The Consumer Audience

1. The Consumer Audience Part 2: Planning and Strategy Chapter 5 ADVERTISING Principles and Effective IMC Practice

2. Key Points • Assess cultural and social influences on consumer responses • Demonstrate how psychological influences motivate customers • Explain the behavioral characteristics that describe consumer responses • Describe how the consumer decision process works • Differentiate between segmenting and targeting and trace these tools to their sources ADVERTISING Principles and Effective IMC Practice

3. How Consumer Behavior Works? • Consumer behavior - Describes how individuals or groups select, purchase, use, or dispose of products – as well as describing the needs that motivate these behaviors ADVERTISING Principles and Effective IMC Practice

4. Who is the Consumer Audience? • Consumer • People who buy or use products to satisfy their needs and wants • Customers • People who buy a particular brand or patronize a specific store • Purchaser • User ADVERTISING Principles and Effective IMC Practice

5. Social Cultural Influences Market Segment Psychological Influence • Culture • Social Class • Reference Groups • Family • Demographic Perception Motivation Attitudes and values Personality Psychographics Influences on Consumer’s Buying Decision Process Behavioral Influences Usage Innovation& Adoption Target Audience ADVERTISING Principles and Effective IMC Practice THE CONSUMER AUDIENCE

6. Culture a way of life Learned and passed on from one gen. to another Norm Core value: a sense of belonging, excitement, fun & enjoyment, warm relationships, self-fulfillment, respect from others, a sense of accomplishment, security, self-respect Cultural and Social Influences • Tangible items: art, literature, building, furniture,food, clothes, etc. • Intangible concept: history, knowledge, moral, tradition, language etc. Advertiser matches the core value and the ad appeal. ADVERTISING Principles and Effective IMC Practice

7. Cultural and Social Influences Social Class • The position a person and his/her family hold within society • Determined by such factors as income, wealth, education, occupation, etc. ADVERTISING Principles and Effective IMC Practice

8. Cultural and Social Influences Family • Two or more people who are related by blood, marriage, or adoption and live in the same household • Household • Lifestyle : the way you spend your time and money on the activity you value. ADVERTISING Principles and Effective IMC Practice

9. Reference Groups A group of people who are used as a guide for behavior in specific situations 1) provide info. 2) a means of comparison 3)they offer guidance Cultural and Social Influences Reference group is used in the ad to attract the audience ADVERTISING Principles and Effective IMC Practice

10. Demographics The statistical, personal, social, and economic characteristics that describe a population Characteristics Age (different age,different need) Sexual orientation (product preferred) Education (media used) Occupation (type of product) Income (purchasing power) Race and ethnicity (type of product) Geography (type of product) Cultural and Social Influences The basis for ad strategy, media design, media selection. ADVERTISING Principles and Effective IMC Practice

11. Perception/State of Mind Affects how people perceive information as well as determines the particular pattern of consumer behavior (experience, friend,brand message, mental stage) Psychological Influences Ad: understands and communicate to the Emotion of the audience ADVERTISING Principles and Effective IMC Practice

12. Psychological Influences • Needs & Wants • Basic driving forces that motivate us to do something • Need: e.g. choose a motel when traveling • Want: e.g. choose the most expensive motel • Innate needs (needs necessary to keep life) VS Acquired needs (learn in response to culture & environment) e.g. esteem, prestige, affection power and learning ADVERTISING Principles and Effective IMC Practice

13. 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 e.g. old-fashioned, lively, efficient, helpful, warm, dependable, risk taking Psychological Influences Ad: should focus on establishing, changing, reinforcing, or replacing them Ad: enhance brand personality ADVERTISING Principles and Effective IMC Practice

14. Psychological Perception Motivation and Needs Attitudes Personality Psychographic Influences Psychographics ----- complex consumer profiles  how people make the decisions Lifestyle: The way people allocate, Time, money & energy Hobbies, vacation, entertainment, club membership, fashion, family, job, food, trend, etc. ADVERTISING Principles and Effective IMC Practice THE CONSUMER AUDIENCE

15. Psychological Influences • Motivations • Internal forces that stimulate people to behave in a particular manner • Produced by the tension caused by an unfulfilled need • People are usually motivated by emotion & habit It affects ad message and the timing of the ad ADVERTISING Principles and Effective IMC Practice

16. Behavioral Influences • Usage behavior • How much of a product category or brand customers buy • Usage Rate: Light users, Medium users, Heavy users (how much they buy) • Brand relationship: Nonusers, Ex-users, Regulars, First timers, Loyal users, Switchers • Innovation and adoption • How willing people are to be innovative and try something new • Innovators, Early adopters, Early majority, Late majority, Laggards • perceived risk: evaluate what u gain & what u have to lose if the p/d does not work ADVERTISING Principles and Effective IMC Practice

17. The Innovation Diffusion ADVERTISING Principles and Effective IMC Practice

18. Target Profile of Oishi Green tea Demographics • Primary: 15-20 years old • Both male & female • Students& first jobber • Monthly income: 5000-10000 • Nationwide Psychographics • People who are trendy • People who are open minded • People who are health-conscious Behavioral • People who usually drink green tea • Always try something new • Go fitness ADVERTISING Principles and Effective IMC Practice

19. Example: Target Profile of Iphone Demographics Psychographics Behavioral ADVERTISING Principles and Effective IMC Practice

20. Consumer Decision Process Need recognition Information search Evaluation of alternatives Purchase decision Postpurchase evaluation ADVERTISING Principles and Effective IMC Practice

21. Need recognition The consumer recognizes the need/want for a product Advertising should activate or stimulate this need The Consumer Decision Process Source of problem recognition: - Out of stock - Dissatisfaction - New needs or wants - Related product purchase - Market-induced recognition - New products ADVERTISING Principles and Effective IMC Practice

22. Information search Can be casual or formal Advertising helps the search process by providing information and making it easy to find, as well as remember The Consumer Decision Process • Personal source : friend, relatives, co-worker • Market-controlled source: ad. salespeople, display • Public source: print articles, news reports • Personal experience: handling, examining, testing, using ADVERTISING Principles and Effective IMC Practice

23. Evaluation of alternatives Consumers compare various products and reduce the list of options Advertising helps sort out products on the basis of tangible and intangible features Tangible: size, features, color, durability, package, taste, others Intangible: Style, quality, image, prestige, warranty, brand name, others The Consumer Decision Process ADVERTISING Principles and Effective IMC Practice

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25. Purchase decision Often a two-part decision Select the brand Select the outlet from which to purchase In-store promotions affect these choices The Consumer Decision Process ADVERTISING Principles and Effective IMC Practice

26. Postpurchase 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 Ad- reassuresCognitive Dissonance– the feeling of dissatisfaction with the product The Consumer Decision Process ADVERTISING Principles and Effective IMC Practice

27. Involvement Decision Process ADVERTISING Principles and Effective IMC Practice