The Consumer Audience

1. Advertising Principles and Practices The Consumer Audience

2. Questions We’ll Answer • Why is consumer behavior important to advertisers? • What influences affect consumer behavior? • What models explain consumer behavior and psychology?

3. First--SWOT • Strengths • Weaknesses • Opportunities • Threats

4. Workshop • Let’s do a SWOT analysis for Facebook.

5. Insight Mining

6. Remember us?

7. Consumer Audience—FBTs • What kinds of people? Age, Sex, Income, Status? • Post Sept. 11. What are their emotional attitudes towards Business Travel? • How can we know for sure? • What can a large airline do about it?

9. Influences on Consumer Decisions 5-5

10. Dove Redefines Beauty • What critical consumer insights drove the marketing campaign? \ 5-3

11. Same Company

12. Homework • Read article • Do you agree with the author? Why or why not?

13. Cultural Influences • Norms and Values • Subcultures • Corporate Culture Core Values: Sense of belonging Excitement Fun and enjoyment Warm relationships Self-fulfillment Respect from others A sense of accomplishment Security

16. Social Influences • Social Class • Determined by income, wealth, education, occupation, family prestige, value of home,and neighborhood

17. Social Influences: Demographics Demographics are the statistical, social, and economic characteristics of a population, including: • Age • Gender • Family Status • Race and Ethnicity • Education • Occupation • Income • Geography • Sexual Orientation

18. Social Influences • Demographics • U.S. Census Bureau collects demographic data every 10 years

19. Psychological Influences • Perception and State of Mind • Your past experiences with a brand, what others say, and mental states affect behavior • Needs and Wants

20. Who am I?

21. Psychological Influences:Maslow’s Hierarchy of Needs 5-13

22. The VALs System The VALs System categorizes consumers according to psychological traits that correlate to purchase behavior. • Thinkers and Believers— motivated by ideals; abstract criteria such as tradition, quality, and integrity. • Achievers and Strivers— motivated by achievement, 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. 5-17

23. Psychological Influences • Motivations • Motive: an internal force that stimulates a certain behavior • Attitudes • Based on deeply held values, and resistant to change

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

25. Some great insights

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28. Usage Behavior Principle: In many product categories, 20 percent of the users buy 80 percent of the products.

29. Behavioral Influences:Diffusion of Innovation Curve 5-19

30. Regina Lewis • VP Consumer and brand insights