Marketing 371 Test 2*

Front 1

Targeting the rich (Luxury groups)

Back 1

• Spending attitudes are affected by where/how they got their money and long they’ve had it
• Luxury groups
o Functional
• Buy things that last w/ enduring value
• Extensive prepurchase search
• Logical decision making
o Reward
• Younger than functional group/older than indulgence
• Conspicuous luxury items
• High-end cars and homes in exclusive communities
o Indulgence
• Smallest group, younger, males
• Lavish/self-indulgent
• Buy to express individuality and attract attention
• Emotional approach... impulse purchases

Front 2

Old money

Back 2

• Families living on inherited funds
• Family history of public service/philanthropy
• Distinctions made by ancestry and lineage

Front 3

Noveau Riches

Back 3

• Rags to riches
• Status anxiety leading to symbolic self-completion
• Advertise: looking the part

Front 4

Status symbols (Status-seeking)

Back 4

• What matters is that you have more wealth/fame than others
• Status seeking- motivation to obtain poducts that will let others know that you have “made it”

Front 5

Conspicuous Consumption

Back 5

• Desire to provide prominent visible evidence of their ability to afford luxury goods

Front 6

Parody display

Back 6

• Form of conspicuous consumption
• Seek status by mocking it
• Deliberately avoiding status symbols

Front 7

Subcultures

Back 7

• Group whose members share beliefs and common experiences that set them apart from others
o Age, race/ethnicity, residence

Front 8

Microculture

Back 8

• Group of people that form around a strong identification with an activity or art form
o Norms, vocab, product insignias

Front 9

Ethnic and racial subcultures

Back 9

• immigrants = 10% us pop.
• 2042 non Hispanic white Americans = minority group
• 2050 multiracial will be ~4% of us

Front 10

Ethnic and racial subcultures needs and wants

Back 10

• Subculture memberships shape needs and wants
• Ethnic groups get much of their product info from specialized ethnic media
• Advertisment marketers develop need to match up way consumers communicate in daily life
• High contet culture
o Symbols, gestures have more meaning than spoken words
o Minority cultures
• Low context culture
o More literal in interpretations... anglos

Front 11

Ethnicity and marketing strategies (Deethnitiization)

Back 11

• Ethnic differences
o Minority consumers find an advertising spokesperson from their own group more trustworthy
• Positive brand attitudes
• Deethnitization
o Product associated with ethnic group becomes used by others
• “Bagels”
• Other
o Market in their native language
o cluster together geographically
o local communit primary source of info
o wom is especially important

Front 12

Acculturation

Back 12

• Process of movement and adaptation to one coutry’s cultural environment by a person from another country
• Occurs with the influence of acculturation agents
o Family
o Friends
o Church organizations
o Media

Front 13

Progressive learning model

Back 13

• Assumes people gradually learn a new culture as they increasingly come into contact with it
o When people acculturate... blend their original culture with the new one
o Customers who retain much of their original ethnic identity differ from those who assimilate

Front 14

Big three American subcultures

Back 14

• African American
o 12.3% = increasing income... towards housing, tranportation, and food
• Hispanic Americans
o 12.5% = largest ethnic subculture
o 60% = Mexican 10% = puertan Ricans
o brand loyal
o highly concentrated geographically by country of origin (Easy to reach)
• Asian Americans
o 3.6% = fastest growing racial group (Immigration

Front 15

istinguishing characteristics of the Hispanic market

Back 15

• Young bicultural Hispanic consumers
• Large family size of Hispanic market
o Groceries
o Shopping with family
o Convenience/saving time is not as important

Front 16

Asian Americans

Back 16

• Most affluent
• Best educated
• Most likely to hold tech jobs and buy high-tech gadgets
• Most frequent shoppers and brand conscious (Least brand loyal)
• Most concerned with image

Front 17

Religion on consumption

Back 17

• Often seen as a taboo subject to marketers
• Dietary and dress requirements create demand for certain products
• Subcultures affect personality, attitudes, birthrates, household formation, income
o Church leader can encourage or discourage consumption

Front 18

Born again boom

Back 18

• Those who follow literal interpretations of the bible and who acknowledge being born again through belief in jesus
• Fastest growing religious affiliations in us

Front 19

Age and consumer identity

Back 19

• Significant influence on his/her identity
o More likely to have things in common and speak in a common language with others of our own age
• Age cohort
o Nostlgia
o Possessions let us identify with others of a certain age/life stage

Front 20

Gen Y

Back 20

• Younger than 25

Front 21

Young professionals/ DINKS

Back 21

• Double income no kids 25-34

Front 22

families

Back 22

35-54

Front 23

Zoomers

Back 23

older than 55

Front 24

Norelco (Shaver)

Back 24

• Young men less likely to use electric shavers
• Two-pronged effort
o Convince younger men to switch from wet shaving to electric
o Maintain loyalty among older men

Front 25

Multigenerational marketing strategy

Back 25

• Imagery from an older generation that also appeals to younger consumers

Front 26

Generational categories

Back 26

• Interbellum
o 20th century
• silent
o between world wars
• war baby
o during wwII
• baby boom
o 1946 - 1964
• gen x
o 1965 - 1985
• gen y
o 1986 – 2002
• gen z
o 2003 or later

Front 27

Youth market

Back 27

• Teenage first used to describe youth generation in 1950s
• Often represents rebellion
• 100 billion in spending power

Front 28

Tweens

Back 28

8-14
• clothes cds movies
• characteristics of both children and adolescents

Front 29

Gen Y

Back 29

• Echo boomers and millennials
• 1/3 of US population
• ¼ 21 year olds raised by single parent
• ¾ have a working mother

Front 30

Gen Y Continued

Back 30

• Connection to technology
• First generation to grow up with computers at home
• Aka digital natives
• Online brand WOM
• Consumer-generated content

Front 31

College Stuents

Back 31

• Snacks and beverages
• Personal care products
• Music, movies, video games
• Own a laptop
• 287 in monthly discretionary income
• online advertising!

Front 32

Gen X

Back 32

• Responsible for culture changing products and companies (google, youtube, amazon)

Front 33

Baby Boomers

Back 33

• Sports activity
• Currently in peak earning years
• Housing, cars, entertainment
• Postponed getting married and having children till late 20’s/early 30’s
• Most powerful segment

Front 34

Gray Market

Back 34

• Traditionally neglected by marketers
• Living longer/healthier lives
• Zoomers = active interested in life, enthusiastic consumers with buying power
• Fastest growing group of internet users
• Very brand loyal

Front 35

Marketing to Seniors

Back 35

• Recession
• Big marketers beginning to focus on the over 50 market

Front 36

Perceived Age

Back 36

• More state of mind than of body
• Perceived age
o Feel age
o Look age
• Older we get, younger we feel relative to actual age
o Emphasize product benefits over age-appropriateness

Front 37

Values of Older Adults

Back 37

• Autonomy
o Self sufficient
• Connectedness
o Bonds w/ friends and family
• Altruism
o Give something back to the world

Front 38

Segmenting Seniors

Back 38

• Ages (50s, 60s, 70s)
• Marital status
• Health and outlook on life

Front 39

Social Aging Theories

Back 39

• Try to understand how society assigns people to different roles across the life span
o People get depressed, withdrawn, and apathetic as they age
o Angry and resist the thought of aging
o Accept new challenges and opportunities this period of life offers.