 1977 (40 million people) They are distrustful of marketing They look for a balance between work and leisure Gen X-ers are close to their parents and may return to live at home Copyright Atomic Dog Publishing, 2002
  16. 16. Gen X (Continued) They are not drawn to traditional forms of advertising (see it as “hyping”) Gen X-ers express their need to stay in control by purchasing communications equipment such as beepers, fax machines, e-mail, and mobile phones. They prefer products based on their practicality Copyright Atomic Dog Publishing, 2002
  17. 17. Baby Boomers Those born between 1946 and 1964 (78 million) Total income is over $1 trillion, increasing at a rate of 10% per year (versus 5% for the rest of the population) They have a high level of education They have more discretionary income than other groups and they buy more and save less. Boomers are health conscious. Copyright Atomic Dog Publishing, 2002
  18. 18. Baby Boomers (continued) They are becoming less materialistic in outlook and their product and service selections reflect their concern for the environment and quality of life. They use credit cards extensively and the higher income groups buy expensive exercise equipment and other personal/luxury goods. Boomers keep up with fashions The marketing of nostalgia works well with them (especially older baby boomers) Copyright Atomic Dog Publishing, 2002
  19. 19. Seniors There were approx. 35 million people over 65 in 2000 – it is the fastest growing segment of the population. Households are small and their need for new purchases is limited They enjoy convenience in the marketplace and appreciate their leisure time. Copyright Atomic Dog Publishing, 2002
  20. 20. Seniors (continued) They spend more on themselves They perceive themselves as younger than their years (e.g. 65 year olds perceive themselves as age 50). Although brand loyal, they tend to try new products or brands if given good reasons to do so. The senior market can further be segmented on the basis of age, activity level, health, and mobility (65-74 and 75+ groups; active/healthy vs. poor health or disabled) Copyright Atomic Dog Publishing, 2002
  21. 21. Subcultures Based onGeographic Region Regional subcultures do exist and vary in size. Regional differences have been tied to nationality, ethnic background, or religion of the original settlers in the region The two coasts: California versus New York; Great Lakes as “third coast” (Midwest) Climate, altitude, and terrain have an impact on the needs of people for products and services. Copyright Atomic Dog Publishing, 2002
  22. 22. Subcultures Based onReligion Beliefs are a major influence on marketplace behavior. Generalizing based on religion must be done carefully. Religious calendars influence product selection. Copyright Atomic Dog Publishing, 2002
  23. 23. Religion-based Subcultures(continued) Geographic concentrations of religious sects are also important to marketers Members of some religious groups may only patronize the businesses of other members. Media choice depends upon sensitivity to lifestyle and behavior patterns. Copyright Atomic Dog Publishing, 2002