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Chapter 5: Segmenting and Targeting the Audience. Questions to Explore . What cultural, psychological, and behavioral influences affect consumer responses to advertising? What characteristics are used to segment groups of consumers?

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Chapter 5: Segmenting and Targeting the Audience


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    Presentation Transcript
    1. Chapter 5:Segmenting and Targeting the Audience

    2. Questions to Explore • What cultural, psychological, and behavioral influences affect consumer responses to advertising? • What characteristics are used to segment groups of consumers? • How does targeting work and how is it different from segmenting?

    3. Old Navy—Target?

    4. Remember us?

    5. Consumer Audience—FBTs What kinds of people? Age, Sex, Income, Status? What kinds of people attitudinally? Post Sept. 11. What are their emotional attitudes towards Business Travel? What can a large airline do about it?

    6. Influences on Consumer Decisions 5-5

    7. Cultural Influences Core Values: Sense of belonging Excitement Fun and enjoyment Warm relationships Self-fulfillment Respect from others A sense of accomplishment Security Self-Respect Thrift • Norms and Values • Subcultures • Corporate Culture

    8. Social Influences • Social Class • Determined by income, wealth, education, occupation, family prestige, value of home,and neighborhood

    9. Social Influences: Demographics Demographics are the statistical, social, and economic characteristics of a population, including: • Age • Gender • Family Status • Race and Ethnicity • Education • Occupation • Income • Geography • Sexual Orientation

    10. Quick Quiz • What is the largest age group in the US? • Under 18 • 18-44 • 45-64 • 65+ • What is the fastest Growing age group in the US?

    11. Demographics • 2010 Census is a good place to start

    12. Psychological Influences • Motivations • Motive: an internal force that stimulates a certain behavior • Attitudes • Based on deeply held values, and Needs and Wants • Needs and wants

    13. Who am I?

    14. Psychological Influences:Maslow’s Hierarchy of Needs 5-13

    15. The VALs System The VALs System categorizes consumers according to psychological traits that correlate to purchase behavior. • Thinkers and Believers— motivated by ideals; abstract criteria such as tradition, quality, and integrity. • Achievers and Strivers— motivated by achievement, seeking approval from a values social group. • Experiencers and Makers— motivated by self-expression and the need to stand out from the crowd. 5-17

    16. Proprietary Psycographics

    17. Epicures

    18. Gearheads

    19. Purists

    20. Functionalists

    21. Road-Haters

    22. Negatives

    23. Demographics/Psychographics Mixes • The Greatest Generation • The Silent Generation • Baby Boomers • Generation Jones • Gen X • Me Generation • Generation Y • Millennials

    24. Usage Behavior Principle: In many product categories, 20 percent of the users buy 80 percent of the products.

    25. Behavioral Influences:Diffusion of Innovation Curve 5-19

    26. Many ways to Segment Consumer Groups

    27. Targeting is more difficult • Segmentation + • Takes deeper insights • Profiles/Design Personas

    28. `

    29. Homework • Re-read “Inside Story” on page 155. • Tell us what you think of Behavioral targeting.