Argentina is the 2nd largest South American and Latin-American region. With a population of just over 40 million people, the Spanish speaking country has multiple aspects of consumer behavior that influence the way that people spend. Marketing in Argentina is communicated in ways very similar to the United States. Radio and television are large factors in how marketers reach consumers in Argentina. There are 170 AM radio stations and 2000 FM radio stations in Argentina with about twelve million radio sets in use and 46 television broadcasting stations with some eight million TV sets in use.
Although the marketing tactics are similar they are not as widespread as they are in the US. To put it into perspective there are roughly one fourth the amount of people in North Carolina that there are in Argentina but over 180 more television broadcasting stations. This goes to show that the television industry still has a lot of growing to do and may not be the greatest advertising approach. The most widely used advertising method in Argentina is the print media because of its convenience, affordability, and availability.
These are all very important things to recognize if you plan to advertise in Argentina. Family is one of the most important factors in the everyday life of the citizens in Argentina. The heads of each family typically demand respect and accept the responsibility and care for others in the family. Things such as security, jobs, and maintaining personal and family honor are all things the family head should take care of daily. Honor is an important aspect of day-to-day life and is very influential on consumer spending. Argentine demeanor is described as warm and direct.
They are very close communicators physically and are not offended by touch or close physical distance while speaking. Their way of life influences the everyday products that they buy and should be kept in mind when marketing in Argentina. The majority of Argentina’s consumption right now is influenced by the changes in their economy in the last 20 years. The Argentine economy was increasing for the majority of the 1990’s. With a 37. 2% GDP increase the economy found itself expanding, consolidating, and becoming more multinational.
Consumers were well off and becoming wealthier as the GDP rose from 1991 to 1998. They experienced a great deal of product differentiation ranging from new types of products, to better quality of products, and more expensive products. However, in 1998 this all had to change because of a 7% decrease in GDP over the next year. During this time consumers had to learn how to focus their spending on sub-brands and discounted offers to save money. Marketers and businesses had to adjust also by switching their focus from product differentiation to cost-cutting strategies.
Between 1998 and 2000 there was an increase of 36% percent in the number of retail stores in the country but a fall of 23% in sales. This statistic shows how tough of a time that both consumers and businesses had to adjust to in order to try to slow down the economic regression. There are many different cohorts or marketing that could be used to look at the spending during the economic recession. Things such as age and income are two main cohorts that are often times looked at my marketers to determine the best way to supply products.
Location is another large influence of the way that sales are determined. Certain geographical areas of Argentina were experiencing more growth than others following the recession of the late 1990’s. Argentina is broken into six areas: The Metropolitan Area, the Pampa region, Northwest region, the Northeast region, the Cuyo region, and the Patagonia region. There are obvious differences regarding income and population that should be noted. The majority of the income (79%) and population (76%) are concentrated in the Metro and Pampa region with together make up between 15-20% of the national territory.
The remaining percentage of the population is spread amongst the remaining four regions. These regions display obvious differences in consumer behavior because of the income distribution between the regions. If you were a business owner it would be very important to understand the way that the purchasing power works within the regions. The Metro and Pampa regions obtain the Upper and Middle income households that have sustainable jobs and an income that allows them to make large-volume, less frequent purchases while still possibly looking for convenience and low prices.
The other four regions contain those who have low incomes or are possibly unemployed. These people typically shop at local shops and convenience stores for more immediate purchases. This information could be looked at by marketers and businesses and evaluated to make decisions influential to the revenue of the company. For example, after looking at this data we now realize that a big business is less likely to thrive in certain parts of Argentine and that they should possibly look to relocate of change the type of products that they sale to accommodate their customers.
Looking at specific marketing cohorts and evaluating them within the business or product market that you are looking to penetrate can be one of the most important steps becoming successful. Several common things such as age, gender, and income have obvious effects on consumer behavior but there are other forgotten influences that can affect behavior as well. It is important to remember to do your homework when considering consumer behavior because in the end it could make or break your business altogether.