Transcript Basic Marketing, 13th edition

Chapter 5
The Canadian Consumer
Market: Demographic and
Economic Dimensions
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Demographic & Economic Trends
Demographic and Economic trends
and conditions help marketing by:
discovering
new marketing
opportunities; and
giving
advance warning regarding
necessary changes in the existing
marketing strategies.
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Demographic & Economic Trends
“ … provides marketing managers
with critical information about the
size, location, income, and
characteristics of possible target
markets”.
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Demographic & Economic Trends
Key Question:
How do these trends and
conditions affect or change
consumption patterns and
buying behaviour?
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Identifying Potential Markets
 Key markets factors or indicators
to analyze include:
1.
2.
3.
Population (growth & concentration);
Income/Expenditure date (income,
income distribution, and product
spending);
Family & Cultural/Ethnic structures
(family size, and language).
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Factor #1 - Population Trends
Regional
Differences
Shifts to
Suburban
Areas
Key
Domestic
Trends
The Mobile
Market
5-3
MRK 200
Where do
people live?
Population
Growth
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Regional Differences
Not all areas or regions of the country
are changing in the same way or at
the same speed.
Examples include:
 Calgary
as compared to Saskatoon; or
 Ethnic population growth.
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Where do people live?
Quebec and Ontario together contain
more than three-fifths of the
country’s population.
However, ignoring B.C. and Alberta
would mean losing access to
potentially 7.04M consumers.
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Where do people live?
The size of Quebec and Ontario also
makes these markets quite
competitive.
As well, these two provinces can often
have two very distinct linguistic and
cultural traditions.
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Population Growth
Although the population of Canada has
more than doubled since WWII, the
population did not double everywhere.
Marketing managers, therefore, need to
monitor where the more recent growth
has occurred, as well as where it is likely
to be in the future.
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
The Mobile Market
The 1996 Census classified nearly
half of Canadians as movers, and
about half that population moved to
a new community.
As well, the approximately 200,000
immigrants that move to Canada
also create a marketing opportunity.
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Shifts to Suburbia …
Both people and industries have left
the cities, often with jobs also moving
closer to the suburbs.
This shift to Suburban areas has also
created different purchase patterns.
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
… and back to the City.
Many consumers, either tired with
suburban life or experiencing changing
family structures, have moved back t the
city.
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Factor #2 - Family & Cultural/Ethnic
Buying
Behaviour
Growth
Rate
5-4
MRK 200
Median
Income
Growth
Accurate
Target
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Group Exercise!
What are some special considerations
to be able to effectively market to
people in the culture you know best?
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Ethnic Market in Canada
Ethnic groups (whether Ukrainian or
Taiwanese) will often consume
products and services in
behaviourally different ways.
Different languages, religions, and
cultural/social norms will sometimes
equate to different consumption
patterns.
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Ethnic Market (Calgary Example)
The China Town market in Calgary
clearly offers a different line of
products than the Eu Claire market
just three blocks away.
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Targeting for Ethnic Markets
Mainstream Campaigns - target
cultural diversity in mainstream
advertising.
Mother-Tongue Marketing - try
reaching consumers either in their
communities or through mothertongue media.
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Family/Household Composition
Non-traditional
Households
Lifestages
Key
Domestic
Trends
Aging
Population
5-3
MRK 200
Falling
Birthrates
The Baby Boom
Generation
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Non-Traditional Households
As household composition changes,
marketers must also be prepared to
change their target market and
marketing mix.
 Double
Income No Kids
 Single Parent
 Unmarried Couples
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Birthrate Changes
The Canadian “baby boom”
generation is having fewer children.
This trend would indicate slower
population market growth but
higher disposable income per person.
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Aging Population
Lower birth rates and longer life
spans for most Canadian citizens
means the average age of Canadians
is higher.
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Lifestages
Lifestages for marketing focuses on
the different stages that each person
passes through from birth to death.
Each stage has different spending
patterns that must be considered
when developing a marketing mix for
particular segments.
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Factor #3 - Income/Spending Trends
Essentially, the amount of consumer
purchasing power affects the products
consumers are likely to buy.
MRK 200
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Income Distribution
Percent of Total Income
50
40
40.6%
30
20
24.0%
17.4%
10
6.1%
11.9%
Lowest 20%
Income Group
5-6
MRK 200
Middle 20%
Income Group
Top 20%
Income Group
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.
Consumer Spending Patterns
Disposable
Income
Discretionary
Income
Key Terms
and Issues
Expenditure
Data
5-7
MRK 200
Family
Life Cycle
For use with Shapiro, Perreault, and McCarthy texts.
Copyright © McGraw-Hill Ryerson Limited.