Chapter 11 - Subcultures

Rules of engagement for young customers:

Rule 1: Don't talk down Rule 2: Don't try to be what you're not. Stay true to brand image. Rule 3: Entertain them. Make it interactive and keep the sell short. Rule 4: Show that you know what they are going through, but keep it light

Targeting the University Market

-Advertisers spend millions to influence purchases of college and university students -Campus food service is a multi-million dollar industry -Prefer socially responsible brands -A major target to attain early brand loyalty -Hard to reach via convential media

According to Saatchi & Saatchi teens have four basic conflicts:

-Autonomy vs. belonging -Rebellions vs. conformity -Idealism vs. pragmatism -Narcissism vs. intimacy

Stereotype

A generalization of a person based on group membership

Age Cohort

A group of consumers of the same approximate age who have similar experiences -people who were born approximately in the same era and experienced similar significant world events at approximately the same time in their lives

Chronological Age

Actual number of years lived

Tweens

Age 10-14: 2 million -Between childhood and adolescence -They have discretionary income from various sources -Aspire to being teens -90% have influence over clothing they wear -Influence another $20 billion of family spending -Represent $2.9 billion in spending

Erika and Hans, aged 21 and 22 years, have shared many different experiences: a U2 concert in Brussels, skydiving in Bonn, and sailing in the Irish Sea. Erika and Hans could be said to be part of the same:

Age Cohort

Which age group is most studied in psychology?

Age group of 18-25 years old

Marketers must communicate with...

An age group in their own language

Why does age constitute a subculture?

Because people of the same age have shared similar experiences and have common memories

Vactioners

Concerned about price, value, and how they will be received

Regional Subcultures in Canada

"With 10 provinces, 3 territories, 2 official languages, 3 bordering oceans, 8 mountain ranges, 970,610 square kilometres of land and water, 6 time zones and 33.8 million residents, there's no denying Canada is one very big and unique country."

Generation Y (1986-2002)

-26.5% of the Canadian population -20% of Canadians 15-24 belong to a visible minority -Gen Yers feel they belong to the global community first -94% agree that one of the best things about Canada is the way it welcomes different races and cultures

Baby Boomers

-9.7 million baby boomers in Canada, over 30% of the population -As teenagers, the Woodstock generation, today ready to retire or already retired -The boomers found lucrative jobs, getting older and wealthier -The boomers purchased 80% of all healthcare products in 2007, but they also bought 58% of all cars, and are enjoying 55% of vacations -Boomers, at present a little overlooked , are set to be a new target for advertisers

Subculture

A well-defined segment within a larger society

Canadian Aboriginals and South Asians

-Canadians of Aboriginal origin number just over one million -About 50% of the Aboriginal population is under 25 years of age -19 Aboriginal languages in 5 dialects -1.3 million South-Asian Canadians in 2006- 25% of visible minorities (similar to Chinese) -Over half of the South-Asians live in Toronto

Regional Subcultures

-Canadians share national identity but the regions of Canada differ in weather patterns, populations, ethnic mix, food and product preferences, resources and customs Four regions: Atlantic Canada, Quebec, Ontario and West -Marketers need to know preferences and products by names in regional markets -Loblaw's in the west are called Real Canadian Superstore but in Atlantic Canada they are called the Atlantic Superstore

Ethnic Subcultures in Canada

-Consumers' lifestyles are affected by group membership within the society-at-large Ethnic subculture = group of people sharing common cultural and/or genetic ties -Homogeneous vs. heterogeneous cultural societies How to identify? -language vs. religion -self-identification

Subcultures, Microcultures, and Consumer Identity

-Consumers' lifestyles are affected by group membership within the society-at-large called subcultures and based on age, race/ethnicity, and place of residence. Within these are: Microcultures: Share a strong identification with an activity or art form Have a unique set of norms, vocabulary, and product insignias e.g., Trekkies, MMA enthusiasts have to be norms, and communication

Ethnicity is a Moving Target

-Defining/targeting an ethnic group is not always so easy ("melting pot" society) -Many identify with two or more races on Census forms -Ethnic intermarriage has blurred ethnic boundaries -Mixed marriages create opportunities for marketers -New products will celebrate multiple heritages

The Grey Market

-Foot's Canadian Age Pyramid -Until recently many marketers neglected the grey market -As this market remains healthy and active, their role has changed rapidly -The grey market is now a picture of health and activity -The market grows.....

Ethnic Stereotypes

-Many subcultures have powerful stereotypes associated with them -Subgroups are assumed to possess certain traits (often erroneously) which can be cast either positively or negatively -Scottish stereotype as "thrifty" -Marketers in the past have made vast use of ethnic stereotypes to communicate product attributes in ways that were sometimes crude and unflattering

Ethnicity and Marketing Strategies

-Marketers cannot ignore the diversity of cultures in society today - these subcultures shape consumption -Marketing must address cultural differences -High-context culture vs. low-context cultures Targeting ethnic consumers in two ways: -Fostering inclusiveness -'Speaking' to ethnic groups in their mother tongue Ethnic media as a bridge -Research indicates that minorities prefer an advertising spokesperson from their own group

Y are Digital Natives

-Multi-taskers with 500 channels, cell phones, music downloads and laptops -The THUMB culture -Texting -Video -Online brand WOM -Consumer generated content -"Connexity" -Bryan Sims' Brass Media -Brass ad on YouTube about reaching the Y generation -all about the connection

Chinese Canadians

-One of fastest growing minority groups - 25% of minorities -Increasing influence on companies and product marketing Characteristics include: -Small, Diverse -Hardworking -Above Average Incomes -Education Oriented -Varied population experiences

Grey Power

-People over 60 are the fastest growing age group -700 million seniors - 65 and older -Will be 2 billion by mid-century -Seniors are among the brand loyal customers -Exercise facilities, cruises and tourism, cosmetic surgery, skin treatments, and toys for grandchildren are products of the seniors

Ethnic Groups in Canada

-Potential for more than 200 ethnic niche markets in Canada -Currently British and French are largest two ethnic markets -Ethnic groups are concentrated geographically -In addition to two Canadian official languages, Chinese, Italian, German and Ukrainian are the most dominant mother tongues

The Mature Market

-Redefining age and what growing old means Terms for this group and segmentations within the group are changing all the time: -Elderly -Boomers -Zoomers (boomers with zip) -Moses Znaimer calls "Zoomers" -Zoomers encompass both the Baby Boomers (in Canada, ages 44 to 62) and those older. It's a vast group - 14.5 million, accounting for 44% of the population, and controlling more than 77% of all Canadian wealth -Grey Market -Seniors

How do we research the youth market?

-Research firms specialize in youth markets -Pizza Hut invites students to lunch with executives -Companies provide video cameras of a day at school -Frito-Lay (Doritos) experienced a 22 per cent increase in sales after a social media component tied to the Superbowl -Teens are consumers in training: can be loyal to products for many years

French Canadians

-Significant Canadian Subculture -Account for 16% of the population -Account for 80% of Quebec's population and one-third of New Brunswick's population -21.5% of Canadians speak French at home -French Canadians put more emphasis on being well respected and less on intellectual and cultural activities

The Effect of Immigration on Canadian Diversity

-Stats Canada estimates the population of Canada in 2011 was just over 33.5 million and is expected to grow to around 42 million by 2031 -In 2006, 6.1 million Canadians (almost 20%) were immigrants -It is expected that by 2017 when Canada is 150 years old 19 to 23% of Canadians will be visible minorities Main four: Chinese, East Indians, Filipino, Pakistani Concentrated in urban areas - Toronto is the most ethnically diverse city in the world

Characteristics of Generation Y

-Tech-savvy -Heavily influenced by peers -Have low trust in brands -Heavy users and have a strong desire to be a part of social networks

Multi-generational Marketing Strategy

-Using imagery that appeals to more than one generation -Baby boomers, for example, embrace technology as do the teens and twenties -Youthography points out that the ages of 18-34 are in different cohorts but value personal relationships, media and technology -Justin Bieber (appeals to daughters and mothers) -appeal to more than one generation

Teenagers - The Youth Market

-Youth market is massive: 100 billion globally! Teens are: -focused on the "feel-good" products -avidly courted -use WOM extensively -advertising towards them is huge

Product usage is all about:

-experimentation -belonging -independence -responsibility -approval from others

Marketing to the Mature Market

Consumer identity renaissance: redefinition process people undergo when they retire - how do they respond - revived or emergent? -Engage strategies such as affiliation and self-expression for the next chapter of their lives The Mature Market like: -information rich positive advertising -well designed user friendly products -packaging that acknowledges physical limitations

4 Different Subgroups of Baby Boomers

Explorers, Liverwires, Vactioners, and Homebodies

Perceived Age

How old a person feels is a better yardstick to use

Livewires

Like to go where it is sunny and warm and are concerned about price and value

Confirmation Bias

Motivation to prove oneself correct

Explorers

Not fussy about where they go and where they stay

Homebodies

Only travel to see family and friends and appreciate affordable accommodations

Generation Z

People born 2003 and later

The Interbellum Generation

People born at the beginning of the twentieth century -over 90 years old now

The Baby Boom Generation

People born between 1946 - 1964 -53-71 years old

Generation X

People born between 1965 - 1985 -between 32-52 years old

Generation Y

People born between 1986-2002 (us) -15-31 years old -also called Millenials or the baby boom echo because they are the babies of the baby boomers

The Silent Generation

People born between the two world wars -range from 78 and 89

The War Baby Generation

People born during World War 2 -72-78 years old

De-ethnicitization of products:

Product formerly associated with a specific ethnic group is detached from its roots and marketed to other subcultures -Bagels -Olive oil -Curries

The Nostalgia Scale

Scale items: -They don't make 'em like they used to -Things used to be better in the good old days -Products are getting shoddier and shoddier -Technological change will ensure a better future -History involves a steady improvement in human welfare -We are experiencing a decline in the quality of life -Steady growth in GNP has brought increased human happiness -Modern business constantly builds a better tomorrow

Ethics, Advertising and Children

Should there be more education for children to understand how advertising works? eg Street Cents, Media Madness publications Guidelines Canadian Advertising Foundation in place already Other countries also have concerns: Netherlands - TV watersheds and tough codes for sweets Spain & Germany - certain toys banned from advertising France - tight controls on TV for children

Generation X

Sometimes called Baby Busters - 6.5 million -Includes 3.7 million baby boomers born between 1960 and 1966 -Often overlooked as a small age cohort. -However, Gen X members have changed the world creating companies such as Google, YouTube and Amazon

What is the fastest growing minority group in Canada?

South asian and Chinese

Generational Categories (7)

The Interbellum Generation The Silent Generation The War Baby Generation The Baby Boom Generation Generation X Generation Y Generation Z

Marketers are responding to how...

The seniors feel, not how old they are

Backfire Effect

When we discount information that contradicts our world view -protective measure, triggered when our self-concept is challenged