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Consumer Behaviour Advertisers need answers: Who makes the buying decision? Who influences the buying decision? What motivates buyers and influencers to take action? 3-1 Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. Needs and Motivation Theory Need: • The absence of something useful Motive: • The condition prompting action to satisfy a need Communicating benefits and presenting the right image prompts action. 3-2 Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. Maslow’s Hierarchy of Needs Self-Actualization Esteem Social Safety Physiological 3-3 Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. Personality and Self-Concept Personality refers to a person’s distinguishing psychological characteristics. Real Self 3-4 SelfImage LookingGlass Self Ideal Self Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. Perception People receive and interpret messages differently. Selective Exposure Selective Perception Selective Retention 3-5 Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. Attitudes “Favourable or unfavourable feelings about an idea or object.” Advertising messages should coincide with the prevailing attitudes of the target market. Trying to alter an attitude is expensive and risky. 3-6 Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. Reference Groups The desire to “fit in” affects brand purchase decisions. Advertisers associate a brand with a desirable situation. “Do the Dew” is a good example. 3-7 Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. Family The changing roles of family members have blurred the lines of responsibility. New responsibilities and shared decision-making has led to double targeting. 3-8 Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. Market Segmentation “Dividing a large market into smaller homogeneous markets based on common needs and / or similar lifestyles.” 3-9 Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. Demographic Segmentation Assessment of trends in terms of: • • • • • 3-10 Age Gender Income, Education, Occupation Marital Status and Household Formation Cultural Mix Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. Key Demographic Trends Aging Population Economic Power of Women Changing Household Formations Ethnic Diversity Concentration of Wealth 3-11 Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. Psychographic Segmentation Examines individuals on the basis of lifestyles. Activities Interests Opinions Demographically identical people are different. Brands associate with desirable lifestyles. 3-12 Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. Geographic Segmentation Distinct regions present different challenges for advertisers. Regional language and culture. Urban / Suburban vs Rural Geodemographics 3-13 Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. Targeting Individuals Technology is driving relationship marketing. We can communicate directly with individuals in mass quantity. • Database Marketing • Cluster Profiling 3-14 Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. Identifying and Selecting Market Segments 3 Steps Identify Market Segments Select Segments with Most Potential Position Product to Appeal to Target 3-15 Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. Importance of Segmentation Intimate consumer knowledge is the key to developing successful strategies. Customer knowledge provides input for a sound positioning strategy. Positioning Strategy 3-16 Creative Strategy Media Strategy Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. Positioning Positioning is a selling concept that motivates purchase; it can be a tangible benefit or an image that a company wants to instill in the minds of customers. 3-17 Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. Positioning and Advertising • Head-On • Brand Leadership • Product Differentiation • Technical Innovation • Lifestyle 3-18 Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. Repositioning “Changing the place a brand or company occupies in the customer’s mind in relation to competitors.” Repositioning is considered if consumer attitudes change or if competitive activity dictates a change. 3-19 Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc.