Consumer Audience

1. The consumer
audience

2. Chapter outline

3. HOW DOES CONSUMER BEHAVIOR WORK?
• Consumer behavior
– Describes how individuals or groups select, purchase,
use, or dispose of products – as well as describing the
needs that motivate these behaviors
• Consumer audience
– People who buy or use products to satisfy their needs
and wants
• Customers
– People who buy a particular brand or patronize a
specific store
5-3

4. Cultural and social influences
Culture
• Tangible items and
intangible concepts
that together define a
group of people or a
way of life
Social Class
• The position a
person and his/her
family hold within
society

5. Cultural and social influences
Reference Groups
• A group of people
who are used as a
guide for behavior in
specific situations
Family
• Two or more people
who are related by
blood, marriage, or
adoption and live in
the same household

6. Cultural and social influences
Demographics
• The statistical,
personal, social, and
economic
characteristics that
describe a population
Characteristics
• Age
• Sexual orientation
• Race and ethnicity
• Occupation
• Income
• Geography

7. Psychological influences
Perception/State of Mind
• Affects how people perceive information as
well as determines the particular pattern of
consumer behavior.

8. 5-8

9. Motivations
Internal forces that stimulate people
to behave in a particular manner
Produced by the tension caused by
an unfulfilled need.

10. Psychological influences
Attitudes and Values
• Attitudes impact motivations
• Influence how consumers evaluate products,
institutions, retail stores, and advertising
Personality
• Distinctive characteristics that make people or
brands individual
• Brand personalities make them distinctive from
their competitors

11. Psychological influences
Psychographic Influences
• Lifestyle and psychological characteristics that
have a bearing on how people make decisions.
Psychographics
• Lifestyles
– Looks at the ways people allocate time, energy, and money
• The VALS system
– Lifestyle profiles that collectively reflect a whole culture
• Trends

12. 5-12
VALS
Fram
ework

13. 5-13

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15. Behavioral influences
• Usage behavior
–How much of a product category or brand
customers buy
• Innovation and adoption
–How willing people are to be innovative and
try something new

16. Usage behavior
Consumers can be described in terms of their relationship with a product
category, as well as a brand.
 There are two ways to look at usage:
• Usage rates and
• Brand relationship.
 Usage rate refers to quantity of purchase: light, medium or heavy.
• Heavy users typically buy the most of a product category or a brand’s share of
market. There’s an old rule of thumb called the Pareto Rule that says 20
percent of the market typically buys 80 percent of the products. That explains
why the heavy user category is so important to marketers and why planners
will make special efforts to understand this key customer group.

17.  Brand relationship refers to past, present, or future use of the
product by nonusers, ex-users, regulars, first-timers, and users of
and switchers from –or to- competitive products.
 People who buy the same brand repeatedly are usually a brand’s
most important customers and the ones who are most difficult for
competitors to switch away from a brand.
 Switchers are people with low levels of brand loyalty who are
willing to leave a brand to try another one.

18. Innovation and adaptation
• Another type of behavior has to do with how willing people are to be innovative
and try something new. Rogers developed the classification system, which He
called the diffusion of innovation curve, to identify these behaviors. This adaptation
process is identified in terms of the personal behavior of people and how their
behavior reflects the speed with which they are willing to try something new.
People are grouped on the behaviors such as:
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20. The consumer decision process
• Need recognition
• Information search
• Evaluation of
alternatives
• Purchase decision
• Post purchase
evaluation
• The consumer
recognizes the need
for a product
• Advertising should
activate or stimulate
this need

21. The consumer decision process
• Need recognition
• Information search
• Evaluation of
alternatives
• Purchase decision
• Post purchase
evaluation
• Can be casual or
formal
• Advertising helps the
search process by
providing information
and making it easy to
find, as well as
remember.
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22. The consumer decision process
• Need recognition
• Information search
• Evaluation of
alternatives
• Purchase decision
• Post purchase
evaluation
• Consumers compare
various products and
reduce the list of
options
• Advertising helps sort
out products on the
basis of tangible and
intangible features

23. The consumer decision process
• Need recognition
• Information search
• Evaluation of
alternatives
• Purchase decision
• Post purchase
evaluation
• Often a two-part
decision
–Select the brand
–Select the outlet
from which to
purchase
• In-store promotions
affect these choices

24. The consumer decision process
• Need recognition
• Information search
• Evaluation of
alternatives
• Purchase decision
• Post purchase
evaluation
• The customer reconsiders
and justifies the purchase.
• Determines whether the
customer will keep the
product, return it, or
refuse to buy the product
again.

25. 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

26. Segmenting and targeting
• Market aggregation strategy
–When planners purposefully use one marketing
strategy that will appeal to as many audiences
as possible
• Market segmentation
–Assumes that the best way to sell is to
recognize differences within the broad market
and adjust strategies and messages accordingly

27. It is the Consumer who are Segmented, Not Product, nor
Price
It would be useful to provide one important clarification right
at the beginning.
Markets, sometime, speaks of product segments and price
segments and use these expressions as synonymous with
market segments.
This can leads to a wrong understanding of what market
segments, or for that matter, the process of market
segmentation as a whole, actually connote
We have to be clear that in market segmentation, it is the
consumers who are segmented, not the product, nor price.
Market is about people who consume the product, not about the
product that’s gets consumed

28. Example of market Segmentation
Titan Watches
Arrives in three broad Segments
For the youth /the
outdoor lovers:
 The Rich
 The Middle
 The Lower
For the Gold lovers For Designer
Segment
For Children Segment

29. Segmenting and Targeting

30. Consumer segmentation
Demographics: consists of dividing the market into
groups based on variables such as age, gender, family
size, income, occupation, education, religion, race and
nationality etc.

31. • Geographic segmentation uses location as a defining variable
because costumers needs sometimes vary depending upon where the
live-urban, rural, suburb, East, West and so forth.
• The most important variables are world or global, region, nation,
state, or city.
• Factors that are related to these decisions include climate, population
density, and the urban-rural character. Geography affects both
product distribution and its marketing communication.
• Psychographic segmentation is primarily based on studies of how
people spend their money, their patterns of work and leisure, their
interest and opinions, and their views of themselves.
• It is considered richer than demographic segmentation because it
combines the psychological information with lifestyle insights.

32. • Behavioral segmentation divides people into groups based
on product category and brand usage.
• Benefit segmentation is based on consumer’s needs or
problems. The idea is that people buy products for different
benefits they hope to derive.
• For example, car buyers might be grouped based on whether
they are motivated by concerns for safety, gas mileage,
durability or dependability, performance and handling, luxury
or enhancement of self-image.
• Sociodemographic segments: One common approach to
demographic segmentation, one that has entered mainstream
vocabulary, refers to people in terms of when they were born.
Although these categories are age driven, they also refer to
lifestyle differences.

33. Segmenting and targeting
• Targeting the right audience
– The target is described using the variables that
separate this prospective consumer group from
others who are not in the market
• Profiling the target audience
– Describing the target audience as if they are
people you know
– Used in developing media and message decisions

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