Transcript Document

Advertising Principles
and Practices
The Consumer
Audience
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?
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Dove Redefines Beauty
• What critical consumer insights drove the marketing
campaign?
• How is Dove changing the definition of real beauty?
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How does consumer
behavior work?
• 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
Principle:
Buyers may not be the users
and users may not be the buyers. Buyers and users
often have entirely different needs and wants.
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Influences on
Consumer
Decisions
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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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Core Values:
1.
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6.
Sense of belonging
Excitement
Fun and enjoyment
Warm relationships
Self-fulfillment
Respect from
others
7. A sense of
accomplishment
8. Security
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Social Influences
• Social Class
– The position you and your
family occupy within your
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
• Provide information
• Means of personal
comparison
• Offer guidance
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Social Influences
• Family
– Two or more people who are
related by blood, marriage, or
adoption and live in the same
household
– Household: all those who
occupy a dwelling, related or
not.
– Lifestyle: your family situation,
values, and income that
determines how you spend your
time and money
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Social Influences
• Demographics
– Statistical, social, and economic
factors that characterize a
population such as age, gender,
education, income, occupation,
race, and family size
– Identifies audiences and helps
advertisers develop messages
and select media
– U.S. Census Bureau collects
demographic data every 10
years
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Social Influences: Demographics
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Age
Gender
Family Status
Race and Ethnicity
Education
Occupation
Income
Geography
Sexual Orientation
Principle:
Your income is a key demographic factor because you
are meaningful to a marketer only if you have the
resources needed to buy the product advertised.
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Social Influences: Demographics
• The Greatest Generation (born in teens through the late 1920s)
– Fought World War II, opened up college education to the middle class;
lived frugal yet financially satisfying lives.
• Silent Generation (born mid- to late-1920s to the war years)
– Active seniors, had the most “positive impact” on America having built the
post-war economic boom of the country.
• Baby boomers (born between 1946–1964)
– Largest category; final years of their careers; lived through Civil Rights
movement, anti-Vietnam war protests; moon landing.
• Generation Jones (mid- to late-1950s to mid-1960s)
– Dream of affluence trying to “keep up with the Joneses.”
• Gen X or Baby Busters (born 1965–1979)
– Independent minded, somewhat cynical, concerned with their physical
health and financial future.
• Generation Y or Echo Boomers (1980–1996)
– More technologically savvy, forming brand relationships, more altruistic.
• The Millennium Generation (2000 and after)
– More brand conscious.
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Psychological Influences
• Perception and State of Mind
– Your past experiences with a brand, what others say, and
mental states affect behavior
• Needs and Wants
– Innate (primary) needs: water, food, shelter, and sex
– Acquired (secondary) needs: esteem, prestige, affection,
power, learning, and beauty
– Want: based on a desire or wish for something.
– Satisfaction/dissatisfaction
– Cognitive dissonance
Principle:
An item we need is something we think is essential or
necessary for our lives; an item we want
is something we desire.
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Psychological Influences:
Maslow’s Hierarchy of Needs
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Psychological Influences
• Motivations
– Motive: an internal force that
stimulates a certain behavior
• Attitudes
– Based on deeply held values, and
resistant to change
• Personality
– Brand personalities can be created
to make brands distinct from
competitors.
Principle:
Strategies that are designed to affect attitudes focus on
establishing, changing, reinforcing, or replacing them.
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Psychological Influences
• Psychographics
– Activities: work, hobbies,
social events, vacation,
entertainment, shopping
– Opinions: self, social, future,
political, business, culture,
economics, education,
– Interests: family, home, job,
food, media, achievements,
recreation
Principle:
Often, differences in consumer behavior lie in
psychographics—consumers’ interests and lifestyles —
rather than in demographics.
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Psychological Influences
• Lifestyles
– Looks at patterns of
consumption, personal
relationships and leisure
activities.
– Yankelovich Monitor’s
MindBase
– VALS
– Products are linked to
lifestyles in the way they
reflect the interests of
people and the settings in
which the products are
used.
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The VALs System
The VALs System categorizes
consumers according to psychological
traits that correlate to purchase
behavior.
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Thinkers and Believers—
motivated by ideals; abstract
criteria such as tradition, quality,
and integrity.
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Achievers and Strivers—
motivated by achievement,
seeking approval from a values
social group.
•
Experiencers and Makers—
motivated by self-expression and
the need to stand out from the
crowd or make an impact on the
physical world.
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Behavioral Influences
• Usage Behavior
– Usage rate: quantity of 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.
Principle:
In many product categories, 20 percent
of the users buy 80 percent of the products.
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Behavioral Influences:
Diffusion of Innovation Curve
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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
• Traditional View
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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)
Path
Goal
Example
Advertising’s Objective
think–feel–do
learning, interest
computer game, CD, DVD
Provide information, emotion
think–do–feel
learning,
understanding
college, a computer,
a vacation
provide information, arguments
feel–think–do
needs
a new suit, a motorcycle
create desire
feel–do–think
wants
cosmetics, fashion
establish a psychological
appeal
do–feel–think
impulse
a candy bar, a soft drink
create brand familiarity
do–think–feel
habit
cereal, shampoo
remind of satisfaction
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The Consumer Decision Process
• Influences on B2B Decision Making
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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 to used to
generate leads for the sales force.
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Segmenting and Targeting
• 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 and the most
likely to respond to marketing
communications messages.
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Segmenting and Targeting
• 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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Types of Segmentation
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Demographic segmentation • Behavioral segmentation
Life style segmentation
• Benefits segmentation
Geographic segmentation
• Values and benefits-based
Psychographic segmentation
segmentation
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Sociodemographic Segments
• Based on when you were born and lifestyle factors
– Baby Boomers, Generation X, Generation Y, Echo boomers
– Gray Market (young seniors age 60–75, older seniors 70+)
• Other lifestyle 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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Niche Markets
• 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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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.
• Behavioral targeting is getting more attention
due to new practices in Internet marketing.
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Narrowing the Target
• The target is described
using the variables that
separate this prospective
consumer group from
others who are not in
the market.
Principle:
Each time you add a
variable to a target
audience definition,
you narrow the size
of the target
audience.
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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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Discussion Questions
Discussion Question 1
• You are working as an intern at the Williams Russell
Agency and the agency has just gotten a new account,
a bottled tea named Leafs Alive that uses a healthy
antioxidant formulation. The sale of bottled tea, as
well as healthy products, is surging. Analyze your
target market using the following questions:
– What consumer trends seem to be driving this product
development?
– What cultural, social, psychological and behavioral factors
influence this market?
– Plot the consumer decision process that you think would
best describe how people choose a product in this category.
– Choose one of the VALS or Yankelovich Monitor’s
Mindbase groups that you think best describes the target
market for this product. Explain your rationale.
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Discussion Question 2
• Consider the social factors that influence consumer
decisions. Identify two demographic or
psychographic factors that you think would be most
important to each of these product marketing
situations:
a. Full line of frozen family-style meals (for
microwaving) that feature superior nutritional
balances.
b. Dairy product company (milk, cheese, ice cream)
offering an exclusive packaging design that uses
fully degradable containers.
c. A new SUV that is lighter in weight and gets
better gas mileage than the average SUV.
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Discussion Question 3
• Analyze the decision making involved in choosing
your college.
a. Interview two of your classmates and determine
what were the influences on their decision to
attend this school?
b. How did you—and the people you
interviewed—go about making this decision? Is
there a general decision-making process that
you can outline? Where are the points of
agreement and where did you and your
classmates differ in approaching this decision?
c. Draw up a target audience profile for students
attending your college. How does this profile
differ from another school in your same market
area?
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Discussion Question 4
• Five-minute debate: One of your classmates argues that
the information-driven approach to a consumer decision
sis absolutely the most important route and advertising
strategies should focus on that type of situation
• Two other classmates disagree strongly: one argues that
a feeling-driven approach is much more effective in
generating a response, and the other says the only thing
that counts is driving action, particularly sales.
• In class, organize into small teams with each team taking
of the three positions. Set up a series of debates with
each side having 1 1/2 minutes to argue its position.
Every team of debaters must present new points not
covered in the previous teams’ presentations until there
are no arguments left to present. Then the class votes as
a group on the wining point of view.
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