6 Factors that drive consumer purchase

1. 6 Factors that drive consumer purchase • Income and price – ex. Ikea (affordable) • Status – ex. BMW or Rolex watch • Current Trends – ex. skateboarding • Customs and Habits – ex. Wedding dress • Safety – ex. Helmet, snow tires • Promotion

2. What IS Marketing? • Without it, not much would sell • Consumers wouldn’t know what is available • Can’t want it if you don’t know about it • (ex. Rollerblade!) • 4 P’s • Research& development • Finding out what consumers want & making it

3. Marketing ISN’T • Production • Manufacturing

4. Marketing • Without marketing, businesses wouldn’t sell as much • Can CREATE trends • Can INFORM • How has a product improved? • What does the product do?

5. Advertising • PAID promotion of good or service • Mass media • Targets certain consumers

6. Target market • The specific type of consumer your advertisement is directed to • Example: • Mothers, with babies ages 1 to 2 years old, with an average to high income

7. What makes an effective ad? • BrightBOLDcolourand font • Catchy slogan • Interesting or informative picture • Informative text • Humour, emotional appeal, fear (of injury or harm if you don’t buy product)

8. Types of advertisingmedia • Direct to home/flyers • Billboard • Radio • Television • Transit • Magazine • Newspaper • Online (Facebook or other social media sites)

9. Direct to home/flyer Pros • Reach your targeted area easily Cons • Many just throw away and think it’s “junk mail” • Expensive to do mail-outs

10. Billboard Pros • Reach your targeted region easily • Relatively cheap Cons • Distracting/dangerous to drivers • Vandalism • Ad is up for a long period of time – may not be seen as relevant after a while • Cannot put much text – hard to read from far

11. Radio Pros • Short notice required • Reach local audience • Good for local events • Cheap Cons • Detailed information may not be understood • People may change the radio station during commercials

12. Television Pros • Detailed information can be shown, including HOW to use a product or a comparison • Video, sound, and great colour • Can target specific interests based on shows people watch Cons • VERY expensive compared to other media • Many have Netflix or PVR now and therefore do NOT watch any TV commercials

13. Transit Pros • People who take transit have more time to sit and read ads while commuting since they don’t have to pay attention to driving • Able to print text since people have time to read it and generally you are closer to the ad than when it is a billboard Cons • Hard to target specific demographic of age or interest • Can be vandalized

14. Magazine Pros • High quality images • Longer shelf life than newspaper • Sometimes get passed on from person to person • Can target specific interest groups (example “Knitting Magazine, Men’s Health, Electronics Geeks, etc) Cons • More expensive than newspaper • Long set-up time (2 months in advance) required – may not still be relevant

15. Newspaper Pros • Can easily target specific demographic area • Relatively cheap • Quick turnaround time for ad placement Cons • Picture/ad visual quality is much lower than a magazine • Newspaper life is 1 day – ad is in recycle bin the very next day • Newspapers are being purchased less due to growing online readership

16. Online Pros • Cheap • Reaches LARGE audiences • Can target Internet users based on demographic area, age, and gender Cons • Many do not trust these types of ads

17. New product • Awesome Electronics’ company is coming out with a new product and they are looking for a new advertising firm to do their marketing. • This is a type of new headphones that will change iTunes forever. These headphones will sense your mood and then suggest iTunes songs that you should listen to to go with your mood. • Based on our class discussions of pros & cons of each media, select a medium that would be best to advertise this product, and create an effective advertisement