CHAPTER 4

Targeting

2010 South-Western, a part of Cengage Learning PowerPoint Presentation by Charlie Cook

All rights reserved. The University of West Alabama
Eighth Edition
 Chapter Objectives
After reading this chapter you should be able to:
1. Appreciate the importance of targeting marketing
communications to specific consumer groups and
realize that the targeting decision is the initial and
most fundamental of all marcom decisions.
2. Understand the role of behaviorgraphics in targeting
consumer groups.
3. Describe the nature of psychographic targeting.
4. Appreciate major demographic developments such as
changes in the age structure of the population and
ethnic population growth.

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 Chapter Objectives (contd)
After reading this chapter you should be able to:
5. Explain the meaning of geodemographics and
understand the role for this form of targeting.
6. Recognize that any single characteristic of
consumerswhether their age, ethnicity, or income
levellikely is not solely sufficient for sophisticated
marcom targeting.

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 Targeting
Targeting Specific Audiences
Is considered the starting point for marcom decisions
Allows for precise delivery of marketing
communications to targeted markets
Prevents wasted coverage to people falling outside
the targeted market
Choosing a Targeting Method
How difficult to obtain data about the characteristic to
be use in targeting consumers
How predictive is the characteristic of consumer
choice behavior

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 Targeting Specific Audiences

Behaviorgraphics

Psychographics
Measureable Consumer
Characteristics
Demographics

Geodemographics

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Figure 4.1 Classification of Four General Targeting Characteristics

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 Behaviorgraphic Targeting
Behaviorgraphics
Describe how people behave with respect to a
particular product category or class of related
products
Assume that the best predictor of future behavior is
past behavior
Online Behavioral Targeting
Tracks the online site-selection behavior of users so
as to enable advertisers to serve targeted ads
Privacy Concerns
Technological advances increase the ability to serve
consumers at the risk of invading their privacy
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 Psychographic Targeting
Psychographics
Describe aspects of consumers psychological make-
ups and lifestyles as they relate to buying behavior in
a particular product category
Attitudes
Values
Motivations

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 Types of Psychographic Profiles
Customized Psychographic Profiles
Are typically customized to the clients specific
product category
Contain questionnaire items related to the unique
characteristics of the product category
General Purpose Psychographic Profiles
Can be purchased as off-the-shelf psychographic
data from services that develop psychographic
profiles of people independently of any particular
product or service

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Table 4.1 Illustrative Statements Used In a Customized Banking-
Related Psychographic Study

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 Psychographic Study of Consumers
Banking Practices

Psychographic Segments
of Banking Behaviors

Worried Bank Secured Thrifty

Traditionalists Loyalists Investors Bankers

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Table 4.2 Yankelovich MindBase Segments

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Table 4.2 Yankelovich MindBase Segments (contd)

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Figure 4.2

The 8 VALS
Segments

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 VALS Psychographic Segments

Successful, sophisticated, take-charge, with high self-

Innovators esteem

Mature, satisfied, comfortable, and reflective; valuing order,

Thinkers knowledge, and responsibility and motivated by ideals

Conservative, conventional with concrete beliefs based on

Believers traditional, established codes: family, religion, community,
and the nation; motivated by ideals

Motivated by the desire for achievement; have goal-oriented

Achievers lifestyles and a deep commitment to career and family

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 VALS Psychographic Segments

Trendy and fun loving. Motivated by achievement out of

Strivers concern about the opinions and approval of others

Motivated by self-expression; are young, enthusiastic, and

Experiencers impulsive consumers; quickly become enthusiastic about
new possibilities but are equally quick to cool.

Motivated by self-expression; express themselves and

Makers experience the world by working on it and have enough skill
and energy to carry out their projects successfully

Live narrowly focused lives; with few resources with which to

cope, often believe that the world is changing too quickly;
Survivors are comfortable with the familiar and are primarily concerned
with safety and security

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 Geodemographic Targeting
Geodemographics
Consumers who reside within geographic clusters
such as zip codes or neighborhoods also share
demographic and lifestyle similarities
Typical Clusters (PRIZM NE)
Bohemian Mix
White Picket Fences
Suburban Pioneers

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 Demographic Targeting

Major Demographic
Aspects

Change in
Age structure Ethnic population
household
of the population developments
composition

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 Demographic Trends
World Population Growth
6.67 billion (2009) to 8 billion (2025)
to 9 billion (2050)
Changing Age Structure in United States
Median age will increase to 38 by 2025
More middle-aged Baby Boomers
Fewer children, teenagers, and young adults
due to decreased birthrates

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Table 4.3 Worlds 25 Largest Countries as of 2007

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Table 4.4 Largest Ancestral Groups of U.S. Residents

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Table 4.5
Population of the
United States by
Age Group, as of
2006

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 Demographic Segments by Age Group
Preschoolers (5 years or younger)
Elementary-school-age children (6-11 years)
Tweens (8-12 years)
Teenagers (13-19 years)
Millennial Generation or Generation Y
Highly conformist, narcissistic, and fickle consumers

Young adults (20-34 years)

Generation X (Baby Busters)
Yup & Comers, Bystanders, Playboys, and Drifters

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Figure 4.3

An Appeal to
Preschoolers
Parents

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Figure 4.4 An Appeal to Teenagers

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 Demographic Segments: Age
Middle-Aged (35-54 years)
Younger baby boomers and older Gen Xers
Target category for luxury goods and youth

Mature Consumers (55 years or older)

Are 23% of the total U.S. population
Have highest discretionary income and most assets
Census Bureau classification: Olders (55 to 64);
Elders (65 to 74); and the Very Old (75 and over)
Descriptive groups: Healthy Hermits, Ailing Outgoers,
Frail Recluses, and Healthy Indulgers

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Figure 4.5

An Appeal to
Female Baby
Boomers

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 The Ever-Changing American Household
Household Defined
An independent housing entity, either rental property
or owned property.
U.S. Households
Growing in number, shrinking in size, and changing in
character
Married couples with children families now represent
less than one-third of all households
Single person and unrelated persons households are
a growing market

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 Ethnic Population Developments
Changes in the U.S. Melting Pot
More diversity in the overall population
Growth in all ethnic groups
Implication for Marketers
Need to devise marcom strategies to meet ethnic
groups unique wants/needs

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Table 4.6 Ethnic Groups Population Representation
in the United States, 20002050 (in millions)

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 Ethnic Population Developments
African Americans
Are of an average age that is considerably younger
than that for whites
Are geographically concentrated, with three-fourths of
all blacks living in 16 states
Tend to purchase prestige and name-brand products
in greater proportion than do whites
Have spending power that totals
nearly 800 billion annually

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Figure 4.6

African-American
Models Appeal to
African American
Consumers

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 Ethnic Population Developments (contd)
Hispanic Americans (Latinos)
Are the largest U.S. minority
population segment
Are not a single unified market
Are underserved by current
marketing efforts
Are responsive to advertising in
their dominant language

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Table 4.7 Top 10 U.S. Hispanic Markets (estimates as of 2006)

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 Ethnic Population Developments (contd)
Asian-Americans
Represent many nationalities
Are the newest hot ethnic market
Are better educated
Have higher incomes
Occupy more prestigious jobs
Speak a variety of languages
Are heavy users of the Internet
Respond to marketing programs that
reflect their values and lifestyles

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