You are on page 1of 37

Advertising Principles and Practices

The Consumer Audience

Questions 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?
Prentice Hall, © 2009 5-2

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

Visit the Site

Prentice Hall, © 2009

5-3

purchase. 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 Principle: Buyers may not be the users and users may not be the buyers. Prentice Hall.How does consumer behavior work? • Consumer behavior: how consumers select. Buyers and users often have entirely different needs and wants. or dispose of products. use. © 2009 5-4 .

Influences on Consumer Decisions Prentice Hall. © 2009 5-5 .

age.Cultural Influences • Norms and Values – Norms: a culture’s boundaries for ―proper‖ behavior – Values: the source of norms. traditions. 6. informal) Prentice Hall. values. © 2009 5-6 . language. 3. 2. or ethnic background • Corporate Culture – How various companies operate (formal vs. 4. which represent underlying belief systems Core Values: 1. A sense of accomplishment 8. 5. Security • Subcultures – Smaller groups of cultures defined by geography. Sense of belonging Excitement Fun and enjoyment Warm relationships Self-fulfillment Respect from others 7.

occupation. ethnic organizations.Social Influences • Social Class – The position you and your family occupy within your society – Determined by income. your peers • Provide information • Means of personal comparison • Offer guidance Prentice Hall. religious groups. family prestige. value of home. © 2009 5-7 . and neighborhood • Reference Groups – Models for behavior such as teachers. education. religious or political figures. wealth.

– Lifestyle: your family situation. marriage. or adoption and live in the same household – Household: all those who occupy a dwelling.Social Influences • Family – Two or more people who are related by blood. related or not. and income that determines how you spend your time and money Prentice Hall. values. © 2009 5-8 .

gender. income. race. social.Social Influences • Demographics – Statistical. occupation. © 2009 5-9 . and family size – Identifies audiences and helps advertisers develop messages and select media – U. education.S. Census Bureau collects demographic data every 10 years Prentice Hall. and economic factors that characterize a population such as age.

Prentice Hall. © 2009 5-10 .Social Influences: Demographics • • • • • • • • • Age Gender Family Status Race and Ethnicity Education Occupation Income Geography Sexual Orientation Principle: Your income is a key demographic factor because you are meaningful to a marketer only if you have the resources needed to buy the product advertised.

Social Influences: Demographics • The Greatest Generation (born in teens through the late 1920s) – Fought World War II. moon landing. more altruistic. lived through Civil Rights movement. Prentice Hall. • Generation Jones (mid. concerned with their physical health and financial future.‖ • Gen X or Baby Busters (born 1965–1979) – Independent minded. final years of their careers. somewhat cynical. had the most ―positive impact‖ on America having built the post-war economic boom of the country. • Generation Y or Echo Boomers (1980–1996) – More technologically savvy.to late-1950s to mid-1960s) – Dream of affluence trying to ―keep up with the Joneses.to late-1920s to the war years) – Active seniors. • Baby boomers (born between 1946–1964) – Largest category. • Silent Generation (born mid. • The Millennium Generation (2000 and after) – More brand conscious. anti-Vietnam war protests. © 2009 5-11 . lived frugal yet financially satisfying lives. forming brand relationships. opened up college education to the middle class.

© 2009 5-12 . – Satisfaction/dissatisfaction – Cognitive dissonance Principle: An item we need is something we think is essential or necessary for our lives. shelter. Prentice Hall. food. affection.Psychological Influences • Perception and State of Mind – Your past experiences with a brand. and beauty – Want: based on a desire or wish for something. and mental states affect behavior • Needs and Wants – Innate (primary) needs: water. what others say. and sex – Acquired (secondary) needs: esteem. an item we want is something we desire. learning. power. prestige.

Psychological Influences: Maslow’s Hierarchy of Needs Prentice Hall. © 2009 5-13 .

changing.Psychological Influences • Motivations – Motive: an internal force that stimulates a certain behavior • Attitudes – Based on deeply held values. reinforcing. and resistant to change • Personality – Brand personalities can be created to make brands distinct from competitors. Prentice Hall. Principle: Strategies that are designed to affect attitudes focus on establishing. or replacing them. © 2009 5-14 .

job. Prentice Hall. economics. business. recreation Principle: Often. social. hobbies.Psychological Influences • Psychographics – Activities: work. food. differences in consumer behavior lie in psychographics—consumers’ interests and lifestyles — rather than in demographics. entertainment. home. vacation. – Interests: family. social events. © 2009 5-15 . future. political. media. achievements. culture. shopping – Opinions: self. education.

© 2009 5-16 . personal relationships and leisure activities.Psychological Influences • Lifestyles – Looks at patterns of consumption. Prentice Hall. – Yankelovich Monitor’s MindBase – VALS – Products are linked to lifestyles in the way they reflect the interests of people and the settings in which the products are used.

Achievers and Strivers— motivated by achievement. • Thinkers and Believers— motivated by ideals. and integrity. abstract criteria such as tradition. 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. Visit the Site • • Prentice Hall.The VALs System The VALs System categorizes consumers according to psychological traits that correlate to purchase behavior. quality. © 2009 5-17 .

ex-users. Principle: In many product categories. • Experiences – The experience of buying vs. regulars. – Perceived risk: what you have to gain or lose by trying something new. first-timers. © 2009 5-18 . present or future use of product — nonusers. acquiring the product itself. – Innovation and adoption: how willing people are to try something new.Behavioral Influences • Usage Behavior – Usage rate: quantity of purchase—light. Prentice Hall. switchers. medium. 20 percent of the users buy 80 percent of the products. – Brand relationship: past. heavy. – Our decisions are based on our experience with the brand.

© 2009 5-19 .Behavioral Influences: Diffusion of Innovation Curve Prentice Hall.

Trends in Consumer Buying Behavior • Trends and fads – Related to lifestyle and psychographic factors as well as desire for choice in a consumer culture. © 2009 5-20 . • 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 Prentice Hall. – Young people are very involved in trends.

there’s little or no information search Prentice Hall.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. © 2009 5-21 .

. a vacation a new suit. understanding needs wants Example computer game. candy bars) Path think–feel–do think–do–feel feel–think–do feel–do–think do–feel–think do–think–feel Goal learning. interest learning. © 2009 5-22 . DVD college. arguments create desire establish a psychological appeal create brand familiarity remind of satisfaction impulse habit a candy bar. shampoo Prentice Hall. emotion provide information. a motorcycle cosmetics. cars vs. a computer. CD. fashion Advertising’s Objective Provide information. a soft drink cereal.The Consumer Decision Process • Paths to Brand Decisions – Depends on product and buying situation – Planners must know how the process works for different product categories (e.g.

The Consumer Decision Process • Influences on B2B Decision Making – – – – Many individuals involved. advertising’s role is to used to generate leads for the sales force. decision by committee Rational and quantitative criteria dominate Often based on specs who bid on the contract. © 2009 5-23 . low bid wins Long time between initial contact and decision. Prentice Hall. 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.

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 and the most likely to respond to marketing communications messages. Prentice Hall. © 2009 5-24 .

• Market segmentation – Marketers recognize consumer differences and adjust strategies and messages accordingly (Diet Coke vs. evaluate.Segmenting and Targeting • 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. 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. undifferentiated. marketers identify. • Target market – From these segments. Caffeine free Coke). © 2009 5-25 . Prentice Hall. large unit).

© 2009 5-26 .Types of Segmentation • • • • Demographic segmentation • Behavioral segmentation Life style segmentation • Benefits segmentation Geographic segmentation • Values and benefits-based Psychographic segmentation segmentation Prentice Hall.

flashy people with a high rolling lifestyle and costly diamonds and jewelry – Ruppies: retired urban professionals. Echo boomers – Gray Market (young seniors age 60–75. older seniors 70+) • Other lifestyle 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. Generation X.Sociodemographic Segments • Based on when you were born and lifestyle factors – Baby Boomers. Generation Y. older consumers with sophisticated tastes and a generally affluent lifestyle Prentice Hall. © 2009 5-27 .

Niche Markets • 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 Prentice Hall. © 2009 5-28 .

Prentice Hall.Profiling the Target Audience • Markets are divided into segments. • 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. then profitable segments are selected as target audiences. © 2009 5-29 .

Narrowing the Target • The target is described using the variables that separate this prospective consumer group from others who are not in the market. © 2009 5-30 . Prentice Hall. you narrow the size of the target audience. Principle: Each time you add a variable to a target audience definition.

Targeting Issues • Ethical Issues – Advertising potentially unhealthy products to specific segments like sugary foods to children. – Used in swing states to identify potential supporters.‖ • Microtargeting – Using vast computer databanks of personal information to identify voters most likely to support one candidate or another. Prentice Hall. © 2009 5-31 . – Emphasis on advertising to young consumers while ignoring Boomers in their ―power years.

Discussion Questions .

Explain your rationale. a bottled tea named Leafs Alive that uses a healthy antioxidant formulation. – Choose one of the VALS or Yankelovich Monitor’s Mindbase groups that you think best describes the target market for this product. Analyze your target market using the following questions: – What consumer trends seem to be driving this product development? – What cultural. The sale of bottled tea. is surging.Discussion Question 1 • You are working as an intern at the Williams Russell Agency and the agency has just gotten a new account. Prentice Hall. © 2009 5-33 . as well as healthy products. social. psychological and behavioral factors influence this market? – Plot the consumer decision process that you think would best describe how people choose a product in this category.

Discussion Question 2 • Consider the social factors that influence consumer decisions. cheese. Dairy product company (milk. A new SUV that is lighter in weight and gets better gas mileage than the average SUV. ice cream) offering an exclusive packaging design that uses fully degradable containers. b. © 2009 5-34 . Identify two demographic or psychographic factors that you think would be most important to each of these product marketing situations: a. Full line of frozen family-style meals (for microwaving) that feature superior nutritional balances. c. Prentice Hall.

a. How does this profile differ from another school in your same market area? Prentice Hall. Draw up a target audience profile for students attending your college. © 2009 5-35 .Discussion Question 3 • Analyze the decision making involved in choosing your college. How did you—and the people you interviewed—go about making this decision? Is there a general decision-making process that you can outline? Where are the points of agreement and where did you and your classmates differ in approaching this decision? c. Interview two of your classmates and determine what were the influences on their decision to attend this school? b.

Prentice Hall. Set up a series of debates with each side having 1 1/2 minutes to argue its position. Every team of debaters must present new points not covered in the previous teams’ presentations until there are no arguments left to present. organize into small teams with each team taking of the three positions. Then the class votes as a group on the wining point of view. • In class. and the other says the only thing that counts is driving action. © 2009 5-36 . particularly sales.Discussion Question 4 • Five-minute debate: One of your classmates argues that the information-driven approach to a consumer decision sis absolutely the most important route and advertising strategies should focus on that type of situation • Two other classmates disagree strongly: one argues that a feeling-driven approach is much more effective in generating a response.

or transmitted. photocopying. No part of this publication may be reproduced. © 2009 5-37 . mechanical. Publishing as Prentice Hall Prentice Hall. stored in a retrieval system. Inc. Printed in the United States of America. in any form or by any means. without the prior written permission of the publisher. or otherwise.All rights reserved. recording. electronic. Copyright © 2009 Pearson Education.