Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice 1 The Consumer Audience Part 2: Planning and Strategy Chapter 5

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-2 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

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-3 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

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-4 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

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-5 Influences on Consumer’s Buying Decision Process Social Cultural Influences Culture Social Class Reference Groups Family Demographic Market Segment THE CONSUMER AUDIENCE Psychological Influence Perception Motivation Attitudes and values Personality Psychographics Behavioral Influences Usage Innovation& Adoption Target Audience

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-6 Cultural and Social Influences Culture a way of life a way of life Learned and passed on from one gen. to another Learned and passed on from one gen. to another Norm Norm Core value: a sense of belonging, excitement, fun & enjoyment, warm relationships, self-fulfillment, respect from others, a sense of accomplishment, security, self-respect Core value: a sense of belonging, excitement, fun & enjoyment, warm relationships, self-fulfillment, respect from others, a sense of accomplishment, security, self-respect Advertiser matches the core value and the ad appeal. Tangible items: art, literature, building, furniture,food, clothes, etc. Intangible concept: history, knowledge, moral, tradition, language etc.

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-7 Social Class The position a person and his/her family hold within society Determined by such factors as income, wealth, education, occupation, etc. Cultural and Social Influences

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-8 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. Cultural and Social Influences

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-9 Cultural and Social Influences 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 Reference group is used in the ad to attract the audience

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-10 Cultural and Social Influences 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) The basis for ad strategy, media design, media selection.

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-11 Psychological Influences 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) Ad: understands and communicate to the Emotion of the audience

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-12 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

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-13 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 e.g. old-fashioned, lively, efficient, helpful, warm, dependable, risk taking Ad: should focus on establishing, changing, reinforcing, or replacing them Ad: enhance brand personality

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-14 Psychographics  complex consumer profiles  how people make the decisions THE CONSUMER AUDIENCE Psychological Perception Motivation and Needs Attitudes Personality Lifestyle: The way people allocate, Time, money & energy Psychographic Influences Hobbies, vacation, entertainment, club membership, fashion, family, job, food, trend, etc.

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-15 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 Psychological Influences It affects ad message and the timing of the ad

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-16 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

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-17 The Innovation Diffusion

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-18 Target Profile of Oishi Green tea Demographics Primary: years old Both male & female Students& first jobber Monthly income: 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

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-19 Example: Target Profile of Iphone Demographics Psychographics Behavioral

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-20 Consumer Decision Process Need recognition Information search Evaluation of alternatives Purchase decision Postpurchase evaluation

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-21 The Consumer Decision Process Need recognition The consumer recognizes the need/want for a product Advertising should activate or stimulate this need Source of problem recognition: - Out of stock - Dissatisfaction - New needs or wants - Related product purchase - Market-induced recognition - New products

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-22 The Consumer Decision Process 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 Personal source : friend, relatives, co- worker Market-controlled source: ad. salespeople, display Public source: print articles, news reports Personal experience: handling, examining, testing, using

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-23 The Consumer Decision Process 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

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-24

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-25 The Consumer Decision Process Purchase decision Often a two-part decision Select the brand Select the outlet from which to purchase In-store promotions affect these choices

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-26 The Consumer Decision Process 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- reassures Cognitive Dissonance– the feeling of dissatisfaction with the product

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-27 Involvement Decision Process