© 2010 South-Western, a part of Cengage Learning All rights reserved. PowerPoint Presentation by Charlie Cook The University of West Alabama Eighth Edition Targeting CHAPTER 4 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. Chapter Objectives After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 4–2 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. Chapter Objectives (cont’d) After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 4–3 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 4–4 Targeting Targeting • Targeting Specific Audiences Targeting Specific Audiences Is considered the starting point for marcom decisions Is considered the starting point for marcom decisions Allows for precise delivery of marketing Allows for precise delivery of marketing communications to targeted markets communications to targeted markets Prevents wasted coverage to people falling outside Prevents wasted coverage to people falling outside the targeted market the targeted market • Choosing a Targeting Method Choosing a Targeting Method How difficult to obtain data about the characteristic to How difficult to obtain data about the characteristic to be use in targeting consumers be use in targeting consumers How predictive is the characteristic of consumer How predictive is the characteristic of consumer choice behavior choice behavior © 2010 South-Western, a part of Cengage Learning. All rights reserved. 4–5 Targeting Specific Audiences Targeting Specific Audiences Behaviorgraphics Demographics Psychographics Geodemographics Measureable Consumer Characteristics © 2010 South-Western, a part of Cengage Learning. All rights reserved. 4–6 Classification of Four General Targeting Characteristics Figure 4.1 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 4–7 Behaviorgraphic Targeting Behaviorgraphic Targeting • Behaviorgraphics Behaviorgraphics Describe how people behave with respect to a Describe how people behave with respect to a particular product category or class of related particular product category or class of related products products Assume that the best predictor of future behavior is Assume that the best predictor of future behavior is past behavior past behavior • Online Behavioral Targeting Online Behavioral Targeting Tracks the online site-selection behavior of users so Tracks the online site-selection behavior of users so as to enable advertisers to serve targeted ads as to enable advertisers to serve targeted ads • Privacy Concerns Privacy Concerns Technological advances increase the ability to serve Technological advances increase the ability to serve consumers at the risk of invading their privacy consumers at the risk of invading their privacy © 2010 South-Western, a part of Cengage Learning. All rights reserved. 4–8 Psychographic Targeting Psychographic Targeting • Psychographics Psychographics Describe aspects of consumers’ psychological make- Describe aspects of consumers’ psychological make- ups and lifestyles as they relate to buying behavior in ups and lifestyles as they relate to buying behavior in a particular product category a particular product category Attitudes Attitudes Values Values Motivations Motivations © 2010 South-Western, a part of Cengage Learning. All rights reserved. 4–9 Types of Psychographic Profiles Types of Psychographic Profiles • Customized Psychographic Profiles Customized Psychographic Profiles Are typically customized to the client’s specific Are typically customized to the client’s specific product category product category Contain questionnaire items related to the unique Contain questionnaire items related to the unique characteristics of the product category characteristics of the product category • General Purpose Psychographic Profiles General Purpose Psychographic Profiles Can be purchased as “off-the-shelf” psychographic Can be purchased as “off-the-shelf” psychographic data from services that develop psychographic data from services that develop psychographic profiles of people independently of any particular profiles of people independently of any particular product or service product or service © 2010 South-Western, a part of Cengage Learning. All rights reserved. 4–10 Illustrative Statements Used In a Customized Banking- Related Psychographic Study Table 4.1 [...]... South-Western, a part of Cengage Learning All rights reserved 4–22 Demographic Segments by Age Group • Preschoolers (5 years or younger) • Elementary-school-age children ( 6-1 1 years) • Tweens ( 8-1 2 years) • Teenagers (1 3-1 9 years) Millennial Generation or Generation Y Highly conformist, narcissistic, and fickle consumers • Young adults (2 0-3 4 years) Generation X (Baby Busters) © 2010 South-Western,... 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 © 2010 South-Western, a part of Cengage Learning All rights reserved 4–31 Figure 4.6 African-American Models Appeal to African American Consumers © 2010 South-Western, a part of Cengage... © 2010 South-Western, a part of Cengage Learning All rights reserved Secured Investors Thrifty Bankers 4–11 Table 4.2 Yankelovich MindBase Segments © 2010 South-Western, a part of Cengage Learning All rights reserved 4–12 Table 4.2 Yankelovich MindBase Segments (cont’d) © 2010 South-Western, a part of Cengage Learning All rights reserved 4–13 Figure 4.2 The 8 VALS Segments © 2010 South-Western, a part... Cengage Learning All rights reserved 4–23 Figure 4.3 An Appeal to Preschoolers’ Parents © 2010 South-Western, a part of Cengage Learning All rights reserved 4–24 Figure 4.4 An Appeal to Teenagers © 2010 South-Western, a part of Cengage Learning All rights reserved 4–25 Demographic Segments: Age • Middle-Aged (3 5-5 4 years) Younger baby boomers and older Gen Xers Target category for luxury goods and youth... 38 by 2025 More middle-aged Baby Boomers Fewer children, teenagers, and young adults due to decreased birthrates © 2010 South-Western, a part of Cengage Learning All rights reserved 4–19 Table 4.3 World’s 25 Largest Countries as of 2007 © 2010 South-Western, a part of Cengage Learning All rights reserved 4–20 Table 4.4 Largest Ancestral Groups of U.S Residents © 2010 South-Western, a part of Cengage... Very Old (75 and over) Descriptive groups: Healthy Hermits, Ailing Outgoers, © 2010 South-Western, a part of Frail Recluses, and Healthy Indulgers Cengage Learning All rights reserved 4–26 Figure 4.5 An Appeal to Female Baby Boomers © 2010 South-Western, a part of Cengage Learning All rights reserved 4–27 The Ever-Changing American Household • Household Defined An independent housing entity, either... sophisticated, take-charge, with high self-esteem 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... efforts Are responsive to advertising in their dominant language © 2010 South-Western, a part of Cengage Learning All rights reserved 4–33 Table 4.7 Top 10 U.S Hispanic Markets (estimates as of 2006) © 2010 South-Western, a part of Cengage Learning All rights reserved 4–34 Ethnic Population Developments (cont’d) • Asian-Americans Represent many nationalities Are the newest “hot” ethnic market... have goal-oriented lifestyles and a deep commitment to career and family © 2010 South-Western, a part of Cengage Learning All rights reserved 4–15 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... 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 © 2010 South-Western, a part of Cengage Learning All rights reserved 4–28 Ethnic Population Developments • Changes in the U.S Melting Pot More diversity in the . Profiles General Purpose Psychographic Profiles Can be purchased as “off-the-shelf” psychographic Can be purchased as “off-the-shelf” psychographic data from services that develop psychographic. 2010 South-Western, a part of Cengage Learning. All rights reserved. 4–10 Illustrative Statements Used In a Customized Banking- Related Psychographic Study Table 4.1 © 2010 South-Western, a. Behavioral Targeting Online Behavioral Targeting Tracks the online site-selection behavior of users so Tracks the online site-selection behavior of users so as to enable advertisers to serve targeted