Advertising
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Transcript of Advertising
CHAPTER 3Consumer Behaviour
and Target Audience
Decisions
© 2014 McGraw-Hill Ryerson
Learning Objectives
Describe the consumer decision-making process and demonstrate how it relates to marketing communication.
Distinguish internal psychological processes, their influence on consumer decision making, and implications for marketing communication.
Contrast how the consumer decision-making process varies for different types of purchases and the effects on marketing communication.
Describe the consumer decision-making process and demonstrate how it relates to marketing communication.
Distinguish internal psychological processes, their influence on consumer decision making, and implications for marketing communication.
Contrast how the consumer decision-making process varies for different types of purchases and the effects on marketing communication.
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Learning Objectives
Compare the similarities and differences of target market and target audience.
⑤ Identify the options for making a target audience decision for marketing communication.
⑥ Express why a profile of the target audience is important for message, media, and IMC tool decisions.
Compare the similarities and differences of target market and target audience.
⑤ Identify the options for making a target audience decision for marketing communication.
⑥ Express why a profile of the target audience is important for message, media, and IMC tool decisions.
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Consumer Behaviour
Processes and activities which people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services to satisfy needs and desires.
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Need Recognition
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Consumer Decision-Making
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Consumer Decision Making
Decision Stage Psychological Process
Need Recognition Motivation
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Need Recognition
A difference between ideal state and actual state A want is a felt need that is shaped by a person’s
knowledge and personality.
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Consumer Motivation
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Consumer Motivation
The way a consumer perceives a situation and becomes driven to resolve it will influence the remainder of the decision process.
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Motivation
Maslow’s Hierarchy of Needs offers a framework for marketers to use in determining what needs their products and services satisfy
Advertising campaigns can then be developed to demonstrate how the brand fulfills the needs
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Consumer Decision MakingLO2
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Decision Stage Psychological Process
Information Search Perception
Need Recognition Motivation
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Undertake if internal search does not yield enough
information.
Scan memory to recall experiences and
knowledge about past purchase alternatives.
Information Search
Information Search
Internal Search External Search
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Information SearchLO2
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External sources of information include: Personal sources Marketer-controlled sources Public sources Personal experience
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Information SearchLO2
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How much and which sources of external information is dependent upon: Importance of purchase decision Effort required to acquire information Past experience Degree of perceived risk Time available
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PerceptionLO2
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Marketers can formulate communication strategies based upon how consumers acquire and use information from external sources.
Marketers study the following: How consumers sense external information How they attend to various sources of information How the information is interpreted and given meaning How the information is retained
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PerceptionLO2
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The number and complexity of marketing stimuli that a consumer is exposed to requires filtering
This filtering is: SELECTIVE PERCEPTION
May occur within all four stages of the perception process
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The Selective Perception ProcessLO2
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Selective ExposureLO2
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Occurs as consumers choose whether or not to make themselves available to information.
Determined by: Sensory inputs – marketing stimuli to achieve
psychological reactions
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Selecting InformationLO2
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Individuals generally focus on stimuli that are relevant to his or her needs
Selective Attention Occurs when consumer chooses to focus on
certain stimuli while excluding others. Survival as consumers are exposed to an
absorb number of ads in any given day. Marketers must understand the consumer to
ensure the right message is attended to by their target consumer.
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Interpreting the InformationLO2
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Once the consumer selects and attends to stimuli, the next step focuses on organizing, categorizing, and interpreting the incoming information.
Selective Comprehension Very individualized stage, and highly influenced
by internal psychological factors Marketers must understand the consumer to
ensure that the cues in the message are interpreted such that the message is understood.
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Retaining the InformationLO2
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Consumers do not remember all the information they see, hear, or read – even after attending and comprehending it.
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Advertisers Attempt to Help Consumers Retain Information
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Mnemonics (symbols, rhymes, associations, and images) can assist in consumers’ learning and memory processes. Example: A telephone number spelling out the
company’s name.
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Decision Stage Psychological Process
Alternative Evaluation Attitude Formation
Information Search Perception
Need Recognition Motivation
Consumer Decision MakingLO2
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Alternative EvaluationLO2
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Evoked Set Subset of all brands of the which the consumer is
aware. Goal of the IMC campaign is to increase the
likelihood that the brand will be included in the consumers Evoked Set.
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Alternative Evaluation
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Evaluative Criteria
Objective
PriceWarrantyService
Subjective
StyleAppearance
Image
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Evaluative Criteria
Evaluative Criteria
Consumer View
Product or service viewed in terms of its
consequences.
Consumer View
Product or service viewed in terms of its
consequences.
Marketer View
Products are viewed as bundles of attributes.
Marketer View
Products are viewed as bundles of attributes.
Alternative EvaluationLO2
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Alternative Evaluation
Bundles of Benefits
Experiential Benefits Psychological
BenefitsFunctional Benefits
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Attitude Formation
A summary construct representing an individual’s overall feelings toward an object or its evaluation.
“Attitudes are learned predispositions to respond to an object.” Gordon Allport
Advertising and promotion are used to create favourable attitudes, and/or change negative attitudes.
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Decision Stage Psychological Process
Purchase Decision Integration
Alternative Evaluation Attitude Formation
Information Search Perception
Need Recognition Motivation
Consumer Decision Making
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Purchase Decision
At some point in the buying process, the consumer makes a purchase decision. Consumer stops searching for and evaluating alternative
brands in the evoked set. The purchase decision starts with a purchase
intention. Predisposition to buy a certain brand.
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Purchase Decision
The purchase decision is not the actual purchase. Consumer must implement decision and make
purchase. Additional decisions may be needed. Time delay often exists between making a purchase
decision and purchase itself. The time delay affects the marketing strategy, and
depends on: Type of purchase to be made Risk involved in purchase
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Brand Loyalty May AffectPurchase Decision
Consumers may have a preference for a certain brand, which will result in its repeated purchase.
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Integration Process
The ways in which product knowledge, meanings, and beliefs are combined to evaluate two or more alternatives.
Analysis of the integration process focuses on the different types of integration rules or strategies used by consumers to decide among purchase alternatives.
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Formal Decision Rules
Require examination and comparison of alternatives on
specific attributes.
Formal Decision Rules
Require examination and comparison of alternatives on
specific attributes.
Simplified Decision Rules or Heuristics
Easy to use and adapt to environmental situations.
Price- or promotion-based
Affect Referral Decision Rule – selection based on
overall impression or summary evaluation
Simplified Decision Rules or Heuristics
Easy to use and adapt to environmental situations.
Price- or promotion-based
Affect Referral Decision Rule – selection based on
overall impression or summary evaluation
Integration StrategiesIntegration Strategies
Types of Integration Strategies
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Decision Stage Psychological Process
Postpurchase Evaluation Learning
Purchase Decision Integration
Alternative Evaluation Attitude Formation
Information Search Perception
Need Recognition Motivation
Consumer Decision Making
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Postpurchase Evaluation
After purchase, consumer assesses the level of performance of product or service.
Provides feedback from actual use of product to influence the likelihood of future purchases.
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Satisfaction
“A judgment that consumers make with respect to the pleasurable level of consumption-related
fulfillment.” Cognitive dissonance
A feeling of psychological tension or postpurchase doubt a consumer experiences after making a difficult purchase choice.
More likely to occur when consumer has to choose between two close alternatives.
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Variations in Consumer Decision Making
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Variations in Consumer Decision Making
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Types of
Decision Making
Routine Problem Solving
Limited Problem Solving
Extended Problem Solving
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Variations in Consumer Decision Making
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Group Decision Making Group situations constitute many purchase decisions. Reference group
“A group whose presumed perspectives or values are used by an individual as the basis for his or her judgments, opinions, and actions.”
Used to guide consumers’ purchase decisions even when the group is not present.
Marketers use aspirational or dissociative reference group influences in developing ads and promotional strategies.
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Target Audience Decision
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Target Audience Decision
Consumer understanding is the key to the success of any IMC plan, program, or ad.
The goal of an IMC plan, program or ad is to influence the behaviour of a target audience.
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LO4
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Marketing Planning Process
Target market is the focus of the firm’s marketing effort and strategies are developed to achieve the firm’ s objectives
Three step process:1. Segment the market
2. Select a target market
3. Determine the market positioning strategy
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Marketing and Promotions Process Model
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Target Audience and Target Market
Target Market The group of consumers toward which an overall
marketing program is directed. Target Audience
A group of consumers within the target market for which the advertising campaign is directed.
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Market Segmentation
Marketer identifies a target market by: Identifying the specific needs of groups of people, or
segments Selects one or more segments as a target Develops marketing programs directed to each.
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Psychographic
Geographic
Demographic
CustomerCharacteristics
CustomerCharacteristics
Socioeconomic
Behaviour
Benefits
Outlets
BuyingSituationBuying
Situation
Usage
Bases For Segmentation
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LO4
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Target Market Selection
The promotional planner must consider: Whether the target segment is substantial enough Whether the target segment is accessible
The more marketers segment, the more precise is their understanding of a segment, but fewer customers are in each segment.
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Target Audience Options
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Brand Loyal Customers
Non-Customers
Favourable Brand Switchers
Regularly buy the firm’s product.
Buy focal brand but also buy others.
New category users
Other brand switchers
Other brand loyals
Customers not purchasing within a product category.
Not consistently purchasing focal brand.
Loyal to another brand.
Target Audience Options: Rossiter and Percy Perspective
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LO5
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Target Audience Options
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LO5
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IMC Planning: Target Audience Profile
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Target Audience Profile
A complete profile is necessary for direction of the remaining decisions in the promotional plan.
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Profile For Messages
For the message to be completely understood, the content of the message must be consistent with the background of the audience.
A complete profile of the audience will be useful in effective messaging.
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Profile For Media
A detailed profile allows the message to be more precisely delivered in a medium that has excellent target audience reach.
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Profile For IMC Tools
Provided sufficient profiling is done, the opportunity exists to closely align tools with the target.
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LO6
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Chapter Summary
A review of the field of consumer behaviour Five stage model of decision making Internal psychological process that influence
consumer decision making Various purchase types affect consumer decision
making Target audience and target marketing Marketing communication through effective marketing
planning
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