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When they got to the check-out stand, the little girl immediately began to ... said, 'Monica, we'll be through this check out stand in 5 minutes and then you ... – PowerPoint PPT presentation

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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.
  • In other words, consumption patterns change

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
  • Millennials 1982-Present
  • Generation X (1965 and 1980)
  • Baby Boomers (1946 1964)
  • The Elderly

Age 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.
  • 2001 Calgary had the second youngest census
    metropolitan area with a median age of 34.9
    (Saskatoon was youngest (34.4 years)
  • Oldest was Trois-Rivières, Quebec, median age

Children in the Marketplace
How do Children impact the Marketplace?
  • Directly influence the spending of their parents.
  • 67 percent of families buying a new car base the
    purchase decision on advice from their children
  • 80 of the time when parents purchase a brand
    their children have heavily influenced the final
  • Indirectly influence the spending of their
    parents necessities
  • also have substantial spending power and
    purchase several products

Parental Yielding
Shopping With Kids A man observed a woman in the
grocery store with a three year old girl in her
basket. As they passed the cookie section, the
little girl asked for cookies and her mother told
her no. The little girl immediately began to
whine and fuss, and the mother said quietly, "Now
Monica, we just have half of the aisles left to
go through don't be upset. It won't be long."
Soon they came to the candy aisle, and the little
girl began to shout for candy. And when told she
couldn't have any, began to cry. The mother said,
"There, there, Monica, don't cry--only two more
aisles to go, and then we'll be checking out."
When they got to the check-out stand, the little
girl immediately began to clamor for gum and
burst into a terrible tantrum upon discovering
there'd be no gum purchased. The mother patiently
said, "Monica, we'll be through this check out
stand in 5 minutes and then you can go home and
have a nice nap." The man followed them out to
the parking lot and stopped the woman to
compliment her. "I couldn't help noticing how
patient you were with little Monica," he began.
Whereupon the mother said, "I'm Monica -- my
little girl's name is Tammy."
  • tweens (8- to 14-year-olds) spent or influenced
    the spending of 1.88 trillion globally 2002
    (Martin Lindstrom Brandchild )
  • spent almost 200 billion of their own money.
  • Children's spending has roughly doubled every ten
    years for the past three decades

Why are kids able to influence their parents so
Parents are trying to stay trendy for much longer
and will look to their child to be the opinion
leader for what brands to look for
Children as Consumers in Training
  • Consumer socialization process by which people
    children acquire skills, knowledge, attitudes
    relevant to their functioning as consumers in the

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

How does Television Influence Children to be
  • Teaches the cultures values, myths, and
    idealized images.
  • average child sees between 20,000-40,000
    commercials every year
  • an 18-month-old can recognize corporate labels

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
  • Web sites with special kid-friendly graphics
    may attract their attention to your company

Six core values drive all successful marketing to
  1. Fantasy
  2. Mastery
  3. Love
  4. Fear
  5. Stability
  6. humour.
  • Today's tweens thrive on upgrades. In marketing
    planning, the luxury of time has gone - product
    evolution needs to happen over weeks and months,
    not years.
  • Belonging to a group is a crucial part of tween
  • Tweens look up to their leaders and inspire each
  • Peer-to-peer marketing will play an increasingly
    important role in creating successful tween

  • tweens spend 60 more time watching TV each year
    than they do in school. 
  • the typical American, Australian or British child
    will see as many as 40,000 TV commercials each
  • Product placements in movies and TV are likely to
    become the primary vehicle in tween marketing in
    the future.
  • Another opportunity is in the interactive world.
    50 of tweens log on each day,
  • 70 percent of all European tweens send text
    messages every day. The effect is that trends
    spread rapidly, with brands carried along in the
  • To reach the tweens, online games, chat rooms and
    virtual worlds will become key components of
    marketing plans within five years.
  • M-branding, or ads on mobile phones displays,
    will also be an important way to reach tweens.

Assume your company manufactures and sells
bicycles targeted to the 10-12 age group. How
would you reach your target audience?
Ritz Bits S'Mores Sumo Wrestling Advergame
Bullwinkle plugs Trix in 1960.
  • 2 Billion annually is spent marketing to kids
  • Channel One a 12-minute  in-school "news" program
    shown in about 30 of US secondary schools.
    (12,000 schools, 7 million teenagers) that has
    won numerous awards.
  • Channel one gives free video equipment to
    financially strapped schools.
  • Schools give their students as an audience in

Channel One now has daily captive audience of 7
million kids in grades 6-12.
  • 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?

A 21
  • Oct 1998 ZapMe! Corp. provided 230 schools in the
    USA with free computer labs with free Internet
    access, computers, tech support, and maintenance.
    By mid 2000 over schools were using the program
  • In exchange, the schools had to promise that a
    student will use each computer for at least 4
    hours daily while a small banner ad appeared
    constantly on the screen.
  • The computers monitored students' Internet
    browsing habits and broke down the data by
    gender, grade level, and zip code.
  • 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?
  • Under pressure from anti-commercialism groups the
    program ended Nov. 2000

  • 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.
  • Young Kids cognitive defenses are not yet
    developed enough to filter out commercial
  • 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?

Rules For Advertising to Kids In Canada 1. 
Advertisers must not use words like "new,"
"introducing" and "introduces" to describe a
product for more than one year. 2.  Advertisers
are not allowed to exaggerate (eg. bigger or
faster ) 3.  Advertisers may not promote craft
and building toys that the average kid can't put
together. Also, the finished project should look
like the picture of the finished product that
appears on the box. 4.  Advertisers are not
allowed to sell products that aren't meant for
kids (eg. vitamins or drugs ) 5.  Advertisers are
not allowed to recommend that you have to buy
their product, or that you should make your
parents buy it for you. 6.  Advertisers may not
use well-known kids' entertainers (including
cartoon characters) to promote or endorse a
product. Although advertisers can create their
own characters for kids, like "Tony The Tiger" or
the "Nestlé Quick Bunny," . This rule does not
apply to packaging,
  • 7.  Advertisers can't make you believe that
    you're getting everything that's shown in the
  • In their ads, advertisers have to tell you
    exactly what you are getting when you buy the
    toy. Advertisers are supposed to clearly state
  • The complete price of every part of the toy they
    are showing, whenever the price is mentioned in
    an ad.
  • Any parts of the toy shown in the commercial that
    cost extra.
  • Any other toys in the commercial that are sold
  • 8.  Advertisers are not allowed to show kids or
    adults doing unsafe things with the product.
  • 9.  Advertisers can't suggest that using their
    product will make you better than other kids or
    make kids think that people will make fun of them
    if they don't use the product.
  • 10.  Advertisers cannot show more than one
    commercial for the same product in a half-hour

Teenagers in the Marketplace
Teen Facts
  • Teenage Marketing and Lifestyle Survey found
    children 12 to 19 spent more than 153 billion in
    1999, up from 140 billion in 1998
  • Teens also spend 56 of their own money and 28
    of their parents money per week.
  • Most can be spent on discretionary items like
    movies, CDs, and electronic games. 2005 40 of
    movie tickets bought by teens
  • the number of kids and teens online increased
    from 26.6 million in 2000 to 34.3 million in
    2003. In fact, the under-18 demographic now
    comprises over 20 of the US online population
  • 2005 teens influenced 400 billion of parents
    spending in US

  • 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

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  1. 91- going to the movies
  2. 90- internet
  3. 86- going to college
  4. 86- having a boyfriend/girlfriend
  5. 86- dating
  6. 86- "partying"
  7. 86- computers
  8. 86 on-line computer services
  9. 86- playing sports
  10. 85- shopping

  • How would you characterize teenagers in terms of
  • Needs
  • Values
  • Lifestyles
  • Attitudes
  • Interests

What are the implications of these things for the
marketing mix?
  • Marketing to Teens
  • 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.
  • Teens are 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.

  • Girls Central Intelligence Agency
  • Los Angeles-based marketing firm
  • "Slumber Party In A Box" -- "40,000 secret agent
    influencers and their closest friends . . . Your
    product only, all night long . . . Behind enemy
    lines -- GIA gets you into girls' bedrooms . . .
    Obtain immediate, candid data from the trenches."
  • For 8-13-year-old girls, where fitting in is
    paramount, this is a chance to be cool, to be a
    trend-setter, to get free stuff, and to be
  • As a "secret agent," you tell GIA what your
    friends think.
  • GIA's clients, get a personalized focus group and
    can watch their product spread by buzz into the
    female youth market.
  • Controversy - many girls don't see that they are
    being used, that their friendships are being

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  • 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,

  • Direct Mail
  • Because teens receive little mail they tend to 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, e.g. general circulation magazines or
    television shows that are popular with both
    adults and children.
  • The Internet
  • Teenagers in Canada spend more time online than
    watching TV.
  • Teen sites or through email
  • obtain consumer feedback while promoting
  • 2/3 of teens have either researched or purchased
    products online.

  • 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.

University Students
University-age Children
  • About 15 million in USA
  • Market estimated between 35-60 billion and 200
  • Advertisers Spend 100 Million a Year to
    Influence Them
  • Usually in process of forming brand preferences
    and shopping habits - time to build a
    relationship with this segment.
  • one of the most difficult segments to reach.

  • How would you characterize University students in
    terms of their
  • Needs
  • Values
  • Lifestyles
  • Attitudes
  • Interests

What are the implications of these things for the
marketing mix?
one in four students (24) said they had
purchased a product this year (2006) specifically
because it was socially conscious
  • 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 important
  • computer hardware and software, home electronics,
    jewelry, clothing and concert, theater or event
  • Travel

  • Direct mail won't work. University students
    usually don't stay in any one place for more than
    a year.
  • University 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 Internet and on-line services..
  • Advertising to this age group has typically been
    very frivolous, emphasizing things like personal
    freedom and expression

Baby Boomers
  1. John Belushi (12)
  2. Bill Clinton (3)
  3. Michael Jordan (9)
  4. Spike Lee (39)
  5. Madonna (14)
  6. Roseanne (10)
  7. Clarence Thomas (46)
  8. Howard Stern (44)
  9. Ben Cohen (16)
  10. Bill Gates (7)
  11. Bruce Springstein (18)
  12. Steven Jobs (2)
  1. Hilary Clinton (24)
  2. Oprah Winfrey (5)
  3. Steven Spielberg (1)
  4. Karen Silkwood (40)
  5. Oliver Stone (33)
  6. Michael Milken (4)
  7. O. J. Simpson (35
  8. Rush Limbaugh (11)
  9. Michael Jackson (42)
  10. Stephen King (30)
  11. David Letterman (29)
  12. Mike Ovitz (17)

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Baby boomers (born between 1946 and 1964 (43-61
yrs old) have had an important impact on
consumer culture? Why?
  • They created a revolution in style, politics, and
    consumer attitudes
  • Grew up with Television
  • Power in Numbers
  • The most affluent section of the population,
    controlling over 7 trillion in wealth
  • Spend the most on housing, cars, and
  • Spend most of any age on food, apparel, and
    retirement programs

Baby Boomers (43-63) 80 million strongInfluences
On This Group
  • Booming birthrate
  • The Beatles
  • TV
  • Expansion of suburbia
  • Vietnam
  • Civil rights movement
  • Womens rights
  • Sex, drugs rock n roll
  • Kennedy assassination

Jan 2006
Impact for Marketing
  • Winding down leisure indulgence
  • Downsizing everything minimalising
  • Make own decisions think edge
  • Respect rank professionalism
  • Steady relationships - loyalty
  • Need
  • relationship continuity
  • organising options
  • safe familiar experiences
  • positive group identity

  • While their parents often took and held jobs for
    life, baby boomers are less inclined to do so.
  • Baby boomers are regarded as the Me Generation.
  • Many baby boomers grew up with television as a
    constant companion, teacher, baby-sitter, and
  • Many baby boomers are idealists who see their
    mission as "changing the world." - 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

Baby Boomers How to market to them
  • Nostalgia
  • Stay-at-home moms are fashionable again
  • Rise in the priority of family and family
  • Invented new forms of families
  • Divorce
  • Live-in lifestyles
  • His and her children
  • Same sex couples
  • Stress
  • Eliminate stress through simplification
  • Boom in personal services
  • Less welcoming of technology because it forces
    them to make more decisions

Baby Boomers How to market to them
  • Control
  • Provide simplicity along with control
  • Demanding consumers want the whole storywant
    data before they buy
  • Reinforce strong sense of self-reliance and
    individual superiority without a lot of effort
    and participation
  • Mass customization
  • Think of themselves as young
  • Consider age 79 as old
  • Will avoid products pitched to older consumers
  • Be subtle
  • Attracted to romance and adventure
  • Position brand as the choice of winners

Baby Boomers How to market to them
  • No brand loyalty brand names are no longer
    badges of success
  • Let them know they are getting a good deal
  • Many wont retire
  • Will begin second careers
  • Retirement as work style, not lifestyle
  • Wont have enough money to retire (saving rates
    are low)
  • Work-centered
  • Looking for meaning and fulfillment
  • Want products that keep them healthy and sustain
    energy and activity levels
  • Will remain dominant consumer group in
    marketplace for years to come
  • Will continue to expect to be center of attention

The Grey Market
The Gray Market
  • The Gray Market includes people over age 65
  • 2nd fastest growing segment, only behind the Baby
  • 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.

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  • According to a 1997 Roper Starch poll
  • one in three American adults is a grandparent
  • grandparents spent 505/year on their
    grandchildren in 1997 (up from 320 in 1992)
  • 55 of grandparents purchased a gift for a
    grandchild in thepast month
  • grandparents buy one of every four toys sold in
    the US.

  • 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
  • Chat with friends
  • Get information
  • especially news and weather
  • Buy products

What values motivate the Gray market?
  • Autonomy
  • Altruism
  • Connectedness
  • Personal Growth

Marketing to the Mature Market
  • Will not buy products that show negative views of
    older people
  • Not influenced as easily by image-oriented ads
  • May need to adjust packaging to suit their
    changing physical needs
  • Easy open packages
  • Print size

What will happen when the boomers become the
mature market?
Keep Language Simple
Use Clear, Bright Pictures
Guidelines for Effective Advertising to the
Use Action to Attract Attention
Speak Clearly, and Keep Word Count Low
Use Single Sales Message
Avoid Extraneous Stimuli