Transcript Introduction to Advertising

The Consumer Audience
Part 2: Principle: Strategy is Creative, Too
Chapter 5
Prentice Hall, © 2009
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CHAPTER KEY POINTS
Questions We’ll Answer
• Why is consumer behavior important to
advertisers?
• What cultural, social, psychological, and
behavioral influences affect consumer
responses to advertising.
• How does the consumer decision process
work?
• What is the difference between segmenting
and targeting?
Prentice Hall, © 2009
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HOW DOES CONSUMER BEHAVIOR WORK?
Definitions
• Consumer behavior: how consumers select,
purchase, use, or dispose of products, and the
needs and wants that motivate behaviors.
• Consumers: people who buy or use products
or adopt ideas to satisfy needs and wants.
• Customers: consumers who buy particular
brands or patronize specific stores.
• Prospects: potential customers who are likely
to buy the product or brand.
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INFLUENCES ON CONSUMER DECISIONS
Cultural Influences
• Norms and Values
– Norms: a culture’s boundaries for “proper”
behavior
– Values: the source of norms which represent
underlying belief systems
• Subcultures
– Smaller groups of cultures defined by geography,
age, values, language, traditions, or ethnic
background.
• Corporate Culture
– How various companies operate (formal vs.
informal).
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INFLUENCES ON CONSUMER DECISIONS
Social Influences
• Social Class
– Your position in society determined by income, wealth,
education, occupation, family prestige, value of home, and
neighborhood.
• Reference Groups
– Models for behavior such as teachers, religious or political
figures, religious groups, ethnic organizations, your peers.
• Family
– People related by blood, marriage, or adoption who live in
the same household.
– Household: all those who occupy a dwelling, related or not.
• Demographics
– Statistical, social, and economic factors such as age, gender,
education, income, occupation, race, family size, and sexual
orientation.
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INFLUENCES ON CONSUMER DECISIONS
Psychological Influences
• Perception and State of Mind
– Past experiences, what others say, and mental states.
• Needs and Wants
– A need is what we think is essential, a want is what we desire.
• Motivations
– Internal forces that stimulates a certain behavior.
• Attitudes
– Based on deeply held values, and resistant to change.
• Personality
– Created to make brands distinct from competitors.
• Psychographics
– Activities, opinions, and interests.
• Lifestyles
– Yankelovich Monitor’s MindBase, VALS.
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INFLUENCES ON CONSUMER DECISIONS
Behavioral Influences
• Usage Behavior
– Usage Rate: quantity or purchase—light, medium, heavy.
– Brand relationship: past, present, or future use of product—
nonusers, ex-users, regulars, first-timers, switchers.
– Innovation and Adoption: how willing people are to try
something new.
– Perceived risk: what you have to gain or lose by trying
something new.
• Experiences
– The experience of buying vs. acquiring the product itself.
– Our decisions are based on our experience with the brand.
Prentice Hall, © 2009
5-7
THE POWER OF BRAND COMMUNICATION
Trends in Consumer
Buying Behavior
• Trends and fads
– Related to lifestyle and psychographic factors as
well as desire for choice in a consumer culture.
– Young people are very involved in trends.
• Trendspotters: researchers that identify trends affecting
consumer behavior
• Cool hunters: specialize in trends that appeal to youth
• Brand proselytizer: consumer paid to positively
influence people about a brand
– “Take charge” mentality of today’s consumers.
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THE CONSUMER DECISION PROCESS
The Information Approach
to Brand Decisions
• Traditional View
– Need recognition
– Information search
– Evaluation of alternatives
– Purchase decision
– Postpurchase evaluation
• Low-involvement or High-involvement
– In low involvement, there’s little or no
information search
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THE CONSUMER DECISION PROCESS
Paths to Brand Decisions
• Depends on product and buying situation
• Planners must know how the process works for
different product categories (e.g. cars vs. candy bars)
– Think–feel–do
– Think–do–feel
– Feel–think–do
– Feel–do–think
– Do–feel–think
– Do–think–feel
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THE CONSUMER DECISION PROCESS
Influences of B2B Decision Making
• Many individuals involved; decision by committee
• Rational and quantitative criteria dominate
• Often based on specs who bid on the contract; low
bid wins
• Long time between initial contact and decision;
decisions last a long time and are supported by a
contract
• Quality is hugely important and repeat purchases are
based on performance
• Personal selling is important; advertising’s role is
used to generate leads for the sales force
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SEGMENTING AND TARGETING
Definitions
• Segmenting
– Dividing the market into groups of people who
have similar characteristics in certain key
product-related areas
• Targeting
– Identifying the group that might be the most
profitable audience (most likely prospects) and
the most likely to respond to marketing
communications messages
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SEGMENTING AND TARGETING
To Segment or Not to Segment
• Market aggregation strategy
– When planners use one marketing strategy that will appeal
to as many audiences as possible—“Coke is it!”
– Treats the market as homogeneous (single, undifferentiated,
large unit).
• Market segmentation
– Marketers recognize consumer differences and adjust
strategies and messages accordingly (Diet Coke vs.
Caffeine free Coke).
• Target market
– From these segments, marketers identify, evaluate, and
select a group of people with similar needs and
characteristics who are most likely to be in the market for
the advertiser’s product.
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SEGMENTING AND TARGETING
Types of Segmentation
• Demographic segmentation
– Divided by age, gender, ethnicity, income
• Life style segmentation
– Based on consumers’ life cycle
• Geographic segmentation
– Uses location as a defining variable
• Psychographic segmentation
– Based on how people spend their money and time, their interests
and opinions and their views of themselves
• Behavioral segmentation
– Based on product category and brand usage
• Values and benefits-based segmentation
– Based on underlying values or consumers’ needs and problems
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SEGMENTING AND TARGETING
Sociodemographic Segments
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Dinkies: double income young couples with no kids
Guppies: gay upwardly mobile professionals
Skippies: school kids with purchasing power
Slackers: high school kids who don’t care or do much
Bling bling generation: coined by rappers and hip
hoppers; flashy people with a high rolling lifestyle
and costly diamonds and jewelry.
• Ruppies: retired urban professionals; older consumers
with sophisticated tastes and a generally affluent
lifestyle
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SEGMENTING AND TARGETING
Niche Segments
• Subsegments of a more general market defined by
some distinctive trait
– Ecologically minded moms who don’t use
disposable diapers
– Skateboarders
– Classical music enthusiasts
– Educationally oriented senior travelers
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SEGMENTING AND TARGETING
Profiling the Target Audience
• Markets are divided into segments; then profitable
segments are selected as target audiences.
• A profile is a description of the target audience that
reads like a description of someone you know.
• The target is described using the variables that
separate this prospective consumer group from others
who are not in the market.
• Each time you add a variable to a target audience
definition, you narrow the size of the target audience.
• Behavioral targeting is getting more attention due to
new practices in Internet marketing.
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SEGMENTING AND TARGETING
Targeting Issues
• Ethical Issues
– Advertising potentially unhealthy products to
specific segments like sugary foods to children.
– Emphasis on advertising to young consumers
while ignoring Boomers in their “power years.”
• Microtargeting
– Using vast computer databanks of personal
information to identify voters most likely to
support one candidate or another.
– Used in swing states to identify potential
supporters.
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Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
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