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AGE SUBCULTURES

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Title: AGE SUBCULTURES


1
AGE SUBCULTURES
2
Age 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.

3
Age 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

4
Age Structure of the Canadian Population
  • In 1996 34 of the population or 9,748,210
    people were under the age of 25,
  • 54 or 15,550,160 people were aged between 25
    and 64 years old and
  • 11 or 3,27,970 were aged 65 years or older.
  • 50 of youth under the age of 25 or 4,831,650
    people reported an origin other than British,
    French or Canadian.

5
CHILDREN AS CONSUMERS
6
Children 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

7
Parental Yielding
8
  • 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

9
Children as Consumers in Training
  • Consumer socialization process by which people
    children acquire skills, knowledge, attitudes
    relevant to their functioning as consumers in the
    marketplace.

10
  • How does it Occur?
  • observation,
  • shared shopping experiences,
  • direct experience
  • Parental influence
  • television

11
Consumer 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.

12
How does Television Influence Children to be
consumers?
Teaches children about a cultures values, myths,
and idealized images.
13
Cognitive Development
  • Children differ from adults, and can be
    segmented on such psychological factors as
    cognitive development or 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.

14
ZapMe! Corp. recently provided approximately 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?
15
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. 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?
16
  • 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

17
  • 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.

18
Assume your company manufactures and sells
bicycles targeted to the 10-12 age group. How
would you reach your target audience?
19
Marketing 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

20
Teenagers in the Marketplace
21
Teen 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

22
  • 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?
23
  • 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.

24
  • 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,

25
  • 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.

26
  • 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.

27
College Students
28
College-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.

29
  • 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?
30
  • 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.
31
  • 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

32
Baby Boomers
33
1960
34
1990
35
2020
36
Baby boomers, I.e. those in their mid 30s to mid
50s have had an important impact on consumer
culture? Why?
  • Power in Numbers.
  • They created a revolution 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

37
  • 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.

38
In the near future, many members of the
Baby-Boomer cohort will be passing from the stage
in their life-cycle where the 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.
39
The Grey Market
40
The 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.

41
  • 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

42
What values motivate the Gray market?
43
What are some of the things to keep in mind when
tailoring marketing strategies to older adults?
44
Guidelines for Effective Advertising to the
Elderly
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