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CHAPTER 3
Consumer Behaviour
Concepts and Target
Marketing
3-1
Copyright © 2009 Pearson Education Canada
Learning Objectives

Explain how consumer behaviour concepts
influence the development of marketing
communications strategies

Assess the information needed to identify and
select target markets

Distinguish between demographic,
psychographic, geographic, and behaviourresponse segmentation variables
Continued…
3-2
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Learning Objectives (cont.)
 Explain the influence of relationship marketing
concepts on marketing communications
strategies
 Explain the concept of positioning and its role
in developing marketing communications
strategies.
3-3
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Consumer Behaviour
Marketers must have access to data
concerning consumers; buying habits
and which kinds of media they favour, in
order to develop convincing
communications programs.
Who makes the buying decision?
Who influences the buying decision?
What motivates the buyers and people of
influence to take action?
3-4
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Needs and Motives
Need:
 Absence of something useful
Motive:
 Condition prompting action to satisfy a need
Communicating benefits and presenting
the right image prompts the action to
purchase.
3-5
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Maslow’s Hierarchy of Needs
Self-Actualization
Esteem
Social
Safety
Physiological
3-6
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Personality and Self-Concept
Personality: a person’s distinguishing
psychological characteristics.
Self-Concept
Real
Self
3-7
SelfImage
LookingGlass
Self
Ideal
Self
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Perceptions
People receive and interpret
messages differently.
Selective Exposure
Selective Perception
Selective Retention
3-8
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Attitudes
Favourable or unfavourable feelings
about an idea or object.
Advertising messages should coincide with
the prevailing attitudes held by the target
market. Trying to alter an attitude is expensive
and risky.
3-9
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Reference Groups
A group, class, or category of people to
which individuals believe they belong,
whether or not they actually do.
 A member of a group experiences considerable
pressure to “fit in”.
Co-workers
Sports teams
Hobby clubs
Fraternal organizations
Schoolmates
3-10
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Family
Family members influence buying
decisions.
The changing roles of family members have
blurred the lines of responsibility between men
and women.
New responsibilities and shared decisionmaking has led to double targeting.
3-11
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Identifying and Selecting
Target Markets
The ability of a company to target
specific customers is based on the
concept of market segmentation.
Market Segmentation - dividing a large market
into smaller homogeneous markets based on
common needs or similar lifestyles.
3-12
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Identifying & Selecting
Market Segments
In three steps…
Identify Market Segments
Select Segments with Most Potential
Position Product to Appeal to Target
3-13
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Demographic Segmentation
Target market are pursued on the basis
of:





3-14
Age
Gender
Income, Occupation, Education,
Marital Status & Household Formation
Cultural Mix
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Key Demographic Trends
Population is Getting Older
Economic Power of Women
The Formation of Households is Changing
Ethnic Diversity Continues
What are some impacts of these trends?
3-15
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Why are the over-50s such an
attractive market?
3-16
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Psychographic Segmentation
Examines individuals by lifestyles.
Activities
Interests
Opinions
Its consideration shows how individuals who
look similar demographically, behave differently
when other factors are known. Marketers
position brands according to certain lifestyles.
3-17
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Sampling of Lifestyle Clusters
3-18
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Geographic Segmentation
The division of geographically
expansive market (Canada) into
smaller geographical units (e.g., BC)
 Regional language and culture
 Urban / Suburban vs Rural
 Four broad urban regions
Ontario’s Golden Horseshoe
Lower Mainland of BC and
southern Vancouver Island
3-19
Montreal and
region
Calgary-Edmonton
corridor
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Direct Segmentation
Companies target customers
individually.
It is now possible to design unique
products and communications strategies for
current and prospective customers.
Customer relationship management (CRM)
Database management systems
3-20
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Behaviour – Response
Segmentation
Dividing buyers into groups according
to:
Occasion-for-use
Benefits-sought
Frequency of use
Loyalty-response
3-21
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Summary of Different
Segmentations
3-22
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Importance of Positioning
Target Market
Analysis
Competitor
Analysis
Positioning
Strategy
Product
3-23
Price
Marketing
Comm.
Distribution
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Importance of Segmentation
Knowing consumers intimately is key
to developing successful strategies;
this knowledge provides input for a
sound positioning strategy.
Creative Strategy
Positioning
Strategy
Media Strategy
3-24
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Market Positioning Concepts
Positioning is the 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.
It is very important that the positioning
statement aptly describe a primary benefit and
an image that is important to the target market.
3-25
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Positioning and Marketing
Communications
Advertising can communicate the
positioning strategy many different ways.
 Head-On
 Brand-Leadership
 Product-Differentiation
 Innovation
 Lifestyle
3-26
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Repositioning
Changing the place a brand occupies in
the customer’s mind in relation to
competitive products.
Repositioning is considered if consumer
attitudes change or if the marketing activity of
a direct competitor changes.
3-27
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