1. Advertising Principles
and Practices
The Consumer Audience

2. Questions We’ll Answer
Why is consumer behavior important to advertisers?
What cultural, social, psychological, and behavioral influences affect consumer responses to advertising.
How does the consumer decision process work?
What is the difference between segmenting and targeting?

3. Dove Redefines Beauty
What critical consumer insights drove the marketing campaign?
How is Dove changing the definition of real beauty? \
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4. How does consumer behavior work?
Consumer behavior: how consumers select, purchase, use, or dispose of products, and the needs and wants that motivate behaviors
Consumers: people who buy or use products or adopt ideas to satisfy needs and wants
Customers: consumers who buy particular brands or patronize specific stores
Prospects: potential customers who are likely to buy the product or brand
Principle:
Buyers may not be the users
and users may not be the buyers. Buyers and users often have entirely different needs and wants.

5. Influences on Consumer Decisions
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6. Cultural Influences Norms and Values Subcultures Corporate Culture
Norms: a culture’s boundaries for “proper” behavior
Values: the source of norms, which represent underlying belief systems
Subcultures
Smaller groups of cultures defined by geography, age, values, language, traditions, or ethnic background
Corporate Culture
How various companies operate (formal vs. informal)
Core Values:
Sense of belonging
Excitement
Fun and enjoyment
Warm relationships
Self-fulfillment
Respect from others
A sense of accomplishment
Security

7. Social Influences Social Class Reference Groups
The position you and your family occupy within your society
Determined by income, wealth, education, occupation, family prestige, value of home, and neighborhood
Reference Groups
Models for behavior such as teachers, religious or political figures, religious groups, ethnic organizations, your peers
Provide information
Means of personal comparison
Offer guidance

8. Social Influences Family
Two or more people who are related by blood, marriage, or adoption and live in the same household
Household: all those who occupy a dwelling, related or not.
Lifestyle: your family situation, values, and income that determines how you spend your time and money

9. Social Influences Demographics
Statistical, social, and economic factors that characterize a population such as age, gender, education, income, occupation, race, and family size
Identifies audiences and helps advertisers develop messages and select media
U.S. Census Bureau collects demographic data every 10 years

10. Social Influences: Demographics
Age
Gender
Family Status
Race and Ethnicity
Education
Occupation
Income
Geography
Sexual Orientation
Principle:
Your income is a key demographic factor because you are meaningful to a marketer only if you have the resources needed to buy the product advertised.

11. Social Influences: Demographics
The Greatest Generation (born in teens through the late 1920s)
Fought World War II, opened up college education to the middle class; lived frugal yet financially satisfying lives.
Silent Generation (born mid- to late-1920s to the war years)
Active seniors, had the most “positive impact” on America having built the post-war economic boom of the country.
Baby boomers (born between 1946–1964)
Largest category; final years of their careers; lived through Civil Rights movement, anti-Vietnam war protests; moon landing.
Generation Jones (mid- to late-1950s to mid-1960s)
Dream of affluence trying to “keep up with the Joneses.”
Gen X or Baby Busters (born 1965–1979)
Independent minded, somewhat cynical, concerned with their physical health and financial future.
Generation Y or Echo Boomers (1980–1996)
More technologically savvy, forming brand relationships, more altruistic.
The Millennium Generation (2000 and after)
More brand conscious.

12. Psychological Influences
Perception and State of Mind
Your past experiences with a brand, what others say, and mental states affect behavior
Needs and Wants
Innate (primary) needs: water, food, shelter, and sex
Acquired (secondary) needs: esteem, prestige, affection, power, learning, and beauty
Want: based on a desire or wish for something.
Satisfaction/dissatisfaction
Cognitive dissonance
Principle:
An item we need is something we think is essential or necessary for our lives; an item we want
is something we desire.

13. Psychological Influences: Maslow’s Hierarchy of Needs
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14. Psychological Influences
Motivations
Motive: an internal force that stimulates a certain behavior
Attitudes
Based on deeply held values, and resistant to change
Personality
Brand personalities can be created to make brands distinct from competitors.
Principle:
Strategies that are designed to affect attitudes focus on establishing, changing, reinforcing, or replacing them.

15. Psychological Influences
Psychographics
Activities: work, hobbies, social events, vacation, entertainment, shopping
Opinions: self, social, future, political, business, culture, economics, education,
Interests: family, home, job, food, media, achievements, recreation
Principle:
Often, differences in consumer behavior lie in psychographics—consumers’ interests and lifestyles —rather than in demographics.

16. Psychological Influences
Lifestyles
Looks at patterns of consumption, personal relationships and leisure activities.
Yankelovich Monitor’s MindBase
VALS
Products are linked to lifestyles in the way they reflect the interests of people and the settings in which the products are used.

17. The VALs System
The VALs System categorizes consumers according to psychological traits that correlate to purchase behavior.
Thinkers and Believers— motivated by ideals; abstract criteria such as tradition, quality, and integrity.
Achievers and Strivers— motivated by achievement, seeking approval from a values social group.
Experiencers and Makers— motivated by self-expression and the need to stand out from the crowd or make an impact on the physical world.
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18. Behavioral Influences
Usage Behavior
Usage rate: quantity of purchase—light, medium, heavy.
Brand relationship: past, present or future use of product — nonusers, ex-users, regulars, first-timers, switchers.
Innovation and adoption: how willing people are to try something new.
Perceived risk: what you have to gain or lose by trying something new.
Experiences
The experience of buying vs. acquiring the product itself.
Our decisions are based on our experience with the brand.
Principle:
In many product categories, 20 percent
of the users buy 80 percent of the products.

19. Behavioral Influences: Diffusion of Innovation Curve
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20. Trends in Consumer Buying Behavior
Trends and fads
Related to lifestyle and psychographic factors as well as desire for choice in a consumer culture.
Young people are very involved in trends.
Trendspotters: researchers that identify trends affecting consumer behavior
Cool Hunters: specialize in trends that appeal to youth
Brand proselytizer: consumer paid to positively influence people about a brand
“Take charge” mentality of today’s consumers

21. The Consumer Decision Process
Traditional View
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase evaluation
Low-involvement or high-involvement
In low involvement, there’s little or no information search

22. The Consumer Decision Process
Paths to Brand Decisions
Depends on product and buying situation
Planners must know how the process works for different product categories (e.g., cars vs. candy bars)
Path Goal Example Advertising’s Objective
think–feel–do learning, interest computer game, CD, DVD Provide information, emotion
think–do–feel learning, college, a computer, provide information, arguments
understanding a vacation
feel–think–do needs a new suit, a motorcycle create desire
feel–do–think wants cosmetics, fashion establish a psychological appeal
do–feel–think impulse a candy bar, a soft drink create brand familiarity
do–think–feel habit cereal, shampoo remind of satisfaction

23. The Consumer Decision Process
Influences on B2B Decision Making
Many individuals involved; decision by committee
Rational and quantitative criteria dominate
Often based on specs who bid on the contract; low bid wins
Long time between initial contact and decision; decisions last a long time and are supported by a contract
Quality is hugely important and repeat purchases are based on performance
Personal selling is important; advertising’s role is to used to generate leads for the sales force.

24. Segmenting and Targeting
Dividing the market into groups of people who have similar characteristics in certain key product-related areas.
Targeting
Identifying the group that might be the most profitable audience and the most likely to respond to marketing communications messages.

25. Segmenting and Targeting
Market aggregation strategy
When planners use one marketing strategy that will appeal to as many audiences as possible–“Coke is it!”
Treats the market as homogeneous (single, undifferentiated, large unit).
Market segmentation
Marketers recognize consumer differences and adjust strategies and messages accordingly (Diet Coke vs. Caffeine free Coke).
Target market
From these segments, marketers identify, evaluate, and select a group of people with similar needs and characteristics who are most likely to be in the market for the advertiser’s product.

26. Types of Segmentation Demographic segmentation Life style segmentation
Geographic segmentation
Psychographic segmentation
Behavioral segmentation
Benefits segmentation
Values and benefits-based
segmentation

27. Sociodemographic Segments
Based on when you were born and lifestyle factors
Baby Boomers, Generation X, Generation Y, Echo boomers
Gray Market (young seniors age 60–75, older seniors 70+)
Other lifestyle segments
Dinkies: double income young couples with no kids
Guppies: gay upwardly mobile professionals
Skippies: school kids with purchasing power
Slackers: high school kids who don’t care or do much
Bling bling generation: coined by rappers and hip hoppers; flashy people with a high rolling lifestyle and costly diamonds and jewelry
Ruppies: retired urban professionals; older consumers with sophisticated tastes and a generally affluent lifestyle

28. Niche Markets
Subsegments of a more general market defined by some distinctive trait
Ecologically minded moms who don’t use disposable diapers
Skateboarders
Classical music enthusiasts
Educationally oriented senior travelers

29. Profiling the Target Audience
Markets are divided into segments; then profitable segments are selected as target audiences.
A profile is a description of the target audience that reads like a description of someone you know.
Behavioral targeting is getting more attention due to new practices in Internet marketing.

30. Narrowing the Target
The target is described using the variables that separate this prospective consumer group from others who are not in the market.
Principle:
Each time you add a variable to a target audience definition, you narrow the size of the target audience.
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31. Targeting Issues Ethical Issues
Advertising potentially unhealthy products to specific segments like sugary foods to children.
Emphasis on advertising to young consumers while ignoring Boomers in their “power years.”
Microtargeting
Using vast computer databanks of personal information to identify voters most likely to support one candidate or another.
Used in swing states to identify potential supporters.

32. Discussion Questions

33. Discussion Question 1
You are working as an intern at the Williams Russell Agency and the agency has just gotten a new account, a bottled tea named Leafs Alive that uses a healthy antioxidant formulation. The sale of bottled tea, as well as healthy products, is surging. Analyze your target market using the following questions:
What consumer trends seem to be driving this product development?
What cultural, social, psychological and behavioral factors influence this market?
Plot the consumer decision process that you think would best describe how people choose a product in this category.
Choose one of the VALS or Yankelovich Monitor’s Mindbase groups that you think best describes the target market for this product. Explain your rationale.

34. Discussion Question 2
Consider the social factors that influence consumer decisions. Identify two demographic or psychographic factors that you think would be most important to each of these product marketing situations:
Full line of frozen family-style meals (for microwaving) that feature superior nutritional balances.
Dairy product company (milk, cheese, ice cream) offering an exclusive packaging design that uses fully degradable containers.
A new SUV that is lighter in weight and gets better gas mileage than the average SUV.

35. Discussion Question 3
Analyze the decision making involved in choosing your college.
Interview two of your classmates and determine what were the influences on their decision to attend this school?
How did you—and the people you interviewed—go about making this decision? Is there a general decision-making process that you can outline? Where are the points of agreement and where did you and your classmates differ in approaching this decision?
Draw up a target audience profile for students attending your college. How does this profile differ from another school in your same market area?

36. Discussion Question 4
Five-minute debate: One of your classmates argues that the information-driven approach to a consumer decision sis absolutely the most important route and advertising strategies should focus on that type of situation
Two other classmates disagree strongly: one argues that a feeling-driven approach is much more effective in generating a response, and the other says the only thing that counts is driving action, particularly sales.
In class, organize into small teams with each team taking of the three positions. Set up a series of debates with each side having 1 1/2 minutes to argue its position. Every team of debaters must present new points not covered in the previous teams’ presentations until there are no arguments left to present. Then the class votes as a group on the wining point of view.

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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Copyright © 2009 Pearson Education, Inc.  
Publishing as Prentice Hall