INTEGRATED MARKETING
COMMUNICATIONS
IN ADVERTISING AND PROMOTION
CHAPTER 4
Targeting
© 2010 South-Western, a part of Cengage Learning
All rights reserved.
PowerPoint Presentation by Charlie Cook
The University of West Alabama
Eighth Edition
Chapter Objectives
After reading this chapter you should be able to:
1. Appreciate the importance of targeting marketing
communications to specific consumer groups and
realize that the targeting decision is the initial and
most fundamental of all marcom decisions.
2. Understand the role of behaviorgraphics in targeting
consumer groups.
3. Describe the nature of psychographic targeting.
4. Appreciate major demographic developments such as
changes in the age structure of the population and
ethnic population growth.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Chapter Objectives (cont’d)
After reading this chapter you should be able to:
5. Explain the meaning of geodemographics and
understand the role for this form of targeting.
6. Recognize that any single characteristic of
consumers—whether their age, ethnicity, or income
level—likely is not solely sufficient for sophisticated
marcom targeting.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
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Targeting
• Targeting Specific Audiences
 Is considered the starting point for marcom decisions
 Allows for precise delivery of marketing
communications to targeted markets
 Prevents wasted coverage to people falling outside
the targeted market
• Choosing a Targeting Method
 How difficult to obtain data about the characteristic to
be use in targeting consumers
 How predictive is the characteristic of consumer
choice behavior
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4–4
Targeting Specific Audiences
Behaviorgraphics
Psychographics
Measureable Consumer
Characteristics
Demographics
Geodemographics
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Figure 4.1
Classification of Four General Targeting Characteristics
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Behaviorgraphic Targeting
• Behaviorgraphics
 Describe how people behave with respect to a
particular product category or class of related
products
 Assume that the best predictor of future behavior is
past behavior
• Online Behavioral Targeting
 Tracks the online site-selection behavior of users so
as to enable advertisers to serve targeted ads
• Privacy Concerns
 Technological advances increase the ability to serve
consumers at the risk of invading their privacy
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4–7
Psychographic Targeting
• Psychographics
 Describe aspects of consumers’ psychological make-
ups and lifestyles as they relate to buying behavior in
a particular product category
 Attitudes
 Values
 Motivations
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Types of Psychographic Profiles
• Customized Psychographic Profiles
 Are typically customized to the client’s specific
product category
 Contain questionnaire items related to the unique
characteristics of the product category
• General Purpose Psychographic Profiles
 Can be purchased as “off-the-shelf” psychographic
data from services that develop psychographic
profiles of people independently of any particular
product or service
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Table 4.1
Illustrative Statements Used In a Customized BankingRelated Psychographic Study
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Psychographic Study of Consumers’
Banking Practices
Psychographic Segments
of Banking Behaviors
Worried
Traditionalists
Bank
Loyalists
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Secured
Investors
Thrifty
Bankers
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Table 4.2
Yankelovich MindBase Segments
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Table 4.2
Yankelovich MindBase Segments (cont’d)
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Figure 4.2
The 8 VALS
Segments
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VALS Psychographic Segments
Innovators
Successful, sophisticated, take-charge, with high selfesteem
Thinkers
Mature, satisfied, comfortable, and reflective; valuing order,
knowledge, and responsibility and motivated by ideals
Believers
Conservative, conventional with concrete beliefs based on
traditional, established codes: family, religion, community,
and the nation; motivated by ideals
Achievers
Motivated by the desire for achievement; have goal-oriented
lifestyles and a deep commitment to career and family
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VALS Psychographic Segments
Strivers
Experiencers
Trendy and fun loving. Motivated by achievement out of
concern about the opinions and approval of others
Motivated by self-expression; are young, enthusiastic, and
impulsive consumers; quickly become enthusiastic about
new possibilities but are equally quick to cool.
Makers
Motivated by self-expression; express themselves and
experience the world by working on it and have enough skill
and energy to carry out their projects successfully
Survivors
Live narrowly focused lives; with few resources with which to
cope, often believe that the world is changing too quickly;
are comfortable with the familiar and are primarily concerned
with safety and security
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Geodemographic Targeting
• Geodemographics
 Consumers who reside within geographic clusters
such as zip codes or neighborhoods also share
demographic and lifestyle similarities
• Typical Clusters (PRIZM NE)
 Bohemian Mix
 White Picket Fences
 Suburban Pioneers
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4–17
Demographic Targeting
Major Demographic
Aspects
Age structure
of the population
Change in
household
composition
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Ethnic population
developments
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Demographic Trends
• World Population Growth
 6.67 billion (2009) to 8 billion (2025)
to 9 billion (2050)
• Changing Age Structure in United States
 Median age will increase to 38 by 2025
 More middle-aged Baby Boomers
 Fewer children, teenagers, and young adults
due to decreased birthrates
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Table 4.3
World’s 25 Largest Countries as of 2007
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Table 4.4
Largest Ancestral Groups of U.S. Residents
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Table 4.5
Population of the
United States by
Age Group, as of
2006
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Demographic Segments by Age Group
• Preschoolers (5 years or younger)
• Elementary-school-age children (6-11 years)
• Tweens (8-12 years)
• Teenagers (13-19 years)
 Millennial Generation or Generation Y
 Highly conformist, narcissistic, and fickle consumers
• Young adults (20-34 years)
 Generation X (Baby Busters)
 Yup & Comers, Bystanders, Playboys, and Drifters
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4–23
Figure 4.3
An Appeal to
Preschoolers’
Parents
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Figure 4.4
An Appeal to Teenagers
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Demographic Segments: Age
• Middle-Aged (35-54 years)
 Younger baby boomers and older Gen Xers
 Target category for luxury goods and youth
• Mature Consumers (55 years or older)
 Are 23% of the total U.S. population
 Have highest discretionary income and most assets
 Census Bureau classification: Olders (55 to 64);
Elders (65 to 74); and the Very Old (75 and over)
 Descriptive groups: Healthy Hermits, Ailing Outgoers,
Frail Recluses, and Healthy Indulgers
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Figure 4.5
An Appeal to
Female Baby
Boomers
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4–27
The Ever-Changing American Household
• Household Defined
 An independent housing entity, either rental property
or owned property.
• U.S. Households
 Growing in number, shrinking in size, and changing in
character
 Married couples with children families now represent
less than one-third of all households
 Single person and unrelated persons households are
a growing market
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Ethnic Population Developments
• Changes in the U.S. Melting Pot
 More diversity in the overall population
 Growth in all ethnic groups
• Implication for Marketers
 Need to devise marcom strategies to meet ethnic
groups’ unique wants/needs
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Table 4.6
Ethnic Groups’ Population Representation
in the United States, 2000–2050 (in millions)
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Ethnic Population Developments
• African Americans
 Are of an average age that is considerably younger
than that for whites
 Are geographically concentrated, with three-fourths of
all blacks living in 16 states
 Tend to purchase prestige and name-brand products
in greater proportion than do whites
 Have spending power that totals
nearly 800 billion annually
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Figure 4.6
African-American
Models Appeal to
African American
Consumers
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Ethnic Population Developments (cont’d)
• Hispanic Americans (Latinos)
 Are the largest U.S. minority
population segment
 Are not a single unified market
 Are underserved by current
marketing efforts
 Are responsive to advertising in
their dominant language
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Table 4.7
Top 10 U.S. Hispanic Markets (estimates as of 2006)
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Ethnic Population Developments (cont’d)
• Asian-Americans
 Represent many nationalities
 Are the newest “hot” ethnic market
 Are better educated
 Have higher incomes
 Occupy more prestigious jobs
 Speak a variety of languages
 Are heavy users of the Internet
 Respond to marketing programs that
reflect their values and lifestyles
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