Defining the market.docx

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University of Toronto Mississauga

January 14, 2013 Defining the market – demand side – Lecture 2 Population concentration - Growth in population = growth in income - Does not necessarily mean growth in income - Toronto market is the highest population- based upon income, family, value, race. Can see relationship between consumer and income. Growth in income  When we look at our GTA and Toronto area, there is much variation. High income is closer to downtown. Greater subdivision and suburbs there isn’t much variation in income Type of good Convenience good – good we consume at a regular pace (food, clothing, etc). goods do not have a very high price tag associated with it. Very little variation in price from one store to another. Tend to buy everything locally (ex. milk) Shopping goods - consume at a much lower level of frequency. Tend to shop around more. (ex. Furniture, tv). Think about quality, price, etc. a lot of our income goes to shopping goods. Reflection that we are urban population. We tend to define ourselves by what we wear and what we buy – quality of our life - This is important because it reflects our power center. There are less convenience stores in comparison. A lot more stores are part of franchise rather than mama and papa stores. Market Segmentation – Socio Economic variables Income - Growth/decline in market income  if economy is doing poorly, then consumers are less likely to spend since they are more likely to think about the money they’ll need in the future. - Purchasing power  how much money to we really have to spend? Growth in marketing income = more purchasing power - Spatial variation in income  if part of the city has older population there wont be growth in income, and part of the younger population more growth in income. Want to bring it to micro level. - Income and accessibility - Shopping range January 14, 2013 Non-discretionary income – things that cannot be compromised with (income for food, clothing. Shelter, etc). things that they do have control over such as self-care, - Buying food in grocery store is non-discretionary and buying food at a restaurant is discretionary because it is more expensive and we have control over it too. Neighbourhood income patters: Toronto - Regent park – lower income - Lakeshore - working class, neighbourhood change, housing stock. Younger people move in, making income change. This will change the retail around the area 1 mental map – lots of stores. People will like to come cause its varies in location 2 mental map – more condense. Limited amount of stores rd 3 mental map – per
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