© 2006 Pearson Education Canada Inc. 3.1 Canadian Advertising in Action Chapter 3 Consumer Behaviour Concepts and Target Marketing

© 2006 Pearson Education Canada Inc. 3.2 Learning Objectives  Explain how consumer behaviour concepts, relationship marketing, and positioning influence marketing communications  Assess information to identify & select target markets  Distinguish between: demographic, psychographic, geographic & behaviour-response segmentation

© 2006 Pearson Education Canada Inc. 3.3 Consumer Behaviour Advertisers need answers: Who makes the buying decision? Who influences the buying decision? What motivates buyers and influencers to take action?

© 2006 Pearson Education Canada Inc. 3.4 Needs and Motivation Theory Need: Absence of something useful Motive: Condition prompting action to satisfy a need Communicating benefits and presenting the right image prompts action.

© 2006 Pearson Education Canada Inc. 3.5 Maslow’s Hierarchy of Needs Self-Actualization Esteem Social Safety Physiological

© 2006 Pearson Education Canada Inc. 3.6 Personality & Self-Concept Personality: a person’s distinguishing psychological characteristics. Real Self Real Self Self- Image Self- Image Looking- Glass Self Looking- Glass Self Ideal Self Ideal Self Self-Concept

© 2006 Pearson Education Canada Inc. 3.7 Perception People receive and interpret messages differently. Selective Exposure Selective Perception Selective Retention

© 2006 Pearson Education Canada Inc. 3.8 Attitudes “Favourable or unfavourable feelings about an idea or object.” Advertising messages should coincide with the prevailing attitudes of the target market. Trying to alter an attitude is expensive and risky.

© 2006 Pearson Education Canada Inc. 3.9 Family The changing roles of family members have blurred the lines of responsibility between men and women. New responsibilities and shared decision-making has led to double targeting.

© 2006 Pearson Education Canada Inc Market Segmentation “ Dividing a large market into smaller homogeneous markets based on common needs and / or similar lifestyles.”

© 2006 Pearson Education Canada Inc Demographic Segmentation Assessment of market in terms of: Age Gender Income, Education, Occupation Marital Status & Household Formation Cultural Mix

© 2006 Pearson Education Canada Inc Key Demographic Trends Aging Population Economic Power of Women Changing Household Formations Ethnic Diversity Concentration of Wealth What are some impacts of these trends?

© 2006 Pearson Education Canada Inc Why are the over-50s such an attractive market?

© 2006 Pearson Education Canada Inc Psychographic Segmentation Examines individuals by lifestyles.  Activities  Interests  Opinions Demographically identical people are different. Brands are associated with desirable lifestyles.

© 2006 Pearson Education Canada Inc Psychographic Segmentation Learning Activity:  Using Figure 3.11 in your text, identify the segment to which you might belong.  Choose a different segment from yours.  Describe the differences to consider to market to the different groups.  Visit Millward Brown Goldfarb’s website to take their psychographic analysis. Discuss your results.Millward Brown Goldfarb’s

© 2006 Pearson Education Canada Inc Geographic Segmentation Distinct regions present different challenges for advertisers. Regional language and culture. Urban / Suburban vs Rural Geodemographics

© 2006 Pearson Education Canada Inc Targeting Individuals Technology drives relationship marketing. We can communicate directly with individuals in mass quantity. Database Marketing Cluster Profiling

© 2006 Pearson Education Canada Inc Identifying & Selecting Market Segments Identify Market Segments Select Segments with Most Potential Position Product to Appeal to Target In three steps…

© 2006 Pearson Education Canada Inc Importance of Segmentation Knowing consumers intimately is key to developing successful strategies; this knowledge provides input for a sound positioning strategy. Positioning Strategy Creative Strategy Media Strategy

© 2006 Pearson Education Canada Inc Positioning Positioning is the selling concept that motivates purchase; it can be a tangible benefit or an image that a company wants to instill in the minds of customers.

© 2006 Pearson Education Canada Inc Positioning and Advertising Head-On Brand Leadership Product Differentiation Technical Innovation Lifestyle

© 2006 Pearson Education Canada Inc Repositioning “ Changing the place a brand or company occupies in the customer’s mind in relation to competitors.” Repositioning is considered if consumer attitudes change or if competitive activity dictates a change.