Marketing Communications - Chapter 4 docx

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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:
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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:
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Cengage Learning. All rights
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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
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Targeting Specific Audiences
Targeting Specific Audiences
Behaviorgraphics
Demographics
Psychographics
Geodemographics
Measureable Consumer
Characteristics
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Classification of Four General Targeting Characteristics
Figure 4.1
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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
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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
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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
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Illustrative Statements Used In a Customized Banking-
Related Psychographic Study
Table 4.1
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Psychographic Study of Consumers’
Psychographic Study of Consumers’

Banking Practices
Banking Practices
Worried
Traditionalists
Bank
Loyalists
Secured
Investors
Thrifty
Bankers
Psychographic Segments
of Banking Behaviors
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Yankelovich MindBase Segments
Table 4.2
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Yankelovich MindBase Segments (cont’d)
Table 4.2
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The 8 VALS
Segments
Figure 4.2
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VALS Psychographic Segments
VALS Psychographic Segments
Innovators
Innovators
Successful, sophisticated, take-charge, with high self-esteem
Thinkers
Thinkers
Mature, satisfied, comfortable, and reflective; valuing order,
knowledge, and responsibility and motivated by ideals
Believers
Believers
Conservative, conventional with concrete beliefs based on
traditional, established codes: family, religion, community,
and the nation; motivated by ideals
Achievers
Achievers
Motivated by the desire for achievement; have goal-oriented
lifestyles and a deep commitment to career and family
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VALS Psychographic Segments
VALS Psychographic Segments
Strivers
Strivers
Trendy and fun loving. Motivated by achievement out of
concern about the opinions and approval of others
Experiencers
Experiencers

Motivated by self-expression; are young, enthusiastic, and
impulsive consumers; quickly become enthusiastic about
new possibilities but are equally quick to cool.
Makers
Makers
Motivated by self-expression; express themselves and
experience the world by working on it and have enough skill
and energy to carry out their projects successfully
Survivors
Survivors
Live narrowly focused lives; with few resources with which to
cope, often believe that the world is changing too quickly; are
comfortable with the familiar and are primarily concerned
with safety and security
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Geodemographic Targeting
Geodemographic Targeting
•
Geodemographics
Geodemographics

Consumers who reside within geographic clusters
Consumers who reside within geographic clusters
such as zip codes or neighborhoods also share
such as zip codes or neighborhoods also share
demographic and lifestyle similarities
demographic and lifestyle similarities
•

Typical Clusters (PRIZM NE)
Typical Clusters (PRIZM NE)

Bohemian Mix
Bohemian Mix

White Picket Fences
White Picket Fences

Suburban Pioneers
Suburban Pioneers
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Demographic Targeting
Demographic Targeting
Age structure
of the population
Change in
household
composition
Ethnic population
developments
Major Demographic
Aspects
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Demographic Trends
Demographic Trends

•
World Population Growth
World Population Growth

6.67 billion (2009) to 8 billion (2025)
6.67 billion (2009) to 8 billion (2025)
to 9 billion (2050)
to 9 billion (2050)
•
Changing Age Structure in United States
Changing Age Structure in United States

Median age will increase to 38 by 2025
Median age will increase to 38 by 2025

More middle-aged Baby Boomers
More middle-aged Baby Boomers

Fewer children, teenagers, and young adults
Fewer children, teenagers, and young adults
due to decreased birthrates
due to decreased birthrates
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World’s 25 Largest Countries as of 2007
Table 4.3
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Largest Ancestral Groups of U.S. Residents
Table 4.4
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Population of the
United States by
Age Group, as of
2006
Table 4.5
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Demographic Segments by Age Group
Demographic Segments by Age Group
•
Preschoolers (5 years or younger)
Preschoolers (5 years or younger)
•
Elementary-school-age children (6-11 years)
Elementary-school-age children (6-11 years)
•
Tweens (8-12 years)
Tweens (8-12 years)
•
Teenagers (13-19 years)
Teenagers (13-19 years)

Millennial Generation or Generation Y
Millennial Generation or Generation Y


Highly conformist, narcissistic, and fickle consumers
Highly conformist, narcissistic, and fickle consumers
•
Young adults (20-34 years)
Young adults (20-34 years)

Generation X (
Generation X (
Baby Busters
Baby Busters
)
)

Yup & Comers, Bystanders, Playboys, and Drifters
Yup & Comers, Bystanders, Playboys, and Drifters
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An Appeal to
Preschoolers’
Parents
Figure 4.3
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An Appeal to Teenagers
Figure 4.4