THE CONSUMER AUDIENCE

Chapter 5 of Advertising: Principles and Practice

LeeAnn Chen
Thursday, February 24, 2011 1

Overview
Social/Cultural Influences culture social class reference groups family demographics Psychological Influences state of mind needs and wants selective perception satisfaction motivations attitudes and values personality psychographics Behavioral Influences quantity usage brand relationship innovation

Market Segment Target Audience
Thursday, February 24, 2011

Figure 5.1
2

Consumers vs. Customers
Consumers
People why buy or use products to satisfy their needs and wants

Customers
Specific types of consumers who buy a particular brand or patronize a specific store

There are many ways to categorize consumers, but an important distinction is between users and purchasers.

Thursday, February 24, 2011

3

CULTURAL AND SOCIAL INFLUENCES

Thursday, February 24, 2011

4

CULTURE

sense of belonging

CORE VALUES
respect from others fun & enjoyment security

Thursday, February 24, 2011

Norms: rules we learn through social interaction that specify or prohibit certain behaviors; derived from values Values: representation of underlying belief systems

9
self-respect warm relationships

excitement

sense of accomplishment

self-fulfillment

5

CULTURE

CORPORATE CULTURE

http://www.collectpeanuts.com/Collection/Images/Mail/IMG_1696.jpg

SUBCULTURE
http://www.etftrends.com/wp-content/uploads/ 2010/08/01aaDilbert_02.jpg

Thursday, February 24, 2011

6

Subculture: geographic regions or age, values, language, or ethnic background Ex: teenagers, college students, retirees, southerners, Texans, athletes, musicians, working single mothers

SOCIAL CLASS

http://www.filmmortal.com/ upload/ferrari_logo.jpg http://www.guide2secret.com/wp-content/ uploads/2011/01/wealth.jpg

http://www.laguardiawagnerarchive.lagcc.cuny.edu/ PhotosVirtualExhibit/Photos/02.003.19542.jpg

http://newlearningonline.com/new-learning/chapter-5-learning-personalities/files/ 2009/03/42.png

Thursday, February 24, 2011

7

Marketers assume that people in one class buy different goods from different outlets and for different reasons than people in other classes.

REFERENCE GROUP

Reference Groups

Inner-Directed

• provide information • way to compare • offer guidance

Outer-Directed

http://2.bp.blogspot.com/_nzx0UtzhKUg/SjUfGtukXQI/ AAAAAAAAGAU/oM3M_rHmeEw/s400/1a.jpg

Thursday, February 24, 2011

8

FAMILY

http://hem.passagen.se/danielho/FamilyTies/keatons6.jpg

Trend 1 person households > Married couples w/ kids
Thursday, February 24, 2011 http://www.eatmedaily.com/wordpress/wp-content/ uploads/2008/12/liz-lemon-cupcakes-preview.jpg

9

Demographics
EXPOSURE age gender sexual orientation race & ethnicity education occupation income geography PURCHASING HABITS LIFESTYLE GROWTH POTENTIAL RESPONSIVENESS COMPREHENSION NEEDS

Thursday, February 24, 2011

10

PSYCHOLOGICAL INFLUENCES

Thursday, February 24, 2011

11

Perception and State of Mind - Needs & Wants - Selective Perception - Satisfaction

Motivations Unconscious Personality

Psychographic Influences AOI - Lifestyle - VALS2 system - Trends

Attitudes & Values

Thursday, February 24, 2011

12

Needs and Wants: Maslow’s hierarchy (Self actualization, Ego needs, Belongingness, Safety, Physiological) Pg. 138 Selective perception: sel exposure (filter), sel distorition (modify), sel retention (retain) Satisfaction: cog dissonance (receive vs thought we would receive) AFTERMARKETING AOI: Activities, Opinions, Interests (useful distinction when demographics reflect similar patterns) Lifestyle: allocation of time, energy and money (cross between interests of person, product, and setting) VALS: Values and Lifestyle System (link between values and purchase weak) VALS2: link between values and psychological traits (resources and self-orientation) Actualizers - high resources, high innovation Strugglers - low r, low i Principle oriented - Fulfilled, Believers Status oriented - Achievers, Strivers Action oriented - Experiences, Makers

BEHAVIORAL INFLUENCES

Thursday, February 24, 2011

13

usage behavior

relationship consumers have with a product category or a brand
adoption timeline

Thursday, February 24, 2011

14

usage Pareto Rule: 20% of the market typically buys 80% of the products target heavy users brand relationship/loyalty adoption timeline depends on perceived risk/trust in new product

CONSUMER DECISION PROCESS
B2C B2B

Need Recognition Information Search (absent in impulse buying) Evaluation of Alternatives Purchase Decision Post-purchase Evaluation

Number of people involved Face-to-Face Customization Timeframe Performance

Thursday, February 24, 2011

15

Eval of alts: evoked set (other brands in product category that have made an impression) Purchase Decision: location, ease (displays, etc.) Post-purchase: ex: copy on package inserts reduces cog dissonance and continues to justify purchase

SO? ... Segment➔Target
group by characteristics demographic geographic psychographic behavioral benefit profile & target
http://livelovecreate.net/wp-content/uploads/2010/02/Birds-of-a-feather.jpg

Thursday, February 24, 2011

16

Don’t group: undifferentiated strategy/market aggregation strategy Because either lack resources or market is large enough to justify wasted resources EX: gas, Coke, bottled water Market segmentation opposite White Castle: target ultimate and committed cravers match needs and wants of customer-->generate more sales -->Product differentiation Psychographic - psych info with lifestyle insights Dinkies - 2x income young couples w/ no kids Guppies - gay upwardly mobile pros Skippies - school kids w/ purch pwr Slackers - slackers (20+ unempl & laid back) Bling bling gen - rap/hiphop, high-rolling lifestyle and flashy +niche markets Profile: start with the most important characteristics, try for the largest group w/o losing coherence

“It [the advertising] makes me want to buy/go to _____”
15000

Example: WHITE CASTLE http://www.welovead.com/en/works/details/eaazimtB
700

11250

525

↑ future purchase intent by 19% sales growth 100% > competitors

7500

350

3750

175

0 McDonald’s

Burger King

Wendy’s

0 White Castle

Locations
Thursday, February 24, 2011

Advertising Spending (in millions)
17

“Thanks for traveling.”

Choice Hotels Patriotic customers Travel = Right
Thursday, February 24, 2011 18

Toyota Targets Tuners
buy cheap cars & fix them up SCION Originally Asian Americans target through videos & movies
http://school.discoveryeducation.com/clipart/images/arteasel.gif Thursday, February 24, 2011 19

Sign up to vote on this title
UsefulNot useful