Marketing 547

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Marketing 547

• Sub-Culture and Demographics

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Sub-Cultural and Demographic Influences

• Definitions
• Subculture -- a division of a national culture,
  composed of a combination of factorable social
  situations such as ethnic background, region of
  residence, or religious affiliation, which has a
  measurable impact on the individual
• Demographics -- descriptors or indicators of a
  societys characteristics (e.g., age, income,
  gender)
• Relationship between subculture and demographics

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Sub-Cultural and Demographic Influences

• How to use these concepts?
• Market Strategies
• Mass Market Strategy -- develop one marketing
  program for all consumers
• Target Market Strategy -- develop a marketing
  program which is targeted at specific
  sub-market(s) (segments)
• Sub-Culture

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Sub-Cultural and Demographic Influences

• Target Market Strategy (Cont.)
• Useful Segments have 3 criteria
• response uniformity
• sufficient size
• operationalizability
• Sub-Culture Consumer Behavior
• Relationship to Culture
• Effects on CB

Sub-Culture
Values
Life-Style
CB
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Sub-Cultural and Demographic Influences

• Strategic Marketing Options

Product
Sub-Culturally Based
Non Sub-Culturally Based
S e g e m e n t
Sub-Culturally Based
Idiosyncratic
Specialized
Non Sub- Culturally Based
Non Sub-Culturally Based Segmentation
Diffused
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Sub-Cultural and Demographic Influences

• Some Sub-Cultures
• African-Americans (12.3 of the US population)
• Growing at twice the national average
• 30 middle to upper income
• Watch TV at a 40 higher rate than the average US
  Household
• Majority say they would pay attention to
  commercials featuring all black models
• Dont prefer commercials with token black
• Two distinct submarkets? Strivers vs. Diversity
  Maintainers

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Sub-Cultural and Demographic Influences

• Hispanics/Latinos (14.1 of the US population)
• Fastest growing ethnic segment
• Projected to exceed 15 of total US population by
  2010
• Very young market (average age 23.6 v 32)
• Family is of utmost concern
• Personal relationships are also important
• At least four submarkets (only thing in common is
  Spanish-language heritage)
• Cuban-American (South Florida) (4)
• Puerto-Rican Americans (New York Chicago) (9)
• Mexican Americans (7)
• Central American Descent (9)

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Sub-Cultural and Demographic Influences

• Asian Americans (4 of total US population)
• Highly educated
• 42 with college degree (26 among all US)
• Tremendous spending power (300 billion)
• Very diverse
• Heritage is many diverse countries
• Vietnamese (9)
• Indian (12)
• Chinese (24)
• Japanese (12)
• No common language
• Pride in heritage
• Best way to reach Cable TV

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Sub-Cultural and Demographic Influences

• The Mature Market (20 of the US population)
• Defined as those aged 55 and older
• Will be approximately 25 of US population by
  2011
• Will grow by 62 over the next 20 years
• Represent about 50 of US disposable income
• Net worth estimated to be 17 Trillion
• Bi-Modal Income Distribution
• Specialized Media availability --Modern
  Maturity, Mature Wisdom (Catalog), etc.

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Sub-Cultural and Demographic Influences

• The Mature Market (continued)
• Sub-segments
• Healthy Hermits
• Ailing Outgoers
• Frail Reclusives
• Healthy Indulgers
• Reaching the elderly market
• Models -- of cognitive (not chronological) age
• Use print media (most are avid readers)
• Early bird specials are effective

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Sub-Cultural and Demographic Influences

• The Youth Market
• Those aged 25 and under
• Very influential
• Influence family purchases and have their own
  budget
• 75 have a working mom
• Have an independence that previous youth
  generations did not have
• Internet Savvy
• Many youth no more about Internet than parents
• Reverse socialization process?
• Most have own cell phones
• Preferences in ads
• Humor and irony
• Brutal truth
• Majority still say family members have biggest
  influence