Marketing Communications - Chapter 4 docx

© 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 [...]... Bystanders, Playboys, and Drifters 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... 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 Learning All rights reserved 4 21 Table 4. 5 Population of the United States by Age Group, as of 2006 © 2010 South-Western,... © 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 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, a part of  Yup & Comers,... classification: Olders (55 to 64) ; Elders (65 to 74) ; and the 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... 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... Need to devise marcom strategies to meet ethnic groups’ unique wants/needs © 2010 South-Western, a part of Cengage Learning All rights reserved 4 29 Table 4. 6 Ethnic Groups’ Population Representation in the United States, 2000–2050 (in millions) © 2010 South-Western, a part of Cengage Learning All rights reserved 4 30 Ethnic Population Developments • African Americans  Are of an average age that is... Learning All rights reserved 4 32 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 © 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  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... a part of Cengage Learning All rights reserved 4 13 Figure 4. 2 The 8 VALS Segments © 2010 South-Western, a part of Cengage Learning All rights reserved 4 14 VALS Psychographic Segments Innovators Successful, sophisticated, take-charge, with high self-esteem Thinkers Mature, satisfied, comfortable, and reflective; valuing order, knowledge, and responsibility and motivated by ideals Believers Conservative, . (cont’d) Table 4. 2 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 4 14 The 8 VALS Segments Figure 4. 2 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 4 15 VALS. 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. 2010 South-Western, a part of Cengage Learning. All rights reserved. 4 12 Yankelovich MindBase Segments Table 4. 2 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 4 13 Yankelovich