Advertising

CHAPTER 3Consumer Behaviour

and Target Audience

Decisions

© 2014 McGraw-Hill Ryerson

Learning Objectives

Describe the consumer decision-making process and demonstrate how it relates to marketing communication.

Distinguish internal psychological processes, their influence on consumer decision making, and implications for marketing communication.

Contrast how the consumer decision-making process varies for different types of purchases and the effects on marketing communication.

Describe the consumer decision-making process and demonstrate how it relates to marketing communication.

Distinguish internal psychological processes, their influence on consumer decision making, and implications for marketing communication.

Contrast how the consumer decision-making process varies for different types of purchases and the effects on marketing communication.

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Learning Objectives

Compare the similarities and differences of target market and target audience.

⑤ Identify the options for making a target audience decision for marketing communication.

⑥ Express why a profile of the target audience is important for message, media, and IMC tool decisions.

Compare the similarities and differences of target market and target audience.

⑤ Identify the options for making a target audience decision for marketing communication.

⑥ Express why a profile of the target audience is important for message, media, and IMC tool decisions.

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Consumer Behaviour

Processes and activities which people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services to satisfy needs and desires.

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Need Recognition

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Consumer Decision-Making

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LO1


Consumer Decision Making

Decision Stage Psychological Process

Need Recognition Motivation

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LO1


Need Recognition

A difference between ideal state and actual state A want is a felt need that is shaped by a person’s

knowledge and personality.

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LO1


LO1

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Consumer Motivation

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Consumer Motivation

The way a consumer perceives a situation and becomes driven to resolve it will influence the remainder of the decision process.

LO2

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LO2

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Motivation

Maslow’s Hierarchy of Needs offers a framework for marketers to use in determining what needs their products and services satisfy

Advertising campaigns can then be developed to demonstrate how the brand fulfills the needs

LO2

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Consumer Decision MakingLO2

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Information Search Perception



Undertake if internal search does not yield enough

information.

Scan memory to recall experiences and

knowledge about past purchase alternatives.

Information Search

Information Search

Internal Search External Search

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LO2


Information SearchLO2

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External sources of information include: Personal sources Marketer-controlled sources Public sources Personal experience


Information SearchLO2

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How much and which sources of external information is dependent upon: Importance of purchase decision Effort required to acquire information Past experience Degree of perceived risk Time available


PerceptionLO2

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Marketers can formulate communication strategies based upon how consumers acquire and use information from external sources.

Marketers study the following: How consumers sense external information How they attend to various sources of information How the information is interpreted and given meaning How the information is retained


PerceptionLO2

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The number and complexity of marketing stimuli that a consumer is exposed to requires filtering

This filtering is: SELECTIVE PERCEPTION

May occur within all four stages of the perception process


The Selective Perception ProcessLO2

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Selective ExposureLO2

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Occurs as consumers choose whether or not to make themselves available to information.

Determined by: Sensory inputs – marketing stimuli to achieve

psychological reactions


Selecting InformationLO2

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Individuals generally focus on stimuli that are relevant to his or her needs

Selective Attention Occurs when consumer chooses to focus on

certain stimuli while excluding others. Survival as consumers are exposed to an

absorb number of ads in any given day. Marketers must understand the consumer to

ensure the right message is attended to by their target consumer.


Interpreting the InformationLO2

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Once the consumer selects and attends to stimuli, the next step focuses on organizing, categorizing, and interpreting the incoming information.

Selective Comprehension Very individualized stage, and highly influenced

by internal psychological factors Marketers must understand the consumer to

ensure that the cues in the message are interpreted such that the message is understood.


LO2

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Retaining the InformationLO2

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Consumers do not remember all the information they see, hear, or read – even after attending and comprehending it.


Advertisers Attempt to Help Consumers Retain Information

LO2

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Mnemonics (symbols, rhymes, associations, and images) can assist in consumers’ learning and memory processes. Example: A telephone number spelling out the

company’s name.



Alternative Evaluation Attitude Formation



Consumer Decision MakingLO2

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Alternative EvaluationLO2

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Evoked Set Subset of all brands of the which the consumer is

aware. Goal of the IMC campaign is to increase the

likelihood that the brand will be included in the consumers Evoked Set.


Alternative Evaluation

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Evaluative Criteria

Objective

PriceWarrantyService

Subjective

StyleAppearance

Image

LO2


Evaluative Criteria

Evaluative Criteria

Consumer View

Product or service viewed in terms of its

consequences.

Consumer View

Product or service viewed in terms of its

consequences.

Marketer View

Products are viewed as bundles of attributes.

Marketer View

Products are viewed as bundles of attributes.

Alternative EvaluationLO2

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Alternative Evaluation

Bundles of Benefits

Experiential Benefits Psychological

BenefitsFunctional Benefits

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LO2


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LO2


Attitude Formation

A summary construct representing an individual’s overall feelings toward an object or its evaluation.

“Attitudes are learned predispositions to respond to an object.” Gordon Allport

Advertising and promotion are used to create favourable attitudes, and/or change negative attitudes.

LO2

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Purchase Decision Integration





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LO2


Purchase Decision

At some point in the buying process, the consumer makes a purchase decision. Consumer stops searching for and evaluating alternative

brands in the evoked set. The purchase decision starts with a purchase

intention. Predisposition to buy a certain brand.

LO2

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Purchase Decision

The purchase decision is not the actual purchase. Consumer must implement decision and make

purchase. Additional decisions may be needed. Time delay often exists between making a purchase

decision and purchase itself. The time delay affects the marketing strategy, and

depends on: Type of purchase to be made Risk involved in purchase

LO2

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Brand Loyalty May AffectPurchase Decision

Consumers may have a preference for a certain brand, which will result in its repeated purchase.

LO2

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Integration Process

The ways in which product knowledge, meanings, and beliefs are combined to evaluate two or more alternatives.

Analysis of the integration process focuses on the different types of integration rules or strategies used by consumers to decide among purchase alternatives.

LO2

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Formal Decision Rules

Require examination and comparison of alternatives on

specific attributes.

Formal Decision Rules

Require examination and comparison of alternatives on

specific attributes.

Simplified Decision Rules or Heuristics

Easy to use and adapt to environmental situations.

Price- or promotion-based

Affect Referral Decision Rule – selection based on

overall impression or summary evaluation

Simplified Decision Rules or Heuristics

Easy to use and adapt to environmental situations.

Price- or promotion-based

Affect Referral Decision Rule – selection based on

overall impression or summary evaluation

Integration StrategiesIntegration Strategies

Types of Integration Strategies

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LO2


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LO2



Postpurchase Evaluation Learning

Purchase Decision Integration





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LO2


Postpurchase Evaluation

After purchase, consumer assesses the level of performance of product or service.

Provides feedback from actual use of product to influence the likelihood of future purchases.

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LO2


Satisfaction

“A judgment that consumers make with respect to the pleasurable level of consumption-related

fulfillment.” Cognitive dissonance

A feeling of psychological tension or postpurchase doubt a consumer experiences after making a difficult purchase choice.

More likely to occur when consumer has to choose between two close alternatives.

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LO2


Variations in Consumer Decision Making

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Types of

Decision Making

Routine Problem Solving

Limited Problem Solving

Extended Problem Solving

LO3



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Group Decision Making Group situations constitute many purchase decisions. Reference group

“A group whose presumed perspectives or values are used by an individual as the basis for his or her judgments, opinions, and actions.”

Used to guide consumers’ purchase decisions even when the group is not present.

Marketers use aspirational or dissociative reference group influences in developing ads and promotional strategies.

LO3


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LO3


Target Audience Decision

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Target Audience Decision

Consumer understanding is the key to the success of any IMC plan, program, or ad.

The goal of an IMC plan, program or ad is to influence the behaviour of a target audience.

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LO4


Marketing Planning Process

Target market is the focus of the firm’s marketing effort and strategies are developed to achieve the firm’ s objectives

Three step process:1. Segment the market

2. Select a target market

3. Determine the market positioning strategy

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LO4


Marketing and Promotions Process Model

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LO4


Target Audience and Target Market

Target Market The group of consumers toward which an overall

marketing program is directed. Target Audience

A group of consumers within the target market for which the advertising campaign is directed.

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LO4


Market Segmentation

Marketer identifies a target market by: Identifying the specific needs of groups of people, or

segments Selects one or more segments as a target Develops marketing programs directed to each.

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LO4


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LO4


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LO4


Psychographic

Geographic

Demographic

CustomerCharacteristics

CustomerCharacteristics

Socioeconomic

Behaviour

Benefits

Outlets

BuyingSituationBuying

Situation

Usage

Bases For Segmentation

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LO4


Target Market Selection

The promotional planner must consider: Whether the target segment is substantial enough Whether the target segment is accessible

The more marketers segment, the more precise is their understanding of a segment, but fewer customers are in each segment.

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LO4


Target Audience Options

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Brand Loyal Customers

Non-Customers

Favourable Brand Switchers

Regularly buy the firm’s product.

Buy focal brand but also buy others.

New category users

Other brand switchers

Other brand loyals

Customers not purchasing within a product category.

Not consistently purchasing focal brand.

Loyal to another brand.

Target Audience Options: Rossiter and Percy Perspective

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LO5


Target Audience Options

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LO5


IMC Planning: Target Audience Profile

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Target Audience Profile

A complete profile is necessary for direction of the remaining decisions in the promotional plan.

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LO6


Profile For Messages

For the message to be completely understood, the content of the message must be consistent with the background of the audience.

A complete profile of the audience will be useful in effective messaging.

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LO6


Profile For Media

A detailed profile allows the message to be more precisely delivered in a medium that has excellent target audience reach.

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LO6


Profile For IMC Tools

Provided sufficient profiling is done, the opportunity exists to closely align tools with the target.

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LO6


Chapter Summary

A review of the field of consumer behaviour Five stage model of decision making Internal psychological process that influence

consumer decision making Various purchase types affect consumer decision

making Target audience and target marketing Marketing communication through effective marketing

planning

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