Learning Objectives

CHAPTER 3

Consumer Behaviour Concepts and Target Marketing

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

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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.

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?

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Needs and Motives

Need:
Absence of something useful

Maslows Hierarchy of Needs

Self-Actualization Esteem Social Safety Physiological

Motive:
Condition prompting action to satisfy a need

Communicating benefits and presenting the right image prompts the action to purchase.

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Personality and Self-Concept

Personality: a persons distinguishing psychological characteristics.
Self-Concept LookingGlass Self

Perceptions
People receive and interpret messages differently.

Selective Exposure Ideal Self Selective Perception Selective Retention

Real Self

SelfImage

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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.

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

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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.

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.

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Identifying & Selecting Market Segments

In three steps
Identify Market Segments

Demographic Segmentation
Target market are pursued on the basis of:
Age Gender Income, Occupation, Education, Marital Status & Household Formation Cultural Mix

Select Segments with Most Potential

Position Product to Appeal to Target

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Key Demographic Trends

Population is Getting Older Economic Power of Women The Formation of Households is Changing Ethnic Diversity Continues

Why are the over-50s such an attractive market?

What are some impacts of these trends?

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Psychographic Segmentation
Examines individuals by lifestyles.
Activities Interests Opinions

Sampling of Lifestyle Clusters

Its consideration shows how individuals who look similar demographically, behave differently when other factors are known. Marketers position brands according to certain lifestyles.

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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
Ontarios Golden Horseshoe Lower Mainland of BC and southern Vancouver Island
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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

Montreal and region Calgary-Edmonton corridor

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Behaviour Response Segmentation

Dividing buyers into groups according to:
Occasion-for-use Benefits-sought Frequency of use Loyalty-response

Summary of Different Segmentations

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Importance of Positioning
Target Market Analysis Positioning Strategy Competitor Analysis

Importance of Segmentation
Knowing consumers intimately is key to developing successful strategies; this knowledge provides input for a sound positioning strategy.
Creative Strategy

Product

Price

Marketing Comm.

Distribution

Positioning Strategy Media Strategy

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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.

Positioning and Marketing Communications

Advertising can communicate the positioning strategy many different ways. Head-On
Brand-Leadership Product-Differentiation Innovation Lifestyle

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Repositioning
Changing the place a brand occupies in the customers mind in relation to competitive products.
Repositioning is considered if consumer attitudes change or if the marketing activity of a direct competitor changes.

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