Advertising Management - ch05

Part 2
Principle: Be True to Thy Brand – And Thy Consumer
Copyright © Pearson Education Limited 2015
5-1

1. How does the consumer decision process work?
2. What cultural, psychological, and behavioral
influences affect consumer responses to
advertising?
3. How does targeting work and how is it different
from segmenting?
4. What characteristics are used to segment groups
of consumers?
5-2

 There are more than 315
million people in the United
States.
 For every brand, some are
more likely to be interested
than others.
 Messages cost money both
to send and to receive.
 How do you find prospects,
and how do you start the
conversation with them?
5-3

The traditional view:
1. Need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase evaluation
 The purchase may be low-involvement or high-
involvement.
 In low involvement, there’s little or no information
search.
Copyright © Pearson Education Limited 2015 5-4

 The path depends on the type of product and the
buying situation.
 Not all responses begin with thinking about a
product.
 Not all responses follow the same route to a
decision.
 Brand planners need to know how the decision
process works for a specific product category.

Consumer behavior describes how individuals
and groups select, purchase, use, or dispose
of products, and the needs and wants that
motivate behaviors.
5-7

Norms and Values
 Norms: a culture’s boundaries for “proper”
behavior
 Values: the source of norms which represent
underlying belief systems
 Core values: govern people’s attitudes and
guide their behavior
5-8

Ten basic core values
5-9
1. A sense of belonging
2. Excitement
3. Fun and enjoyment
4. Warm relationships
5. Self-fulfillment
6. Respect from others
7. A sense of
accomplishment
8. Security
9. Self-respect
10.Thrift

Corporate culture
 Some are formal with lots of procedures, rigid work
hours, and dress codes.
 Others are more informal in terms of their
operations, office rules, and communication.
 The same patterns exist in the way businesses make
purchasing decisions.
5-10

Social Class
Your position in society, which may be determined by:
1. Income
2. Wealth
3. Education
4. Occupation
5. Family prestige
6. Value of home
7. Neighborhood
5-11

Reference Groups
Groups we use for models for behavior, such as:
1. Teachers
2. Religious leaders
3. Political parties
4. Religious groups
5. Ethnic organizations
6. Hobby-based clubs
7. Fellow workers or students
5-12

Brand communities
Groups of people devoted to a particular brand.
 For consumers, reference groups:
1. provide information
2. serve as a means of personal comparison
3. offer guidance
5-13

Graduates of universities and
colleges tend to identify
themselves by their school
affiliation, as this ad for the
Virginia Commonwealth University
demonstrates. What can you tell
about this person’s career choice
and interests from these bumper
stickers?
5-14

Family
 People related by blood, marriage, or adoption
who live in the same household.
 A household consists of all those who occupy a
dwelling, related or not.
 In the 21st century, one-person households
outnumber married couples with children.
5-15

Needs and Wants
 Needs are motivated by basic survival instincts.
 Wants are what we desire.
“In some cases, we want things just for the sheer fun of
newness — think about how many pairs of shoes or the
amount of clothes people have.”
-- Account planner Susan Mendelsohn
5-16

Successful brands satisfy the need to:
5-17
1. Feel safe and secure
2. Feel comfortable
3. Be cared for and
connected to others
4. Be desired by others
5. Be free to do what
we want
6. Grow, become more
7. Serve others
and give back
8. Be surprised
and excited
9. Believe there is a
higher purpose
10. Feel they matter

 Maslow’s Hierarchy of Needs
5-18

 Satisfaction
This is only one possible response to a brand
message or brand experience.
 Dissonance
Cognitive dissonance refers to a conflict between
thoughts. This creates a state of tension.
 Motivation
A motive is an internal force that stimulates you
to behave in a certain manner.
5-19

The motivation is obvious for
a product that helps you
avoid catching a cold when
you travel.
Do you think it is effective to
also feature the motivation of
the product’s creator?
5-20

Influences on B2B decision making
 Many individuals involved; decision by committee
 Rational and quantitative criteria dominate
 Often based on specs to those who bid on the contract
 Long time between initial contact and decision
 Quality is important; repeat purchases based on performance
 Personal selling is important

5-22

 Segmenting
Dividing the market into groups of people who
have similar characteristics in certain key product-
related areas.
 Market segmentation
An approach to more precisely match customer
needs and wants with products.
 Niche markets
Tighter subsegments of a more general market
segment.

 Demographic segmentation
Divided by age, gender, ethnicity, income.
 Life-stage segmentation
Based on a stage in the consumers’ life cycle.
 Geographic segmentation
Uses location as a defining variable.

 Psychographic segmentation
Based on how people spend their money, their
interests and opinions, and 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.

5-26

One of advertising’s
most familiar slogans
moved women who were
tired of being told that
there are things ladies
don’t do, such as color
their hair.
What lesson can you
learn from a successful
ad like this?

Demographics
Statistical, social, economic characteristics including:
1. Age
2. Gender and sexual orientation
3. Education, occupation and income
4. Race, ethnicity, and immigration status
5. Geography
6. Religion
Let’s look at each one in depth……

Age
This is the most important demographic
characteristic used by marcom planners.
Age-related population categories:
5-29
• The Greatest Generation
• The Silent Generation
• Baby Boomers
• Generation Jones
• Gen X
• Me Generation
• Generation Y
• Millennials

Gender and sexual orientation
 Women account for about 85 percent of all
consumer purchases in the United States.
 Many brands are either masculine or feminine in
terms of use.
 Sexual orientation has become a marketing issue as
gay and lesbian consumers have become serious
target markets.

Education, occupation, and income
 Generally, white U.S. consumers attain higher levels
of education than blacks and Latinos.
 Occupation is key because most people identify
themselves by what they do.
 Income data from the 2011 census showed a shift
toward fewer people in the top third and more
people in the bottom third.
 Advertisers are especially interested in consumers’
discretionary income.

Race, ethnicity and immigration status
 In the U.S., ethnicity is a major segmentation factor.
 The United States is more multicultural than ever.
 Smart multicultural strategies recognize these trends.
 Media use differences may be based on ethnicity.
5-32

5-33
This ad for Tide targets the Hispanic culture. The translation is “The
salsa is something you dance, not what you wear.” If you were on the
Tide team, would you recommend using this ad? Why or why not?

Geography
 People residing in different regions need certain
products.
 Media planners use designated market areas
(DMAs) to describe certain media markets.

Religion
 Here, culture and demographics come together.
 Some religions forbid certain products.
As a class:
What are some examples?
What does this imply for advertisers?
5-35

Psychographics refer to lifestyle and
psychological characteristics including:
 Activities
 Values
 Interests
 Attitudes
 Opinions
5-36

Attitudes
An attitude is a predisposition that reflects an:
 opinion
 emotion
 mental state
……directed at some
 object
 person
 idea
5-37

Lifestyles
Lifestyles can be analyzed in terms of:
 Patterns of consumption
 Personal relationships
 Interests
 Leisure activities

Lifestyles
The Yankelovich MONITOR™ MindBase™ identifies eight
consumer groups:
 “I am Expressive”
 “I am Down to Earth”
 “I am Driven”
 “I am Sophisticated”
 “I am at Capacity”
 “I Measure Twice”
 “I am Rock Steady”
 “I am Devoted”
Check this company out at www.thefuturescompany.com
5-39

Lifestyles
The VALS™ system categorizes
consumers according to
psychological traits:
 Thinkers and Believers
motivated by ideals
 Achievers and Strivers
motivated by achievement
 Experiencers and Makers
motivated by self-expression

Sociodemographic segments
This approach refers to people in terms of when they
were born.
As a class:
Try to figure out who these labels describe:
• Dinkies
• Guppies
• Skippies
• Ruppies
• Mini-Me

Trends and fads
 Related to lifestyle and psychographic factors, and
the fascination with choice in a consumer culture.
 Young people are particularly involved in trends.
 Trend spotters: researchers that identify trends
affecting consumer behavior.
 Cool hunters: specialize in identifying trendy fads
that appeal to young people.

Brand usage and experiences
 Usage rate: quantity or purchase — light, medium, or
heavy.
 Experiences: our decisions are based on our
experience with the brand.
 Innovation and adoption: how willing people are to try
something new.
 Perceived risk: what you have to gain or lose by trying
something new.

 Segmenting and targeting works differently in the
21st century.
 The importance of word of mouth has increased.
 Companies are much more involved in listening
and responding to consumers.
 We not only need to rethink targeting, but also the
way consumers interact with brands.

The targeting strategy for seekers focuses on:
1. Information: A search for specific content—Where can I get
the lightest notebook computer? How do I return a product
and get a refund?
2. Interaction: Friends, fellowship, belonging, respect and
admiration, or something to talk about and share.
3. Entertainment, experiences, and stimulation: Surprises,
challenges, love and liking, happiness, rewards, something to
believe, the newest thing, ways to be smarter, more attractive.

Targeting and response strategies
Targeting:
1. New customers
2. Current customers
3. Seekers of product information
4. Seekers of interaction
5. Seekers of experiences and stimulation
Response:
1. Connect with those who respond to a brand message.
2. Connect, respond to those who initiate contact with brand.

Examples:
 Advertising potentially unhealthy
products to specific segments like
sugary foods to children.
 Emphasis on advertising to young
consumers, while ignoring the 78
million Boomers now in their
“power years.”
As a class:
What others can you think of?

In Chapter 6, we will discuss methods of
obtaining consumer insight.

“The Beauty of a Campaign”
 This campaign challenges audiences to reconsider how they define
beauty and to love their bodies, no matter what their age or shape.
 It led to a 24 percent sales increase across the entire Dove brand.
 The campaign radically changed the Dove brand image in the
United States with its culturally relevant message.
 The definition of beauty portrayed in advertising really seems to
be changing.

Advertising Management - ch05

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Editor's Notes