1. Understanding the Customer

2. Identify the customer Culture- an integrated pattern of behavior, knowledge, and beliefs that are acquired from a group and passed on to future generations Social class- a group sharing the same economic or social status. (income, education, occupation) Community- a group of people with common characteristics or interests living within a larger society. Family Gender

3. Steps in making a purchasing decision Define the problem-what are my wants? Advertising creates wants Identify choices- advertising helps with this Evaluate the choices-advertising provides info to help Choose one Act on the choice Review your decision- advertising reinforcement to your decision in many ways

4. Targeting the consumer Determine a market segment-group of people with common characteristics and similar needs and wants Demographics Usage and commitment-heavy users Geography Psychographics-interests, activities, opinions, lifestyles Benefits-consumers who are looking for the same benefits of a product

5. Positioning Strategy elements Positioning-process of making an advertiser’s product different from other products in the consumer’s mind. Elements of a positioning strategy: 1. Substance-backup ad claims with actual performance 2. Consistency-ad must continue to send the same message 3. Simple, Distinctive theme- keep the ad message simple and understood

6. Positioning themes Themes can be physical or perceptual Physical-can go 0-60 in 6 seconds Perceptual-emphasize the excitement tat the car gives you

7. Positioning Themes 1. Benefit Positioning- focus on a single benefit the product gives. Reliability, safety 2. User Positioning- focus on the user’s (customer) lifestyle and show how the product fits 3. Competitive Positioning-emphasize the difference between your product and others on the shelf. Note- it may become necessary to reposition your product if the market or preferences change.

8. Test the message Ad research- thorough investigation of the planning, preparation, and placement of ads 1. Select the target segment 2. Understand the segment before ad is released 3. Evaluate the ad’s effectiveness before release 4. Evaluate the ad’s remaining effectiveness before it is withdrawn

9. Developmental Research Idea generation-get views from customers for ideas Environmental analysis-study the trends Social, cultural, economic, political Audience Definition-get to know the target segment Audience Profiling- get a complete picture of the target Lifestyle research, surveys, interviews

10. Focus Groups Usually 6-12 consumers, led by a professional moderator, who discuss the product.

11. Test methods Prerelease and Postrelease tests provide good information Prerelease test methods: Communications tests-testing the message being sent Magazine dummies- Mock-up ad placed in a magazine and tested for recall and feelings about the ad.

12. Test Methods Theater Tests-audience views ad in small theater Thought Listings- after viewing the ad, group writes down thoughts about the ad. Pilot test- before a full release of the ad, the ad is sent to a smaller portion of the market segment Usually through direct mail.