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Canadian Advertising in Action

Chapter 3Consumer Behaviour Concepts

and Target Marketing

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Learning Objectives Explain how consumer behaviour

concepts, relationship marketing, and positioning influence marketing communications

Assess information to identify & select target markets

Distinguish between: demographic, psychographic, geographic & behaviour-response segmentation

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Consumer Behaviour

Advertisers need answers:

Who makes the buying decision?

Who influences the buying decision?

What motivates buyers and influencers to take action?

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Needs and Motivation Theory

Need:• Absence of something useful

Motive:• Condition prompting action to satisfy a need

Communicating benefits and presenting the right image prompts action.

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Maslow’s Hierarchy of Needs

Self-Actualization

Esteem

Social

Safety

Physiological

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Personality & Self-Concept

Personality: a person’s distinguishing psychological characteristics.

RealSelf

Self-Image

Looking-Glass Self

Ideal Self

Self-Concept

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Perception

People receive and interpret messages differently.

Selective Exposure

Selective Perception

Selective Retention

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Attitudes

“Favourable or unfavourable feelings about an idea or object.”

Advertising messages should coincide with the prevailing attitudes of the target market. Trying to alter an attitude is expensive and risky.

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Family

The changing roles of family members have blurred the lines of responsibility between men and women.

New responsibilities and shared decision-making has led to double targeting.

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Market Segmentation

“Dividing a large market into smaller homogeneous markets based on common needs and / or similar lifestyles.”

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Demographic Segmentation

Assessment of market in terms of: • Age• Gender• Income, Education, Occupation• Marital Status & Household Formation• Cultural Mix

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Key Demographic Trends

Aging Population

Economic Power of Women

Changing Household Formations

Ethnic Diversity

Concentration of WealthWhat are some impacts of these trends?

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Why are the over-50s such an attractive market?

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Psychographic Segmentation

Examines individuals by lifestyles. Activities Interests Opinions

Demographically identical people are different. Brands are associated with desirable lifestyles.

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Psychographic Segmentation

Learning Activity: Using Figure 3.11 in your text, identify

the segment to which you might belong. Choose a different segment from yours. Describe the differences to consider to

market to the different groups. Visit Millward Brown Goldfarb’s

website to take their psychographic analysis. Discuss your results.

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Geographic Segmentation

Distinct regions present different challenges for advertisers.

Regional language and culture.

Urban / Suburban vs Rural

Geodemographics

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Targeting Individuals

Technology drives relationship marketing. We can communicate directly with individuals in mass quantity.

• Database Marketing

• Cluster Profiling

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Identifying & Selecting Market Segments

Identify Market Segments

Select Segments with Most Potential

Position Product to Appeal to Target

In three steps…

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Importance of Segmentation

Knowing consumers intimately is key to developing successful strategies; this knowledge provides input for a sound positioning strategy.

Positioning Strategy

Creative Strategy

Media Strategy

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Positioning

Positioning is the selling concept that motivates purchase; it can be a tangible benefit or an image that a company wants to instill in the minds of customers.

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Positioning and Advertising

• Head-On

• Brand Leadership

• Product Differentiation

• Technical Innovation

• Lifestyle

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Repositioning

“Changing the place a brand or company occupies in the customer’s mind in relation to competitors.”

Repositioning is considered if consumer attitudes change or if competitive activity dictates a change.