January 14, 2013
Defining the market – demand side – Lecture 2
- 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
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
Market Segmentation – Socio Economic variables
- 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
- 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
- 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
3 mental map – per