1. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 Chapter 5 The Canadian Consumer Market: Demographic and Economic Dimensions

2. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 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.

3. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 Demographic & Economic Trends “ … provides marketing managers with critical information about the size, location, income, and characteristics of possible target markets”.

4. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 Demographic & Economic Trends Key Question Key Question: consumption patterns buying behaviour? How do these trends and conditions affect or change consumption patterns and buying behaviour?

5. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 Identifying Potential Markets Key markets factors or indicators to analyze include: 1. Population (growth & concentration); 2. Income/Expenditure date (income, income distribution, and product spending); 3. Family & Cultural/Ethnic structures (family size, and language).

6. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 Factor #1 Factor #1 - Population Trends Regional Differences Shifts to Suburban Areas Where do people live? The Mobile Market Population Growth Key Domestic Trends Key Domestic Trends 5-3

7. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 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.

8. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 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.

9. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 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.

10. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 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.

11. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 The Mobile Market half of Canadians as movers The 1996 Census classified nearly half of Canadians as movers, and about half that population moved to a new community. 200,000 immigrants that move to Canada As well, the approximately 200,000 immigrants that move to Canada also create a marketing opportunity.

12. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 Shifts to Suburbia … Both people and industries have left the cities, often with jobs also moving closer to the suburbs. different purchase patterns This shift to Suburban areas has also created different purchase patterns.

13. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 … and back to the City. Many consumers, either tired with suburban life or experiencing changing family structures, have moved back t the city.

14. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 Factor #2 Factor #2 - Family & Cultural/Ethnic Buying Behaviour Buying Behaviour Median Income Growth Median Income Growth Accurate Target Accurate Target Growth Rate Growth Rate 5-4

15. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 Group Exercise! What are some special considerations to be able to effectively market to people in the culture you know best?

16. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 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.

17. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 (Calgary Example) Ethnic Market (Calgary Example) China Town Eu Claire The China Town market in Calgary clearly offers a different line of products than the Eu Claire market just three blocks away.

18. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 Targeting for Ethnic Markets Mainstream Campaigns Mainstream Campaigns - target cultural diversity in mainstream advertising. Mother-Tongue Marketing Mother-Tongue Marketing - try reaching consumers either in their communities or through mother- tongue media.

19. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 Family/Household Composition Non-traditional Households Lifestages Falling Birthrates Aging Population The Baby Boom Generation Key Domestic Trends Key Domestic Trends 5-3

20. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 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

21. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 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.

22. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 Aging Population Lower birth rates and longer life spans for most Canadian citizens means the average age of Canadians is higher.

23. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 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.

24. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 Factor #3 Factor #3 - Income/Spending Trends Essentially, the amount of consumer purchasing power affects the products consumers are likely to buy.

25. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 Income Distribution Percent of Total Income Middle 20% Income Group Lowest 20% Income Group Top 20% Income Group 10 20 30 40 50 6.1% 11.9% 17.4% 24.0% 40.6% 5-6

26. For use with Shapiro, Perreault, and McCarthy texts. Copyright © McGraw-Hill Ryerson Limited. MRK 200 Consumer Spending Patterns Key Terms and Issues Key Terms and Issues Disposable Income Discretionary Income Expenditure Data Family Life Cycle 5-7