CONSUMERS AND
SUBCULTURES
What are some demographics
 Age
 education
 occupation
 social class
 Ethnic group
 gender composition
 family size and composition
 distribution of population
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 declined
sharply in February 2003, the third consecutive monthly decline.
The Index now stands at 64.0 (1985=100), down from 78.8 in
January, an almost 15-point drop. The last time the Consumer
Confidence Index was lower was in October of 1993 when it reached
60.5.
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
– possessions
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
Vuitton
Credit Card
Holder $96.00
Celine
Boogie Bag
$990
Harry Rosen’s
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%
58%
63%
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%
14%
15%
12%
12%
11%
10%
11%
10%
9%
10%
8%
8%
8%
7%
6%
5%
3%
1%
1%
3%
3%
3%
1%
0%
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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
3,815
1,520
31,320
77,355
7,995
26,945
1,000
1,670
Northwest Terr.
Yukon Territory
British Columbia
Alberta
Saskatchewan
Manitoba
Ontario
Quebec
New Brunswick
Nova Scotia
P.E.I.
Newfoundland
0
Visible Minority Population in selected Census
Metropolitan, 1996 Census
Shown in Absolute Numbers
1,338,095
1,400,000
1,200,000
1,000,000
800,000
564,600
600,000
401,425
400,000
200,000
127,555
115,430
73,310
48,910
10,35511,250
115,460
2,370 22,320 2,555 9,815
22,915
Victoria
Vancouver
Edmonton
Calgary
Saskatoon
Regina
Winnipeg
Hamilton
Toronto
Ottawa - Hull
Montréal
Québec
Saint John
Halifax
St. John's
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%
19%
20%
18%
16%
16%
15%
14%
15%
13%
13%
12%
11%
11% 11%
10%
10%
8%
8%
5%
4%
5%
3%
2%
1%
1%
1%
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CA
Asian Canadians
Asian Canadians are the Fastest Growing
Minority Group in Canada
Average Household
Income is $2,000
Greater Than Whites,
and tend to be more
brand and price
conscious
College Graduation
Rate is Twice That of
Whites.
Small,
Diverse,
Growing
Native
Language
Print
Media
Characteristics
of Asian
Subcultures
Education
Oriented
Above
Average
Income
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 Consumer
Translating Advertising
Messages Into Asian
Media
Overlooked Complex
Differences Among
Asian Subcultures
Problems
Encountered
by Canadian
Marketers
Lack of Media Available
to Reach Asian
Americans
Been Insensitive to
Cultural Practices