Advertising Principles and Practices The Consumer Audience Questions We’ll Answer 5-2 Why is consumer behavior important to advertisers? What influences affect consumer behavior? What models explain consumer behavior and psychology? First--SWOT Strengths Weaknesses Opportunities Threats 3 Workshop 4 Let’s do a SWOT analysis for Facebook. Insight Mining 5-5 Remember us? 4-6 Consumer Audience—FBTs What kinds of people? Age, Sex, Income, Status? Post Sept. 11. What are their emotional attitudes towards Business Travel? How can we know for sure? What can a large airline do about it? 5-7 5-8 Influences on Consumer Decisions 5-5 Dove Redefines Beauty • What critical consumer insights drove the marketing campaign? \ 5-3 Same Company 5-11 Homework Read article Do you agree with the author? Why or why not? 5-12 Cultural Influences 5-13 Norms and Values Subcultures Corporate Culture Core Values: 1. 2. 3. 4. 5. 6. Sense of belonging Excitement Fun and enjoyment Warm relationships Self-fulfillment Respect from others 7. A sense of accomplishment 8. Security 5-14 5-15 Social Influences Social Class 5-16 Determined by income, wealth, education, occupation, family prestige, value of home, and neighborhood Social Influences: Demographics Demographics are the statistical, social, and economic characteristics of a population, including: 5-17 Age Gender Family Status Race and Ethnicity Education Occupation Income Geography Sexual Orientation Social Influences Demographics 5-18 U.S. Census Bureau collects demographic data every 10 years Psychological Influences Perception and State of Mind 5-20 Your past experiences with a brand, what others say, and mental states affect behavior Needs and Wants Who am I? 5-21 Psychological Influences: Maslow’s Hierarchy of Needs 5-13 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 or make an impact on the physical world. 5-17 Psychological Influences Motivations Attitudes 5-24 Motive: an internal force that stimulates a certain behavior Based on deeply held values, and resistant to change Psychological Influences Psychographics Activities: work, hobbies, social events, vacation, entertainment, shopping Opinions: self, social, future, political, business, culture, economics, education, Interests: family, home, job, food, media, achievements, recreation Principle: Often, differences in consumer behavior lie in psychographics—consumers’ interests and lifestyles — rather than in demographics. 5-25 Some great insights 5-26 5-27 ` 5-28 Usage Behavior Principle: In many product categories, 20 percent of the users buy 80 percent of the products. 5-29 Behavioral Influences: Diffusion of Innovation Curve 5-19 Regina Lewis VP Consumer and brand insights 5-31