General marketing strategies are often modified to fit specific age groups. Why?

Age exerts a significant influence on identity

Consumers undergo predictable changes in their values, lifestyles, and consumption patterns as they move through their life cycle

Marketers need to know how to communicate with members of an age group in their own language.

What is an Age Cohort?
people of similar ages who have undergone similar experiences.
How would you segment the Canadian market by age?

Children

Preteens

Teens

Generation Xers

Baby Boomers

The Elderly

 under 25:

25 - 64 years old
1996 34%
1996 54%
2002: 31.9 %
2002: 55.4%

65 years or older 1996 11% 2002: 12.7%

50% of youth under the age of 25 or 4,831,650 people reported an origin other than British,
French or Canadian.

How do Children impact the Marketplace?
1. Directly influence the spending of their parents.
2. Indirectly influence the spending of their parents
–necessities
3. also have substantial spending power and purchase several products

In 1997 US Children ages 4 to 12: spent or influenced the spending of over $500 billion ( includes necessities such as food, clothing and housing)
 spent almost $25 billion of their own money.
 Directly influenced $188 billion of their parents' spending
 indirectly influenced another $300 billion.
 average of $12,500 for each of USA’s 40 million kids

In 1998, kids aged 12-19, spent roughly $94 billion of their own money.

Children's spending has roughly doubled every ten years for the past three decades
.

Consumer socialization: process by which people children acquire skills, knowledge, attitudes relevant to their functioning as consumers in the marketplace.

How does it Occur?
 observation
 television
 direct experience

Parental influence
 shared shopping experiences

 Teaches children about a culture’s values, myths, and idealized images.
 the average child sees between 20,000-40,000 commercials every year


$2 Billion annually is spent marketing to kids

Channel One -- the advertisingdriven, in-school TV network -- is in about 40% of US secondary schools.

It got there by giving free video equipment to financially strapped schools.

Schools give their students as an audience in exchange.

Channel One now has daily access to 8 million kids in grades 6-
12.

New math

"Will is saving his allowance to buy a pair of Nike shoes that cost $68.25. If Will earns $3.25 per week, how many weeks will Will need to save?“


Oct 1998 ZapMe! Corp. provided 230 schools in the
USA with free computer labs with free Internet access, computers, tech support, and maintenance.

In exchange, the schools had to promise that a student will use each computer for at least 4 hours daily while a banner ad appears constantly on the screen.

The computers monitor students' Internet browsing habits and break down the data by gender, grade level, and zip code.

Another 6,000 schools have applied to the program.

With a large captive audience schools offer an efficient, inexpensive locale for polling large numbers of children.

Opening schools to marketers is also an attractive way for schools to raise funds.
 What do you think about Market research companies doing research in schools?

Bullwinkle plugs
Trix in 1960.

Ritz Bits S'Mores
Sumo Wrestling
Advergame


Because children differ from adults in cognitive development, knowledge, experience, and ability to comprehend concepts of increasing complexity, they do not react the same as adults to the efforts of marketers.

Young Kids’ cognitive defenses are not yet developed enough to filter out commercial appeals.

Consequently, serious ethical issues surround marketing to children.

If you were a government official responsible for protecting children from unscrupulous marketers, what advertising guidelines would you set?


NO subliminal messages, i.e. messages below the threshold of normal awareness

NO exaggeration of product characteristics such as performance, speed, size, etc.
Results from a drawing, construction, craft or modeling toy or kit should be attainable by an average child

NO advertising or child-oriented promotion of products not intended for use by children, e.g. medicines alcohol etc.

NO advertising which directly urges children to buy, or ask their parents to buy, a product or service.

A ban on the use of puppets, persons and characters (including cartoon characters) well known to children, to endorse or promote products, premiums or services


If accessories seeming to be part of the purchase are available only at extra cost, this must be clearly said and shown. If toys shown together are sold separately, this must be made clear.
 NO advertising, except specific safety messages, can portray adults or children in clearly unsafe acts or situations (e.g. using flames or fire, or tossing food into the air and attempting to catch it in the mouth).
 Advertising cannot imply that owning or using a product makes the owner superior, or that without it a child will be open to ridicule or contempt, except in references to educational or health benefits.

Prices must be clear and complete.

Assume your company manufactures and sells bicycles targeted to the 10-12 age group. How would you reach your target audience?

 ratings for traditional Saturday morning television programming fell 50 percent from 1994 to 1998.

At the same time, radio became more popular

Kids who say they “like listening to radio a lot”
Age 6-8 45%
Age 9-11 70%
Age 12-14 80%

In many families, it is the school aged children who are the computer experts, rather than the adults.
 Web sites with special “kid-friendly” graphics may attract their attention to your company

Teen Facts

Teenage Marketing and Lifestyle Survey found children 12 to 19 spent more than $153 billion in 1999, up from $140 billion in 1998

Teens also spend $56 of their own money and $28 of their parents’ money per week. Most is discretionary.

Teens also influence substantial additional family spending by expressing their preferences for certain products or brands that their parents then purchase

Teens are trendsetters both for their peers and for younger children who emulate them
 Teens are future consumers by winning the business of a teen, a company may be able to create a lifelong loyal customer.

Teens are a growing market; last estimate 29 million; expected to be 35 million by 2010

Teens, in contrast to adults, are able to spend much of their money on discretionary purchases like movies, CDs, and electronic games

How would you characterize teenagers in terms of their:
 Needs

Values

Lifestyles

Attitudes

Interests
What are the implications of these things for the marketing mix?


Marketers view teens as savvy about marketing and likely to reject messages perceived as patronizing or trying too hard to be
“cool,” so that marketing to teens calls for more subtle methods.

Advertisers have found that teens have little patience for hype or pretentious ads and prefer ads that talk to them in realistic ways and focus on their actual lifestyles.

age aspiration ”

Children watch their older siblings, those ahead of them in school, older children in the neighborhood etc. Generally, youth “aspire up” in their consumer behaviour, trying to
“live a step or two ahead of where they really are.”
 Marketers take advantage of children’s behaviour to link their strategies for marketing to the teen and tween cohorts by presenting older teens in the media, and desire aspects of their lifestyles and behaviours.
 For example, to reach 12- to 15-year-olds, advertisers might use 17-year-old actors, who will appeal to children their own age as well as to younger children,

Direct Mail

Because teens do not receive the volume of mail that adults do, they may be more attentive to direct marketing offers
“go where they are.”
 There are a multitude of media and vehicles targeted at youth, such as cable music networks, teen-oriented magazines, teenoriented Web sites, and lifestyle special events
 substantial numbers of youth also comprise the audience of media intended for a general audience, such as general circulation magazines or television shows that are popular with both adults and children.
The Internet
 offering free samples T-shirts, CDs etc. teens who spread the word
 Teen sites or through email
 obtain consumer feedback while promoting products.

One recent survey indicates that 2/3 of teenagers have either researched products or purchased products online.

street or lifestyle marketing.
 involves making a product a “natural” part of teens’ lifestyles
 The goal is to reach teens where they “hang out” – at concerts, coffee shops, arcades, and other gathering spots.

Specific tactics include hanging posters, giving away CDs or Tshirts, distributing flyers or postcards with the marketing message, generating word of mouth.


About 15 million in USA,

Market estimated between $35-60 billion and $200 billion
 Advertisers Spend $100 Million a Year to
Influence Them

Usually in process of forming brand preferences and shopping habits

Current and future prospects as consumers. I f your brand targets educated (and thus wealthier) adults, this is the time to build a relationship with this segment.
 The college student market is one of the most important segments most brands could capture, but also one of the most difficult to reach.

How would you characterize College students in terms of their:

Needs

Values

Lifestyles

Attitudes

Interests
What are the implications of these things for the marketing mix?

Products

Apparel items, particularly hooded sweatshirts, and brightly colored student supplies are the leading product categories at campus stores

"comfort items" such as stuffed animals, candles/incense, music, gifts, snacks/beverages and health and beauty products are also important products
 computer hardware and software, home electronics, jewelry, clothing and concert, theater or event tickets.

Travel

Promotion

Direct mail won't work. College students usually don't stay in any one place for more than a year.

College students listen to the radio and watch TV less than any other segment of the population
 ads in the college magazines or newspapers on the bulletin boards around campus will work better.

Best bet will be the Internet and on-line services. 35% of college students own a computer and even more than that have access to one.
 Advertising to this age group has typically been very frivolous, emphasizing things like personal freedom and expression

Price
Place

Baby boomers, I.e. those in their mid 30s to mid 50s have had an important impact on consumer culture? Why?

They created a revolution in style, politics, and consumer attitudes

Power in Numbers

The most affluent section of the population, controlling over $7 trillion in wealth
 Consumers aged 35 to 44 spend the most on housing, cars, and entertainment.
 Consumers aged 45 to 54 spend the most of any age on food, apparel, and retirement programs


While their parents often took and held jobs for life, baby boomers are less inclined to do so.

Baby boomers are both widely known and regarded as the Me
Generation.

Many baby boomers grew up with television as a constant companion, teacher, baby-sitter, and friend.

Many baby boomers are idealists who see their mission as
"changing the world." They are highly concerned with social issues and causes.

Baby boomers married later, divorced more often, had children later, and often have families that live together only part of the time.

A marketer targeting a message to the baby boomer segment should bridge images of a rich past, positive images of today, and visions of what can be.


The Gray Market includes people over age 65

It is the second fastest growing segment, only behind the
Baby Boomers.

By 2010, one in every seven Canadians will be over 65.

Today there are more than 70 million Americans over the age of 50. By 2015 that number will grow to 108 million

This group is more diverse than any other market segment, spanning those at the peak of their careers, to active, independent seniors, to the elderly in need of care.

They control over 50% of all discretionary income and in USA spend $60 billion annually.


Most older people lead more active, multidimensional lives than we assume.

Their economic health is good and getting better.

80% own their own home.

15% are now on-line and when they do go on line spend more time than kids

Their three favorite things to do online – in order are:
1. Chat with friends
2. Get information –especially news and weather
3. Buy products

 Autonomy
 Altruism
 Connectedness
 Personal Growth

Guidelines for Effective
Advertising to the Elderly
Keep Language Simple
Use Clear, Bright Pictures
Use Action to Attract Attention
Speak Clearly, and Keep Word Count Low
Use Single Sales Message
Avoid Extraneous Stimuli