Advertising Principles and Practices

The Consumer Audience

Dove Redefines Beauty

• • What critical consumer insights drove the marketing campaign? How is Dove changing the definition of real beauty?

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Influences on Consumer Decisions

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Social/Cultural Influences

• • Cultural Influences – Norms and Values – Subcultures – Corporate Culture Social Influences – Social Class – Reference Groups • Provide information • Means of personal comparison • Offer guidance – – Family Demographics

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Age-related Categories

• • • • • • • The Greatest Generation (born in teens through the late 1920s) – Fought World War II, middle class attended college; 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 Needs and wants Motivations Attitudes Personality Psychographics Life styles

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Psychological Influences: Maslow’s Hierarchy of Needs

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Psychological Influences

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.

Thinkers and Believers—motivated by ideals; abstract criteria such as tradition, quality, and integrity.

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 — quantity of purchase; light, heavy, medium Experiences — buying process vs. acquiring; with the brand Innovation and Adoption — how willing you are to try something new

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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.

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Cool Hunters:

specialize in trends that appeal to youth.

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Brand proselytizer:

consumer paid by positively influence people about a “Take charge” mentality of today’s consumers

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The Consumer Decision Process

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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

think –feel–do think –do–feel feel –think–do feel –do–think

Goal

learning, interest learning, understanding needs wants do do –feel–think –think–feel impulse habit

Example

computer game, CD, DVD college, a computer, a vacation a new suit, a motorcycle cosmetics, fashion a candy bar, a soft drink cereal, shampoo

Advertising’s Objective

Provide information, emotion provide information, arguments create desire establish a psychological appeal create brand familiarity remind of satisfaction

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The Consumer Decision Process

• Influences on 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 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 (most likely prospects) and the most likely to respond to marketing communications messages (target market).

Market aggregation strategy – 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).

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Types of Segmentation

• • • • Demographic segmentation Life stage segmentation Geographic segmentation Psychographic segmentation • • • Behavioral segmentation Benefits segmentation Values and benefits-based segmentation

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Sociodemographic Segments

• • • • • • 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 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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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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