Ad Plan: Situation Analysis Product Analysis: SWOT Audience Analysis: Demographics, Psychographics Strengths/Weaknesses – What are the unique consumer benefits the product will deliver? – What is the value of the product relative to the proposed price? – Are adequate distribution channels available? – Can quality control be maintained? – Etc. Opportunities – Product life cycle • Pioneering Stage • Competitive Stage • Retentive Stage – Positioning • Creating a Product for Selected Markets • Positioning to Expand Brand Share Threats • Competition • Other factors Audience Analysis • Consumer research is used to identify who the company’s consumers are, why they buy, what they buy, and how they go about buying certain products. Target Market Group of People (Segment) Who Are Most Likely to Respond Favorably to What a Marketer Has to Offer & to Provide the Highest Level of Profitability. Organizations Design Specific Marketing Strategies to Reach Markets’ Needs Effectively Ad Team Tries to Understand How & Why Consumers Think, Feel, and Behave Target Audience: People with lawns that have weeds Demographics Demographics Age Gender Education Occupation Income Ethnicity Geography Family size Age Gender Education People in Different Stages of Life Have Different Needs Primary Physical or Psychological Traits Secondary – Associated With One Sex More Than the Other Level of Education Influences Behavior as A Consumer Market Differently to BetterEducated Than To the Less Educated Demographics Occupation Income People Identify Themselves by What They Do Must Have Resources to Buy Products Increase in White-Collar & ServiceRelated Jobs Discretionary Income – Money Left After Taxes & Necessities Race & Ethnicity Geographic Location Determine Differences Between Ethnic Groups By Measuring Differences In Their Lifestyles Study Patterns In Different Regions to Discover Variations in Purchase Behavior of Consumers Social Class Marketers Assume That People in One Class Buy Different Goods From Different Outlets and For Different Reasons Than People in Other Classes. It is Determined By: Income Wealth Education Occupation Family Prestige Value of Home Neighborhood Psychographics Activities Personality Traits Attitudes Interests Refers to all the Psychological Variables That Combine to Shape Our Inner Selves Hobbies Opinions Values Needs Psychographics Attitudes Learned Predisposition Vary in Strength & Direction Reflect Consumers’ Values Personality Collection of Traits Makes People Individuals SelfConcept Core Values Self-Respect Security Sense of Accomplishment Sense of Belonging Values Are Hard To Change, Are Internal, and Guide Behavior Respect From Others Excitement Fun & Enjoyment Warm Relationships Self-Fulfillment Low- and High-Involvement Decision Process Amount of Involvement High-Involvement Decisions Spending a Great Deal of Effort on Expensive, Personal, Emotion-Laden Products i.e. Cars Low-Involvement Decisions Acquiring Products Purchased Regularly i.e. Milk VALS 2 Psychological Influences on Consumers Habit Repeat Process Many Times & Continue to be Satisfied DecisionMaking Shortcut Breaking Consumer’s Habit Is Difficult Motivation And Needs Forces that Influence Behavior Motive – Internal Force That Stimulates You to Behave Needs – Basic Forces That Move You to Act Summary • The accurate identification of product users can mean success or failure • Research is the key to successful target marketing • Ads are aimed at consumers with a rifle instead of a shotgun approach • Advertisers place more importance on lifestyle characteristics than on demographic factors • We need to keep abreast of changes in population and understand consumer lifestyles, identities, and motivations