Ch 3: Consumer Behaviour

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Ch 3 Consumer Behaviour

• AIDA
• Maslow Hierachy of Needs
• Perceptions
• Attitudes
• GL's Consumer Process
• STP
• Cdn Mosaic
• Positioning
• Key LRC Resources (Generation 5, PMB)

2
Consumer Behaviour

• Advertisers need answers
• Who makes the buying decision?
• Who influences the buying decision?
• What motivates buyers and influencers to take
  action?

3
Needs and Motivation Theory

• Need
• Absence of something useful
• Motive
• Condition prompting action to satisfy a need

Communicating benefits and presenting the right
image prompts action.
4
Maslows Hierarchy of Needs
Self-Actualization
Esteem
Social
Safety
Physiological
5
Personality Self-Concept
Personality a persons distinguishing
psychological characteristics.
Self- Image
Looking- Glass Self
Ideal Self
Real Self
6
Consumer Perception Process

• Exhibit 4-2
• See Page 131

Slide 19
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Perception
People receive and interpret messages differently.
Selective Exposure
Selective Perception
Selective Retention
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What Do You See?
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Perceptual Filters/Screens

• Selective exposure
• media habits
• channel flipping
• multi tasking online
• Selective comprehension
• intellect
• processing of the message image
• noise filter
• Selective retention
• cognitive
• 7 ideas are stored

Lots of factors influence your perception. Do
True Colours?
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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.
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Psychographic Segmentation

• Examines individuals by lifestyles.
• Activities
• Interests
• Opinions
• Demographically identical people are different.
  Brands are associated with desirable lifestyles.

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Attitudinal Profile 2
x
See Limited example
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Geographic Segmentation

• Distinct regions present different challenges for
  advertisers.
• Regional language and culture.
• Urban / Suburban vs Rural
• Geodemographics

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A Demographic Profil
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Positioning and Advertising

• Head-On
• Brand Leadership
• Product Differentiation
• Technical Innovation
• Lifestyle

Ch 3
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Target Audience Profile

• Profile Template
• Checklist
• Primary vs Secondary

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Dimensions/Basis for Segmentation
Demographics
Psychographics
HH Size
Age
Sex
Income
Geographical
Lifestyle
Behaviour
Industry Classification
Light / med /heavy
Non / occasional / multiple / loyal
RFM
NAICS
Sector
Vertical sector
Needs
Current systems needs
Job title or function
Size of Company
Tip Draw Cluster Brainstorm then a Tree Diagram
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Use Research to Create Pyschographic Profiles
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FI Demographic Segments
xxx
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Sample of Vertical Prospect Base
With this criteria there are over 8100 potential
prospects..which now need to be further
qualified...
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Possible Segments to Monitor
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RRSP Mailing - Highly Segmented
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Review of Transparencies

• Benefits Matrices

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Overview of STP

• There are many ways to slice dice
• What dimensions could we sub-divide the class
  into?

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Name that Target Audience

• Review the magazine print advs
• Whats the most meaningful level of segmentation?
• Create a tree diagram of possible sub-segments
• Profile a primary and secondary audience

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Blank TAP Template
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Sample Tap Template for Kodak
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Psychographic Segments

• Generation 5
• Prizm

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Product Concept Profile (PCP)

• Product LifeCycle
• Differentiation
• 0
• Learn, Feel, Do
• 0
• Differences in each plan

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Sample SMAC Objective

• "Among the 30 million housewives who own
  automatic dishwashers, increase - from 10 to 40
  in one year - the number who identify Brand x as
  a low-sudsing detergent and who think it gets
  clothes cleaner.
• See text page 255 for sample objectives for the
  first-year intro of Accura.

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Basic Product Feature Breakdown
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Learning Theory

• cognitive knowledge think Learn
  consciously store
• affective Feel
• cognitive behaviour Do

In high involvement products consumers...
Learn/Feel/Do In low involvement products
consumers... Do/Feel/Learn
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Product Life Cycle

• Exhibit 5-8
• See Page 164

Slide 28
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PLC Strategies
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What a Product Really is (the detail)

• Augmented
• - service
• - warranties
• -credit (or deferred)
• - new improved
• Note based on perception, comp advantage can be
  shortlived

Physical Product - features - styling -
packaging - quality - presentation
CORE BENEFITS (uses from targets perspective)
Whats the USP or differentiation?
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Types of Differentiation

• Visual
• Perceived
• Induced

But is the differentiation distinct, relevant,
supperior, afforedable?
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FAB Matrix to Determine the Benefits
Features (service or process) 1 2 3
Advantages (relative to another source)
Benefits (to the end user)
E.g. Cruise control in a car

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Positioning Analogy
Corporate Positioning the company
Brand (logo)
Key Brand Messages
the product
Core attributes
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Develop a Community
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Simple Clear Positioning
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P2 Positioning Map

Where is your Competition? How many firms are in
each area?
Variable 1
Variable 2
Variable 2
e.g. Benefit
Variable 1
e.g. Differentiator
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Synthesizing the Message
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Positioning and Advertising

• Head-On
• Brand Leadership
• Product Differentiation
• Technical Innovation
• Lifestyle

Ch 3
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P4 Fill-in the Positioning Stmt (Template)

• For (target market)
• Who (stmt of need or opportunity, compelling
  reason to buy)
• The (product name is a (product category)
• That (key USP or benefit provided)
• Unlike (primary comp alternative)
• Our product (stmt of differentiation)

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Breathe Right Positioning Stmt

• Corporate Positioning Statement
• For-athletes and snorers
• Who-need to enhance performance breathe easy, or
  step snoring
• The-Breathe Right Strips
• That-help you to breath easier
• Unlike-nasal sprays and antihystimens
• Our Product-is drug free

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MM Meat Shops (make this better)

• Consumers
• eat meat and look for quality and convenience
• Retail meat store
• extrelmely convenient and high quality meat
• any other vendor
• Has committed to the best customer service and a
  great product knowledgte for a memorable shipping
  experience

• For
• Who
• We offer
• That
• Unlike
• xxxx

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How WLA is Different...

• Small established family business for small union
  locals
• No fancy overhead means that we provide low cost
  to our union clients
• 30-50 less expensive than large administrators
• Pay for services that you want need
• dont pay for extra overhead
• All fees are disclosed upfront
• No commissions