Ch. 4: Geographics & Demographics

Segmentation

• Seeks to find one more factors about members of a heterogeneous market that allows for dividing of the market into smaller groups

• Develop different marketing strategies to best meet each segment’s needs

• Some basis of similarity

Look-A-Like Modelling

• Modelling approach that defines customers who are most likely to engage with their marketing messages or activities

• Analyzes and considers common behaviours or traits amount the current customers

• Seeks potential customers

Criteria for Effective Segmentation

1. Sufficient size?

2. Readily identifiable and can it be measured?

3. Clearly differentiated on 1+ dimensions?

4. Reached in order to deliver the value of the prod?

Demographic Segmentation

Statistical characteristics of human population (as age or income) used especially to identify markets

Canadian Census

• Administered by Statistics Canada every 5 years

• Trending key to planning

Canada Statistics Act

The authority to “collect, compile, analyze, abstract, and publish information. On the economic, social and general conditions of the country and its citizens”

Three Biggest Metropolitan Areas in Canada

1. GTA (6.5 mil)

2. Montreal (4.4 mil)

3. Vancouver (2.7 mil)

   • 13.7 mil of 42 mil

What is the Main Driver of Canada’s Population Increase?

• Between 2018-2019 83% came from immigration

• 2020: Slowdown from COVID-19

• 2022: 431,645 permanent residents

Customer

Always purchasing a product/service, but not the end user

Consumer

Always the end user of a product or service but might no have purchased it

Geographic Segmentation

• Can be through

  • Climate

  • Region

  • Population density/growth/size

Demographics

• Can be done through

  • Age

  • Gender

  • Rent or own

  • Income

  • Religion

  • Ethnicity

What is the Median After-Tax Income Level in Canada?

As of 2020, $73,000

Ethnic Diversity

• Immigration is the main driver of Canada’s population increase

  • 83% during 2018-2019

• 2022: Canada had over 400k PRs

Baby Boomers

• 1946-1964

• 30% of population

• Largest portion of the workforce

• Wealthiest

• 90% live independently

Millennials

• 1981-1996

• By 2025, will take up 75% of workforce

• Economy adapting to their needs

  • Condos built to their lifestyle