MKB2704

Consumer Oriented Marketing Communications

Week 3
BUYER BEHAVIOUR: HOW AND WHY ARE
CONSUMERS CRITICAL IN IMC?

Chapter 3, Clow and Baack (2018)

A brief overview of Consumers

Consumer behaviour: the process and activities that people engage

in when searching for, selecting, purchasing, using, evaluating and
disposing of products and services so as to satisfy their needs and
desires. (Belch, Belch, Kerr and Powell, 2014)

Consumer insight: A penetrating and discerning understanding of a consumer’s

crying need that unlocks an advertising opportunity. It is the consumer’s ‘hot button’
that marketers push to generate a response (Belch et al., 2014).

Customer insight: Below-the-surface attitudes and beliefs that influence customer’s

behaviour (Duncan, 2005)
Environmental influences on consumer
behaviour
Situational determinants
Types of structural
determinants

Purchase
Usage situation situation

Communications
situation
Reference groups
Family decision making: an example of group influences
IMC Break
How Consumers Learn

To influence choice we must understand how

consumers learn

Consumer learning is the process by which

individuals acquire the purchase and consumption
knowledge and experience they apply to future
related behavior.
How Consumers Learn
Classical Operant /Instrumental
Conditioning Conditioning

Bell Food Response:

Association r Person takes
action
Secondary Primary
stimulus stimulus
Response is paired
with a stimulus – ie
R+S reward/punishment
CR UCR
Conditioned Unconditional
response response

Response:
Response R Future behaviour
is altered

Salivation
Learning happens prior to Learning happens after
purchase purchase
Classical Conditioning for Water Filter
Classical Conditioning Process
Unconditioned Unconditioned
stimulus response
(waterfall) (fresh, clear, pure)

Association develops through

contiguity and repetition

Conditioned Conditioned
stimulus response
(Brita) (fresh, clean, pure)
Instrumental (Operant) Conditioning Process

Positive or negative
Behavior
consequences occur
(consumer uses
(reward or
product or service)
punishment)

Increase or decrease
in probability of
repeat behavior
(purchase)
Consumer Decision Making

Habit/ Low involvement Consumer Decision Making process

Awareness Trial Reinforcement Nudging

Ehrenberg & Goodhardt 1980

Consumer Decision Making

High Involvement

Ehrenberg & Goodhardt 1980

Stage 1: Sources of Problem Recognition

Problem recognition - the difference between

the consumer’s ideal state and actual state.

Problem Ideal
= Less Actual state
recognition state

Key Psychological Process - Motivation – factors

that compel a consumer to take a particular
action
Stage 2: Information Search

Information search comprises:

Internal search which involves a scan of information

stored in memory to recall past experiences or
knowledge regarding purchase alternatives.

External search which involves going to outside

sources to acquire information such as personal sources,
marketer controlled sources, public sources, or through
personal experiences such as examining or handling a
product.
Stage 2: Information Search - External

• Think about brands

• Quickly reduce options
• Choice based on past experience

Brand awareness and brand

equity are important.
Stage 2: Information Search - External
Ability to Search
• Determines extent of search
• Education level
• Increases search
• Knowledge of product and brands
• Moderate level – most likely to search
Level of Motivation
• Level of involvement
• Need for cognition
• Level of shopping enthusiasm
Cost versus Benefits
• Actual cost
• Subjective cost
• Time
• Anxiety
• Opportunity cost
Consumer Attitude
• Affective
• Cognitive
• Conative
Attitude Sequence
Cognitive → Affective → Conative
Affective → Conative → Cognitive
Conative → Cognitive → Affective
Personal Values
• Comfortable life • Pleasure
• Equality • Salvation
• Excitement • Security
• Freedom • Self-fulfillment
• Fun, exciting life • Self-respect
• Happiness • Sense of belonging
• Inner peace • Social acceptance
• Mature love • Wisdom
• Personal accomplishment
Which personal values does this ad target?
Cognitive Mapping for Ruby Tuesday
Cognitive Mapping and the role of marketing
messages

• Show cognitive linkages

• Process new information
• Retain information
Principles Concerning Processing of
Information and Cognitive Mapping

• Cognitive mapping enhances the movement of

messages from short-term to long-term memory.
• Most persuasive messages reinforce current
linkages.
• Repetition is necessary to establish new linkages.
• Modifying or creating new linkages is difficult.
Methods of Evaluating Alternatives
How important is it for each of the following
brands to be a part of a consumer’s evoked
set?

• Guess (jeans)
• Advil (pain medicine)
• Head & Shoulders (shampoo)
• Black & Decker (power tools)
• C & H (sugar)
• Smith & Kline (attorneys)
• Hall’s (cough drops)
• Netflix (video rentals)
• Dr. Nelson (neurosurgeon)
• Pearle Vision (optical)
The Multiattribute Approach

High-Involvement Products

• Brand’s performance for each attribute

• Importance of each attribute
Affect Referral
• Saves mental energy
• Multiattribute approach
may have been used
previously
• Consumers often develop
emotional bonds with
brands.
Stage 3: Evaluation of Alternatives
All available brands
Brand A Brand B Brand C Brand D Brand E
The evoked set is a subset of
all the brands of which the
Brand F Brand G Brand Hconsumer
Brand I andBrand
is aware activelyJ
considering in the decision
process. A goal of marketers is
Brand K Brand L Brand Mto ensure
Brand
thatN Brand
their brands areO
included in the evoked set of
consumers.
Evoked Set of Brands
Brand B Brand E

Brand F Brand I

Brand M
Stage 3: Evaluation of Alternatives
Stage 4: Purchase Decision and Evaluation – Perceived Risk
Increases as a result of:
Intangibility
Complexity
Customer experience
Type of purchase
Customization
Purchase importance
Standardization
Newness of
product/service/store
Can be reduced by:
•Rely on reputation
•Provide additional information
•Guarantees & warranties
•Standardization
•Employee assistance
•Seek tangible cues to assess quality
•Try first
•Foster loyalty
•Meet expectations
Stage 5: Post purchase Evaluation
• The consumer decision process does not end with
the purchase. After using the product or service,
the consumer compares the level of performance
with expectations and is either satisfied or
dissatisfied.
− Satisfaction occurs when the consumer’s expectations
are either
met or exceeded.
− Dissatisfaction results when performance is below
expectations.
Stage 5: Post purchase Evaluation
• Another possible outcome of purchase is cognitive
dissonance.
Cognitive dissonance: a state of psychological
tension or postpurchase doubt that a consumer
may experience after making a purchase
decision. This tension often leads the consumer
to try to reduce it by seeking supportive
information.
• Consumers and marketers aim to reduce this
response in a variety of ways.
IMC Break
Segmenting, Targeting and Positioning
• Few, if any, products can satisfy the needs
of all consumers.
• As such, companies often develop different
strategies to segment and satisfy different
consumer needs.
• The process is referred to as target
marketing and involves four basic steps:
1. identifying markets with unfulfilled needs
2. segmenting the market
3. targeting specific segments
4. positioning one’s product or service through
marketing strategies.
Segmentation

• Hard to communicate 1to1 with all

• Segmentation aggregates the audience & creates
growth opportunities by showing:
• how to compete better in more places in the
market
• how to ‘cut’ the market a different way to identify
brand relationship opportunities
• Segmentation is about ……
Segmentation Process
Identifying markets
• Target market identification isolates consumers with
similar lifestyles, needs and values, and increases
our knowledge of their specific requirements.
• The more marketers can establish this common
ground with consumers, the more effective they will
be in:
− addressing these requirements in their
communication programs
− informing or persuading potential consumers that
the product or service offering will meet their
needs.
 Bases for segmentation
Psychographic Demographic

Customer Melb to
characteristics London
$2000
Melb to
Socioeconomic Geographic London
$9500

Behaviour Outlets

Buying
Usage situation

Awareness Benefits
Alternate segmenting: behaviour segments - loyalty

Which audience segments represent the best

potential?

Brand Favourable
Brand
Loyals Switchers

New Users
Brand
Their brand Switchers
Loyals
Determining the potential of the behaviour segments ie
where to put your efforts

NU high potential @ introductory stage ie

communication to grow the category
BL keep the customers you’ve got ie zero
defections with loyalty programs
FBS potential to develop loyalty by buying
more often but watch churn (motivated only by
sales promotion)
Determining the potential of the behaviour segments ie
where to put your efforts

BS X costly, usually necessary to buy

their patronage

TBL X very hard to attract

Criteria For Effective Targeting of Market Segments

▪ Identification
– Relevant characteristics (eg: demographics, lifestyle, benefits
sought)
▪ Sufficiency
– Sufficient number of people
▪ Stability
– Stable and likely to grow
▪ Accessibility
– Economical to reach
 Market coverage strategy
Undifferentiated marketing
Single product or service offered to P1
the whole market; no segmentation

Differentiated marketing P2 P3
P4
Develop different products
for different segments; P1
segmentation, no targeting

Concentrated marketing
Focus on single market or a P1
few markets; segmentation
and targeting
What to communicate: Brand Positioning /
Value
… is the art and science of fitting the product or service to one or
more segments of the broad market in such a way as to set it
meaningfully apart from competition.

Positioning in a marketing sense

• Against other brands
• With respect to customers

Positioning in a communication sense

• Addressing communication effects/ outcomes which lead to
communication objectives
Ries and Trout 1986
• …is not what you do to a product…is what
you to the mind of the prospect
• …an organised system for finding a window
in the mind…
• In the positioning era, it is not enough to
invent or discover something. It may not
even be necessary. You must however be
first to get into the prospect’s mind through
effective communication
Positioning

What position do
we have now?

Does our creative What position do

strategy we want to own?
match it?
Position
Do we have the From whom must
tenacity to stay with we win this
it? position?
Do we have the
money to do the
job?
Positioning strategies
By attributes and benefits?

By price or quality?

By use or application?

By product class?
How should
we position? By product user?

By competitor?

By cultural symbols?
Positioning by competitor
Positioning Statement

1. To (Y: target audience)

2. ___________is the brand of (X: category)
3. that offers (Z: brand benefit/s)

The communication for this brand:

should emphasize (U: benefit/s uniquely delivered; must
mention (I: benefit/s important ‘entry tickets; and will omit
or trade off (D: benefit/s inferior)
Ford Mustang Positioning…
Ford Mustang Positioning
1. To older males wanting to relive their youth (in comfort) (Y: target
audience)
2. Ford Mustang is the brand of iconic cars (X: category need)
3. that offers style, speed & fun (Z: brand benefit/s)

The communication for this brand:

should emphasize reputation and longevity of brand (U: benefit/s
uniquely delivered; must mention fun/risk, (I: benefit/s, important
entry tickets;
and will omit or trade off other Ford cars (D: benefit/s inferior)
Positioning based on formal/formulaic
process + experience

✓Process is an objective way to quickly

exclude inappropriate alternatives & get
on track

✓Experience + subjective traditional

approaches as a way to keep open more
lateral thinking
IMC Break
Trends Affecting Consumer Buyer Behavior
• Age complexity
• Gender complexity
• Active, busy lifestyles
• Diverse lifestyles
• Communication revolution
• Experience pursuits
• Health emphasis
Responding to New Consumer Buying Trends
• Monitor consumer environment for changes
• Create goods and services that are compatible with
changes
• Design messages that reflect changes
In Summary
Customers and consumer behaviour is at the heart of all of
IMC. The better we know them, understand them and can
relate with them, the easier our jobs is to create a great
campaign that resonates with our customers and encourages
to buy our product/service/experience

Positioning is critical to the consumer – it helps differentiate

different brands in their mind

Combining customer insight and positioning could contribute to

a stronger brand and a more meaningful message = effective
communication