THE CONSUMER AUDIENCE

Chapter 5 of Advertising: Principles and Practice

LeeAnn Chen
Thursday, February 24, 2011 1
 Overview
Social/Cultural Psychological Behavioral
Influences Influences Influences
state of mind needs
culture social
and wants selective quantity usage
class reference
perception brand relationship
groups family
satisfaction innovation
demographics
motivations attitudes
and values personality
psychographics

Market Segment

Target Audience Figure 5.1

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 Consumers vs. Customers
Consumers Customers
Specific types of
People why buy or
consumers who
use products to
buy a particular
satisfy their needs
brand or patronize
and wants
a specific store

There are many ways to categorize consumers, but an important

distinction is between users and purchasers.

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 CULTURAL AND SOCIAL
INFLUENCES

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 9
CULTURE
self-respect

sense of belonging excitement

warm relationships

CORE VALUES
sense of accomplishment

respect from others

fun & enjoyment

self-fulfillment
security

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Norms: rules we learn through social interaction that specify or prohibit certain behaviors;
derived from values

Values: representation of underlying belief systems

 CULTURE
CORPORATE
CULTURE

http://www.collectpeanuts.com/Collection/Images/Mail/IMG_1696.jpg

SUBCULTURE
http://www.etftrends.com/wp-content/uploads/
2010/08/01aaDilbert_02.jpg

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Subculture: geographic regions or age, values, language, or ethnic background

Ex: teenagers, college students, retirees, southerners, Texans, athletes, musicians, working
single mothers
 SOCIAL CLASS

http://www.filmmortal.com/
upload/ferrari_logo.jpg

http://www.guide2secret.com/wp-content/
uploads/2011/01/wealth.jpg

http://newlearningonline.com/new-learning/chapter-5-learning-personalities/files/
http://www.laguardiawagnerarchive.lagcc.cuny.edu/ 2009/03/42.png
PhotosVirtualExhibit/Photos/02.003.19542.jpg

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Marketers assume that people in one class buy different goods from different outlets and for
different reasons than people in other classes.
 REFERENCE GROUP

Reference Groups
• provide information
• way to compare
Inner-Directed
• offer guidance

Outer-Directed

http://2.bp.blogspot.com/_nzx0UtzhKUg/SjUfGtukXQI/
AAAAAAAAGAU/oM3M_rHmeEw/s400/1a.jpg

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 FAMILY

http://hem.passagen.se/danielho/FamilyTies/keatons6.jpg

Trend
1 person households >
Married couples w/ kids http://www.eatmedaily.com/wordpress/wp-content/
uploads/2008/12/liz-lemon-cupcakes-preview.jpg

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 Demographics
EXPOSURE
age
PURCHASING HABITS
gender
sexual orientation LIFESTYLE
race & ethnicity
GROWTH POTENTIAL
education
occupation RESPONSIVENESS
income
COMPREHENSION
geography
NEEDS

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 PSYCHOLOGICAL
INFLUENCES

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 Perception
and State of Mind
- Needs & Wants
- Selective
Perception
- Satisfaction Psychographic
Influences
Motivations AOI
- Lifestyle
- VALS2 system
Unconscious - Trends
Personality

Attitudes &
Values

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Needs and Wants: Maslow’s hierarchy (Self actualization, Ego needs, Belongingness, Safety,
Physiological) Pg. 138

Selective perception: sel exposure (filter), sel distorition (modify), sel retention (retain)

Satisfaction: cog dissonance (receive vs thought we would receive) AFTERMARKETING

AOI: Activities, Opinions, Interests (useful distinction when demographics reflect similar
patterns)

Lifestyle: allocation of time, energy and money (cross between interests of person, product,
and setting)
VALS: Values and Lifestyle System (link between values and purchase weak)
VALS2: link between values and psychological traits (resources and self-orientation)
Actualizers - high resources, high innovation
Strugglers - low r, low i
Principle oriented - Fulfilled, Believers
Status oriented - Achievers, Strivers
Action oriented - Experiences, Makers
 BEHAVIORAL INFLUENCES

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 usage behavior

relationship consumers have with

a product category or a brand

adoption timeline

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usage
Pareto Rule: 20% of the market typically buys 80% of the products
target heavy users

brand relationship/loyalty

adoption timeline depends on perceived risk/trust in new product

 CONSUMER DECISION
PROCESS
B2C B2B
Need Recognition
Number of people involved
Information Search (absent in
Face-to-Face
impulse buying)
Customization
Evaluation of Alternatives
Timeframe
Purchase Decision
Performance
Post-purchase Evaluation

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Eval of alts: evoked set (other brands in product category that have made an impression)

Purchase Decision: location, ease (displays, etc.)

Post-purchase: ex: copy on package inserts reduces cog dissonance and continues to justify
purchase
 SO? ... Segment➔Target

group by characteristics
demographic geographic
psychographic behavioral
benefit

profile & target

http://livelovecreate.net/wp-content/uploads/2010/02/Birds-of-a-feather.jpg

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Don’t group: undifferentiated strategy/market aggregation strategy

Because either lack resources or market is large enough to justify wasted resources
EX: gas, Coke, bottled water

Market segmentation opposite

White Castle: target ultimate and committed cravers
match needs and wants of customer-->generate more sales
-->Product differentiation

Psychographic - psych info with lifestyle insights

Dinkies - 2x income young couples w/ no kids

Guppies - gay upwardly mobile pros
Skippies - school kids w/ purch pwr
Slackers - slackers (20+ unempl & laid back)
Bling bling gen - rap/hiphop, high-rolling lifestyle and flashy
+niche markets

Profile: start with the most important characteristics, try for the largest group w/o losing
coherence
 “It [the advertising] makes me
want to buy/go to _____”
Example: WHITE CASTLE
15000
http://www.welovead.com/en/works/details/eaazimtB 700

11250 525
↑ future purchase intent
by 19%

7500 350
sales growth 100% >
competitors
3750 175

0 0
McDonald’s Burger King Wendy’s White Castle

Locations Advertising Spending (in millions)

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 “Thanks for traveling.”

Choice Hotels
Patriotic customers
Travel = Right

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 Toyota Targets Tuners
buy cheap cars &
fix them up
SCION
Originally Asian
Americans
target through
videos & movies
http://school.discoveryeducation.com/clipart/images/arteasel.gif

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