Prentice Hall, © 20095-1 The Consumer Audience Part 2: Principle: Strategy is Creative, Too Chapter...

5-1Prentice Hall, © 2009

The Consumer Audience

Part 2: Principle: Strategy is Creative, Too

Chapter 5


Questions We’ll AnswerQuestions 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?

CHAPTER KEY POINTS


DefinitionsDefinitions

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.


Cultural InfluencesCultural Influences

INFLUENCES ON CONSUMER DECISIONS

• 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).


Social InfluencesSocial 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.


Psychological InfluencesPsychological 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.


Behavioral InfluencesBehavioral 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.


Trends in Consumer Trends in Consumer Buying BehaviorBuying Behavior

THE POWER OF BRAND COMMUNICATION

• 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.


The Information ApproachThe Information Approachto Brand Decisionsto Brand Decisions

THE CONSUMER DECISION PROCESS

• 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


Paths to Brand DecisionsPaths 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


Influences of B2B Decision MakingInfluences 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


DefinitionsDefinitions

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


To Segment or Not to SegmentTo 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.


Types of SegmentationTypes 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


Sociodemographic SegmentsSociodemographic 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


Niche SegmentsNiche 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


Profiling the Target AudienceProfiling 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.


Targeting IssuesTargeting 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. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall

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