COURSE THREE: THE CONSUMER AUDIENCE FIRST QUESTION WHY IS CONSUMER BEHAVIOR IMPORTANT TO ADVERTISERS? CONSUMER BEHAVIOR THE WAY CONSUMERS SELECT, PURCHASE, USE, OR DISPOSE OF PRODUCTS, AND THE NEEDS AND WANTS THAT MOTIVATE BEHAVIORS BUYERS ARE NOT USERS… AND USERS ARE NOT BUYERS CONSUMERS= people that buy the product, but are not necessarily regular users of it CUSTOMERS = people who are loyal to certain brands of products PROSPECTS =people that might buy the product (new clients) WHAT INFLUENCES CONSUMERS? • Psychological Influences • Social/Cultural Influences • Behavioral Influences GOING BACK TO MASLOW´S PYRAMID… • Psychologically speaking, the consumer´s decision is influenced by his/her wants and needs. • We have innate needs (the basic ones - water, food, shelter) and secondary needs (e.g. prestige, beauty, learning, affection, etc.) • Wants = things we desire MASLOW´S PYRAMID. A LITTLE REVIEW. OTHER PSYCHOLOGICAL INFLUENCES: - PERCEPTION AND STATE OF MIND - MOTIVATIONS - ATTITUDES PSYCHOGRAPHICS - LIFESTYLES INTRODUCING THE VALS SYSTEM VALUES AND LIFESTYLES VALS SYSTEM • 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 selfexpression and the need to stand out from the crowd or make an impact on the physical world. SOCIAL INFLUENCES: • social class • family (household, lifestyle) • demographics (age, gender, education, race, religion, sexual orientation, income, occupation, geography, family status and size) • ! Your income is a key demographic factor because you are meaningful to a marketer only if you have the resources needed to buy the product advertised. CULTURAL INFLUENCES • Norms and Values – Norms: a culture’s boundaries for “proper” behavior – Values: the source of norms, which represent underlying belief systems • Subcultures – Smaller groups of cultures defined by geography, age, values, language, traditions, or ethnic background • Corporate Culture – How various companies operate (formal vs. informal) BEHAVIORAL INFLUENCES • Usage Behavior – Usage rate: quantity of purchase—light, medium, heavy. – Brand relationship: past, present or future use of product — nonusers, ex-users, regulars, first-timers, switchers. – Innovation and adoption: how willing people are to try something new. – Perceived risk: what you have to gain or lose by trying something new. • Experiences – The experience of buying vs. acquiring the product itself. – Our decisions are based on our experience with the brand. CONSUMER DECISION PROCESS • Traditional View – Need recognition – Information search – Evaluation of alternatives – Purchase decision – Postpurchase evaluation • Low-involvement or highinvolvement – In low involvement, there’s little or no information search SEGMENTING AND TARGETING • Segmenting –Dividing the market into groups of people who have similar characteristics in certain key product-related areas. • Targeting –Identifying the group that might be the most profitable audience and the most likely to respond to marketing communications messages. … • Niche market = Subsegment of a more general market defined by some distinctive traits • Profile = a description of the target audience that reads like a description of someone you know. • Narrowing the market = Each time you add a variable to a target audience definition, you narrow the size of the target audience. (e.g. Facebook Ads)