Company LOGO THE CONSIDERATIONS FOR CONSUMERS Where consumer power comes from Considerations for consumers The role of advertising

CONSUMERS IN THE MARKETPLACE Consumers have power due to their ability to buy goods and services These decisions affect the success of producers and sellers in the marketplace Consumer power depends on the number of consumers who are doing the same thing in the same market at the same time

CONSUMERS IN THE MARKETPLACE Prior to the Industrial Revolution most goods and services were produced after consumers placed their orders Today most goods are produced before consumers decide to buy Producers today have to try and anticipate demand, those who guess correctly succeed

CONSIDERATIONS AS A CONSUMER Does the product have a health impact? –Choices at the grocery store Low fat, sugar free, vitamins, Calories, fresh, frozen –Choices about hobbies and activities Active vs. passive Indoor vs. outdoor Aerobic vs. anaerobic

CONSIDERATIONS AS A CONSUMER Is there a safety factor in this purchase? –Airbags in vehicles, braking system, antiroll technology –Safety glasses, stop saws, steel toed boots, hard hats –Sports safety measures visors, neck guards for hockey

CONSIDERATIONS AS A CONSUMER Is there a security component to this purchase? –Home alarms, car alarms –Protective software –GPS tracking systems –Video cameras in convenience stores

CONSIDERATIONS AS A CONSUMER Is this a product produced locally, does one choice have a better impact for my community? –Produce, local is likely fresher –Local hardware store versus Home Depot –Handcrafted production versus mass production –Typically speaking in each of the instances the trade off is higher price

CONSIDERATIONS AS A CONSUMER How much does the environment factor in to my purchasing decisions? –Recycled products –Disposable products –Fuel efficiency of cars –Types of light bulbs

THE ROLE OF ADVERTISING Advertising ensures that consumers have information on new and existing products or services before they make their purchasing decisions

POSITIVES OF ADVERTISING 1.informs consumers about new products 2.advertising results in lower prices due to increased sales. These increased sales lead to efficiency of production because mass marketing means each item produced is less expensive 3.advertising gives consumers more choice. Consumers can select the products and services most suitable for themselves

ARGUMENTS AGAINST ADVERTISING 1.Advertising can be misleading and misinform customers 2.Advertising can confuse consumers by making poor quality products look good 3.advertising encourages dissatisfaction and wasteful spending

THE GROUPS TARGETED BY ADVERTISERS BELONGERS –defend status quo, they are traditionalists and conservative –they drive a Dodge or Plymouth, drink Pepsi or Coke, eat at McDonalds or Pizza Hut –advertisers prey on their loyalty –30% of consumers fit in this category

THE GROUPS TARGETED BY ADVERTISERS EMULATORS –Young people, wannabees –They are 15% of North American market –Will do anything to fit it –Chase trends and trendy products –Advertisers prey on their insecurity

THE GROUPS TARGETED BY ADVERTISERS EMULATOR-ACHIEVERS –Materialists, want the best of everything –About 20% of North American population –Advertisers prey on their desire to keep up with the Joneses – Feel at home with high priced, exclusive brands –BMW or Mercedes, Dom Perignon Champagne, imported foods and designer clothes

THE GROUPS TARGETED BY ADVERTISERS SOCIETALLY CONSCIOUS ACHIEVERS –Care more about inner peace, environment, safety than financial success –About 20% of North American Population –Recycled products, no name products, local products

THE GROUPS TARGETED BY ADVERTISERS NEEDS DIRECTED CONSUMERS –Welfare recipients, people on fixed incomes, minimum wage earners, senior citizens on pension –Ignored by advertisers –About 15% of the North American population