Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
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.