MKT 378 Exam 1 Review

Targeting Millenials

-Known as Digital Natives, Generation @, Net Generation, Tweens, Generation Z. -62.4 million (19.4%) -Great Purchase power -Buying patterns formed as young teen will follow through life -Easily bored; use of music, language, and images key to remain relevant and fresh; tech influenced, even comm.

Demographics: Age

-Proper age positioning is critical for many products. Our age shapes the media we e, where we shop, how we use products, and how we think and feel about marketing activities. -This carries with it culturally defined behavioral and attitudinal norms, which affect our self concepts and lifestyles.

Applications in Consumer Behavior

1. Marketing Strategy 2. Regulatory Policy 3. Social Marketing 4. Informed Individuals

Market Analysis Components

1. The Consumers 2. The Company 3. The Competitors 4. The Conditions

Generation/Age Cohort

A group of persons who have experienced a common social, political, historical, and economic environment.

Social Class System

A hierarchical division of a society into relatively distinct and homogeneous groups with respect to attitudes, values, and lifestyles. "Pure" social classes do not exist in the U.S. or most other industrialized societies.

Christian Subcultures: Born-Again Christians

Characterized by a strong belief in the literal truth of the Bible, a very stron commitment to their religious beliefs, having had a "born again" experience, and encouraging other to believe in Jesus Christ. -This subculture tends to have somewhat lower education and income levels than the general population and tend to have a more traditional gender role orientation.

Environment Oriented Values

Cleanliness Performance/Status Tradition/Change Risk taking/Security Problem Solving/Fatalistic Nature

Culture is...

Comprehensive, Acquired, Bounded, and Seldom Aware Of

Demographics

Describe a population in terms of its size, structure, and distribution. These are both a result and a cause of cultural values.

Single Item Index

Education Occupation Income

Segments of the mature market

Healthy Indulgers Ailing Outgoers Health Hermits Frail Recluses

Other Oriented Values

Individual/Collective Youth/Age Extended/Limited Family MasculineFeminine Competitive/Cooperative Diversity/Uniformity

Cause Related Marketing (CRM)

Marketing that ties a company and its products to an issue or cause with the goal of improving sales or corporate image while providing benefits to the cause.

Status Crystallization

Moderate in the U.S., reflects the consistency of these status dimensions

Family Household

One having at least two members related by birth, marriage, or adoption, one of whom is the householder.

Space

Overall use and meanings assigned to space vary widely among different cultures.

Internal Influences

Perception, Learning, Memory, Motives, Personality, Emotions, and Attitudes.

Gender Identity

Refers to the traits of femininity and masculinity.

Christian Subcultures

Roman Catholic Protestant Born-Again Christian 83% of U.S. Adult Population

Marketing Strategy

The answer to the question: How will we provide superior customer value to our target market?

Time

The meaning of this varies between cultures in two major ways: Perspective and Interpretations

Self-Concept

The totality of an individual's thoughts and feelings about oneself.

Religious Subcultures: Muslims

This group is not necessarily Arabs, but are culturally diverse. This religious subculture represents roughly 0.5% of the American adult population. -In general, this group tends to be conservative with respect to drug and alcohol use and sexual permissiveness.

Arab Americans

This group shares a common Arabic heritage and the Arabic language. Many members of this group have attended Western or Westernized schools and were fluent in English prior to coming to America. -One third of them live in California, New York, and Michigan. -This group is somewhat younger then the general pop., better educated, and have a higher than average income. This group is also much more likely to be entrepreneurs

Religious Subcultures: Buddhists

This groups size is about the same as the Muslim population in the U.S. There is a variety of sects, and marketers have largely ignored this market due to its size and diverse ethnic composition.

Ethnic Subcultures

Those subcultures whose members' unique shared behaviors are based on a common racial, language, or nationality background.

Cultural Values

Widely held beliefs that affirm what is desirable.

Generation Y'ers

-81.3 million (25.2%) -Really two sub markets: Young Gen Y and Older Gen Y -Expected to have at least as high of education level as previous generation -Factors they believe make their generation unique: Technology use, Music and pop culture, Tolerance, and Intelligence

Demographics: Income

-A household's income level combined with its accumulated wealth determines its purchasing power. -Income enables purchases but does not generally cause or explain them. Occupation and education directly influence preferences for products, media, and activities; income provides the means to acquire them. -Therefore, income is generally more effective as a segmentation variable when used in conjunction with other demographic variables. -How wealthy one feels may be as important as actual income for some purchases.

Demographics: Education

-Approximately 86% of Americans have a high school degree, and 28% have completed college. -Critical for a "family wage" job -Traditional high paying manufacturing jobs that required relatively little education are rapidly disappearing. -High paying jobs in the manufacturing and service sectors today require technical skills, abstract reasoning, and the ability to read and learn new skills rapidly -Since individuals tend to have spouses with similar education levels, these differences are magnified with spousal income is considered

Middle Americans: Upward Pull Strategy

-Aspirations: To belong to upper middle class -Prefer: Products consumed by upper middle class -Positioning; Upper class symbolism for middle class products.

Regional Subcultures arise because of the following:

-Climate conditions -Natural environment and resources -Characteristics of the various immigrant groups that have settled in each -Significant social political events

Generation X'ers

-Smaller than previous generations 49.8 million (15.5%) -Highly educated, with more college attendance and graduates than previous generations; 20 percent of Gen X women earn more than their spouses -More diverse and open to diversity than previous generations -Both cynical and sophisticated about products, ads and shopping -Materialistic and impatient.

Two distinguishable characteristics of a subculture:

1. A subset of a main/mother culture 2. More in common with main/mother culture than different

African Americans

13.2% of the American Population. Group is concentrated in the South and major metropolitan areas outside the South -Buying Power: Represents $1.1 Trillion in buying power and is expected to grow by 25% through 2018. -On Avg. this group is younger than the white population and tend to have less education and lower household income levels.

Christian Subcultures; Roman Catholics

21% of American adults identify with this group. This church is highly structured and hierarchical. Pope is the central religious authority, and the basic tenet of this church is that a primary purpose of a marital union is procreation. -This group has few consumption restrictions or requirements associated with their religion.

Current Population of the U.S. Currently

322,831,000

Christian Subcultures: Protestants

45% of American adults identify themselves with this group. Many different types of this faith with significant differences between them. Most groups emphasize direct individual experience with God as a core tenet.

Nonfamily Household

A householder living alone or exclusively with others to whom he or she is not related.

Modern Gender Orientation

A marriage where husband and wife share responsibilities. Both work, and they share homemaking and child care.

Traditional Gender Orientation

A marriage with the husband assuming the responsibility for providing for the family and the wife running the house taking care of the children.

Market Segmentation

A portion of a larger market whose needs differ from the larger market.

Subculture

A segment of a larger culture whose members are distinguishing values and patterns of behavior.

Self Oriented Values

Active/Passive Sensual Gratification/Abstinence Material/Nonmaterial Hard Work/Leisure Postponed Gratification/Immediate Gratification Religious/Secular

Ethnic Subcultures

African Americans Hispanics Asian Americans Native Americans Asian-Indian Americans Arab Americans

Upper Americans: Upper-Upper Class

Aristocratic families that make up the social elite. Members with this level of social status generally are the nucleus of the best country clubs and sponsors of major charitable events.

Ascribed Role

Based on an attribute over which the individual has little of no controle. i.e., gender role

Achievement Role

Based on performance criteria over which the individual has some degree of control. i.e., father, mother, manager, salesperson.

Purchasing Power Parity (PPP)

Based on the cost of a standard market basket of products bought in each country.

Symbols

Colors, animals, shapes, numbers, and music have varying meanings across cultures. Failure to recognize the meaning assigned to these can cause serious problems.

Depression Generation

Composed of approximately 29.2 million (9.2%) individuals who were born between 1930 and 1945. They were small children during the Depression or WWII and matured during the prosperous years of the 1950s and early 1960s. They "invented" rock and roll and grew up with music and television as important parts of their lives. Marketers target this segment utilizing thems associated with an active lifestyle and breaking with stereotypical portrayals of older consumers.

Pre Depression Generation

Composed of those individuals born before 1930, living through the Depression, WWIi, and witnessing radical social, economic, and technologic change throughout their lives. As a group, they are conservative and concerned with financial and personal security. This generation of some 10.3 million(3.2%) Americans is part of a broader category of consumers called the mature market. (age 55+)

Household

Consists of all the people who occupy a housing unit.

Middle Americans: Upper-Middle Class

Consists of families who possess neither family status derived from heritage nor unusual wealth. Occupation and education are key aspects of this stratum, consisting of successful professionals, independent businesspeople, and corporate managers. Making sure their children get a sound education is very important to this group. Highly involved in the arts and charities, and belong to private clubs.

Lower Americans: Upper-Lower Class

Consists of individuals who are poorly educated, have very low incomes, and work as unskilled laborers. Most have minimum-wage jobs. Members of this class live in marginal housing, often located in depressed and decayed neighborhoods. Crime, drugs, and gangs are often close at hand and represent very real threats. They are concerned about the safety of their families and their children's future.

Middle Americans: Working Class

Consists of skilled and semiskilled factory, service, and sales workers. Though some households in this social stratum seek advancement, members are more likely to seek security for and protection of what they already have. -Dislike the upper middle class and prefer products and stores positioned at their social class level.

Middle Americans: Middle Class

Consists of white collar workers and high paid blue collar workers. This class core typically has some college education though not a degree. Many members of this class feely very insecure due to recent trends of workforce reductions. They are concerned about respectability and care what their neighbors think. This class gets involved with do it yourself projects.

External Influences

Culture, Demographics and social stratification, Ethnic, religious, and regional subcultures, Families and households, and Groups

Green Marketing

Developing products whose production, use, or disposal is less harmful to the environment than the traditional versions of the product. Developing products that have a positive impact on the environment or.. tying the purchase of a product to an environmental organization or event.

Cultural Values

Give rise to norms and associated sanctions, which in turn influence consumption patterns.

Lower Americans: Lower-Lower Class

Has very low income and minimal education. This segment of society is often unemployed for long periods of time and is the major recipient of government support and services provided by nonprofit organizations.

Boomers are...

Higher income, higher education More tech savvy Defining retirment differently Strong market for "anti-aging" products, travel, and financial services Often alienated by overly "youth oriented" appeals in ads.

Multi-Item Index

Hollingshead index of Social Position

Agreements

How does a culture ensure business obligations are honored? How are disagreements resolved? Some cultures rely on a legal system; others rely on relationships, friendships, etc.

Lifestyle

How one lives, including the products one buys, how one uses them, what one thinks about them, and how one feels about them.

Relationships

How quickly and easily do cultures form these and make friends. Americans tend to form these quickly and easily Chinese are much more complex and characterized by guanxi.

Event Marketing

Involves creating or sponsoring an event that has a particular appeal to a market segment. This can be effective with African Americans and other ethnic communities.

Marketing strategy

Language, Demographics, Values, and Nonverbal Communications -> Consumer Behavior ->

Retail Strategy

Men are increasingly shopping for household and other products traditionally purchased by females, and females are shopping for "masculine" products such as lawn mowers and power tools. Retailers have begun showing very masculine men shopping for household products and carry power tools targeted at women.

Cultures are ___ static

Not; They typically evolve and change slowly over time.

The Numerous values that differ across cultures and affect consumption include:

Other Oriented Values Environment Oriented Values Self Oriented Values

Hispanic Americans

Person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culturre or origin regardless of race. Heavily influenced by the Roman Catholic Church. Strong Family orientation. By 2030, this group is expected to represent 23% of the U.S. population. -Income, education, language, and identification with Hispanic culture change across generations.

Mature Market

Pre depression-pre 1930 Depression-1930-45 Baby Boom-1945-65

Environment Oriented Values

Prescribe a society's relationship to its economic and technical as well as its physical environment.

Demographics: Occupation

Probably the most widely applied single cue we use to initially evaluate and define individuals we meet. It provides status and income. The type of work one does and the types of individuals one works with over time also directly influence one's values, lifestyle, and all aspects of the consumption process.

Marketing Mix

Product Communications Price Distribution Service

Product Strategy

Rather than adapting colors to fit stereotypes, companies are adapting their features in ways that make their products more functional.

Gender

Refers to being biologically a male or a female

Baby Boom Generation

Refers to those individuals born during the dramatic increase of births between the end of WWII and 1965. There are almost 80 million (24%) baby boomers, which is substantially more than the two preceding generations combined. This group was heavily influenced by the Kennedy Assassination, the Vietnam War, recreational drugs, the sexual revolution, the energy crisis, the rapid growth of divorce, and the Cold War, as well as rock and roll and the Beatles.

Other Oriented Values

Reflect a society's view of the appropriate relationships between individuals and groups within that society.

Self Oriented Values

Reflect the objectives and approaches to life that the individual members of society find desirable.

Asian Americans

Represent an important subculture. While relatively small in size, this group will continue to grow. Highest educated and highest income group. -This group is also the most diverse, with numerous nationalities, languages, and religions. -This group comes from cultures influenced by Confucianism, and place a very strong value on traditional, extended families. -Two thirds of this group are immigrants, and a high percentage of them use their native -Highly tech savvy and heavy users of the internet.

Religious Subcultures: Jewish

Represents 2% of American adults and is unique in that historically it has been an inseparable combination of ethnic and religious identity. Heavily concentrated in the Northeast and tend to have higher than average incomes and education levels

Two basic approaches to measuring social status:

Single Item Index Multi Item Index

Gender Roles

The behaviors considered appropriate for male and females in a given society.

Culture

The complex whole that includes knowledge, belief, art, law, morals, customs, and any other capabilities and habits acquired by humans as members of society.

Things

The cultural meaning of these leads to purchase patterns that one would not otherwise predict. The differing meanings that cultures attach to these, including products, make gift giving a particularly difficult task.

Upper Americans: Lower-Upper Class

The current generation's nw successful elite. These families are relatively new in terms of upper class social status and have not been accepted by the upper crust of the community. For example, they are often unable to join the same exclusive clubs or command the same respect of the "blue bloods". Many engage in conspicuous consumption to show off their great wealth.

Secular Society

The educational system, government, and political process are not controlled by a religious group, and most people's daily behaviors are not guided by strict religious guidelines.

Etiquette

The generally accepted ways of behaving in social situations. Behaviors considered rude or obnoxious in one culture may be quite acceptable in another. Normal voice tone, pitch, and speed of speech differ between cultures and languages, as do the use of gestures

Cohort Analysis

The process of describing and explaining the atitudes, values, and behaviors of an age group as well as predicting its future attitudes, values, and behaviors.

Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

Hispanic Americans: Consumer Groups

This market is now the largest and fastest growing ethnic subculture in the U.S. Many marketers feel that this group is not a single ethnic subculture but rather is made up of three main and several minor nationality subcultures.

Asian-Indian Americans

This segment of the population is growing rapidly due to immigration. Concentrated in New York and California, with significant numbers in New Jersey, Illinois, and Texas as well. -This group is well educated, affluent, and fluent in English; yet most retain cultural ties to their background. -Place a high value on education, particularly their children's education, and husbands play a dominant role in making many of the family decisions.

Nonverbal Communication

Time Etiquette Space Things Symbols Agreements Relationships

Why Study Other Cultures?

To learn more about how one's own culture works To avoid mistakes in cross-cultural markets To isolate unique marketing opportunities To become sensitive to cross-cultural differences

Female Market Segmentation

Traditional Housewife Trapped Housewife' Trapped Working Woman Career Working Woman