Title: AGE SUBCULTURES
1AGE SUBCULTURES
2Age and Consumer Identity
- 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.
3Age Subcultures
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
4Canadian Population as at July 1, 2002
5Age Structure of the Canadian Population
- under 25 1996 34 2002 31.9
- 25 - 64 years old 1996 54 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.
6CHILDREN AS CONSUMERS
7Children in the Marketplace
How do Children impact the Marketplace?
- Directly influence the spending of their parents.
- Indirectly influence the spending of their
parents necessities - also have substantial spending power and
purchase several products
8Parental Yielding
9- 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 USAs 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.
10Children as Consumers in Training
- Consumer socialization process by which people
children acquire skills, knowledge, attitudes
relevant to their functioning as consumers in the
marketplace.
11- observation,
- shared shopping experiences,
- direct experience
- Parental influence
- television
12Consumer Socialization
- Influence of Parents
- Authoritarian parents - restrictive with a
negative view about advertising. - Neglecting parents - detached from kids and
exercise little control over what their children
do. - Indulgent parents - less restrictive and want
children to learn about buying.
13How does Television Influence Children to be
consumers?
- Teaches children about a cultures values, myths,
and idealized images. - It's estimated the average child sees between
20,000-40,000 commercials every year
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15Bullwinkle plugs Trix in 1960.
16Cognitive Development
- Children differ from adults, and can be
segmented on such psychological factors as
cognitive development ability to comprehend
concepts of increasing complexity, knowledge, and
experience - three broad stages of development
- ages 3 to 7 (perceptual stage),
- ages 7 to 11 (analytical stage),
- ages 11 to 16 (reflective stage).
- Each stage captures shifts in youths knowledge,
development, decision-making skills, and purchase
influence strategies. - Kids cognitive defenses are not yet developed
enough to filter out commercial appeals. - At six months of age, babies are forming mental
images of corporate logos and mascots.
17- 2 Billion annually is spent marketing to kids
- 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? - Channel One -- the advertising-driven, in-school
TV network -- is in about 40 of the country's
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.
18In 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 must
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 that can
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?
19Because 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. 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?
20- Advertising Guidelines
- 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.
drugs, medicines in pharmaceuticals, 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
21- 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.
22Assume your company manufactures and sells
bicycles targeted to the 10-12 age group. How
would you reach your target audience?
23Marketing to Kids
- 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
24Teenagers in the Marketplace
25Teen Facts
- Teenage Marketing and Lifestyle Survey that
children ages 12 to 19 spent more than 153
billion in 1999, up from 140 billion in 1998 - Teens also spend 56 of his or her own money and
28 of his or her parents money per week. Most
of the money they spend 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
26- 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?
27- Marketing to Teens
- 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.
28- 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 childrens 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,
29- 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, teen-oriented 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.
30- 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 T-shirts, distributing flyers or
postcards with the marketing message, generating
word of mouth.
31College Students
32College-age Children
- 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. If
your brand targets educated (and thus wealthier)
adults, you should begin building a relationship
with this segment now. - The college student market is one of the most
important segments most brands could capture, but
also one of the most difficult to reach.
33- 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?
34- 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 importat
products - In a recent survey most are considering
purchasing computer hardware and software, home
electronics, jewelry, clothing and concert,
theater or event tickets. - Travel
Advertising to this age group has typically been
very frivolous, emphasizing things like personal
freedom and expression.
35- 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. Find
out where they are hanging out and post your ads
there. - Eight top college student sites
Spring-Break-Party.Com, CollegeFreshmen.Net,
CollegeSeniors.Net, Keg-Party.Net, Magorder.Com,
Greekspot.Com, TheSemester.Com, and
Foreign-Student-Union.Com
36Baby Boomers
371960
381990
392020
40Baby boomers, I.e. those in their mid 30s to mid
50s have had an important impact on consumer
culture? Why?
- They created a revolution
- Power in Numbers.
- in style, politics, and consumer attitudes.
- 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 - one of the most affluent sections of the
population, controlling over 7 trillion in
wealth
41- 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.
42In the near future, many members of the
Baby-Boomer cohort will be passing from the stage
in their life-cycle where they have dependent
children to where all their children have left
home to start households of their own. What
impact will this have on Baby Boomers lifestyles?
How will this large group of consumers fill the
void of empty nesters
Looking ahead as a market planner, choose an
activity, product or service, whose market demand
you think would be affected (positively or
negatively) by this life-cycle change, and
explain why this would happen.
43The Grey Market
44The Gray Market
- 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.
45- 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 - Chat with friends
- Get information especially news and weather
- Buy products
46What values motivate the Gray market?
47What are some of the things to keep in mind when
tailoring marketing strategies to older adults?
48Guidelines for Effective Advertising to the
Elderly
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