Chap 5 : segmenting n targeting audiences Influenctial factor of consumer dec Consumer berhavior-how idv groups select, purchase, use

se or dispose of products n as the need n want that motivate these behaviors Various segment consumer n target market 1. To divide them by the type of market they represent-either business or consumer- this leads to b2b or b2c marketing strategies 2. Refer them as: 1. Those who shop for and purchase e product 2. Those who actually use the prod 3. Influencers-people who help the buyer make a brand choice Consider various factors that influence them, their influential affinities, family, firend n their personal need n their exp with a brand Consumer decision making---market segment n target audiences Psychological influences -state of mind -needs n want -selective perception -satisfaction -Motivations -attitudes n values -personality -psychographics Social/cultural influences -culture -social class -reference groups -family -demographics Behavioral influences -quantity usage -brand relationship -innovation

Culture made up of tangible items(art, literature, clothing) n intangible(history, knowledge, laws) item that together define a group of people or way of life

Norms n values Boundaries each cultre est for proper behavior-norms -simply rules we learn thru social interaction that specify or prohibit certain behaviors Source of norms is values, particularly cultural values, which represent our underlying belief system Values are few in number n hard to change Advertisers strive to u/s e underlying core values that govern peoles attitudes and guide their behavior 10 basics core values 1. A sense of belonging 2. Excitement 3. Fun n enjoyment 4. Warm relationship

5. 6. 7. 8. 9. 10.

Self fulfillment Respect from others Sense of accomplishment Security Self respect Thrift

Corporate value Term that describe how various companies operate Some formal n informal Formal-lots of procedure, rigid work hours n dress code Informal oprations, office rules n communication

Social influences Social class E position u n your family occupy within your society Determined by such factors eg. Income, wealth, education, occupation, family prestige n etc Difficult to moving out of the class into which they were born eg. India Marketers assume that people in one class buy different goods for different reasons than people in other classes

Reference groups Group of people u use as a model for behavior in specific situations Eg, teacher, religious leaders Brand communities-group of people devoted to particular brand 3 functions: 1. Provide info 2. Serve as a means of personal comparison 3. They offer guidance

Family Fmily Consist of two or more people who are related by blood, marriage, or adoption and live in the same household -responsible for raising children n establish lifestyle for family members Household differ from a family -consists of all those who occupy a dwelling whether they are related or not Lifestyle reflects family situation, values n income -Determines the way people spend their time n money n the kinds of activities

Psychological influences Factors of interest to advertisers include state of mind, need n wants, motivations n attitudes, personality n etc

Perception n state of mind State of mind affects the way u perceive info Past experiences n what people talk about can color your feelings n make u more or less receptive to a brand Create internal noise that gets in the way of your reception of a message or provide e impetus to drive u to buy something-angry, sad, fatigue

Need n wants Needs-Basic driving forces that motivate us to do sth that reflect basic survival -Primary need include the need for water, food, air n shelter -Aka physiological n safety needs Acquired need-response to our culture n envoi -include self esteem, prestige, affection, power, learning, beauty Want- when we desire n wish for sth-we wont diea if we dont get it, but it can still provide a strong motivation to try or buy sth new -eg, music, fashion 10 desires that successful brand satisfy: 1. Feel safe n secure 2. Feel comfortable 3. Be care for n connected to others 4. Desired by others 5. Be free to do what we want 6. Grow n become more 7. Serve others n give back 8. Be surprised n excited 9. Believe there is a higher purpose 10. Feel that they matter

Maslow hierarchy of need 1. 2. 3. 4. 5. Physiological need-medicine, staple items, generic Safety-insurance, alarm systems, retirement, investments Belongingness-clothing, grooming products, drinks / clubs Ego needs-cars, furniture, credit crads,stores Self actualization-hobbies,travel, education Needs n want related to dissonance satisfaction Possible response to a brand or brand exp, more troublesome is dissatisfaction or doubt People can pay attention to a commercial, then buy product n be dissapointed Ads raised consumers expectations

 Motivations

Dissonance/cognitive dissonance Conflict between 2 thoughts Creates a state of tension Eg, want to buy car but dont have money Buyers remorse is another form of tension n it occurs when there are discrepancies between what we thought we would receive n what we actually received Seek info that support our decision

Motive is an internal force-like the desire to look good-that stimulate u to behave in a particular manner. Produced by the tension caused by an unfulfilled want or need U/s buying motives is crucial to advertisers coz ads message should reflect consumers motivation

Segment consumer groups Cost efficiency n effectiveness demand that marketers 1. Segment the market 2. Target audience group most likely to respond Segmenting Dividing the market into groups of people who have similar characteristics in certain key product related areas

Segmentation strategies Undifferentiated strategy-all consumer Market segmentation-approach that drives marketing communication strategies -company can match the needs n wants of the customer with its products Niche market-subsegments of a more general market segment -consumer in niche markets may be more passionate about their favorite brands than general consumer markets

Types of segmentation
Demographics Gender Ethnicity Religion Income Edu Household size psychographics Social class Lifestyle personality Life stage Age Living situation Discretionary income Geographic International State National City Climate Urban/rural Benefit sought specific prob solved by product specific benefit offered

Behavioral characteristics usage rates user status brand loyalty

demographic segmentation divides the market using such characteristics-gender, ethnicity n income age often the first characteristics to be used in defining a market segment

life stage segmentation based on particular stage in consumers life cycle age is a characteristic of life stage as is living situation

geographic seg uses location defining variable coz consumers needs sometimes vary depending on where they live geo affects both product dist n marcomm

psychographic seg based on studies of how people spend their money, their interest and opi n views on themselves richer than demographic seg coz combines psycho info w lifestyle insights

behavioral seg divides people into groups based on product category n brand

values n benefits based segmentation underlying value system based on consumer needs or prob

Demographics age most important demographic characteristic used by ads planner have different needs n wants statistical, social n economis characteristics of a population, including age, gender, sexual orientation, religion n etc help advertisers in message design n media selection for the target market

common age related population Greatest gen -Born in 1910s thru 1920s -Lived thru great depression n fought at wwII -group open up college edu to the middle class after the war -finacially satisfying -Born late 1920s -active senior citizen Most positive impact gen for their role in rueling postwar

Silent gen/traditionalist

Baby boomers

Generation jones Gen x/baby buster

Me generation

Generation y/echo boomers/me gen

Millenials/I generation

boom -born between 1946-1964 -largest age related -affected first schools, then the job market n now retirement prog n healthcare -influence by significant societal movements n scientific breakthrough -Born from mid late 1950s thru mid 1960s -continuing need to chase the dream of affluence -born between 1965-1979 -indie minded n cynical -concerned with their physical health n financial future -born in 1970s early 1996 -characterized as more self absorbed n narcissistic than their parents -children of baby boomers -Important to marketers -describe as digital or net gen coz they grw up with computers n are seen as more technologically savvy than their older siblings or gen -young adults market -1st gen grow with email n cell phones Spend considerably more time texting n using social media then net generation

Gender n sexual orientation many brands either masculine or feminine in terms of use n brand personality different gender different needs n wants gay n lesbian become serious target markets

education, occupation n income consumer with lower edu are higher users of tv consumer with higher edu prefer print media, e internet n selected radio n cable station edu dictates the way copy is written and its level of difficulty advertisers-match ads message to e characteristics of e target audience income also key factor discretionary money-amount of money available to spend after paying for taxes n basic necessities

family status age also relates to family status e composition of households is particularly important in media planning, e decision based on reaching households who subscribe or view prog rather thn idv media vehicle generally report their data, n compute their impact based on household estimates

race, ethnicity n immigration Religion Geo Sales patterns of different part of the country coz people residing in different regions need certain products Designated market are is used in describing media market Useful factor coz of the increasing importance of product band Religions forbid certain products Key identifying who are or arent in the market for good, service n idea Hispanic viewers more likely to watch commercials in their entirety than non Hispanic They more likely to base their purchasing decisions on ads n they are less cynical about marketing Diversity is so important in ads

Psychographic Refer to lifestyle n psychological characteristics such as values, interest, attitudes n opinion More relevant in explaining consumer behavior than are demographic

Attitudes Predisposition that reflects an opinion, emotion, or mental state directed at some object, person or idea Advertisers are interested in attitudes coz of their impact on motivations Attitudes are learned, we can est them, change them, reinforce them n replace them with new ones They influence consumers evaluate products, institutions, retail stores n ads

Lifestyles(components-person, product n setting) Pattens of consumption, personal r/s, interest, n leisure activites Terms: Yuppies(young urban pro)-aspiring to an upscale lifestyle, n Yuppy puppies(their children) Terms are group identifiers but they also refer to a set of product n e setting within which the products are used

8 mindbase categories 1. 2. 3. 4. 5. 6. I am expressive-lives life to the fullest I am down to earth-cruising thru life at my own pace I am driven-ambitious with a drive to succed I am sophisticated-intelligent I am at capacity-busy n looking for ctrl n simplification I measure twice-mature

7. I am rock steady-positive attude 8. I am devoted-traditional Socio demographic Referring to people in terms of when they were born Refers to lifestyle differences Senior also refers to gray market n divided into 2-young seniors(60-74)/boomer plus group n older senior(75 n above) Demographic n lifestyle segments: 1. Dinkies-double income young couple with no kids 2. Guppies-gay upwardly mobile pro 3. Skippies-school kids with purchasing power 4. Slackers-teenagers n young adults who dont care much or do much 5. Bling bling gen-people wih high rolling lifestyle who flashy costly jewellery 6. Ruppies-retired urban professional

Behavior Brand usage and experiences Usage- how much of a product category or brand a customer buys Usage rate-quantity of purchase- light, medium or heavy -heavy users typically buy the most of a product category or brands share of the market Brand r/s-loyalty Switchers-people with low level of brand loyalty who may be willing to try new brand

Innovation n adoption Adoption- in terms of personal behavior and how the behavior reflects e speed with which people are willing to try sth new Willingness of people to try new product-diffusion

Trends and fads The phenomena of trends n fads is related to lifestyle n psychographic factors n fascination with choice in a consumer culture Young people particularly involved in trends Trend spotter-professional researchers hired by advertisers to identify trends that may affect consumer behavior Cool hunters are trend spotters who specialize in identifying trendy fad that appeal to young people

Consumer dec making Low involvement Need recognition Evaluation of alternatives High involvement Need recognition Information search

Purchase decision Postpurchase evaluation

Evaluation alternatives Purchase decision Postpurchase evaluation

Decision process with fairly predictable steps: Need recognition-can vary in terms of seriousness n importance -e goal of ads in this stage is to activate or stimulate this need Information search-can be casual or formal -ads helps the search process by providing info that is easy to find n remember -searcher driven by need to know everything they can about a product before making a purchase Evaluation of alternative-consumer compare various products n features n reduce e list of options to a manageable number -ads helps sort out products on the basis of tangible n intangible features Purchased decision-often two part decision -select brand n select e outlet -points of purchase such price reductions, banner n signs n coupon display affect these choices Post purchase evaluation-many consumers continued to read information even after the purchase to justify the decision to themselves Low involvement Little or no information search n the decision may be more of an impulse purchase High involvement Product n decisions use the traditional information processing approach, which invites more info seeking n careful consideration of dec factors

Paths to a brand decision Depends o the type of the product and the buying situation Not all response begin with thinking about product, nor do they follow the same route to a decision Brand planners need to know how this decision process works for a specific product category E message would be different for a consumer who is searching for info to buy a computer

Influences on b2b decision making Rational thinking than emotional: 1. Many idv are involved in reviewing e options 2. Rational n quantitative criteria dominates most decision 3. Decision based on a set of specifications to potential suppliers who then bid on the contract 4. Decision may span a considerable time period and create a lag between the initial contact n final dec

5. Quality is important n repeat purchases are based on how well the products 6. Personal selling important in b2b Targeting e right audience Market is divided to identify segments, n then potentially profitable segments are selected to be the target audience for a marcomm effort Thru targeting, org can design specific comm strategies to match the audiences needs n wants n position e product in the most relevant way to match their interest

Profiling the target audience Target is described using the segmentation characteristics that separate a prospective consume group from others who are not as likely to buy e brand Then target audience is profiled using descriptive info based on demographic n psychographic Profiles are descriptions of the target audience that read like a description of somehow u know Used in personalizing the consumer to develop on target media n message decisions

Behavioral targeting Based on internet use is getting more attention coz of the increasing importance of digital market Internet makes it possible to deliver ads personalized in terms of a customers own usage patterns

Microtargeting Using vast computer databank or personal info to identify voters most likely to support one candidate or another Data mining-enables advertisers to direct highly tailored marketing messages to narrow slices of segment