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									   The Consumer Audience

  Part 2: Planning and Strategy
  Chapter 5




Wells, Moriarty, Burnett & Lwin - Xth Edition   ADVERTISING Principles and Effective IMC Practice
                                                                                                    1
      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 Edition   ADVERTISING Principles and Effective IMC Practice   1-2
      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 Edition   ADVERTISING Principles and Effective IMC Practice   1-3
        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 Edition   ADVERTISING Principles and Effective IMC Practice   1-4
        Influences on Consumer’s Buying Decision Process




             Social Cultural                    Behavioral Influences                        Psychological
               Influences                       Usage                                          Influence
                                                Innovation& Adoption

               •Culture                                                                      Perception
               •Social Class                                                                 Motivation
               •Reference Groups                                                             Attitudes and values
               •Family                             Market Segment                            Personality
               •Demographic                                                                  Psychographics



                                                         Target
                                                        Audience



Wells, Moriarty, Burnett & Lwin - Xth Edition    ADVERTISING Principles and Effective IMC Practice                  1-5
                THE CONSUMER AUDIENCE
      Cultural and Social Influences
                                                                                              Tangible items: art,
                              Culture                                                         literature, building,
                                                                                              furniture,food, clothes,
       a way of life                                                                         etc.
       Learned and passed on                                                                 Intangible concept:
                                                                                              history, knowledge,
        from one gen. to                                                                      moral, tradition,
        another                                                                               language etc.

       Norm
       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.

Wells, Moriarty, Burnett & Lwin - Xth Edition   ADVERTISING Principles and Effective IMC Practice                        1-6
      Cultural and Social Influences

      Social Class
      The position a person and his/her family
       hold within society
      Determined by such factors as income,
       wealth, education, occupation, etc.




Wells, Moriarty, Burnett & Lwin - Xth Edition   ADVERTISING Principles and Effective IMC Practice   1-7
      Cultural and Social Influences

      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.



Wells, Moriarty, Burnett & Lwin - Xth Edition   ADVERTISING Principles and Effective IMC Practice   1-8
      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 Edition   ADVERTISING Principles and Effective IMC Practice   1-9
      Cultural and Social Influences
                                                                          Characteristics
                   Demographics                                       Age (different age,different need)
       The statistical,                                              Sexual orientation (product
                                                                          preferred)
        personal, social, and
                                                                         Education (media used)
        economic
        characteristics that                                             Occupation (type of product)
        describe a population                                            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 Edition   ADVERTISING Principles and Effective IMC Practice           1-10
        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 Edition   ADVERTISING Principles and Effective IMC Practice   1-11
      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 Edition   ADVERTISING Principles and Effective IMC Practice   1-12
      Psychological Influences

         Attitudes and Values                                                  Personality
       Attitudes impact                                              Distinctive characteristics
        motivations                                                     that make people or
       Influence how consumers                                         brands individual
        evaluate products,                                            Brand personalities make
        institutions, retail stores,                                    them distinctive from their
        and advertising                                                 competitors
                                                                     e.g. old-fashioned, lively,
                                                                        efficient, helpful, warm,
                                                                        dependable, risk taking

     Ad: should focus on establishing, changing,                            Ad: enhance brand personality
     reinforcing, or replacing them
Wells, Moriarty, Burnett & Lwin - Xth Edition   ADVERTISING Principles and Effective IMC Practice           1-13
      Psychographic Influences
                Psychographics ----- complex consumer profiles  how people make the
                decisions



                                                                           Psychological
                          Lifestyle:
                   The way people allocate,
                    Time, money & energy                                  Perception
                                                                          Motivation and Needs
                                                                          Attitudes
                                                                          Personality




    Hobbies, vacation, entertainment,
    club membership, fashion, family,
    job, food, trend, etc.

Wells, Moriarty, Burnett & Lwin - Xth Edition   ADVERTISING Principles and Effective IMC Practice   1-14
                THE CONSUMER AUDIENCE
      Psychological Influences

      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
            It affects ad message and the timing of the ad



Wells, Moriarty, Burnett & Lwin - Xth Edition   ADVERTISING Principles and Effective IMC Practice   1-15
      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 Edition   ADVERTISING Principles and Effective IMC Practice   1-16
      The Innovation Diffusion




Wells, Moriarty, Burnett & Lwin - Xth Edition   ADVERTISING Principles and Effective IMC Practice   1-17
      Target Profile of Oishi Green tea
      Demographics
       Primary: 15-20 years old
       Both male & female
       Students& first jobber
       Monthly income: 5000-10000
       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 Edition   ADVERTISING Principles and Effective IMC Practice   1-18
      Example: Target Profile of Iphone

      Demographics

      Psychographics

      Behavioral




Wells, Moriarty, Burnett & Lwin - Xth Edition   ADVERTISING Principles and Effective IMC Practice   1-19
      Consumer Decision Process

      Need recognition
      Information search
      Evaluation of alternatives
      Purchase decision
      Postpurchase evaluation


Wells, Moriarty, Burnett & Lwin - Xth Edition   ADVERTISING Principles and Effective IMC Practice   1-20
      The Consumer Decision Process

                                                                      The consumer recognizes
      Need recognition                                                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 Edition   ADVERTISING Principles and Effective IMC Practice          1-21
      The Consumer Decision Process

      Information search                                              Can be casual or formal
                                                                       Advertising helps the
                       Personal source : friend, relatives, co-         search process by
                              worker
                       Market-controlled source: ad.
                                                                        providing information and
                              salespeople, display                      making it easy to find, as
                       Public source: print articles, news
                              reports                                   well as remember
                       Personal experience: handling,
                              examining, testing, using




Wells, Moriarty, Burnett & Lwin - Xth Edition    ADVERTISING Principles and Effective IMC Practice   1-22
      The Consumer Decision Process
                                                                     
      Evaluation of
                                                                          Consumers compare various products
                                                                          and reduce the list of options
                                                                         Advertising helps sort out products on the
       alternatives                                                       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 Edition   ADVERTISING Principles and Effective IMC Practice                      1-23
Wells, Moriarty, Burnett & Lwin - Xth Edition   ADVERTISING Principles and Effective IMC Practice   1-24
      The Consumer Decision Process

      Purchase                                                       Often a two-part
                                                                       decision
       decision
                                                                           Select the brand
                                                                           Select the outlet from
                                                                            which to purchase
                                                                      In-store promotions
                                                                       affect these choices




Wells, Moriarty, Burnett & Lwin - Xth Edition   ADVERTISING Principles and Effective IMC Practice    1-25
      The Consumer Decision Process
                                                                      The customer
      Postpurchase                                                    reconsiders and justifies
       evaluation                                                      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 Edition   ADVERTISING Principles and Effective IMC Practice   1-26
      Involvement Decision Process




Wells, Moriarty, Burnett & Lwin - Xth Edition   ADVERTISING Principles and Effective IMC Practice   1-27

								
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